An Update on ’s Vehicle Activities

Hydrogen and Fuel Cell Technical Advisory Committee

November 04, 2009

Robert Wimmer Toyota Motor North America Issues that Influence Automobile Business

Issues Action Potential Solution

Biofuels Energy & Fuel Petroleum Supply Green Electricity Diversification Natural Gas

Life Cycle Improved Efficiency Climate Change CO2 Reduction Low Carbon Fuels

Reduce Fuels from Balance of Trade Imported Fuel Domestic Feedstocks

Reduce Imports from Fuels from Energy Security Unfriendly Countries Domestic Feedstocks Hybrid is First Step

TOYOTA MODELS MODELS

Prius Midsize 5 Door RX450h Luxury SUV

Averaging over 20,000 hybrids sold per month in 2008 HS250h Camry Hybrid Midsize Sedan Midsize 4 Door

GS450h Highlander Hybrid Premium Sport Sedan LS600h Midsize SUV Flagship The Big Picture

Cumulative Hybrid Sales 2.5

2.0 Global Energy Benefits to Date* • Over billion gallons of gasoline saved Global Sales 1,800,000 1.5 • Over 10 million tons of CO2 avoided

1.0

0.5 Cumulative Sales in Millions US Sales 1,000,000 0.0 Jan-June 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

New technologies must be produced in large volumes to make a meaningful impact *Toyota Estimate Comparison of Energy Efficiency

Energy Well-to-Tank Tank-to-Wheel Well-to-Wheel *1 pathway *1 50% 50% 20% 40% Natural gas Reforming with FCHV-adv membrane 67% *2 59% 40% separation Hydrogen (70MPa) Natural gas Combined cycle EV power generation 39% 85% 33% Electricity Crude oil Gasoline HV (Prius) Refine 84% 40% 34% Gasoline Crude oil Gasoline ICE Refine 84% 23% 19% Gasoline *1 Tank-to-Wheel efficiency: measured in the Japanese 10-15 test cycle *2 Difference of Well-to-Tank efficiency between 35MPa and 70MPa: approx. 2%

(Toyota Calculation)

FCs are tough to beat for well-to-wheels efficiency Toyota FCHV Progress

Present 2015 FCCJ* / DOE Target * Fuel Cell Commercialization Vehicle Conference of Japan Dec. 2002 ~ Jul. 2005 ~ Commercial ’02 FCHV ’05 FCHV ’08 FCHV-adv (lease model) (lease model) (lease model) Introduction Mass Production Technical Challenges 1. Cold Start / Driving 0degC ~ 0degC~ -30degC Capability 2. Actual Cruising 210km 230km 500km or more Range 15 years or more 3. FC Stack Durability 1/10 or less 4. Cost reduction (design / materials)

Toyota is making excellent progress resolving technical challenges FCHV-adv

*1 in LA#4 cycle Overall length/ width/ height (mm) 4,735/ 1,815/ 1,685 Type Pure hydrogen

Max. speed (mph) 96 Storage system High-press. H2 tank Fuel Vehicle Cruising range (mile) Max. storage 455 pressure (MPa) 70 *1 *1 Tank capacity Fuel economy (mile/kg H2) 72.4 6.0 (35 degC) (kg H2) Fuel Cell System Technology

Hybrid Technology Power control unit Motor Battery

TOYOTA High pressure FC Stack hydrogen tank Fuel Cell System Technology Key Technical Challenges for FC Vehicles

B. Freeze start C. Stack durability capability

D. Cost & power density

A. Cruising range Cruising Range Improvement

65

60

On-board H2 55 + 94% Test cycle FCHV-adv FCHV-adv

50 Fuel economy (329miles,η 58%) LA#4 455 miles + 23% Japanese house test cycle - 10・15 516 miles 45 FCHV in-house test η: Vehicle efficiency (LA#4) Practical fuel economy Practical fuel economy (mile/kg) in Toyota (137miles,η 46%) 2.0 3.0 4.0 5.0 6.0 7.0 64% FCHV-adv: improved FC FCHV-adv On-board H2 (kg) system efficiency at all loads 60 FCHV 40 FCHV-adv has achieved an Increased regenerative energy 20

practical cruising range of 0 Improved vehicle efficiency 0 20 40 60 (fuel economy)

well over 300 miles FC system efficiency (%) Load (%) FCHV-adv Real-World Range

Rush Hour in Los Angeles • 2 FCHVs • Over 400 miles / tank • 68.3 miles/kg of H2

Fairbanks to Vancouver • 2300 miles • Over 300 miles / tank • No mechanical problems Key Technical Challenges for FC Vehicles

B. Freeze start C. Stack durability capability

D. Cost & power density

A. Cruising range Demonstrated Cold Start Capability

Timmins, Canada

(degC) Ambient Air Temperature at Timmins (degF) 1010 50 00 32 ] 20 ℃ - -1010 °C 0 --2020 外気温 [ Ambient Temp.Air Ambient Temp.Air --3030 -20 -37degC Yellowknife, Canada - -4040 -40 2/8 2/10 2/12 2/14 2/16 2/18 Date

Cold weather performance similar to conventional vehicles Cold Start Countermeasures

Management of water when starting at subfreezing temperature B) Increase water Fail to exceed 0 degC storage capacity Exceed 0 degC Fail to start  Succeed in A) Purge starting Water storage capacity

C) Accelerate stack temperature rise

Amount Amount of watercellin a After After After starting Shutdown purging @ =< 0deg C : Amount of generated water before exceeding 0 degC Measures important for cold start capability: A) Optimum purge to reduce remaining water B) Increase of water storage capacity C) Accelerating stack temperature rise Key Technical Challenges for FC Vehicles

B. Freeze start C. Stack durability capability

D. Cost & power density

A. Cruising range Toyota FC Stack Durability Stack Durability MEA1 MEA2 Threshold Reduction Reduction of chemical of physical limit value deterioration deterioration Amount Amount Crossover Crossover MEA3 MEA4

Threshold limit value

MEA1 MEA1 MEA3 Output Output MEA4

Maximum MEA2 Maximum MEA2

0 5 10 15 20 25 Durability (year equivalent)

MEA durability is steadily improving under real-world conditions FC System Durability

Driving Cycle Pattern of Test

100 Average speed : 40 mile/h

90 Speed km/h [ ]

30 min / cycle 80

312,000 mile; 25years equivalent

System Output [ % ] % [ Output System 70

FC system Bench 60 0 100,000 200,000 300,000 Running Distance [ mile ] Testing indicates linear degradation to the equivalent of 25 years Degradation During Start-up & Shutdown

1. Degradation due to potential change at starting 100

0V ⇔ 95 0.85V

Start of operation

90 0V 1.0 ⇔ 0.85

OCV Stack output[%] Stack Stack output[%] Stack Cell [V] Voltage 85 Cell [V] Voltage 0 Time

80 Number of Start & Stop

Votage at start-up and shutdown must be managed Cold Start Degradation

100

95

90 Deteriorated80 condition (sample) Catalyst layer

85 Delaminated75 0 5 Stack output [%] 80 Membrane

75 0 80 160 240 320 400 Number of ON/OFF at subfreezing temp.

Must minimize degradation from cold starts FC Stack Durability Summary

Confirmed system durability of FCHV-adv:  25-year equivalent durability on crossover  Approximately 70% of initial performance after the equivalent of 25 years operation

Next steps: Develop countermeasures to enhance durability  Reduce start/stop and cold start degradation  Confirm correlation between laboratory and field test data Key Technical Challenges for FC Vehicles

B. Freeze start C. Stack durability capability

D. Cost & power density

A. Cruising range FCHV Cost Reduction

1/10

1/10

’05 Model ’08 Model Model Model FCHV FCHV-adv generation generation

Resolving Reducing costs By innovative technical issues design, material, manufacturing engineering By mass production Approaches to FCHV Cost Reduction

(1) Design 1. Simplify the system 2. Downsize and reduce weight of FC stack (2) Materials: Reduce the cost of FC-system- specific materials TOYOTA FCHV => Important to cooperate with materials manufacturers (3) Improve production technology FC Stack Cost Reduction

(1) Design: Downsize & reduce weight (minimize materials) 1. Increase output density 2. Reduce number of parts 3. Improve joint/seal method TOYOTA FC Stack 4. Decrease Pt catalyst loading

Current density x2 with ½ electrode area  Halve cell materials used (2) Material: Improve durability & reduce cost 1. Electrolyte membrane

Cell Voltage [V] Cell Voltage Max. output 2. Separator (incl. surface treatment) 3. GDL, etc. Current Density [A/cm2] Electrode Catalyst “Trilemma”

- Improvement of catalyst activity - Crossover reduction - Contact resistance reduction - Improvement of proton conductivity Goal -Improvement of gas diffusivity Efficiency -Water management Current Status

Power Density

Trilemma of Electrode Catalyst (1) Reduction of precious metal amount (Pt 1/10) (2) Higher performance Cell Voltage (V) CellVoltage (High voltage / High output density) (3) Durability improvement (200,000km for 15 years or more)

Current Density (A/cm2)

Must solve electrode catalyst “trilemma” to achieve FC stack cost targets Hydrogen Tank Cost Reduction

CFRP (for resistance to H2 gas pressure) ØD

Liner (for H2 sealing)

Cross-section of tank body L

(1) Reduce CFRP used (by making thinner) Tank dimension - Optimize laminar structure (hoop winding / helical winding) - Optimize L/D - Optimize boss size (2)Reduce cost of CFRP - Aviation grade => general-purpose grade - Develop low-cost CFRP for high-pressure tank Development of Production Technology

(1) Web handling technology (2) One-by-one handling technology

Transfer direction

Transfer robot

Bernoulli Chuck

Slip Cell @ transfer speed 50m/min. Revolution Before transfer indicator After transfer (3) 70 MPa hydrogen tank Progress of FC Technology Development

Basic research

Commercialization

Valley of death Source of pictures: each automaker’s web site (excluding TOYOTA FCHV)

FC development is more than half way over the “Valley of Death” Steps for Commercialization

Production Delivery, Supply Vehicle

Solar / biomass

Coal

Petroleum Hydrogenated Hydrogen compounds Natural Gas

Electricity

• Stack Durability • Power Density • • Transportation Method Production • Freeze Start Capability • Storage method • Infrastructure Development • Codes & Standards • Driving Range • Issues CO2 Stabilization • Vehicle Cost Issues • Cost Issues • Hydrogen Delivery Cost

Government, Energy Suppliers Car makers California Infrastructure Concern

200 5000 Assumption: 180 One H2 station serves 25 FC vehicles 160 4000 140

120 Expected FC Vehicle# based on 3000 100 current ZEV requirement Stations 2 80 2000 Station Capacity Station 60 2 H # of H

40 1000 OEMs total vehicles, # of 20 Expected H2 Station # 0 and Capacity ( serving0 vehicle #) 2000 2002 2004 2006 2008 2010 2012 2014 Year

By the 2012, the demand for H2 stations far exceed supply if station deployment is not accelerated Conclusions • Hydrogen is one of the future fuels Toyota is pursuing • We continue to devote considerable resources to bringing a FC vehicle to market in the 2015 time frame – Cold start & range issues are mostly resolved – Durability & cost challenges remain • “Green” fuels and high volumes are required for meaningful GHG benefit • Deployment of hydrogen refueling infrastructure must accelerate for fuel cell vehicles to succeed Thank You!