Hydrogen Production Activities in

April 20, 2015

Mamoru JO New Energy and Industrial Technology Development Organization(NEDO) 1 CONTENTS

1. NEDO’s activities in hydrogen production 2. Roadmap on hydrogen production in Japan 3. Market applications for PEM electrolyzer in Japan 4. Cost targets for electrolysis and hydrogen production costs

2 1. NEDO’s activities in hydrogen production

Activities 2013 2014 2015 2016 2017 2018 Hydrogen Alkaline type MW Class Production Asahi Kasei 0.6A/cm2 1.8V

Alkaline type MW Class Zosen 0.6A/cm2 1.8V

SOEC type 2kW 0.5A/cm2 1.3V

“Power to X” PEM (Reversible Type) H2 for variable FS Takasago T.E. & AIST Renewable Energy PEM FS integration TORAY 3 2. Roadmap on hydrogen production in Japan

2.1 Strategic Road Map on Hydrogen and Fuel Cells

( METI, Agency for Natural Resources and Energy )

Phase 1 Phase 2 Phase 3 Expanding Fuel Cell H2 Power Plant/ CO2-free Hydrogen Mass Supply Chain

2009: Residential FC -Accelerating development 2015: FCV and demonstration 2017: Stationary FC -Realizing Reasonable Systematic development and Hydrogen price demonstration of such a 2020 around 2020: Olympic FCV fuel cost Mid 2020s system, ≦ HEV fuel cost -H2 Cost (CIF) : JPY30/Nm3 2030 around 2025: -Enhance Supply Chain FCV cost competitive in Japan ≧ HEV 2040 Around 2030 Around 2040 -Import H2 from overseas CO2-free H2 by combining CCS - Full-scale H2 Power Plant and renewable energy

4 2. Roadmap on hydrogen production in Japan

2.2 Roadmap on Hydrogen Production RD

2015 2020 2030 2040 Milestone #1 Milestone #2

Import H2 Import H2 (ex. Liquid hydrogen ) H2 Supply by foreign H2 production from un-used foreign un-used energy energy H2 (ex. Brown coal) H2 Supply Production by CO2 CO2 free H2 production Free H2 from renewable energy (ex. Wind or PV ) 5 3. Market applications for PEM electrolyzer in Japan

）

/h In the last 10 years ㎥

Industry and R&D

Semi-conductor Metal works

Cooling Device Production Unit Capacity Unit Capacity Production (N

Past Now Future 6 3. Market applications for PEM electrolyzer in Japan

） Power to X*

/h In the future *Centralized type ㎥

Power to X* *Decentralized type

Industry and R&D

H2 Station Production Unit Capacity Unit Capacity Production (N

Past Now Future 7 4. Cost targets for electrolysis and hydrogen

production costs

 Cost target for hydrogen production is JPY 30/N㎥, which is equivalent to USD 0.25/N㎥.

 Initial investment cost target for electrolysis is JPY 200,000/N㎥/h USD 1,700 /N㎥/h

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