5/26/2014 HYDROGEN INFRASTRUCTURE IN NORWAY, IPHE OSLO, MAY 20, 2014 ULF HAFSELD, CEO HYOP HYOP  HYOP AS is an independent company dedicated to bring hydrogen fuel to the market  HYOPs mission is to own and operate hydrogen refuelling stations and hydrogen production facilities  HYOP shall be a tool for implementing hydrogen fuel in the transport segment Signing the take over from Statoil May 8, 2012 HYOP has 10 years of experience with hydrogen stations and is now operating 20% of the 70 MPa car stations in Europe 1 5/26/2014 The ZEV story • Your fossil fuelled car will be replaced with a zero emission vehicle that will be as good as, or better than your current • The fuel you consume will be produced from renewable resources and will be available at convenient locations We have started the move 5,6 % of new car sales in 2013 New BEVs in Norway 3Q13: Tesla S introduced 4Q11: Nissan Leaf introduced 4Q10: Mitshubishi iMIEV introduced 2 5/26/2014 .. and picking up speed … FCEVs, PHEVs and BEVs in Scandinavia by year end 2013 Norway: Jan – Apr. sales BEV: 9.074 PHEV: 865 March 2014; BEV 20 % of all new car sales 1 1615 1524 Sweden 15 1000 1550 Denmark 20 691 Norway 19678 0 2000 4000 6000 8000 FCEV 10000 12000 PHEV BEV 14000 16000 18000 20000 Strong incentives in place for ZEV cars in Norway  Already in place for BEV and FCEV Zero import duty and VAT  Free public parking (and charging)  Free toll roads  Free ferry trips on public roads  Use of public transport lanes  90 % reduction in annual fee  50 % value reduction before taxation when used as company cars  No taxation on hydrogen fuel  Avoiding queue driving in the bus lane 3 5/26/2014 Requirements for the hydrogen infrastructure – seen form a user perspective • The hydrogen stations will always provide me with the hydrogen fuel I need • The cost of my hydrogen fuel will be no higher than what I pay for fossil fuels • The network of stations will suit my needs Present status for Hydrogen in Norway  Hydrogen stations in oper- ation in Norway since 2006    5 stations for cars and one for buses in operation 19 cars + one station taken out of service after doing their duty 15 FCEVs + 5 PFCEV + 5 buses in service  Norwegian oil companies left down-stream business   New independent hydrogen station company formed – HYOP Regions are becoming strong actors 4 5/26/2014 The HYOP station network  Owner and operator of four hydrogen stations in Eastern Norway  Operating agent for the HyNor Lillestrøm station Porsgrunn Drammen Oslo - Økern Oslo - Gaustad In operation since 2007 Capacity 130 kg/day 350 bar car/bus 700 bar In operation since 2009 Capacity 20 kg/day 700 bar In operation since 2009 Capacity 20 kg/day 700 bar In operation since 2011 Capacity 20 kg/day 700 bar Requirements for new stations  Building the permanent infrastructure  RD&D stations a side track, but still important  Finding the right locations growing in importance Hydrogen Fuel OPEN 24 Hours  Robustness and reliability are key drivers  The stations must deliver 24/7  Redundancy and independent supply lines  Building supply lines for high volumes  The stations must be built to supply 300 to 2000 kg/d  Cost efficient hydrogen supply lines will be developed  Adapting to international standards 5 5/26/2014 COMPRESSOR 1 STORAGE 1 HIGH PRESSURE 2 HIGH PRESSURE 3 D 1 DISPENSERS D 2 D 3 TRUCKED IN BAY ELECTROLYSER 2 HIGH PRESSURE 1 COMPRESSOR 2 STORAGE 2 ELECTROLYSER 1 Modular build up with on-site production CONTROL ROOM D 4 D 5 Water electrolysis gives many right answers  Linking directly to renewable power  On-site or centralised production  Utilising existing infrastructure  Power and water grids  Gas quality is right  Few impurities and easy to control Atmospheric electrolyser  Cost picture looks good in Norway  Business model mainly depending on volumes  Energy conversion efficiency can be high  > 70 % possible 6 5/26/2014 Can we have a viable business model? Financials for 1000 kg/day on-site electrolysis station 180000 000 160000 000 140000 000 Accumulated operating result Kroner 120000 000 100000 000 Accumulated result 80000 000 Accumulated result after financial costs 60000 000 40000 000 20000 000 -   2027 2029 2028 2025 2026 2024 2021 2023 2022 2020 2017 2019 2018 2015  2016 -20000 000 Capex most important in the early years Period for volume build-up determines years before ROI Power price determines your profitability Renewable power production in Norway  Annual production of renewable power in Norway in 2012 was 145 TWh  Share needed for 1 million cars is 5 % of total production  Plan to phase in 10 – 20 new TWh over the next decade  Renewable power will be abundant in the years ahead 97 % of all electricity from hydropower 7 5/26/2014 Current location of stations Gaustad 2011 Økern 2009 Lillestrøm 2012 Drammen 2009 Porsgrunn 2007 160 km SW Oslo bus 2012 Introducing next generation of stations Bergen 2015 500 km W Høvik 1Q15 Gol 2016 New Økern 2015 Lillestrøm 2012 (old Økern+) 200 km NW Drammen 2009 Porsgrunn 2007 160 km SW Oslo bus 2012 8 5/26/2014 Expanding stations and network Gardermoen 2018 Bergen 2015 + 2017 500 km W Høvik 1Q15 Gol 2016 Ullevål 2018 Trondheim 2016+2018 500 km N Lillestrøm New Økern (R&D) 2012 2015 (old Økern +) Lillehammer 2017 (old Drammen +) 200 km NW 190 km N Drammen upgrade 2017 Porsgrunn 2007 160 km SW New Lillestrøm 2017 Oslo bus upgrade 2017 Stavanger 2017+2018 550 km SW Plan for southern Norway  Phase II – 10 000 cars (2020)  20 – 25 stations needed  Large capacity stations with on-site electrolysis the preferred solution  Focus in the Oslo region with stations outside in main cities and key locations  Phase III – 100 000 cars (2025)    70 - 100 stations needed On-site large stations Smaller stations with supply from central or on-site production Potential network by 2020 9 5/26/2014 Conclusions  Hydrogen activities focused in Eastern Norway  The regions are taking the lead after the oil companies left  Good incentives in place for introducing FCVs  Good experience from the BEVs  The new stations must be reliable and capable of delivering large volumes of hydrogen  Norway will be able to use renewable power for all hydrogen fuel production Thank you for your attention Thanks to HYOP sponsors: The new Hyundai ix35 already on the roads in Norway OSLO Kommune 10