CROSS INDUSTRY INNOVATION

IN DEVELOPMENT OF FUEL

CELLS FOR ROAD

TRANSPORTATION

Sameep Kunja 2011SMN6501

Rajesh Sinha 2011SMN6502

Anita Singh 2011SMN6504

Abhijit Majumdar 2011SMN6505

S Gayathri 2011SMN6509 Gp 4 - IIIrd Year MBA (PT)

Scope

• Introduction

• Framework for introduction of fuel cell

technology for road transportation

• Correlating framework with the real world

Introduction

• Carbon based economy

• Effects of Carbon Economy

▫ Air pollution

▫ Heath effects

▫ Climate change

▫ Associated natural phenomenon

Introduction

• Road transport contributed 16.5% of all Carbon di

Oxide emissions

• Possible Solution – Change over to Hydrogen

based economy

▫ Less polluting

▫ More energy efficient

▫ More practical than pure electric

▫ Present pure electric still based on carbon economy

Managerial Issues

• Disruptive technology

• Innovator’s dilemma – extremely expensive today

• Poor innovation eco system

▫ Limited complementary innovations

▫ Poor adoption

• Unattractive USP in present economic scenario

Adoption Cycle

• Low automobile Prices

• Low fuel prices

• Easy accessibility to refueling infrastructure

• Wide choice to customer

Adoption• Economies of scale

• More Competition

Main Players

• Banks and finance companies

• Government funded laboratories

• Governments

• Industry

• Customer

Main Factors

• Development of requisite technologies

• Availability of finance

• Availability of land

• Availability of fuel

• Legislation

• Competition

Adoption Framework

What’s the Real World Doing?

• Governments

▫ Technology introduction road maps

▫ Stringent Environmental laws

▫ Tax breaks

▫ Subsidies

▫ International technology development funds

• Government funded laboratories

▫ Development of base technologies

▫ Development of alternate cheaper materials

What’s the Real World Doing?

• Industry▫ Development of vehicles

▫ Development of fuel production technology

▫ Development of refuelling technology

▫ Investment in infrastructure

▫ Innovative ownership experience to reduce ownership cost

• Customer▫ Awareness of the requirement

▫ Still waiting for wider adoption and reduced costs

Energy Policy Act of 2005 (EPACT)

Energy Independence and Security Act of 2007

European Hydrogen and Fuel Cell Technology Platform

Fuel Cells and Hydrogen Joint

€940 million for period 2008-13

Zero Tax on FCEV

$70 million for period 2004-11

80% subsidy for buildings

Pilot projects on road

Examples – Government Efforts

Examples – Industry Efforts

• Complementary Innovation –

P2G by Hydrogenics

• Refuelling Infrastructure –

Idemitsu

Examples – Industry Efforts

• Ix35 – Hyundai Motors

• FCX Clarity – Honda Motor

Company