Fuel Cell Electric

An attractive Value Proposition for Zero-Emission Buses In

- April 2020 -

Photo: An Attractive Line Bloch Value Klostergaard, Proposition North for Denmark Zero-Emission Region Buses. in Denmark

Executive Summary

Seeking alternatives to diesel buses are crucial for realizing the Danish zero Zero–Emission emission reduction agenda in by 2050. In Denmark alone, public transport and road-transport of cargo account for ap- proximately 25 per cent of the Danish CO2 emissions. Thus, the deployment of zero emission fuel cell electric buses (FCEBs) will be an important contribution Electric Buses for Denmark. to the Danish climate law committed to reaching 70 per cent below the CO2 emissions by 2030 and a total carbon neutrality by 2050. In line with the 2050 climate goals, Danish transit agencies and operators are being called to implement ways to improve air quality in their municipalities while maintaining quality of service. This can be achieved with the deployment of FCEBs and without compromising on range, route flexibility and operability. As a result, FCEBs are now also being included as one of the solutions in coming zero emission route tenders Denmark. Danish municipalities play an important role in establishing the public transport system of the future, however it is also essential that commercial players join forces to realize the deployment of zero-emission buses. In order to push the de- velopment forward, several leading players in the hydrogen fuel cell value chain have teamed up and formed the H2BusEurope consortium committed to support the FCEB infrastructure. FCEBs are hybrid-electric buses with a high efficiency zero-emission “generator” which converts energy from hydrogen gas and air into electricity. A FCEB offers all the benefits of electric drive while improving the bus performance with no compromise in service and operation. Delivering the required mix of emission reduction, fast refuelling, extended range and route flexibility, FCEBs are the only zero-emission direct 1:1 replacement for diesel, CNG and buses. FCEBs have been in commercial service for more than ten years in cities all over the world. In March 2020 the first 3 FCEBs were put into official operation in Denmark. The 3 buses mark a very important step towards zero emission public transport in Denmark, as the buses bridge the gap between demonstration and larger scale deployment of FCEBs. However, to continue reducing the price of Photo: Line Bloch Klostergaard, North Denmark Region. FCEBs, scaling up the deployment of fuel cells is key.

Van Hool fuel cell operated by Keolis and in , Denmark Denmark is a front runner in implementing renewable energy from e.g. wind tur- bines, and through electrolysis excess wind energy can be converted to hydrogen and can be a zero-emission alternative replacing combustion engine vehicles running on fossil fuels. Thus, hydrogen production can also cover large parts of the balancing needs in Denmark to integrate renewable energy by 2050. The zero-emission FCEB solution is ready to be implemented and the time is now to make a move to FCEBs for public transport. Read on to learn more about the benefits of zero-emission FCEBs for public transportation in Denmark.

2 3 An Attractive Value Proposition for Zero-Emission Buses in Denmark

IntroductionIntroduction

Denmark is at the forefront of the fight against climate change. In December 2019, the Danish Parliament agreed on a legally binding Climate Act which sets forth to reduce greenhouse gas emissions by 70 per cent by 2030 (compared to the 1990 level), and to be completely free of fossil fuels by 2050.

Denmark has always been a birthplace for green solutions, and has since the Clean public transit 1970s installed wind turbines onshore. In 1991, Denmark accelerated the green transition by building the worlds first offshore wind farm. In 2019 half of Den- mark’s electricity consumption originated from renewable energy sources— mostly dominated by energy from wind turbines.

powered by Denmark is on the right track, however being completely fossil fuel free by 2050 will also require a significant change in the transportation sector. Thus, this pre- sents an opportunity for Denmark to also take a leadership role in deploying zero -emission fuel cell vehicles. With large fleet of buses, transit agencies and opera- tors are in the best position to accelerate and facilitate the transition to fuel cell renewable hydrogen buses (FCEBs) and should set ambitious targets for the replacement of conven- tional bus fleets.

FCEBs are ready to be implemented for public transit and will support economic will improve air quali- development while improving the air quality in the cities and reduce the CO2 emissions. Denmark is one of the world leaders within hydrogen and fuel cell technologies, and was the first country in the world to establish a nationwide network of hydrogen refueling stations. Denmark is also fully engaged in fuel cell technology; from R&D to product manufacturing and from hydrogen production ty in our cities. to infrastructure deployment.

FCEBs reduce the external environmental and health care costs associated with pollution from transportation. With lower noise levels and air quality improve- ment, operators will benefit from a sustainable and modern image while reduc- ing operating costs and improving passenger satisfaction.

In March 2020, the first 3 FCEBs were put into operation in Denmark in the city of Aalborg. The 3 buses are a part of the ambitious EU-funded project 3Emotion (funded through the FCH-JU program), which is one of several initiatives Ballard takes part in, in order to promote the deployment of FCEBs. Promoting the fuel cell technology will contribute to reducing the dependency on fossil fuels and se- curing the scale up of the FCEBs.

The buses in Aalborg mark a great start, however the potential for greening the transport sector and the associated benefits are enormous. Thus, if Denmark is to achieve the 2050-target, implementing more FCEBs is part of the solution.

4 5 An Attractive Value Proposition for Zero-Emission Buses in Denmark

Benefits of Zero-Emission Fuel Cell Electric Buses

FCEBs provide affordable zero-emission transportation with no compromise in GHG Reductions Reliability vehicle performance. FCEBs are the only zero-emission technology to offer full vehicle capability (grade ability, highway speeds, and long range) in all operating FCEBs have zero tailpipe emissions. With millions of kilometers in - They produce no nitrogen oxides, sulfur cial service and more than 15 years on environments. dioxides or particulate matter. By using the road in different environments and FCEBs do a complete day’s work even on the most arduous routes and allow for hydrogen produced from renewable en- duty cycles, FCEBs have a 1:1 replacement for conventional diesel or (CNG) ergy sources only, buses reach full car- proven to meet operational require- technologies. This means that hydrogen FCEBs can operate on all urban bus bon neutrality from a well to wheel per- ments of transit agencies and bus oper- routes without compromise. spective. One FCEB fueled with hydro- ators. FCEBs in Denmark will benefit gen from renewable energy sources will from the proximity to the European ser- avoid approximately 122kg of CO2 emis- vice center in Hobro, Denmark (Ballard sions for every 100 kilometers traveled Europe) to ensure availability. Perfor- compared to a conventional diesel bus. mance and reliability represents a fully 1:1 zero-emission alternative to diesel Performance buses. A FCEB is a battery-fuel cell hybrid bus. It provides the operator with all the ben- Scalability efits of battery electric buses while ad- Hydrogen filling stations at transit de- dressing the range and charging issues. pots are built to be scalable. The equip- FCEBs operate over 450km during an ment is similar to a CNG station, and a 18-hour shift on the road with a single 5 station can simply and cost-effectively -7 minute re-filling. They do not require increase its capacity from 10 to 100 any charging infrastructure along the buses by upgrading the compression route or at the bus depot. and storage equipment and adding dis- FCEBs powered by Ballard's motive pensers. modules FCveloCity® & FCmove™ have traveled more than 30 million kilome- Flexible Vehicle Integration ters of revenue service with bus availa- Fuel cell power modules for transit bus- Hydrogen bility above 85%. es are commercially available from 30 to 100 kW, allowing bus manufacturers to offer a range of options to meet their customer requirements. Fuel cell power Zero-emission transportation with modules can be integrated into any type of bus from 8m to 18m (articulated) in- no compromise in performance or cluding double decker buses. operation.

6 7 An Attractive Value Proposition for Zero-Emission Buses in Denmark

Fuel cell electric bus

A FCEB is an that includes both a fuel cell and batteries working seamlessly together to provide efficient zero-emission power without compro- A fuel cell electric bus is mised range or route restrictions. In such hybrid architecture, the fuel cell pro- vides energy to keep the batteries charged, works with the batteries to provide peak traction power, and provides the energy necessary for the bus auxiliary loads. a The fuel cell power module onboard the bus efficiently generates electric energy through an electro-chemical reaction leaving only water and heat as by-products. with an on-board The electric energy is used to keep the batteries charged and, as a further bene- fit, the by-product heat is useful as a source of energy for maintaining passenger comfort, to improve vehicle efficiency. The batteries also provide storage for re- generated energy. range extender. There is no need to plug in the bus to warm up the FC during night for freeze pro- tection or to recharge the batteries as hydrogen stored in bus provides the entire daily energy needs of the bus. The remaining bus elements (glider, electric drive, etc.) are identical to battery electric buses.

Hydrogen offers much higher energy density compared to electrical storage sys- tems such as batteries. With the addition of a hydrogen fuel cell system, the bat- tery system can be reduced in size, decreasing the overall weight of the propul- sion system which will improve the fuel efficiency of the vehicle and will allow the vehicle to carry more passengers.

FCEB technology is increasing its presence in the public transportation industry, and more than 10 bus manufactures are currently offering a FCEB model. How- ever developments are constantly being made and we expect to see many new FCEBs in the future.

In the following, three examples from Solaris, and Wrightbus are pre- sented. They each offer a FCEB as part of their zero emission bus product range.

Key components of a fuel cell electric bus

8 9 An Attractive Value Proposition for Zero-Emission Buses in Denmark

Solaris Fuel Cell Electric Buses Wrightbus Fuel Cell Electric Buses

In late 2014 Solaris introduced its first range of up to 450 kilometers. The fuel Wrightbus owned by Bamford Bus Compa- Wrightbus’s fuel cell concept features an Urbino 18.75 articulated electric bus with cells are used only when 100% of output ny ltd. is a leading manufacturer of city electric drive axle packaged to allow a low hydrogen fuel cell range extender. is required, which significantly increases buses for the UK and increasingly the -entry bus, which has higher floor from the their durability. global market. rear wheels and upwards, a zero-emission At a length of 18.75 meters, this emission heating and cooling system, the ability for -free bus can be operated on even the The buses are quickly re-fuelled with hy- Wrightbus offers a comprehensive range overnight charging if the operator desires, most heavily used lines. drogen at the bus depot at the end of of drivelines to meet operator’s needs, and remote diagnostics. each day. these include Micro Hybrid, Hybrid, and The bus has also won the Fuel Cell Award EV. In 2016 Wrightbus launched its new 2016 in the product and market category zero emission hydrogen FCEB which is available in both single deck and double In June 2019, Solaris introduced their deck vehicle layouts. newest hydrogen fuel cell bus. The 12 Hydrogen bus. The zero-emissions driveline technology from Wrightbus is developed with support This Solaris Urbino 12 Hydrogen bus is from the British government’s Advanced equipped with batteries as the main ener- Propulsion Centre (APC) under a grant for gy provider to the drive system. The bat- common platforms and assembly meth- teries are charged with 70kW fuel cell ods for Ultra Low Emission Buses. modules provided by Ballard for a total

Van Hool Fuel Cell Electric Buses FCEB specifications of already deployed buses - Examples Van Hool is an independent Belgian de- es officially entered into operation in the signer- and manufacturer of buses, city of Aalborg in March 2020. Van Hool SOLARIS URBINO VAN HOOL WRIGHTBUS coaches and industrial vehicles. Van Hool also landed a significant contract with A330 Fuel Cell Bus, Ex- Wrightbus Hydrogen Fuel has been building hydrogen buses for the RVK Köln and WSW Wuppertal (), Model Solaris Urbino 12 Hydrogen qui.city 18 Fuel Cell (BRT) & Cell Bus American market since 2005 and for the to supply 40 hydrogen buses of the latest Exqui.city 24 Fuel Cell (BRT) European market since 2007. By now, generation, making it the largest order for Van Hool has produced more than 70 hy- hydrogen-powered vehicles placed in Eu- Size 12m 12, 13, 18m 10.8m-12.3m drogen buses for North America and Eu- rope. The first buses were delivered in the rope. spring of 2019. Battery 28 kW lithium-ion- 24-36kWh LTO (lithium- 48kW Lithium-Titanium- phosphate titanate-oxide) Oxide Based on experiences with FCEBs for the power American market, Van Hool has devel- Fuel Cell 70kW FCmove™ 85-100 kW FCveloCity®-HD 70kW FCmove™ oped the first European hybrid FCEB with power the same passenger capacity as a diesel Hydrogen 36.8 kg (5 x 312 liter 31-46 kg (4-6 x 322 liter bus and with all modern comfort. Deploy- 30-38kg ments have been conducted throughout storage tanks) tanks roof mounted) Europe, which have proven the reliability Up to 350 kilometers with >300 kilometers with auxil- >450 kilometers (>625 ex- of the fuel cell technology. Range auxiliaries iaries tended range)

In January 2020, Van Hool delivered the Sources: www.solarisbus.com, www.vanhool.be/en, www.wrightsgroup.com, www.wrightbusinternational.com, first three FCEBs in Denmark. These bus- www.chic-project.eu, www.fuelcellbuses.eu, www.gofuelcellbus.com/index.php/commercialization/industry-partners/ 10 11 An Attractive Value Proposition for Zero-Emission Buses in Denmark

Renewable hydrogen made easy

Everfuel is a dedicated hydrogen fuel company. Everfuel enables you to focus on your core business. We take care of everything else and you just buy hydrogen dispensed at pump under the agreed price. At the proper setup we can offer you renewable hydrogen at parity and even below the fuel price of diesel on a price/ km comparison.

Hydrogen is produced on renewable basis - from wind, hydro and solar. In times of excess renewa- ble electricity it is used for hydrogen production through water electrolysis. The hydrogen can be stored and utilized independent of the produc- tion, thus benefitting the overall energy balance and making it true zero emission. 20MW ~8t/day electrolyser

The hydrogen is compressed into dedicated hydro- gen distribution trailers. From the production site the trailer is transported to the bus depot. Due to the high pressure in the trailers, the transported amount of energy is very high making it very effi- cient. Of course the transportation is carried out emission free and will soon be trucked in using hy- drogen as true zero emission fuel. High capacity hydrogen trailers

At the depot the compact and reliable fueling equipment is installed. The design of the solution makes it the perfect 1:1 substitute for fossil solu- tions. Fueling time for a full-day of operation is down to 5 minutes. In addition to the operational benefits the solution has limited footprint as well as low power need because it intelligently uses

Hydrogen dispenser & station module the energy from the hydrogen distribution. The solution is highly scalable and you can easily up- grade from 20 to +100 buses.

12 13 An Attractive Value Proposition for Zero-Emission Buses in Denmark

A Mature Industry H2BusEurope Project

Affordable zero emission buses

For public transport operators

A strong Danish and European value chain offers a number of commercial solu- FCEB deployment map as per April 2020 tions for production, delivery, storage and dispensing of hydrogen in order to meet the specific requirements of the Danish transit agencies and operators. “I particularly enjoy driving a fuel cell electric bus because of Trials in cities around the world have demonstrated that FCEBs can cut emis- the smooth ride without the noises and vibrations you have sions and noise pollution with no compromise in service. International commer- in a diesel bus. You feel more relaxed after your shift and in addition you know that you have done something good cial traction coincides with already strong uptake and deployment of hydrogen

for the environment.” Bus driver at RVK, Cologne and fuel cell technologies by European transit operators in major cities including (CHIC Program Publication 2016) http://chic-project.eu , , Cologne, Hamburg, Oslo, Aalborg and others.

Over 900 new FCEBs are expected to be on the road in Europe within the next No longer a nascent enterprise, the fuel cell and hydrogen industry is now well three years and thousands more in China, Korea and Japan. FCEBs are now developed with many mature companies. A reliable European supply chain has ready to be deployed in large scale on a commercial basis within the very short emerged that provides fuel cell components, vehicles and support along with hy- time horizon of 2020 and beyond. Large scale deployment projects like the drogen fueling equipment to enterprising transit agencies throughout the region. H2BusEurope project (www.h2bus.eu) are being initiated in order to scale up the Industry members actively work together to develop and deploy competitive solu- volume of buses in operation and thus drive down the total cost of ownership of tions optimized to meet customer requirements. the FCEBs.

Due to successful deployment projects like CHIC3, Emotion, JIVE I & II, European bus OEMs now offer a wide range of buses, from single-deck buses in multiple In the H2BusEurope project the aim is to deploy 1,000 FCEBs by 2023 where lengths to double decker buses. In the drivetrain, a variety of strategies are avail- 200 are planned for Denmark. The H2BusEurope hydrogen fuel cell electric bus able, ranging from small fuel cells with large batteries designed for range- solution is expected to be the most cost effective true zero-emission option avail- extender operation through to large fuel cell systems with up to 100kW stacks. able, with a target single-decker bus price below €375,000, hydrogen cost be- tween €5 and €7 per kilogram and bus service cost of €0.30 per kilometer.

14 15 An Attractive Value Proposition for Zero-Emission Buses in Denmark

Fuel Cell Electric Bus Cost

Capital Cost Operating Cost

FCEB capital pricing has decreased considerably as volumes have grown. Since As the technology proliferates and the supply chain matures, a fuel cell drivetrain the first deployments in the 1990s, purchasing costs for FCEBs have fallen by will generate operational savings in comparison to a . For an elec- more than 100%. tric drive motor on a bus, there is no expected repair or mainte-

nance needed other than a potential bearing replacement during the typical use- FCEBs are also benefitting from the battery and electric drive cost reductions as well as growing production volume of electric buses, as they share over 90 per- ful life of a bus. Overall, FCEBs require less regular maintenance due to its solid cent of the same components as battery electric buses. Currently, the target state design and minimal moving parts. With volume, maintenance costs price for a basic* 12m fuel cell electric bus is below €375,000 as part of the (including fuel cell stack replacement if needed) will be at or below that of a die- H2busEurope program. With volume purchases over 100 buses per year this sel bus. Current forecasts show that the maintenance cost for FCEBs is similar to price could start from 320.000€ or even lower beyond 2023. battery electric buses at €0.30 per kilometer.

Recent reports from Deloitte1 and McKinsey2 indicate fuel cell prices will drop 70 -80% as production volumes scale and fuel cell commercial vehicles will offer the In addition, expected efficiency improvements in the FCEB will result in a fuel most competitive TCO compared to battery and ICE vehicles within the next dec- cost per kilometer that is below the price of taxed diesel when using untaxed re- ade. Even with limited production volume, the price of fuel cell vehicles— newable hydrogen. especially buses— has already been reduced by 65% over the past 10 years.

*basic means without specific customer/public transit agency equipment. A useful metric for bus operators to compare hydrogen and diesel infrastructure costs is the average hydrogen cost (€/kg), which incorporates all capital and op- erating costs. For cost parity with diesel, a hydrogen fuel price of €5-7/kg is wide- ly accepted as the target for the industry, as this is the level which allows parity with diesel costs for today’s buses. This target is already achievable in countries such as Denmark, , , and Germany, which have high adoption of renewable energy sources and a fair tax system on the electricity grid.

1 Fueling the Future of Mobility Hydrogen and fuel cell solutions for transportation Volume 1, Deloitte, Dec. 2019 16 17 An Attractive Value Proposition for Zero-Emission Buses in Denmark 2 Path to hydrogen competitiveness A cost perspective , Hydrogen Council & McKinsey Company, Jan. 2020

Bus Technology Comparison

BEB BEB BEB Diesel (Overnight) (Overnight) (Overnight) FCEB No additional buses +10%** +20%** Zero-emission fuel cell electric Cost in €* buses offer an attractive value Cost per km 3.16 3.43 3.76 4.09 3.53 *Assumptions: proposition compared to  Volume of 100 vehicles/year  10 year contract period  12-meter bus  10 year depreciation period  Fleet of 50 buses per depot  Electricity cost €0.11 (ex. vat) - DK average other technologies...  85.000 km/year  Fluctuation in fuel prices is not included in  Average speed of 20 km/hour TCO calculations

**Premium on battery electric buses to cover additional on route charging time

...and are the economically best

strictly zero-emission choice. 18 19 An Attractive Value Proposition for Zero-Emission Buses in Denmark

Local Support

Ballard Europe Service Team To support transit operators deploying FCEBs Ballard has developed a global service and support team. Ballard’s European Service Center is operated from Ballard Europe in Hobro, Denmark. The European Service team is committed to supporting Ballard-powered zero-emission FCEBs in revenue service on Europe- an roads. With fleet sizes growing, premium support services are readily availa- ble from experienced support personnel, ensuring safe and reliable operation Power to Change of these buses with maximum operational uptime. There is a total of fifteen technicians based in Denmark, United Kingdom & Germany, central and local the World® parts inventories, and a repair center. Training Program Ballard conducts extensive product training to ensure technicians providing support are experts in their field and can confidently provide services of the highest quality. Training for transit operator’s technicians can take place at Bal- lard’s headquarters in , Canada or Ballard Europe in Denmark or the service provider’s site. Training is validated through testing that provides an as- sessment of the technicians’ skills related to product knowledge, preventative and corrective maintenance and troubleshooting.

Mobilization Period For the adoption of any new technology into operation, a mobilization period must always considered. With Ballard’s training program and the local support team this mobilization period can be made very smooth and effective.

Ballard Europe’s local service team Ballard FCmove™ fuel cell generator 20 21 An Attractive Value Proposition for Zero-Emission Buses in Denmark

Conclusion The pathway has been prepared!

Now is the time to implement With millions of kilometers in commercial services and more than 15 years on the road in different environments, FCEBs have proven to meet operational re- zero-emission fuel cell electric quirements of transit agencies and bus operators. FCEBs offer a 1:1 replace- ment to diesel buses without performance compromises.

buses in Denmark. Fuel cell manufacturers, European bus manufacturers, hydrogen suppliers and government agencies are all working together in programs aiming to bring attrac- tive FCEBs to the Danish cities and operators.

We state that fuel cell electric buses are:

Affordable Offering superior total cost of ownership versus an all- battery bus and within 20% of the cost of operating die- sel buses.

Operable Offering the same convenience as a diesel bus for bus operators, without requiring any operational compromis- es (such as limited range, long charging times or on- route charging).

Zero- Virtually silent, with no emissions of any air pollutant and Emission with no tailpipe emissions of carbon dioxide, NOx and particles. allard Europe Team The zero emission FCEB solution is ready. The technology is ready, the price is now affordable, and the time is now to make a move to FCEBs for public transit in Denmark.

Hence, municipalities are establishing the public transport systems of the fu- ture. To meet the goal of a fossil free transport sector by 2050, it is very im- portant that the municipalities in Denmark contribute to create a demand for the hydrogen infrastructure and FCEBs. This is done by including the implementation of FCEBs in the local public transport strategies and route tenders.

Photo: Line Bloch Klostergaard, North Denmark Region. 22 23 An Attractive Value Proposition for Zero-Emission Buses in Denmark Photo: Line Bloch Klostergaard, North Denmark Region.

The Other Electric Bus

To learn more about fuel cell electric buses and hydrogen refueling solution: www.ballard.com www.everfuel.com www.fuelcellbuses.eu www.hydrogenvalley.com www.h2bus.eu www.zeroemissionbus.org

- April 2020 -