Canadian Hydrogen and Fuel Cell Sector Profile

Canadian Hydrogen and Fuel Cell Sector Profile 2006 This profile of the Canadian hydrogen and fuel cell sector provides an objective assessment of Canada’s position within the increasingly competitive global industry.

For additional copies of this publication, please contact: In 2004, the Government of Canada, Hydrogen & Fuel Cells Publishing and Depository Services Canada and PricewaterhouseCoopers partnered to develop a Public Works and Government Services Canada Ottawa ON K1A 0S5 comprehensive profile of the Canadian hydrogen and fuel cell Tel. (toll-free): 1-800-635-7943 (Canada and U.S.) Tel. (local): 613-941-5995 sector. Following on the success of its previous two editions, TTY: 1-800-465-7735 Fax (toll-free): 1-800-565-7757 (Canada and U.S.) Fax (local): 613-954-5779 the Canadian Hydrogen and Fuel Cell Sector Profile has been Email: [email protected] Website: www.publications.gc.ca updated for 2006. The 2006 Sector Profile responds to the This publication is available upon request in needs of stakeholders—companies, governments, academia accessible formats. Contact: and investors—to obtain the current economic and corporate Multimedia Services Section Communications and Marketing Branch information required to assess and benchmark the progress Industry Canada Room 264D, West Tower of the industry. The Profile describes the sector in terms of 235 Queen Street Ottawa ON K1A 0H5 revenue, research, development and demonstration activity, Tel.: 613-948-1554 Fax: 613-947-7155 and employment. These statistics are needed to keep policy Email: [email protected] makers, investors and other stakeholders informed and This publication is also available electronically on the World Wide Web at the following address: www.hydrogeneconomy.gc.ca assess Canada’s competitive position within the international Permission to Reproduce Except as otherwise specifically noted, the hydrogen and fuel cell community. information in this publication may be reproduced, in part or in whole and by any means, without charge or further permission from Industry Canada, The Profile is published annually to ensure that this important provided that due diligence is exercised in ensuring the accuracy of the information reproduced; that Industry Canada is identified as the source sector of the Canadian economy is consistently measured, institution; and that the reproduction is not represented as an official version of the information its trends tracked and its achievements and growth reproduced, nor as having been made in affiliation with, or with the endorsement of, Industry Canada. recognized. We thank all the companies and organizations For permission to reproduce the information in this publication for commercial redistribution, please that contributed to the development of the Canadian email: [email protected] Cat. No. Iu41-3/2006E-PDF Hydrogen and Fuel Cell Sector Profile 2006. ISBN 978-0-662-44678-1 60147E Aussi offert en français sous le titre Profil 2006 du secteur canadienne de l’hydrogène et des piles à combustible.

Cover 10% Inside pages 10% Canadian Hydrogen and Fuel Cell Sector Profile 2006 Introduction The Canadian Hydrogen and Fuel Cell Sector Profile 2006 measures several The sector at a glance key performance indicators and provides an objective assessment of Canada’s o Revenue stood at $135 million in 2005, position within the increasingly competitive global industry. As it moves towards compared to $133 million in 2004. commercialization, the Canadian sector continues to mature and build its o Research, development and reputation globally. demonstration expenditures decreased 8% to $218 million in 2005 from $237 This year’s Profile reveals a strong performing Canadian sector. The core metrics million in 2004. of revenue, research, development and demonstration (RD&D) expenditures, o Employment numbers were reported as 1,902 in 2005 versus 2,056 in 2004. and employment show slight changes to the previous year. Revenue for 2005 o The number of demonstration projects was reported at $135 million, on par with $133 million reported in 2004. RD&D declined 34% to 142 in 2005 from 215 expenditures decreased slightly to $218 million in 2005 versus $237 million in in 2004. 2004. Employment numbers for 2005 were reported at 1,902 compared to 2,056 in 2004. While the number of demonstration projects decreased, with 142 Growth since 2001 reported in 2005 versus 215 in 2004, strategic alliances remained stable in both The 2006 Sector Profile provides important 2004 and 2005, 270 compared to 271. updates to the information reported in Economic Impact of Industrial Hydrogen These results are representative of a transformative technology industry with a Activity in Canada—an initial sector profile longer commercialization period, competing with incumbent technologies that conducted by Sypher Mueller and Natural Resources Canada in 2001. Over the five continue to evolve. The sector continues to focus on R&D efforts, adjusting market year period between 2001 and 2005, the strategies appropriately as products are developed for near term markets. sector shows growth in all key indicators. For details please see the discussion at the end of this report.

technology focus

Other 25%

Market focus PEM 34% Sources of funding - government Portable AFC 2% 15% Other 14% (4) DMFC 3% Mobile 35% Hydrogen distribution 5%

SOFC 5% Hydrogen storage Hydrogen production 9% 17% Operations Fueling Years Involved in fuel cell and hydrogen activities 22% (6) infrastructure Programs Not provided 24% 64% (16) Corporate profile 6% (4) Demonstration focus >20 4% (2) CorporatePortable organizations represented nearly two-thirds of the total response, with Stationary 26% private14% companies alone accounting for 40%. As11–20 private years companies are not obliged to provide financial or other data to the market, 14%their (8) voluntary participation in this year’s profile provides a more thorough appreciation of the size and activities of 5–10the years rd&D by region 58% (33) hydrogen and fuel cell industryMobile in Canada. Government and government agencies Japan 8 UK 1 Stationary 34% 17% accounted for close to one quarter of respondents (21%), with educational Germany 12 < 5 years sources of funding, academic and organizations and non-profit organizations each 18%representing (10) almost 10%. United States 15 non-profit The vast majority of organizations (76%) reported ten years or less involvement in technology Westernfocus Canada Other 8% (>1) 138 hydrogen and fuel cell activities, with 58% of respondents reporting between five Fueling Private investor/donation 4% (>1) and ten years of activity. This indicates a maturing Canadian hydrogen and fuel infrastructure Provincial government Other 35% R&D by region 25% cell industry. 0 20 40 60 80 100 120 140 funding 5% (>1) Total revenue ($ CDN) Eastern Canada NSERC/Canadian Other federal 41 Western Canada 123 15 138 Foundation for government funding Market focus PEM 150 34% Sources of funding - government Innovation 133 135 42% (3) Eastern Canada 36 5 41 Portable 6% (>1) AFC 2% 15% USA 14 0.6 15 Other 14% (4) 100 DMFC 3% 11 0.6 12 comparative statistics Mobile 35% Hydrogen distribution 5% Germany Departmental budget Japan 8 0.6 8 50 SOFC 5% 35% (3) 300 290 3,000 276 Organization type Number of years involved in UK 1 1 Areas of expertise Hydrogen storage Hydrogen production (Number of respondents) hydrogen/fuel cell activities (Respondents may be Operationsincluded in several categories) % 9%Organization type 17% 0 250 2,500 Fueling Years Involved(Number in fuel of cellrespondents) and hydrogen activities R&D Demonstration22% (6) 2004 2005 237 Revenue by region 218 infrastructure Programs Non-profit organizations Not provided Areas of expertise 24% 64% (16) Employment 200 188 2,000 including associations 6% (4) Location of hydrogen and fuel cell related facilities 179 Other 24% (31) Demonstration focus 9% (5) >20 4% (2) 0 4 8 12 16 Japan 2% (4) 2,100 2,056 15 Revenue by type 1,902 150 1,500 EducationalPortable ResearchOther 2% Organization (5) 134 133 135 organizations Germany 3% (5) Stationary 26% 14% 11–20 years 15 9% (5) United States 4% (8) Fuel Cell Developer or Manufacturer R&D Contracts excluding All foreign government 14% (8) government funded1,400 contracts 100 97 1,000 Other EU 1% (>1) United States 11 funding 2% (2) Private companies 5–10 years Professional Service Provider 2% (3) Other Asia-Pacific 2% (3) 46% (62) 40% (23) Other 2% (2) 58% (33) Eastern Canada 3% (4) rd&D by region Mobile Hydrogen Production 11 All Canadian government support 50 500 recognized as revenue Japan 8 UK 1 Stationary 34% Policy Development and 700 Western Canada 5% (6) Public companies including Eastern Canada 9 3% (5) 17% < 5 years Program Administration Germany 12 divisions/subsidiaries 24% (47) sources of funding, academic and $ 0 0 Employees Japan 5% (7) 21% (12) 18% (10) Commercialization Support 9 Provision of services 2001 2002 2003 2004 2005 United States 15 non-profit 19% (26) 0 Revenue R&D Employees Germany Supplier to Developer orWestern Manufacturer Canada 8 2004 2005 Western Canada 14% (18) Other 8% (>1) 138 Systems Integrator 65% (126) 5 Fueling Government & government agencies Private investor/donation 4% (>1) Hydrogen Distribution 3 infrastructure 21% (12) Provincial government Total R&D expenditures 35% Education, Safety and Trainingfunding 5% (>1) 3 250 237 NSERC/Canadian Other federal 218 Product sales Eastern Canada Hydrogen Storage 2 41 Employees by region Foundation for government funding 72% (97) Strategic alliances by type Profile response rate 200 Expected domestic funding sources Fuel Cell User Innovation 2 42% (3) Declined 12% (15) 2007–2012 Private sector 6% (>1) strategic alliances UK 1% (11) Other 5% (88) Fuel Cell Distributor or Agent 1 150 Strategic alliances Germany 2% (32) Angel investor 1% Other 3% 260 262 264 266 268 270 272 274 Other 6 100 United States Public/private partnership 5% Venture capital 2005 271 15% (269) Location of demonstrationDepartmental projects budgetHydrogen and fuel cell 13% companies 7% 50 Operations 35% (3) data incomplete 0 10 20 30 40 50 60 70 2004 270 27% Other OEM 8% or not available Completed Survey 0 Organization type Western Canada 59 2004 2005 45% (57) Revenue by region Western Canada R&D Demonstration 57%Eastern (1,105) Canada 36 Non-profit organizations Private equity Automotive OEM 9% Other No reply including associations 16% Location of hydrogen and fuel cell related facilities USA 24 61% Other 24% (31) 43% (54) 9% (5) Eastern Canada Sources of funding Japan 2% (4) 20% (391) Japan Educational 7 Revenue by type 0% 10% 20% 30% 40% 50% 60% 70% Germany 3% (5) Other 2% (5) organizations UK United States 4% (8) 3 Energy providers 10% 9% (5) Government R&D Contracts excluding All foreign government Operations government funded contracts Other EU 1% (>1) United States Public capital markets 20% Germany 3 funding 2% (2) Private companies 2% (3) Other Asia-Pacific 2% (3) 46% (62) 40% (23) 20% Other 2% (2) Parent, affiliated or Other 10 subsidiary organization Eastern Canada 3% (4) All Canadian government support recognized as revenue Canadian Federal Eastern Canada Corp Govt Academic Western Canada 5% (6) Public companies including 3% (5) Government divisions/subsidiaries 24% (47) Technology focus Japan 5% (7) 21% (12) Provision of services Provincial/Territorial 0 5 1019%15 (26)20 25 30 35 government Germany Western Canada Foreign government 34 14% (18) 65% (126) PEM Government & government Research conducted for agencies Hydrogen production 17 21% (12) another institute Hydrogen storage 9 Research, non-profit, non-governmental institute Employees by region SOFC 5 Product sales Strategic alliances by type Profile response rate 72% (97) Other Expected domestic funding sources Hydrogen distribution 5 Declined 12% (15) 2007–2012 Private sector strategic alliances UK 1% (11) Other 5% (88) DMFC 3 Corporate Academic Government Germany 2% (32) Angel investor 1% Other 3% AFC 2 United States Public/private partnership 5% Venture capital 15% (269) Hydrogen and fuel cell Other 25 13% companies 7% Operations data incomplete 27% Other OEM 8% MCFC – 0 or not available Completed Survey 45% (57) Western Canada 57% (1,105) Private equity Automotive OEM 9% Other No reply 16% 61% 43% (54) Eastern Canada 20% (391)

Energy providers 10% Government Public capital markets 20% 20% Photo courtesy of Hydrogenics Corporation

technology focus

Other 25%

Market focus PEM 34% Sources of funding - government Portable AFC 2% 15% Other 14% (4) DMFC 3% Mobile 35% Hydrogen distribution 5%

SOFC 5% Hydrogen storage Hydrogen production 9% 17% Operations Fueling Years Involved in fuel cell and hydrogen activities 22% (6) infrastructure Programs Not provided 24% 64% (16) 6% (4) Demonstration focus >20 4% (2) Portable Stationary 26% 14% 11–20 years 14% (8) The Canadian hydrogen and fuel cell industry has a broad foundation of expertise. * Definitions Although research organization and fuel cell developer or manufacturer were 5–10 years AFC = Alkaline fuel cell identifiedrd&D as theby region top two areas of expertise, the results clearly indicate that the Mobile 58% (33) CanadianJapan industry 8 UK is1 active in a wide range of areas acrossStationary both hydrogen and fuel DM34%FC = Direct methanol fuel cell 17% Germany 12 SOFC = Solid oxide fuel cell < 5 years sources of funding, academic and cells sectors, with activities ranging from manufacturing through to sales. 18% (10) United States 15 PEM = Proton exchange membrane non-profit While mobile applications represented the largest market focus at 35%, stationary Western Canada Other 8% (>1) and fueling infrastructure were also138 well represented. Reflective of the results of Fueling the 2005 Profile, technology activities were primarily focused on proton exchange Private investor/donation 4% (>1) infrastructure Provincial government membrane (PEM) (34%). These results are consistent with the35% fact that Canada funding 5% (>1) Eastern Canadais a recognized leader in the development of PEM technology for mobile, small NSERC/Canadian Other federal 41 stationary and portable applications. Foundation for government funding Innovation 42% (3) Respondents reported the bulk of hydrogen and fuel cell-related activity as 6% (>1) occurring in Western Canada (65%) and secondarily in Eastern Canada (24%). Additional activity took place in the United States, Germany, Japan and other countries not specified by respondents. Departmental budget technology focus 35% (3)

Organization type Revenue by region Technology focus* Market focus Location of hydrogen/fuelOther cell related facilities 25% Non-profit organizations (Number of facilities) including associations Location of hydrogen and fuel cell related facilities Other 24% (31) technology focus9% (5) Market focus PEM Japan 2% (4) 34% Revenue by type Sources of funding - government Educational Portable Other 2% (5) organizations Germany 3% (5) 15% AFC 2% 9% (5) United States 4% (8) R&D Contracts excluding All foreign government Other 14% (4) Other DMFC 3% Other EU 1% (>1) United States 25% government funded contracts funding 2% (2) Private companies Mobile 35% 2% (3) Other Asia-Pacific 2% (3) 46% (62) 40% (23) Hydrogen distribution 5% Other 2% (2) All Canadian government support MarketEastern focus Canada 3% (4) PEM SOFC 5% 34% Sources of funding - government recognized as revenue Eastern Canada 3% (5) Western PortableCanada 5% (6) Public companies including Hydrogen storage Hydrogen production AFC 2% divisions/subsidiaries 24% (47) 17% Operations 15% 9% Other 14% (4) Japan 5% (7) 21% (12) Fueling Years InvolvedProvision of in services fuel cell and hydrogen activities 22% (6) DMFC 3% 19% (26) infrastructure Programs Germany Mobile 35% Hydrogen distribution 5% Not provided 24% Western Canada 64% (16) 14% (18) 65% (126) 6% (4) SOFC 5% Government & government Demonstration focus >20 4% (2) agencies Hydrogen storage Hydrogen production21% (12) Portable Operations 9% 17% Stationary 26% 14% 11–20 years 22% (6) Fueling Years Involved in fuel cell and hydrogen activities 14% (8) infrastructure Programs Product sales EmployeesNot providedby region Strategic alliances24% by type Profile response rate 64% (16) 5–10 years 72% (97) Expected domestic funding sources rd&D by region 6% (4) 58% (33) Demonstration focus >20 4% (2) Mobile Declined 12% (15) 2007–2012 Private sector strategic alliances UK 1% (11) Other 5% (88) Stationary 34% Portable Japan 8 UK 1 Germany 2% (32) 17% < 5 years Stationary 26% 14%Angel investor 1% Other 3% Germany 1211–20 years sources of funding, academic and 18% (10) 14% (8) United States Public/private partnership 5% United States 15 non-profit Venture capital Hydrogen and fuel cell 15% (269) 5–10 years 13% Western Canada companies 7% rd&D by region Operations 58% (33) Other 8% (>1) data incomplete Mobile 138 27% Fueling Other OEM 8% Private investor/donation 4% (>1) or not available Japan 8 UK 1 Completed Survey Stationary 34% infrastructure 45% (57) 17% Provincial government Germany 12 < 5 years Western Canada 35% sources of funding, academic and funding 5% (>1) 18% (10) 57% (1,105) Private equity non-profit Other United States 15 Eastern Canada Automotive OEM 9% NSERC/Canadian Other federal No reply 16% 61% 41 Foundation for government funding 43% (54) Western Canada Eastern Canada Other 8% (>1) 138 20% (391) Innovation 42% (3) Fueling Private investor/donation 4% (>1) 6% (>1) infrastructure Energy providers 10% Government Provincial government 35% funding 5% (>1) Public capital markets 20% Eastern Canada 20% NSERC/Canadian Other federal 41 Foundation for government funding Departmental budget Innovation 42% (3) 35% (3) 6% (>1) Organization type Revenue by region Non-profit organizations including associations Departmental budget Location of hydrogen and fuel cell related facilities Other 24% (31) 9% (5) 35% (3) Japan 2% (4) Educational Other 2% (5) Revenue by type Organization type organizations Germany 3% (5) Revenue by region 9% (5) United States 4% (8) R&D Contracts excluding All foreign government Other EU 1% (>1) United States government funded contracts funding 2% (2) Private companies 2% (3) Non-profit organizations Other Asia-Pacific 2% (3) 46% (62) Other 2% (2) including associations Location of hydrogen and fuel cell related facilities 40% (23) Other 24% (31) 9% (5) Eastern Canada 3% (4) All Canadian government support Japan 2% (4) recognized as revenue Educational Revenue by type Eastern Canada 3% (5) Western Canada 5% (6) Germany 3% (5) OtherPublic 2%companies (5) including organizations divisions/subsidiaries 24% (47) 9% (5) Japan 5% (7) United States 4% (8) 21% (12) R&D Contracts excluding All foreign government Provision of services Other EU 1% (>1) United States government funded contracts funding 2% (2) 19% (26) Private companies 2% (3) Other Asia-Pacific 2% (3) 46% (62) 40% (23) Germany Other 2% (2) Western Canada 14% (18) Eastern Canada 3% (4) All Canadian government support 65% (126) Government & government recognized as revenue Eastern Canada agencies 3% (5) Western Canada 5% (6) Public companies including 21% (12) divisions/subsidiaries 24% (47) Japan 5% (7) 21% (12) Provision of services 19% (26) Employees by region Product sales Germany Strategic alliances by type Profile response rate Western Canada 72% (97) 14% (18) Expected65% domestic (126) funding sources Government & government Declined 12% (15) 2007–2012 Private sector strategic alliances agencies UK 1% (11) Other 5% (88) 21% (12) Germany 2% (32) Angel investor 1% Other 3% United States Public/private partnership 5% Venture capital Product sales Hydrogen and fuel cell Employees by region 15% (269) 72% (97) Strategic alliances by type Profile response rate 13% companies 7% Expected domestic funding sources Operations data incomplete Declined 12% (15) 2007–2012 Private sector strategic27% alliances Other OEM 8% or not available UK 1% (11) OtherCompleted 5% (88) Survey Germany 2% (32) 45% (57) Angel investor 1% Other 3% Western Canada 57% (1,105) United States Private equity Public/private partnership 5% Other Venture capital Automotive OEM 9% No reply 15% (269) 16% Hydrogen and fuel cell 61% 13% companies 7% Eastern Canada Operations 43% (54) data incomplete 20% (391) 27% Other OEM 8% or not available Completed Survey 45% (57) Energy providers 10% Western Canada Government 57% (1,105)Public capital markets 20% Private equity Other 20% Automotive OEM 9% No reply 16% 61% 43% (54) Eastern Canada 20% (391)

Energy providers 10% Government Public capital markets 20% 20% technology focus

Other 25%

Market focus PEM 34% Sources of funding - government Portable AFC 2% 15% Other 14% (4) DMFC 3% Mobile 35% Hydrogen distribution 5%

SOFC 5% Hydrogen storage Hydrogen production 9% 17% Operations technology focus Fueling Years Involved in fuel cell and hydrogen activities 22% (6) infrastructure Programs Not provided 24% 64% (16) 6% (4) Other Demonstration focus >20 4% (2) 25% Portable Stationary 26% 14% 11–20 years Market focus PEM 14% (8) 34% Sources of funding - government Portable 5–10 years AFC 2% 15% Other 14% (4) rd&D by region Mobile 58% (33) DMFC 3% Japan 8 UK 1 Stationary 34% 17% Mobile 35% Hydrogen distribution 5% Germany 12 < 5 years sources of funding, academic and 18% (10) SOFC 5% non-profit R&D by region Total revenue United States 15 Hydrogen storage Hydrogen production 0 20 40 60 80 100 120 140 Revenue 17% Operations ($ millions) ($ CDN) Western Canada Other 8% (>1) 9% Total revenue 138 Fueling Years Involved in fuel cell and hydrogen activities 22% (6) Western Canada 123 15 138 Total revenue from hydrogen and fuel cell activities reported byFueling respondents Private investor/donation 4% (>1) infrastructure 150 Programs infrastructure Not provided 133 135 Provincial government 24% 36 5 41 64% (16) remained flat, at $135 million in 2005 versus $133 million in 2004.35% Of the total Eastern Canada 6% (4) funding 5% (>1) Demonstration focus >20 4% (2) revenue reported in 2005, a geographic breakdown of sales was provided for USA 14 0.6 15 100 Eastern Canada NSERC/Canadian Other federal Portable 41$132 million. Sales in the United States accounted for 46% of revenue, followed Foundation for government funding 11 0.6 12 comparative statistics Stationary 26% 14% 11–20Germany years by sales in Germany at 14%. Sales to other countries, including Australia, Czech Innovation 42% (3) 14% (8) 6% (>1) Japan 8 0.6 8 50 Republic, Denmark,300 France, Italy,290 Korea and Spain,3,000 as well as unspecified locations, 5–10 years 276 UK 1 1 rd&D by region 58% (33) were also noted. Mobile 0 250 237 2,500 Japan 8 UK 1 Stationary 34% R&D Demonstration 2004 2005 Product sales comprised the largest revenue218 stream for 2005 at $97 million, a 9% Departmental budget 17% < 5 years Germany 12 Areas of expertise sources of funding, academic and jump from 2004 results of $89 million, demonstrating that the sector is delivering 35% (3) 18% (10) Employment 200 188 2,000 non-profit 179 United States 15 0 4 8 12 16 Revenue by region products to near-term markets and moving towards commercialization. Provision of 2,100 2,056 Organization type 15 ($ 1,902millions) 150 1,500 Western Canada Research Organization RevenueOther by region8% (>1) services came in a distant134 second133 at $26 135million. It is important to note that although 138 15 some organizations recognize Canadian government support as revenue, the bulk of Fueling Fuel Cell Developer or Manufacturer Private investor/donation 4% (>1) Non-profit organizations infrastructure 1,400 100 97 including associations 1,000 Location of hydrogen and fuel cell related facilities 11 Provincial governmentOther 24% (31) government support is provided 9%for (5) pre-commercial activities, as outlined below in the 35% Professional Service Provider funding 5% (>1) Japan 2% (4) Research, DevelopmentEducational and Demonstration sections that follow. Revenue by type Germany 3% (5) Other 2% (5) Eastern Canada Hydrogen Production 11 NSERC/Canadian Other federal 50 organizations 500 41 Policy Development and Foundation for 700 government funding 9% (5) United States 4% (8) R&D Contracts excluding All foreign government 9 Program Administration InnovationOther EU 1% (>1) 42%United (3) States government funded contracts funding 2% (2) $ 0 0 Employees Private companies 2% (3) Commercialization Support 9 Other 6%Asia-Pacific (>1) 2% (3) 46% (62) 2001 2002 2003 2004 2005 40% (23) Other 2% (2) All Canadian government support Eastern Canada 3% (4) 0 Research,Revenue developmentR&D Employees and demonstration Supplier to Developer or Manufacturer 8 2004 2005 recognized as revenue Western Canada 5% (6) Public companies including Eastern Canada 3% (5) Systems Integrator 5 expendituresdivisions/subsidiaries 24% (47) R&D by regionDepartmental budgetJapan 5% (7) 21% (12) Provision of services Hydrogen Distribution 3 0 20 35%40 (3)60 80 100 120 140 This year's survey asked respondents to supply information on research, 19% (26) Total R&D expenditures Total revenue ($ CDN) Education, Safety and Training 3 Germany Western Canada 237 development and demonstration (RD&D) expenditures for hydrogen and fuel cell Organization type Western Canada 123 250 1514%138 (18) 65% (126) 218 150 Hydrogen Storage 2 activities rather than133 just research135 Governmentand development & government (R&D) expenditures as in Revenue by region agencies Eastern Canada 36 5 41 200 Non-profit organizations Fuel Cell User 2 previous years. Total RD&D expenditures21% were (12) reported at $218 million in 2005 Location of hydrogen and fuel cell related facilities 14 0.6 15 including associations USA Strategic alliancesversus $237 100million for R&D in 2004. Of the $218 million in 2005, $193 million was Other 24% (31) 9% (5) Fuel Cell Distributor or Agent 1 150 Revenue by type Japan 2% (4) comparative statistics Product sales Germany 11Revenue0.6 12 by type 260 262 264reported266 268 270for 272R&D274 and $25 million for demonstration projects. Employees by region Educational OtherOther 2% (5) 6 ($ millions) 72% (97) organizations Germany 3% (5) Strategic alliances by type 100 Profile response rate Japan 8 0.6 8 27150 Expected domestic funding sources 9% (5) United States 4% (8) R&D Contracts excluding All foreign government 2005 Geographic data was provided for $215 million of the total300 RD&D dollars. The290 3,000 Location of demonstration projects Declined 12% (15) 2007–2012 Private sector 276 strategic alliances Other EU 1% (>1) United States UK 1 1 government funded50 contracts funding 2% (2) majority of RD&D was conducted in Eastern and Western Canada. UK 1% (11) Other 5% (88) Private companies 0 10 20 30 40 50 60 70 2% (3) Germany 2% (32) Other Asia-Pacific 2% (3) 46% (62) 40% (23) Other 2% (2) 2004 270 0 Angel investor 1% Other 3% 250 2,500 R&D Demonstration 2004 2005 237 Eastern Canada 3% (4) All Canadian government0 support Western Canada 59 recognized as revenue 2004 2005 Operations and the Canadian federal government tied for the top source of United States 218 Public/private partnership 5% Venture capital 15% (269) Hydrogen and fuel cell Western Canada 5% (6) Public companies including Eastern Canada Areas of expertise 3% (5) R&D Demonstration RD&D fundingEmployment with 31% each. Corporate respondents reported200 that operations 2,000 Eastern Canada 36 13% 188 companies 7% divisions/subsidiaries 24% (47) Operations 179 21% (12) data incompleteProvision of services0 4 8 12 16 served as the primary source of funding for their RD&D expenditures, followed Japan 5% (7) USA 24 2,100 2,056 27% Other OEM 8% or not available19% (26) Sources of funding 15 Completed Survey 1,902 150 1,500 Research Organization by the Canadian federal government. Academic and Non-profit respondents134 133 135 Germany Japan 45% (57) Western7 Canada 0% 10% 20% 30% 40% 50% 60% 70% Western Canada 14% (18) Fuel Cell Developer or Manufacturer 15 overwhelmingly cited the Canadian federal government as their top source of RD&D 65% (126) 1,400 97 57% (1,105) Government & government UK 3 Private equity 100 1,000 Other 11 funding, as government respondents also, unsurprisingly, did. Automotive OEM 9% agencies Professional Service Provider OperationsNo reply 16% 61% 21% (12) Germany 3 43% (54) Eastern Canada Hydrogen Production Parent, affiliated or 11 Corporate respondents reported 64 patents approved in 2005,50 demonstrating20% (391)an 500 Other 10 Policy Development and subsidiary organization 700 9 Product sales ongoing commitment to innovation within the Canadian sector. Employees by region Program Administration Energy providers 10% Strategic alliances by type Profile response rate Corp Govt Academic Canadian Federal 72% (97) Government $ 0 0 Employees Expected domestic funding sources Commercialization Support Government 9 20% 2001 2002 2003 2004 2005 Technology focus Public capital markets Declined 12% (15) 2007–2012 Private sector strategic alliances Provincial/Territorial 20% Revenue R&D Employees UK 1% (11) Other 5% (88) Supplier to Developer or Manufacturer 8 0 0 5 10 15 20 25 30 35 government 2004 2005 Germany 2% (32) Angel investor 1% Other 3% Systems Integrator Foreign government5 Total research, development Research, development and United States PEM 34 Public/private partnership 5% and demonstration demonstration by region Hydrogen Distribution 3 Venture capital 15% (269) Hydrogen and fuel cell Research conducted for Hydrogen production 17 Total ($R&D millions) expenditures ($ millions) 13% another institute companies 7% Education, Safety and Training 3 R&D by region Operations 237 data incomplete Hydrogen storage 9 250 0 20 40 60 80 100 120 140 27% Other OEM 8% Research, non-profit, 218 Total revenue ($ CDN) or not available Completed Survey Hydrogen Storage non-governmental2 institute 45% (57) SOFC 5 200 Western Canada 123 15 138 Western Canada Fuel Cell User 2 150 57% (1,105) Other 133 135 Hydrogen distribution 5 Other 36 5 41 Private equity Automotive OEM 9% Fuel Cell Distributor or Agent 1 150 StrategicEastern alliances Canada No reply 16% 61% Eastern Canada DMFC 3 Corporate Academic Government 260 262 264 266 142680.6 27015 272 274 43% (54) Other 6 USA 100 20% (391) 100 271 comparative statistics AFC 2 2005Germany 11 0.6 12 Energy providers 10% Location of demonstration projects 50 Government 25 50 Other Japan 8 0.6 8 3,000 20% 0 10 20 30 40 50 60 70 2004 270 300 290 Public capital markets 276 0 UK 1 1 20% MCFC – 0 Western Canada 59 2004 2005 0 250 2,500 R&D Demonstration R&D Demonstration 2004 2005 237 Eastern Canada 36 218

USA 24 Areas of expertise Employment 200 188 2,000 Sources of funding 179 Japan 0 4 8 12 16 7 0% 10% 20% 30% 40% 50% 60% 70% 2,100 2,056 15 1,902 150 1,500 Research Organization 134 135 UK 3 133 Operations 15 Fuel Cell Developer or Manufacturer Germany 3 1,400 100 97 1,000 Parent, affiliated or Professional Service Provider 11 Other 10 subsidiary organization Hydrogen Production 11 Corp Govt Academic Canadian Federal 50 500 Government Policy Development and 700 Technology focus Program Administration 9 Provincial/Territorial $ 0 0 Employees 0 5 10 15 20 25 30 35 government Commercialization Support 9 2001 2002 2003 2004 2005 Foreign government 0 Revenue R&D Employees PEM 34 Supplier to Developer or Manufacturer 8 2004 2005 Research conducted for Systems Integrator Hydrogen production 17 5 another institute Hydrogen Distribution 3 Hydrogen storage 9 Research, non-profit, Total R&D expenditures non-governmental institute Education, Safety and Training 3 SOFC 5 250 237 218 Other Hydrogen Storage 2 Hydrogen distribution 5 200 Fuel Cell User 2 DMFC 3 Corporate Academic Government Fuel Cell Distributor or Agent 1 150 Strategic alliances AFC 2 260 262 264 266 268 270 272 274 Other 6 100 Other 25 2005 271 Location of demonstration projects 50 MCFC – 0 0 10 20 30 40 50 60 70 2004 270 0 Western Canada 59 2004 2005 R&D Demonstration Eastern Canada 36

USA 24 Sources of funding Japan 7 0% 10% 20% 30% 40% 50% 60% 70%

UK 3 Operations Germany 3 Parent, affiliated or Other 10 subsidiary organization

Corp Govt Academic Canadian Federal Government Technology focus Provincial/Territorial 0 5 10 15 20 25 30 35 government Foreign government PEM 34 Research conducted for Hydrogen production 17 another institute Hydrogen storage 9 Research, non-profit, non-governmental institute SOFC 5 Other Hydrogen distribution 5

DMFC 3 Corporate Academic Government

AFC 2

Other 25

MCFC – 0 Photo courtesy of Tekion

R&D bytechnology region focus 0 20 40 60 80 100 120 140 Total revenue ($ CDN) Western Canada 123 15 138 Other 150 135 25% 133 Eastern Canada 36 5 41

Market focus USA 14 0.6 15 PEM 100 34% Sources of funding - government 11 0.6 12 comparative statistics Portable Germany 15% AFC 2% Japan 8 0.6 8 50 Other 14% (4) DMFC 3% 300 290 3,000 276 UK 1 1 Mobile 35% Hydrogen distribution 5% 0 250 2,500 SOFC 5% R&D Demonstration 2004 2005 237 218 HydrogenAreas storage of expertise Hydrogen production Employment Operations200 188 2,000 9% 17% 179 Fueling 0 4 8 12 16 Years Involved in fuel cell and hydrogen activities 22% (6) Demonstration projects 2,100 2,056 infrastructure 15 1,902 150 Programs1,500 Research Organization Not provided 134 133 135 24% 64% (16) A reduction in the number of demonstration projects was reported by Demonstration focus 6% (4) Fuel Cell Developer or Manufacturer 15 Demonstration focus >20 4% (2) 1,400 100 97 1,000 respondents—from 215 in 2004 to 142 in 2005. This may be partially attributable 11 to a re-focusing of R&D efforts as a result of learnings from demonstration projects. Professional ServicePortable Provider Stationary 26% 14% 11–20 years Hydrogen Production 11 500 Demonstration projects were mostly focused on fueling infrastructure and mobile 14% (8) 50 Policy Development and 700 sectors. Demonstrations represent a valuable opportunity to engage the end-user Program Administration 9 5–10 years $ 0 0 Employees and to increase public and investor knowledge,rd&D and by mustregion therefore continue to be Commercialization Support Mobile 9 58% (33) 2001 2002 2003 2004 2005 treated as a priority by the sector. Japan 8 UK 1 Stationary 34% 0 Revenue R&D Employees 17%Supplier to Developer or Manufacturer 8 2004 2005 Germany 12 < 5 years sources of funding, academic and This year’s Profile sees proportionately more Canadian-based demonstration Systems Integrator 5 18% (10) United States 15 non-profit projects compared to the 2005 Profile. Western Canada is the top location Hydrogen Distribution 3 Total R&D expenditures Western Canada Other 8% (>1) for demonstration projects, although non-profit and academic respondents’ Education, Safety and Training 3 138 237 Fueling 250 Private investor/donation 4% (>1) demonstration projects were split evenly between Eastern and Western Canada. 218 Hydrogen Storage 2 infrastructure Provincial government 35% 200 Corporate respondents were primarily involved in mobile demonstration projects, Fuel Cell User 2 funding 5% (>1) NSERC/Canadian Other federal whereas Government respondentsEastern wereCanada primarily involved in fueling infrastructure Fuel Cell Distributor or Agent 1 150 Strategic alliances 41 Foundation for government funding projects. Non-profit, and academic respondents were split almost evenly among 260 262 264 266Innovation268 270 272 274 42% (3) OtherLocation of demonstration projects6 100 stationary, mobile, portable and fueling infrastructure projects. 6% (>1) 271 (Number) 2005 Location of demonstration projects 50 0 10 20 30 40 50 60 70 2004 270 0 Western Canada 59 2004 2005 Departmental budget R&D Demonstration 35% (3) Eastern Canada 36

Organization type USA 24 Revenue by region Sources of funding Japan 7 0% 10% 20% 30% 40% 50% 60% 70% Non-profit organizations including associations UK 3 Location of hydrogen and fuel cell related facilities Other 24% (31) 9% (5) Operations Japan 2% (4) Germany 3 Educational Other 2% (5) Revenue by type organizations Germany 3% (5) Parent, affiliated or Other 10 subsidiary organization 9% (5) United States 4% (8) R&D Contracts excluding All foreign government Other EU 1% (>1) United States Corp Govt Academic Canadian Federal government funded contracts funding 2% (2) Private companies 2% (3) 46% (62) Government Other 2% (2) Other Asia-Pacific 2% (3) 40%Technology (23) focus Eastern Canada 3% (4) Provincial/Territorial All Canadian government support 0 5 10 15 20 25 30 35 government recognized as revenue Western Canada 5% (6) Eastern Canada 3% (5) Public companies including Foreign government divisions/subsidiaries PEM 24% 34(47) Japan 5% (7) 21% (12) Provision of services Research conducted for Hydrogen production 17 19% (26) another institute Germany Western Canada Hydrogen storage 9 14% (18) 65%Research, (126) non-profit, Government & government non-governmental institute agencies SOFC 5 21% (12) Other Hydrogen distribution 5

DMFC Employees3 by region Corporate Academic Government Product sales Strategic alliances by type Profile response rate 72% (97) Expected domestic funding sources AFC 2 Declined 12% (15) 2007–2012 Private sector strategic alliances Other UK 1% (11)25 Other 5% (88) Germany 2% (32) Angel investor 1% Other 3% MCFC – 0 United States Public/private partnership 5% Venture capital 15% (269) Hydrogen and fuel cell 13% companies 7% Operations data incomplete 27% Other OEM 8% or not available Completed Survey 45% (57) Western Canada 57% (1,105) Private equity Automotive OEM 9% Other No reply 16% 61% 43% (54) Eastern Canada 20% (391)

Energy providers 10% Government Public capital markets 20% 20% technology focus

Other 25%

Market focus PEM 34% Sources of funding - government Portable AFC 2% 15% Other 14% (4) DMFC 3% Mobile 35% Hydrogen distribution 5%

SOFC 5% Hydrogen storage Hydrogen production 9% 17% Operations Fueling Years Involved in fuel cell and hydrogen activities 22% (6) infrastructure Programs Not provided 24% 64% (16) 6% (4) Demonstration focus >20 4% (2) Portable Stationary 26% 14% 11–20 years 14% (8) 5–10 years rd&D by region Mobile 58% (33) Japan 8 UK 1 Stationary 34% Photo courtesy of General Hydrogen Corporation 17% Germany 12 < 5 years sources of funding, academic and 18% (10) United States 15 non-profit

Western Canada Other 8% (>1) 138 Fueling Private investor/donation 4% (>1) infrastructure Provincial government 35% funding 5% (>1) R&D by region Eastern Canada NSERC/Canadian Other federal 0 20 40 60 80 100 120 140 41 Total revenue ($ CDN) Foundation for government funding Innovation 42% (3) Western Canada 123 15 138 150 6% (>1) 133 135 Eastern Canada 36 5 41

USA 14 0.6 15 100

Germany 11 0.6 12 comparative statistics Departmental budget 35% (3) Japan 8 0.6 8 50 300 290 3,000 Organization type 276 Revenue by region UK 1 1 0 250 2,500 Non-profitR&D Demonstration organizations 2004 2005 237 including associations Location of hydrogen and fuel cell related facilities 218 Other 24% (31) Areas of expertise 9% (5) EmploymentEmployment Japan 2% (4) 200 188 2,000 Educational Employees179 Revenue by type 0 4 8 12 16 Germany 3% (5) Other 2% (5) organizations 2,100 2,056 15 United States1,902 4% (8) 150 1,500 Research Organization9% (5) Respondents reported134 a total of 1,902133 employees135 focusedR&D Contracts on excluding hydrogen All and foreign fuel government Other EU 1% (>1) United States government funded contracts funding 2% (2) Fuel Cell Developer or Manufacturer Private15 companies cell activities in 2005, slightly down from 2,056 employees2% reported (3) in 2004. A Other Asia-Pacific 2% (3) 46% (62) 40% (23) 1,400 geographic100 breakdown97 was provided for 1,8961,000 employees. Throughout theOther year, 2% (2) Eastern Canada 3% (4) Professional Service Provider 11 All Canadian government support the industry continued to consolidate its activities andrecognized focus as revenueon core competencies. Western Canada 5% (6) PublicHydrogen companies Production including 11 Eastern Canada 50 500 3% (5) divisions/subsidiaries 24% (47) Employment numbers continue to indicate the existence of a vibrant sector. Policy Development and 700 Japan 5% (7) Program21% Administration (12) 9 Provision of services The largest$ employment0 cluster reported was in0 WesternEmployees19% (26) Canada (57%), followed Commercialization Support 9 2001 2002 2003 2004 2005 Germany byWestern Eastern Canada Canada (20%), with the United States in third position (15%). Other 14% (18) 0 65% (126) Revenue R&D Employees Supplier to Developer or ManufacturerGovernment & government8 2004 2005 agencies countries such as Germany, the United Kingdom and Japan, as well as several Systems Integrator 21% (12)5 Asian and European countries, were also represented in the results. Hydrogen Distribution 3 Total R&D expenditures Employees by region The average annual salary paid to hydrogen and fuel cell employees in Canada Product sales Education, Safety and Training 3 Employees by region Strategic alliances by type Profile response rate 250 (Number)237 changed from $66,798 in 2004 to $55,262 in 2005. Extrapolating the average 72% (97) Expected domestic funding sources 218 Hydrogen Storage 2 salary for 2005 to the 1,496 employees in Canada, the sector contributes Declined 12% (15) 2007–2012 Private sector 200 strategic alliances Fuel Cell User 2 UK 1% (11) Other 5% (88) Germany 2% (32) $83 million in salaries to the national economy. Angel investor 1% Other 3% Fuel Cell Distributor or Agent 1 150 Strategic alliances United States Public/private partnership 5% Venture capital 260 262 264 266 268 270 272 274 Other 6 15% (269) 100 Hydrogen and fuel cell 13% companies 7% Operations 2005 271 data incomplete Location of demonstration projects 27% 50 Other OEM 8% or not available Completed Survey 0 10 20 30 40 50 60 70 45% (57) 2004 270 0 Western Canada Western Canada 59 2004 2005 57% (1,105) Private equity Other R&D Demonstration Automotive OEM 9% No reply Eastern16% Canada 36 61% 43% (54) Eastern Canada USA 24 20% (391) Sources of funding Japan Energy providers 10% 7 Government 0% 10% 20% 30% 40% 50% 60% 70%

UKPublic capital markets3 20% 20% Operations Germany 3 Parent, affiliated or Other 10 subsidiary organization

DMFC 3 Corporate Academic Government AFC 2

Other 25

MCFC – 0 technology focus

Other 25%

Market focus PEM 34% Sources of funding - government Portable AFC 2% 15% Other 14% (4) DMFC 3% Mobile 35% Hydrogen distribution 5%

SOFC 5% Hydrogen storage Hydrogen production 9% 17% Operations Fueling Years Involved in fuel cell and hydrogen activities 22% (6) infrastructure Programs Not provided 24% 64% (16) 6% (4) Demonstration focus >20 4% (2) Portable Stationary 26% 14% 11–20 years 14% (8) 5–10 years rd&D by region Mobile 58% (33) Japan 8 UK 1 Stationary 34% 17% Germany 12 < 5 years sources of funding, academic and 18% (10) United States 15 non-profit

Western Canada Other 8% (>1) 138 Fueling Private investor/donation 4% (>1) infrastructure Provincial government 35% funding 5% (>1) Eastern Canada NSERC/Canadian Other federal 41 Foundation for government funding Innovation 42% (3) 6% (>1)

Departmental budget 35% (3)

Organization type Revenue by region Non-profit organizations including associations Location of hydrogen and fuel cell related facilities Other 24% (31) 9% (5) Japan 2% (4) Educational Other 2% (5) Revenue by type organizations Germany 3% (5) 9% (5) United States 4% (8) R&D Contracts excluding All foreign government Other EU 1% (>1) United States government funded contracts funding 2% (2) Private companies 2% (3) technologyOther focus Asia-Pacific 2% (3) 46% (62) 40% (23) Other 2% (2) Eastern Canada 3% (4) All Canadian government support recognized as revenue Western Canada 5% (6) Public companies including Eastern Canada 3% (5) Other divisions/subsidiaries 24% (47) 25% Japan 5% (7) 21% (12) Provision of services 19% (26) Market focus PEM Germany Western Canada 14% (18) 65% (126) 34% Government & government Sources of funding - government Portable agencies AFC 2% 15% 21% (12) Other 14% (4) DMFC 3% Mobile 35% Hydrogen distribution 5% Employees by region Product sales Strategic alliances by type Profile response rate 72% (97) FundingSOFC 5% requirements ExpectedExpected source domestic of funding domestic sources funding Hydrogen production Declined 12% (15) 2007–20122007- Private2012 – sector Corporate strategic alliances Hydrogen storage UK 1% (11) Other 5% (88) 9% 17% Operations Continued education of governments and public capital markets of the Germany 2% (32) Fueling Years Involved in fuel cell and hydrogen activitiesAngel investor 1% Other 3% 22% (6) infrastructure benefits of investing in the hydrogen and fuel cell sector is an important part Programs Not provided United States Public/private partnership 5% 24% 64% (16) of its efforts to secure funding. Given the technology's longer development 6% (4) Venture capital 15% (269) Hydrogen and fuel cell 13% companies 7% periodDemonstration and demanding focus RD&D requirements, adequate financing is>20 necessary 4% (2) if Operations data incomplete Portable 27% Other OEM 8% full-scale commercializationor not available is to be achieved. Completed Survey Stationary 26% 14% 11–20 years 45% (57) 14% (8) Western Canada technology focus Corporate 57% (1,105) Private equity5–10 years Automotive OEM 9% Other rd&D by region No reply 16% 58% (33) 61% Corporate respondents were asked Mobileto 43%identify (54) their capital requirements for Eastern Canada Stationary 34% 20% (391) Japan 8 UK 1 Other the period 2007 to 2012, and, if possible, to break down their requirements technology focus 17% Germany 12 25% < 5 years sources of funding, academic and by year and expected funding source. Respondents estimated18% total (10) capital Energy providers 10% Governmentnon-profit Market focus United States 15 requirementsPEM for this period at $842 million with operations, domestic and Public capital markets 20% Other 34% Sources20% of funding - government 25%Western Canada foreign capital markets, and private equity identified as the largest expected Other 8% (>1) Portable 138 AFC 2% sourcesFueling of this funding. This closely mirrors the actual breakdown for 2005 15% Other 14%Current (4) sourcesPrivate of funding investor/donation – 4% (>1) Market focus DMFC 3% fundingPEM infrastructure as reported by respondents, lead by operations (27%), private equity Provincial government 34% 35% Government Mobile 35% Hydrogen distribution 5% Sources of funding - governmentfunding 5% (>1) Portable (22%), and public capital markets (19%). ($ millions) AFC 2% NSERC/Canadian Other federal 15% Eastern Canada SOFC 5% Other 14% (4) 41 DMFC 3% Foundation for government funding Hydrogen storage Hydrogen productionGovernment Innovation 42% (3) Mobile 35% Operations Hydrogen distribution 5% 9% 17% 6% (>1) Fueling Government respondents indicatedYears Involved that intheir fuel total cell and budget hydrogen for hydrogenactivities and 22% (6) SOFC 5% infrastructure Programs fuel cell related activities, excluding employeeNot provided salaries and benefits, in 2005 24% Hydrogen storage Hydrogen production 64% (16) 17%was $26 million. Sources of this funding were6% (4)programs (64%), operations Operations Demonstration9% focus >20 4% (2) Fueling (22%) and other (14%). The bulkYears ofInvolved funding in fuel (68%) cell wasand hydrogen expected activities to be 22% (6) Departmental budget infrastructure Portable 35%Programs (3) Not provided 24% Stationary 26% 14% allocated to Western Canada,11–20 with years demonstration and pilot projects (45%), 64% (16) Organization type 14% (8) 6% (4) Demonstration focus intramural R&D (34%), and in-house>20 R&D 4% (2) (17%) identified as the primary Revenue by region Portable targets for funding. 5–10 years Stationaryrd&D by 26% region Non-profit organizations14% Mobile 58% (33) including associations 11–20 years Location of hydrogen and fuel cell related facilities Other 24% (31) Japan 8 UK 1 Stationary9% (5) Government34% agencies spent or14% committed (8) to procure slightly over $3 million Japan 2% (4) 17% < 5 years Current sources of funding – Germany 12 Educational on hydrogen and fuel cell products in 2005. 5–10 years sources of funding, academic andRevenue by type 18% (10) Germany 3% (5) Other 2% (5) Academic and Non-profit rd&D by region organizations Mobile 58% (33) non-profit United States 15 9% (5) United States 4% (8) ($ millions) R&D Contracts excluding All foreign government Japan 8 UK 1 Stationary 34% Other EU 1% (>1) United States Non-profit and Academic government funded contracts funding 2% (2) Western Canada 17% Private companies < 5 years Other 8% (>1) 2% (3) Other Asia-Pacific 2% (3) Germany 12 46% (62) 138 sources of funding, academic and Other 2% (2) 40% (23) 18% (10) Fueling Non-profit and academic respondents indicated that their total budget for Private investor/donation 4% (>1) All Canadian government support Eastern Canada 3% (4) United States 15 non-profit infrastructure Provincial government recognized as revenue hydrogen and fuel cell related activities,Eastern excluding Canada employee salaries and 3% (5) Western Canada 5% (6) Public companies including 35% funding 5% (>1) Western Canada 24% (47) Other 8% (>1) 138 divisions/subsidiaries benefits, in 2005 was $8.6 million. Other federal government funding (42%) Japan 5%Eastern (7) Canada 21% (12) Fueling and departmental budgetary allocations (35%) constituted the top two funding Private investor/donationNSERC/Canadian 4% (>1) Provision ofOther services federal 41 Foundation for 19%government (26) funding infrastructure Provincial government Germany sources. Demonstration and pilot projects (57%) and in-house R&D (25%)Western Canada Innovation 42% (3) 35% funding 5% (>1) 14% (18) were identified as the top two areas for funding allocation. 65% (126) 6% (>1) Government & government NSERC/Canadian Other federal Eastern Canada agencies 41 21% (12) Foundation for government funding Innovation 42% (3) 6% (>1) Departmental budget Employees by region Product sales Strategic alliances by type Profile response rate Strategic alliances 35% (3) 72% (97) Expected domestic funding sources DeclinedOrganization 12% (15) type 2007–2012 Private sector The number of strategic alliances reported in 2005 at 271 is level with 2004 strategic alliances Revenue by region UK 1% (11) Other 5% (88) Departmental budget Germany 2% (32) Strategic alliances Angel investor 1% Other 3% results of 270. The number of strategic alliances confirms the continued value 35% (3) Non-profit organizations including associations and importanceLocation of hydrogen of keyUnited relationshipsand States fuel cell related and partnershipsfacilities for the industry. Public/private partnership 5% Other 24% (31) Organization type9% (5) Venture capital Hydrogen and fuel cell Japan 15%2% (4) (269) Revenue by region 13% companies 7% Educational OperationsThe 'other' category representedOther 2% the (5) largest single choice for strategic Revenue by type data incomplete Germany 3% (5) organizationsNon-profit organizations 27% alliance partner. Energy provider, automotive original equipment manufacturer Other OEM 8% or not available 9% Completed(5)including associationsSurvey LocationUnited States of hydrogen 4% (8) and fuel cell related facilities R&D Contracts excluding All foreign government Other 24% (31) 9% (5) Other EU 1% (>1) United States 45% (57) (OEM), and other OEM each garnered approximately 10% of responses, government funded contracts funding 2% (2) Private companies Japan 2% (4) Western Canada 2% (3) Other Asia-Pacific 2% (3) 46% (62) Educational 40% (23) with hydrogen and fuel cell companiesOther 2% (5) and public private 57%partnerships (1,105) each Revenue by type Other 2% (2) organizations Private equity Germany 3% (5) Other Eastern Canada 3% (4) AutomotiveAll Canadian OEM 9% government support No reply 9% (5) 16% accountingUnited for States less 4% than(8) 10%. recognizedR&D Contracts as revenue excluding 61% Eastern Canada All foreign government Western Canada 5% (6) 43% (54) Eastern Canada government3% (5) funded contracts funding 2% (2) Other EU 1% (>1) United States Public companies including 20% (391) divisions/subsidiaries Private companies 24% (47) 2% (3) Other Asia-Pacific 2% (3) 46% (62) 40% (23) Other 2% (2) Japan 5% (7) 21% (12) Provision of services Eastern Canada 3% (4) EnergyAll providersCanadian government10% support Government recognized19% (26) as revenue Western Canada 5% (6) Germany Public companies including Public capital markets 20% Eastern Canada Western Canada 3% (5) 14% (18) divisions/subsidiaries 24% (47) 65% (126) Government & government 20% Japan 5% (7) 21% (12) Provision of services agencies 19% (26) 21% (12) Germany Western Canada 14% (18) 65% (126) Government & government Product sales agencies Employees by region Strategic alliances by type Profile response rate 72% (97) Expected domestic funding21% (12)sources Declined 12% (15) 2007–2012 Private sector strategic alliances UK 1% (11) Other 5% (88) Product sales EmployeesGermany by 2% region (32) Strategic alliances by type Profile response rate Angel investor 1% Other 3% 72% (97) Expected domestic funding sources United States Public/private partnership 5% Declined 12% (15) Venture2007–2012 capital Private sector strategic alliances 15% (269)UK 1% (11) Other 5% (88) Hydrogen and fuel cell 13% companies 7% Operations Germany 2% (32) data incomplete Angel investor 1% Other 3% 27% Other OEM 8% or not available Completed Survey United States Public/private partnership 5% 45% (57) Venture capital 15% (269) Hydrogen and fuel cell Western Canada 13% companies 7% Operations 57% (1,105) data incomplete Private equity Other 27% AutomotiveOther OEM OEM 9% 8% or not available No reply Completed Survey 16% 61% 43% (54) 45% (57) Eastern Canada 20% (391) Western Canada 57% (1,105) Private equity Other AutomotiveEnergy providers OEM 9% 10% No reply 16% Government 61% Eastern Canada 43% (54) Public capital markets 20% 20% (391) 20% Energy providers 10% Government Public capital markets 20% 20% Photo courtesy of Ballard Power Systems

Conclusion For more information on the The Canadian hydrogen and fuel cell sector continued its track record of solid Canadian hydrogen and fuel cell performance: industry please contact: o Revenue stood at $135 million in 2005, compared to $133 million in 2004, with Annie Desgagné significant growth in the product sales category. Senior Advisor, o Research, development and demonstration projects were reported at Resource Processing Industries Branch $218 million in 2005 versus $237 million in 2004. Industry Canada o Employment numbers were reported as 1,902 in 2005 versus 2,056 in 2004, 1 604 666 1426 with Western Canada accounting for the largest employment cluster. [email protected] o The number of demonstration projects reported declined 34% to 142 in 2005 John Tak from 215 in 2004. President and CEO, o The number of strategic alliances reported remained steady at 271 compared Hydrogen & Fuel Cells Canada to 270 in 2004. 1 604 822 9849 [email protected] Canada continues to be a leader in providing alternative energy technology as the world moves towards a cleaner, more sustainable energy economy. With a steady John Webster employment base, a solid export framework, and an ongoing commitment to R&D BC Practice Leader, expenditures, Canada’s hydrogen and fuel cell industry continues to innovate. PricewaterhouseCoopers LLP 1 604 806 7726 The Government of Canada, Hydrogen & Fuel Cells Canada and [email protected] PricewaterhouseCoopers would like to thank the organizations that took part in this survey. By participating, stakeholders from private industry, government and academia showed their support for improving publicly available industry intelligence. This information will be used to support funding decisions, influence alliance partnerships, and strengthen the overall competitive position of the Canadian hydrogen and fuel cell sector.

technology focus

Other 25%

Market focus PEM 34% Sources of funding - government Portable AFC 2% 15% Other 14% (4) DMFC 3% Mobile 35% Hydrogen distribution 5%

SOFC 5% Hydrogen storage Hydrogen production 9% 17% Operations Fueling Years Involved in fuel cell and hydrogen activities 22% (6) infrastructure Programs Not provided 24% 64% (16) 6% (4) Demonstration focus >20 4% (2) Portable Stationary 26% 14% 11–20 years 14% (8) 5–10 years rd&D by region Mobile 58% (33) Japan 8 UK 1 Stationary 34% 17% Germany 12 < 5 years sources of funding, academic and 18% (10) United States 15 non-profit

Departmental budget 35% (3)

All monetary results are presented in Canadian dollars.

A total of 126 organizations associated with the hydrogen and fuel cell sector in Canada were invited to participate. 57 completed responses were received, representing an overall response rate of 45%. A complete distribution list is included on the back cover.

Figures presented for 2005 were collected by survey questionnaire in 2006. Figures presented for 2004 are as reported in the 2005 Sector Profile and therefore may not R&D by region be fully comparable due to differing respondents and/or basis of individual responses. 0 20 40 60 80 100 120 140 Total revenue ($ CDN) Western Canada 123 15 138 150 133 135 Eastern Canada 36 5 41 Growth since 2001 USA 14 0.6 15 100 An initial sector profile, The Economic Impact of Industrial Hydrogen Activity in Comparative Sector Statistics: 2001 to 2005 Germany 11 0.6 12 comparative statistics Canada, conducted by Sypher Mueller and Natural Resources Canada in 2001, Japan 8 0.6 8 50 provided the first glimpse into the sector's early days. Subsequent Government 300 290 3,000 276 UK 1 1 of Canada, Hydrogen & Fuel Cells Canada and PricewaterhouseCoopers Sector 0 250 2,500 R&D Demonstration Profiles have updated the original industry benchmark2004 2005study to demonstrate an 237 218 Areas of expertise active hydrogen and fuel cell sector within Canada. Although some data may not Employment 200 188 2,000 be fully comparable due to differing methodology, we can see significant growth 179 0 4 8 12 16 over in the industry over the five-year 2,100period:2,056 15 1,902 150 1,500 Research Organization 134 133 135 Fuel Cell Developer or Manufacturer • Revenue15 has grown 39%—from $97 million 1,400 100 97 1,000 Professional Service Provider 11 in 2001 to $135 million in 2005. Hydrogen Production 11• R&D expenditures have increased 22% 50 500 Policy Development and 700 Program Administration 9 to $218 million. $ 0 0 Employees Commercialization Support 9 • Employment in the industry has seen an 2001 2002 2003 2004 2005 0 Revenue R&D Employees Supplier to Developer or Manufacturer 8 increase of 6%. 2004 2005

Systems Integrator 5 Sources: 2001 – The Economic Impact of Industrial Hydrogen Activity in Canada, Sypher Mueller and Natural Resources Canada Hydrogen Distribution 3 Total R&D expenditures 2002 & 2003 – Canadian Hydrogen and Fuel Cell Sector Education, Safety and Training 3 250 237 Profile 2004, Government of Canada, Hydrogen & Fuel 218 Cells Canada and PricewaterhouseCoopers Hydrogen Storage 2 200 2004 – Canadian Hydrogen and Fuel Cell Sector Profile Fuel Cell User 2 2005, Government of Canada, Hydrogen & Fuel Cells Canada and PricewaterhouseCoopers Fuel Cell Distributor or Agent 1 150 Strategic alliances 2005 – Canadian Hydrogen and Fuel Cell Sector Profile 260 262 264 266 268 270 272 274 Other 6 100 2006, Government of Canada, Hydrogen & Fuel Cells Canada and PricewaterhouseCoopers 2005 271 Location of demonstration projects 50 0 10 20 30 40 50 60 70 2004 270 0 Western Canada 59 2004 2005 R&D Demonstration Eastern Canada 36

USA 24 Sources of funding Japan 7 0% 10% 20% 30% 40% 50% 60% 70%

UK 3 Operations Germany 3 Parent, affiliated or Other 10 subsidiary organization

DMFC 3 Corporate Academic Government

AFC 2

Other 25

MCFC – 0 Invited to participate

Advanced Measurements Inc. Enbridge Gas Distribution Institute for Integrated Energy Systems QuestAir Technologies Inc. Agile Systems Inc. Energix Research Inc. (IESVic) University of Victoria Reknewco Alberta Research Council Inc. Energy iNET KPMG Sacre-Davey Engineering Analytic Systems Energy Visions Inc. Kraus Global Inc. Sarnia-Lambton Economic Partnership Angstrom Power Inc. EnergyQBD Inc. Laval University Saskatchewan Research Council Armstrong Monitoring Corporation Environment Canada MagPower Systems Inc. SatCon Power Systems Canada Ltd. Astris Energi Inc. ESTCO Battery Management Inc. MARCON Management Consultants Simon Fraser University Atlantic Hydrogen Inc. Ford Motor Company McCarthy Tetrault LLP Social Sciences & Humanities Atomic Energy of Canada Ltd. Foreign Affairs and International Trade Canada McGill University Research Council of Canada Azure Dynamics Corporation Fuel Cell Technologies Ltd. Membrane Reactor Technologies Ltd. Stantec Consulting Ltd. Ballard Power Systems Inc. Fueling Technologies Inc. Memorial University StART Corp BC Hydro General Hydrogen Corporation Methanex Corporation Staubli Corporation BC Transit Government of Alberta Mountain Power Inc. Sustainable Development Technologies Canada British Columbia Institute of Technology Government of British Columbia National Bank Financial Sustainable Energy Technologies Ltd. BET Services Inc. Government of Manitoba National Research Council Tekion Inc. BOC Gases Government of Prince Edward Island Natural Resources Canada Teleflex Canada Inc. Business Development Bank of Canada Government of Saskatchewan Natural Sciences and Engineering Council of Canada Transport Canada Canadian Hydrogen Association Gowling Lafleur Henderson LLP Neodym Technologies Tyco Electronics Canada Ltd. Canadian Hydrogen Energy Corporation Ltd. GrowthWorks Ltd. NORAM Engineering & Constructors Ltd. Universite du Sherbrooke Cellex Power Products Inc. H3 Energy Ltd. Ontario Power Generation University College of the Fraser Valley Centre for Automotive Heliocentris Energy Systems Palcan Power Systems University of Alberta Materials & Manufacturing HTC Hydrogen Technologies Corp. Pathway Design & Manufacturing Inc. University of Calgary Chrysalix Energy Management Inc. Hybrid Energy Inc. PEI Energy Corporation University of Toronto at Mississauga Cimtex Industries Ltd. Hydrogen & Fuel Cells Canada PEM Engineers University of Waterloo Clean Energy Canada Hydrogen Research Institute PolyFuel Inc. University of Western Ontario Clean Energy Research Centre (CERC), UBC Hydrogen Systems Inc. PowerDisc Development Corporation Ltd. Ventures West Management Inc. Conduit Ventures Limited Hydrogenics Corporation PowerNova Technologies Corporation Versa Power Systems Dana Canada Corporation Hyteon Inc. Powertech Labs Viridis Technologies Deere & Co. IMW Industries Ltd. Praxair, Inc. Western Economic Diversification Canada Deloitte & Touche Inco Special Products PricewaterhouseCoopers LLP Westport Innovations Inc. Department of Defence Industry Canada Province of Ontario Yaletown Venture Partners Direct Carbon & Fuel Cells Canada Institut national de Dpoint Technologies la recherche scientifique (INRS) Queens Royal Military College Fuel Cell Research Centre Dynetek Industries Ltd.