MISSION INNOVATION COUNTRY HIGHLIGHTS 5TH MI MINISTERIAL 2020 CONTENTS Introduction 02 Australia 03 Austria 06 Brazil 10 Canada 13 Chile 17 China 20 Denmark 23 European Commission 26 Finland 30 France 33 Germany 39 India 43 Indonesia 52 Italy 53 Japan 57 Mexico 61 Morocco 62 Netherlands 65 Norway 72 Republic of Korea 75 Saudi Arabia 78 Sweden 80 United Arab Emirates 84 United Kingdom 89 United States 95 Annex A 97 1 INTRODUCTION Mission Innovation (MI) Members1 agreed to provide information on strategies and plans for their respective governmental and/or state-directed clean energy research and development investment over five years. New investments are focused on transformational clean energy technology innovations that can be scaled to varying economic and energy market conditions that exist in participating countries and in the broader world. Information-sharing promotes transparency and integrity. It allows for broad stakeholder engagement, gives rise to opportunities for collaboration, and can inspire and inform investment decisions by the private sector. Accordingly, MI Members have shared narratives, available on the MI website, describing the nature of their clean energy research, development, and demonstration (RD&D) investments; current strategies and priorities for engagement in Mission Innovation. MI Members initially submitted narrative and funding information prior to the Inaugural MI Ministerial in June 2016. They submitted updated information in November 2016, at the one-year anniversary of the MI launch in Paris then prior to the Second MI Ministerial (June 2017), Third MI Ministerial (May 2018) and Fourth MI Ministerial (May 2019). Once again, MI members have submitted information prior to the Fifth MI Ministerial hosted by the Kingdom of Saudi Arabia in September 2020. This updated information focuses on key highlights over the past year including recent developments in members plans, policies and strategies, innovation successes, activities delivered in support of the Innovation Challenges, public sector RD&D investment and new collaborations. For the first time members have provided information on the impact of their activities. This document provides a compilation of the most recent information that has been submitted by each of the 25 MI Members. In addition to promoting transparency and integrity, it is hoped that the information shared in the document will facilitate collaboration among Members and encourage further private sector engagement. All data is based on information submitted by members. Baselines are determined independently by each member based on national priorities and relevant activity under Mission Innovation, it therefore differs by member and, for International Energy Agency (IEA) member countries, is often a subset of the IEA datasets2. All funding amounts presented in this report are in USD using a single set of foreign exchange rates3 There may be small differences in USD amounts compared to previous MI country highlights. Numbers denoted by “zero” in the following tables may indicate that no information has been provided for spend in that category. 11 Mission Innovation Members, as of September 2020, include 24 countries and the European Commission on behalf of the European Union. A complete list is provided at: http://mission-innovation.net/our-members/ 2 2 Please see Annex A for full data set 33 The exchange rates used were taken from the OECD Monthly Monetary and Financial Statistics https://stats.oecd.org/Index.aspx?DataSetCode=MEI_FIN# 2 COUNTRY HIGHLIGHTS AUSTRALIA AUSTRALIA High impact innovation activity triggered by MI In 2019, a consortium of over 30 Australian industry, government and academic partners established the Affordable Heating and Cooling Innovation Hub (i-Hub). i-Hub supports Australia’s engagement in Innovation Challenge 7 activities and aims to demonstrate how renewable energy technology can be integrated with heating, ventilation, air-conditioning and refrigeration equipment in commercial buildings. Impact of your national clean energy innovation activity In 2019, Australia installed a record estimated 6.3 gigawatts of new renewable capacity, 24% above the previous record set in 2018. This follows Australia’s investment of AUD$11.9 billion in renewable energy in 2018, the highest on record. These investments contributed to reduced emissions – lowest level of emissions per person in 29 years (in 2020) – without compromising on economic growth. Renewables are expected to contribute 27% of Australia’s electricity in 2020 and 48% in 2030. Update on clean energy innovation policies and strategies Australia is taking a practical, technology-focused approach to the transition to a low emissions economy. In May 2020, Australia launched a Technology Investment Roadmap to reduce the cost of new and emerging low emissions technologies and accelerate their deployment. Annual Low Emissions Technology Statements will be released as an ongoing and important mechanism to ensure that Australia’s investments deliver the strongest economic and emissions reductions outcomes. Australia announced its AUD$3.5 billion Climate Solutions Package in February 2019. The package expands investments in clean energy generation projects, energy efficiency and other economy-wide emissions reductions measures. This includes targeted investments in hydro-electric generation and large-scale storage capabilities through the Snowy 2.0 project to improve the security and reliability of Australia’s energy system. Australia released a National Hydrogen Strategy4 in November 2019. The strategy sets a vision for a clean, innovative, safe and competitive hydrogen industry, with the aim of positioning Australia’s hydrogen industry as a major player by 2030. These new policies complement Australia’s existing suite of policies and project financing through the Australian Renewable Energy Agency and the Clean Energy Finance Corporation. Major innovation initiatives and programmes in 2019/20 Following the release of Australia’s National Hydrogen Strategy, the Government has announced AUD$370 million funding to support new hydrogen projects. This includes: An AUD$300 million Advancing Hydrogen Fund from the Clean Energy Finance Corporation, which will support the growth of a clean, innovative, safe and competitive Australian hydrogen industry. Australian Renewable Energy Agency’s Renewable Hydrogen Deployment Funding Round of up to AUD$70 million to help fast track the development of renewable hydrogen in Australia. The round is expected to play a material role in supporting commercial-scale deployments of renewable hydrogen in Australia. 4 https://www.industry.gov.au/data-and-publications/australias-national-hydrogen-strategy 3 4 COUNTRY HIGHLIGHTS AUSTRALIA Private sector engagement in 2019/20 In November 2019, Australia joined the Leadership Group for Industry Transition, which aims to bring together government and industry leaders to develop sectoral roadmaps. These roadmaps will cover innovation, policy and finance, promoting public-private collaboration on critical challenges across hard-to- abate sectors. In 2019 and 2020, the Australian Government announced funding for industry-led research collaborations in clean energy through Cooperative Research Centres (CRCs). These include: 1 AUD$70 million to establish the Blue Economy CRC, which brings together over 40 participants from aquaculture and renewable energy sectors to address the challenges of offshore food and energy production. 2 AUD$25 million to the Future Battery Industry CRC to help tackle gaps in the battery industry’s value chain, support battery deployment and optimise the circular economy for battery waste recycling. 3 AUD$40 million to the Future Energy Exports CRC, which will explore ways to apply Australia’s extensive LNG export knowledge to establish a global leading position in the nascent hydrogen export industry. 4 AUD$68.5 million to establish the Reliable Affordable Clean Energy for 2030 CRC, which will facilitate research collaborations between universities and the energy industry with the aim of reducing emissions, improving network reliability and reducing energy costs across Australia. Major activities in support of the Innovation Challenges in 2019/20 Australia participates in all eight Innovation Challenges and co-leads IC8. Our key activities between 2019 and 2020 include: IC1: Smart Grids Challenge In partnership with IC1, Australia hosted a Smart Grids Pitch Competition at the World Solar Challenge in October 2019. The competition helped raise awareness of the wide-ranging potential for smart grid technologies in the investment community and with a broader audience. IC5: Converting Sunlight Challenge In partnership with IC5, Australia hosted the second International Forum on Zero Carbon High Temperature Minerals Processing (HiTeMP) in March 2020. The forum brought together global leaders in research, industry and businesses to foster the transformation of heavy industries that relies on heat. IC8: Renewable and Clean Hydrogen Challenge In November 2019, International Partnerships for Hydrogen and Fuel Cells in the Economy (IPHE) and IC8 co-leads (Australia, Germany and the European Commission) jointly held a workshop on Hydrogen in the Gas Grid in the UK. Participants exchanged knowledge on the regulations, codes and standards for using hydrogen in the gas grid. 3 4 COUNTRY HIGHLIGHTS AUSTRALIA National plans and priorities for clean energy innovation Australia’s Technology Investment Roadmap provides strategic