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Development of Business Cases for Fuel Cells and Hydrogen Applications for Regions and Cities Project and initiative overview Sofia, May 2018 The FCH JU's Regions & Cities initiative supports regions & cities to implement projects and become key drivers of techn. development Objectives of the initiative Support regions in assessing Regions and local authorities FCH applications in business become driver of change and cases and evaluating their stimulate demand potential Industry understands Identify & maximize the use of requirements & demand different financing options of market (buyers) and refine/develop products Support the regions/cities in H 2 H 2 The European the promotion of the technology Commission increases – e.g. in context of their "Smart the level of cooperation Specialization Strategies" (S3) with regions on concrete technology projects H 2 Develop roadmaps & concepts H 2 to prepare and implement The EC enhances information H 2 deployment projects from 2018 exchange on and visibility of onwards FCH applications Source: Roland Berger 2 89 Regions and Cities from 22 countries are part of the initiative – even more have expressed interest in hydrogen technologies Belgium Norway Sweden Germany > Flanders > Akershus > Gavleborg > Baden-Württemberg > HYPOS (East > Pom West-Vlaanderen > Møre og Romsdal > Mariestad > Bremerhaven Germany) > Oppland > Hamburg > Kreis Steinfurt Iceland > Sogn og Fjordane Finland > Heide Region > North Rhine- > Reykjavik > Kokkola > HyCologne- Westphalia Hydrogen Region > Recklinghausen/ United Kingdom Nether- Rhineland Northern Ruhr area > Aberdeen > Manchester lands Denmark > Saxony-Anhalt > Birmingham > Newcastle > Assen > Guldborgsund > Cornwall > Orkney Islands > Drenthe > Lolland Czech Republic > Dundee > Oxfordshire > Emmen > Trutnov > Fife > Perth and Kinross > Groningen > Leeds > Swindon and > Helmond Estonia > London (Greater Wiltshire > Tallinn Slovenia Authority) > Tees Valley > Velenje Latvia France > Riga Croatia > Auvergne Rhône-Alpes > Split > Bourgogne-Franche-Comté > Split-Dalmatia > Centre-Val de Loire County > Grand Dole > Grenoble > La Roche sur Yon Romania > Normandie > Constanta > Occitanie-Pyrénées > Orléans > Pays de la Loire Bulgaria > Pays de St Gilles > Bulgarian Ports > Sofia Spain > Aragon > Port of Greece > Barcelona Valencia > Cantabria > Puertollano > Agia Paraskevi > Papagoou- > Castilla – La > Valladolid > Alimos Halargos Mancha > Heraklion > Region of > Murcia > Ierapetra Crete Italy Austria > Kalymnos > Vrilissia Portugal > Favignana > Turin > Tirol > Kozani > Western > Torres Vedras > Lazio > South Tyrol > Milos Macedonia > Médio Tejo > Toscana > Venice Legend: Map shows all Regions and Cities which have signed the MoU 3 By investing in fuel cells and hydrogen, Regions and Cities can increase quality of living and attract people and businesses Attractive local benefits of hydrogen technology Indirect benefits of Improving image Attracting skilled workforce FCH technology as "green city" Boosting local Creating new tourism jobs Increasing Attracting new quality of life businesses Creating a green, vibrant city – Becoming an attractive location to visit, live and work in Creating positive Boosting research health impacts & innovation Zero local Zero CO 2 pollutants Direct benefits of emissions Reduced FCH technology Increased use noise levels of renewables 4 Some applications can be deployed in the short term, as they are comm. available and implementation lies within in the public domain Short-term deployment opportunities for Regions and Cities INDICATIVE What applications can I deploy tomorrow? Key considerations High Residential mCHP Urban buses Forklifts Cars Industrial CHP/PP Power to H Back-up power 2 Gen-sets Off-grid power H2 injection into gas grid Grid services Delivery vans Sweepers Bikes Trains Scooters Comm. CHP Garbage trucks TRL Heavy-duty trucks > In the short term, Cities and Regions can look for high TRL applications for actual deployment projects Boats Ferries Construction mobile equ. > Public infrastructure sectors are well suited for Port op’s. Ships deployment of applications because of direct control of Airport equ. Low Aircraft public authorities (e.g. publically-owned local/regional Medium transport operators or utilities) High Low > Cities and Regions can reduce complexity in multi- Low Opportunity for direct public engagement High stakeholder settings by acting as direct customers of industry Implementation-rel. ease of deployment: 1) Results differ depending on location, time horizon, benchmark technology as well as specific use case under consideration 2) Applications in parentheses are still to be discussed within Working Group Calls Source: FCH2 JU, Roland Berger 5 In South-Eastern Europe, local project plans for first FCH projects are defined, but lack of funding is a challenge for implementation Status and results Cluster South-Eastern Europe 1st workshop: 01/03, Athens > Greece: 2nd workshop: 12/04, Sofia – Early stage market with concrete concepts for FCH deployments across a number of locations and applications/ use cases where PARTICIPANTS implementation is yet to be started Regions & Cities: Agia Paraskevi, – Strong support by local decision makers for engaging in first FCH Alimos, Kozani, Milos, Velenje, Vrilissia projects to support local sustainability plans and increase RES use Industry members, associations, > Slovenia: research institutions, local decision – Focus on local shift to clean energy by FCH use, starting with makers deployment of FCH mini-buses in public transport, establishment of an HRS and use of by-product H2 from thermal power plant Challenges and need for support FOCUS APPLICATIONS > Mini-buses, sweepers, garbage trucks, > Lack of central government support (Greece) – Commitment for FCH cars, scooters, bikes by national authorities is limited, e.g. no plan for national HRS net- > CHP for public buildings work build-up has been submitted > Back-up power supply > Project funding – Acquiring required funding is seen as major hurdle for project implementation > Build-up of local HRS > Lack of product availability – E.g. FCH mini buses difficult to obtain 6 In South-Eastern Europe, six projects with a volume of EUR 223 m are in the planning stages for implementation Total next implementation project budget per country cluster [EUR m] Total # of projects: 351) Total project budget: 1,766.9 EUR m Nordics + Baltics (3 projects) 52.6 UK (5 projects) 66.4 Central Europe (12 projects) thereof Germany 1,206.9 971.5 (6 projects) France (4 projects) 132.7 South East Europe Iberia + Italy (6 projects) 223.0 (5 projects) 85.4 Countries with regions that indicated a project budget 1) Number of projects with an indicated budget covering 41 locations in total 7 Funding/financing as well as business cases are the most acute hurdles to the successful deployment of FCH applications Hurdles and challenges posing obstacles for FCH deployment1) Totally disagree (1) Totally agree (5) Other reasons (selection): Lack of funding/financing 16% 19% 57% Ø 4.2 Insufficient viability of the 23% 22% 42% Ø 3.9 "Lack of skilled local people" business case Insufficient technological 31% 31% 14% Ø 3.3 readiness/performance "Missing public awareness" Lack of political backing 27% 18% 16% Ø 3.0 & buy-in Complexity of permitting & 32% 19% 14% Ø 3.0 "Lack of time" authorization procedures Regulatory barriers 33% 11% 17% Ø 3.0 "Insufficient coordination between Lack of industry stakeholder different initiatives" 34% 19% 7% Ø 2.7 support Lack of hydrogen "Large area with small population 29% 10% 14% Ø 2.6 supply density" Totally disagree (1) 2 3 4 Totally agree (5) 1) Question: "Within your region/city, which hurdles and challenges currently pose obstacles to the deployment of FCH applications?" (n=72-74) Source: FCH2 JU, Roland Berger 8 Regions & Cities with existing plans need to be more concrete and newcomers have the opportunity to benefit from a large network Concrete next steps: Planned deployment projects Newcomers >Scoping of concrete projects and >Use extensive material on FCH JU definition of a concrete project concept Regions Initiative website to identify >Definition of a realistic project opportunities for hydrogen technology financing concept >Get in touch with the FCH JU to join >Engagement of relevant local the initiative stakeholders >Create a network with experienced >Pushing the project towards Regions and Cities that can share implementation their experience >Start working on your local project concept 9 10 For further information or joining the initiative, please do not hesitate to get in touch with us Relevant contact information Your contacts at the FCH JU Your contacts at Roland Berger Strategy and Market Head of Unit of Operations Project Deputy Project Development Officer and Communications Management Management Carlos Mirela Yvonne Simon Navas Atanasiu Ruf Lange +32 2 221 81 37 +32 2 221 81 40 +49 160 7446334 +49 160 7442965 carlos.navas mirela.atanasiu yvonne.ruf simon.lange @fch.europa.eu @fch.europa.eu @rolandberger.com @rolandberger.com http://www.fch.europa.eu https://www.rolandberger.com 10 .
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