Fuel Cell Electric Buses An attractive value proposition for zero emission transit in Canada May 2020 Table of Contents Executive Summary . 3 Introduction . 6 Benefits of Zero-Emission Fuel Cell Buses . 7 Performance . 8 Reliability . 8 Resiliency . 8 Sustainability . 8 Scalability of Infrastructure . 8 Greenhouse Gas Emission Reductions . 9 Cold Weather Operation . .11 Fuel Cell Electric Bus . 13 Hydrogen Fuelling for Fuel Cell Bus Fleets . 15 Hydrogen Production . 15 Hydrogen Fueling Infrastructure . 15 Fuel Cell Electric Bus Total Cost of Ownership . 15 Value to Canada . 17 Whistler: Lessons Learned . 20 Conclusion . 21 Affordable . 21 High Performing . 21 Zero-Emission . 21 The Other Electric Bus . 23 Document References . 24 Tables & Figures New Flyer’s Xcelsior CHARGE H2™ 18 metre articulated fuel cell electric bus . 4 Fuel cell electric bus in operation at Orange County Transportation Authority, California . 7 Canadian Industry Leaders . 18 Ballard Power Systems 2 Executive Summary There is no doubt that the future of public zero emission counterparts, battery electric buses. transportation is going to be zero emission and Canada is already a leader in the production of it will happen quickly. With the government’s hydrogen as an energy carrier, and has many mandate that all federally financed bus purchases competitive advantages (e.g. low carbon feedstocks) be zero emission beginning in 20231, cities and that will grow this sector as the world seeks low transit authorities are faced with a choice of what carbon intensity fuel options. On the technology technology to deploy. Transit operators can consider side, Canada is already home to world leading two zero emission electric bus solutions: fuel cell hydrogen and fuel cell companies that cover all electric buses (FCEBs) or battery electric buses elements of the supply chain— including hydrogen (BEBs). Both technologies are needed to ensure the production, distribution, dispensing and utilization, transition to 100% zero emission transit. fuel cell vehicle engineering and manufacturing). FCEBs are electric buses that offer all of the benefits The potential for growth is immense, with financial of BEBs without some of the drawbacks. FCEBs incentives available at regional and national levels fueled with hydrogen are the only zero-emission to support the deployment of fuel cell electric technology to offer one-to-one replacement of buses and hydrogen refueling stations. Analysis diesel fleets with complete route flexibility, short performed by both Deloitte China and McKinsey & refueling time and similar depot space utilization. Company shows that commercial fuel cell vehicles, such as transit buses, will become competitive with With more than 15 years on the road and millions of diesel vehicles within the next five to seven years. kilometers in passenger service, FCEBs have proven There is a clear line of site to a positive payback, their performance. FCEBs have demonstrated with fuel cell electric vehicles projected to be less reliable operation in revenue service despite varied expensive to run than battery electric and internal drive cycles and challenging geographies. Over combustion engine vehicles within 10-years. 2,500 fuel cell buses have been delivered to transit operators around the world. Read on to learn more about the benefits of zero- emission FCEBs for public transportation in Canada. Fuel cell electric buses hold a significant economic value for Canada, even when compared to their Ballard Power Systems 3 New Flyer’s Xcelsior CHARGE H2™ 18 metre articulated fuel cell electric bus Zero–Emission Fuel Cell Electric Buses for Canada Ballard Power Systems 4 Clean public transit powered by renewable hydrogen will improve air quality in our cities. Ballard Power Systems 5 Introduction Climate change is one of the most significant issues of our Canadian cities and transit agencies have already recognized times, demanding action today . Governments around the world the need to transition to zero emission buses . The City of are doing their part; Canada has committed to achieve net-zero Vancouver, for instance, has committed to working with the emissions by 2050 . Net-zero emissions – where there are no regional transit authority to procure only zero emission buses carbon emissions, or where emissions are completely offset by from 2025 . B C. Transit is rolling out a plan to electrify its entire other actions that remove carbon from the atmosphere – are fleet of more than 1,000 buses across the province by 2040 essential to keeping the world our children grow up in safe and livable . The Canadian Federal Government’s December 2019 mandate letter to the Minister of Infrastructure and There are significant opportunities for zero emission vehicles to Communities3 outlines a policy that will affect many transit play a key role in Canada’s carbon neutrality mandate . In 2017, operators . Beginning in 2023, all new bus and rail rolling- the transportation sector was the second largest source of stock procurement that is federally financed must be zero GHG emissions, accounting for 24% (174 megatonnes of carbon emission . In support of this initiative, the Federal Government dioxide equivalent) of total national emissions .2 Between 1990 has committed to working with provinces and territories to and 2017, GHG emissions from the transportation sector grew introduce new funding to help school boards and municipalities by 43% . purchase 5,000 zero-emission school and transit buses over the next five years . Net zero by 2050 can only be achieved by decarbonizing both heavy-duty vehicles and passenger cars – and hydrogen is a This is undoubtedly a major change in the future of urban vital part of the solution . In fact, it’s hard to see how we can get transportation in Canada and one that will require forward there without it . On a “well to wheel” or “cradle to grave” basis, thinking planning to develop a feasible roll out plan . Agencies zero emission vehicles powered by green hydrogen represent a must consider the type of zero-emission buses the agency will compelling solution to decarbonize transportation and reduce employ, how the necessary infrastructure will be built out, and GHG emissions .In California, one of the leading regions in the how the workforce will be trained . The central decision is the world in implementing zero-emissions vehicles (including choice of zero-emission technology: fuel cell electric buses transit buses), climate change and air quality concerns have (FCEBs) or battery electric buses (BEBs)—or, most likely, a compelled multiple agencies to deploy both battery electric combination of both . and fuel cell electric buses into their fleet operations to meet all required duty cycles . Providing the hydrogen produced FCEBs are the only zero emission solution that can meet is from low carbon sources, or the carbon emissions created the performance demands of transit operators without from it captured, hydrogen could play an important role compromise . With tens of millions of kilometers in in eliminating one of the largest sources of carbon dioxide commercial services and more than fifteen years on the road emissions in Canada . in different environments, FCEBs have been proven to meet the operational requirements of transit agencies and bus Travelling up to ten times further than the average passenger operators . vehicle, urban buses are a significant source of pollution, impacting local air quality and global carbon emissions . Ballard Power Systems 6 Benefits of Zero-Emission Fuel Cell Buses FCEBs provide affordable zero-emission transportation with FCEBs do a complete day’s work even on the most arduous no compromise in vehicle performance . FCEBs are the only routes and allow for a 1:1 replacement for conventional diesel zero-emission technology to offer full vehicle capability or compressed natural gas (CNG) technologies . This means that (gradeability, highway speeds, and long range) in all operating FCEBs can operate on all urban bus routes without compromise environments . during long shifts in winter or summer . Zero-emission transportation with no compromise in performance or operation. Fuel cell electric bus in operation at Orange County Transportation Authority, California Ballard Power Systems 7 Performance Furthermore, Ballard offers its customers a refurbishment program for fuel cell stacks that have reached the end of life . FCEBs offer the performance benefits of long range, fast Ballard’s ability to refurbish the fuel cell stack and recover refueling and full route flexibility, consistent with the internal more than 95% of platinum means far fewer waste products combustion engine vehicle experience that transit operators end up in landfills, as well as further lowering life cycle cost are familiar with . FCEBs operate over 450 kilometers during and carbon footprint . an 18-hour shift on the road with a single 10-minute re-filling at night . This is in contrast to the limitations of BEBs – range Scalability of Infrastructure limitations, long recharge times or roadside recharging infrastructure, route inflexibility, and performance degradation When assessing and comparing TCO across zero emission in cold temperatures . technology alternatives, a critical cost driver is the cost of infrastructure and how it develops with increasing scale . Reliability The cost of hydrogen fueling infrastructure for a small fleet The thousands of FCEBs operating around the world have of FCEBs is initially significantly higher the cost of charging