A New Mititer Plan For Mammoth Lakes is necessary-~

To develop a new hydrogen economy at Mammoth requires thecooperation ofmy organizations...

The City ofMammoth Lakes

The Mammoth Lakes Water District

The County ofMono

The US National Forest

The Mammoth Mountain Ski Area

The Sierra Club

The Casa Diablo Thermal Plant (An International Corporation) c~~A 7

The Edison Company

The Los Angeles Department of Water and Power

The contamination of the Mammoth Lakes water wells by hot watcr andarsenic demands action that can be accomplished by using the Casa Diablohot water wells and Mammoth Lakes contaminated wells to produceHydrogen gas by electrolysis.

The Casa Diablo Corporation could install the hydrogen gas pipedistribution system and sell hydrogen to the gas stations and homes toreplace the current propane tanks and to pipe hydrogen to the top ofMammoth Mountain for fuel cells to produce electrical power and waterfor snow making and generating hydro electric power and drinking waterfor the Mammoth Resort and City....

Reds Lake is a potential reservoir for the proposed new resort complex atthe Main-Lodge area and the city of Mammoth Lakes...

Saturday, April 20, 2013

Mention the term “nuclear power,” and the firstimages that are likely

to come to mind are coolingtowers, disasters such as Three-Mile Island and Chernobyl, themovie “The China Syndrome”and containers full ofnuclearwaste with a half-life of 100years or more. What ifnuclearpower Instead only conjuredup an image ofa glass ofdean,cleafWater?

During a recent MammothLakes Town Council meeting,Charles Griffin, who’s been skiing here since 1948, broachcdthe idea ofusing aversion ofhydrogen reaction to supplyplentiful, economical, safe~,nonradioactive, nonpollutingenergjrforcomm~~j~j~ such asMammoth. Utilizing the fusionofhydrogen with boron to splitthe resulting carbon atom intoaccelerated positively chargedhelium ions, the resultingenergywould then be focusedthrough a coil (such as the secondary coil of a electrical transformer) to generate electricalpower to the commercial grid.

That, Griffin assessed, couldprovide power, heat and light tohomes and businesses, producehydrogen gas by electrolysisofused or dirtywater thatcould fuel fireplaces, cookingranges and barbecues, and inturn drive fuel-cells to produceclean drinking-watei~ a naturalby-product ofhydrogen power,as well as additional electrical

for. the Eastern Sierra

power. Far safer than conventional nuclear reactors usingradioactive material to generate e1ectricit~ boron/hydrogenfueled nuclear reactors, Grif~i notes, basically emulatea fusion reaction that occursnaturally in thunderstorms.

Griffin is a state certifiedControl Systems Engineer witha long history in technology~ Hepreviously worked on various‘iinch~r~

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the Armed Forces, includingHonest-John, Nike Ajax/Zeus,andA4DAttackEomber aswell as the B-2 Stealth Bomber,which was recently deployed inthe skies near North Korea. Inthe civilian world, heworicedwith BoeingIMcDomiell~Doug..las on DC-8, DC-9, DC-b andMD-80 commercial aircraft.

A boron/hydrogen fuelednuclear-reactor prototype is already in development by. SantaFe, New Mexico-based EnergyMatter Conversion Corporation (emc2) as part of a contractwith the U.S. Navylest Stationlocated at China Lake, Calif. Theproject was funded with $10million authorized by PresidentBarack Obama’s 2009 StimulusAct.

The Navy is pursuing replacing thetraditional radioactive, uranium-fuelednuclear reactors in submarines and aircraft carriers. And ifyou know anythingabout aircraft carriers, a hydrogen reactor capable of safely powering those“floating cities,” some ofwhich canhave crews ofup to 6,000, can keep upwith the needs ofMammoth Lakes.

FREE

————I ~ = ~ 13 Q1~U UW

veloping a prototype~boron/hydrogea..fueled nuclear reactor, which accordingto Griffin would be practical and safe.Such a plant would function withoutgenerating poisonous, radioactjve~Plutoflium-con~am~ated waste material,whjchhasto be sealed and storedin special processing facilities.

The Lawrenceville project originatedas a research project at Texas A&M University, with research funds from theNational Aeronautic and Space Administration and Pasadena’s Jet PropulsionLaboratory (JPL), for a rocket to propelinterplanetary space vehicles. Anotherof the project’s key partners is theUniversity of Chile~ which is located notfar from concentrations ofboron oredeposits found in the high, dry desertsregions ofBolivia, Peru and Chile.

“Duringmy lifetime, the populationof the world has doubled from 3 billionto 6 billion persons,” Griffin said. “Thehuman population will continue to expand and concentrate in metropolitancenters that have outgrown the aveilability of dean air, water and electricalpower from natural weather patterns ofrain, wind and snow. This is even trueof the town ofMammoth Lakes.”

According to Griffin, MammothLakes could construct a small nuclearreactor perhaps located at the sewerprocessing facility that providedelectrical power for the town andM~mnioth Mountain Ski Area. Manufactured hydrogen gas from the plantcould be piped to heat the homes ofthe town ofMammoth Lakes to replace Ipropane gas, a fossil fuel Griffin wouldliketo see theworid get awayfrommore and more.

The gas could also be piped to thetop ofMMSA’s gondola station forhydrogen fuel cells that would produce both electrical power for the skilifts and yield pure, distilled water thatcould be stored in a buried tank to inturn feed a hydroelectric generatingstation and reservoir located at a lowerelevation to provide electrical powerand extra water for the town.

Hydrogen, both in fuel cell and liquidform, has already been tested in vehicles, such as the BMW H7. The futureofboth hydrogen vehides and powerplants will be dependent on capital todevelop desalination plants to provideclean water from the Pacific Ocean tocities and rural areas. The long-termresults, though, could mean power supplies for high-speed rail and subways,airports and other infrastructure, aswell.PU13LlsHE1e~: ckLJ)I~LI1

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[HE NEW NUCLEART~~{ydrogen plant could provide dean,~ POwer(

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the human population of the won asandwil continuetoexpa d... and

concentrat in etropoltan centers thatha e out grown the a ailability of cleanair, water and el ct ical power frona ural w ather patterns of rain, winda d snow ... ~.. ... aggr vated by everincreasing combustion of car on-b sedfuel that pr d ce carbon-dioxide-gas

at in-turn creates a ot- ouse- i eceiling above the earth that captur s theinfr -red-fr quenci o elect oma n ticradiatlo (h at) fro th sun that rais sthe average tem erature of theatmosph re and preventing the naturalacc m lation and stor ge of water ingI dens throughou the world ... andslowly, steadil raising the level of theoce and reducing the land availablefor the gro ing population to inhabitThe efore ... ...

Please consider defining, developing, marketing,outreaching, funding and utilizing a boron/hydrogen(borane-gas, BH3) fueled nuclear-reactor to:(1) provide economic, plentiful, non-radioactive, non-greenhouse-gas-producing electrical power, and homeheating gas(2) provide electrical power for desalination plants to supply& distribute fresh water from the ocean for a growingpopulation .that has out-grown the availability of water fromthe natural weather cycles of rain and snowand in addition ... and primarily for(3) electrolysis of water to produce hydrogen(“manufactured-gas’) for powering ground (automobile& truck) transportation and ... for home heating and cooking(Whereas... “free-hydrogen” was once evaporated fromcrude-oil available from local Los Angeles area oil-wells.,,this form of “manufactured-gas” was furnithed by theSouthern Cailfornia Gas Company during the .1930 decade.).[e. g. As a young boy (drca 1929 - 1940) our family home inWest Los Angeles was heated by unvented “manufactured-gas” heaters in the bedrooms ... and meals were cooked inunvented “manufactured-gas” ovens and on open unvented“manufactured-gas” ... water was heated by anopen-flame, unvented “manufactured-gas” water-heater inthe laundiy-room~11 and... as a newly-married couple(1960), ... our first home (constructed in 1939) on BalboaIsland, Newport Beach ... had “built-in ~ unvented“manufactured-gas” heaters (which Isubsequently removed)that were located in the bedrooms and dining-room.]

Please note that a boron/hydrogen (borañe-gas) fuelednuclear-reactor prototype (as I am suggesting) is underdevelopment by the Energy Matter ConversionCor oration (emc2) of Santa Fe, NM and now at 9155Brown Deer Road, Suite 4, San Diego, CA, USA, 92121-2260,under contract to the U.S. Navy Test Station located atChina Lake, CA.. For the purpose of replacing theradioactive, uranium-fueled, electrical-power-generating,nuclear-reactors in submarines & aircraft carriers

Refer to:http://emc2fusion.org (discontinued.. .Google emc2)[This project was funded with $10,000,000.00 andauthori~ed by the StimulusAct signed by President Obama in2009...This project carries on from experimental workpreviouslyinitiated by Dr. Busard a senior sdentist that had experiencewith NASA space projects, the US. Department ofEnergy(DOE) & some U£ Navy research funds in 2006...

Dr. Busard died in December 2007after learning that hisexperiments for the U.£ Navy had been successful . .11

Also ...

Lawrenceville Plasma Physics, Inc (LPPX) in Middlesex,New Jersey is also developing a prototypeboron/hydrogen (borane-gas, BH3) fueled nuclear-reactor (that I am recommending),which should soon prove to directly produce plentiful, non-radioactive, economical electrical power...and which should also be practical and safe to accelerate thedecay of thousands of tons of poisonous, radioactive,Plutonium-contaminated waste-materialthat is currently being sealed and stored in four-tonincrements ... in silicon/steel/concrete containers at theHanford, WA, National, Military, plutonium-waste processingfacility. ... andThis is in addition to in addition to the similar thousands oftons of poisonous, radioactive, Plutonium-contaminatedwaste-material ... that is also currently being sealed andstored in four-ton increments ... in silicon/steel/concretecontainers at each of the commercial nuclear power plantslocated throughout the United StatesRefer to: http://focusfusion.org and/or contact Eric Lerner(elerner@igc.org)[Thic project was ori~’inated as a research project at TexasA&M University with research funds from NASA, PasadenaJet Propulsion Laboratoiy (JPL)... for a rocket to propelinterplanetaiy-space-vehicles.., and later by the UniversityofChile,,. which is located not far from concentrations ofboron-oar deposits... that are located in the hi~’h, thydeserts ofBollvia, Peru and Chile. . .1

These boron/hydrogen (borane-gas) fueled nuclear-reactors emulate the fusion reaction that occursnaturally in thunder-storms •1~

i.e. A high-current, momentary-pulse-of-electrons (a sparkor lightning-arc) in a magnetic field first goes into a spiralaround magnetic-flux of a (e.g. the earth’s) magnetic fieldThe spiral of electrons will form a circle around magnetic-flux of a (e.g. the earth’s) magnetic fieldThe circle of spiraling electrons will spin in magnetic flux of a(e.g. the earth’s) magnetic field ... forming a “ball” ofconcentrated, very high negative voltage (>>150,000 vdc)•.. -

[In a thunder-storm, the water-vapár hydrogen-oxygenmolecules become positively charged because theirnegative-charged electrons have been strio,oed away by thesolar heated turbulent wind ofoxygen/nitrogen-air-molecules.]In a commercial nuclear-reactor, a reactor-electric-coilcircuit-produced, concentrated-ball-of-high-negative-voltage-electrons ... will, similarly repel and strip the electrons fromthe borane gas molecules ~1•

Leaving the boron and hydrogen atoms as positively chargedions that will accelerate (almost to the limiting, terminal V

speed of li~’ht, 186,000 miles per second) toward thenegatively charged ball of concentrated electronsHere, the kinetic energy of the accelerated mass of the boronions (each composed offive protons & six neutrons) andhydrogen ions (each composed ofone proton) will causethem to collide (ilke a Q—ball hitting a stack ofbililard balls)

i.i

First fusing into kinetically-unstable carbon-atom-nuclei(each composed ofsixprotons & six neutrons) .

Each resulting carbon-atom-nucleus is kinetically-unstablebecause it was formed by a dynamic impact and itimmediately fissions into three, stable (chemically-inert)positively-charged helium-ions (each composed of twoprotons & two neutrons)

[Each hellum-atom-nudeus-ion... is a vely-strong, stableformation.., because eveiy neutron is composed ofapositively-charged-proton...that has been made electrically ... by the attachmentofa negatively charged electron... that had lost anymomentum (kinetic energy) that normally would keep itseparated from protons...111 and/or...because each such hellum-atom-nudeus-ion is really acompact-cube-structure composed offourprotons and twoelectrons, all very-strongly attached together...by a c mbination ofboth mutually-attracting gravitationalforces & ... mutually-attracting electrostatic-forces ...]

The hellum-atom-nudeae-ions are immediately disconnected(i. e. fission) from the hydrogen-&-boron fusion nudeus andaccelerated by the kinetic energy of the fussing impact ofthe hydrogen-ion impacting the boron-nudeus-ion~0~ and..

The hellum-atom-nudei-ions are additionally instantly-accelerated by the exponentially-super-strong, mutualrepelllng, electro-static force of the positive-charge of thehellum ... that can then be focused into a spiral aroundmagnetic-flux (generated by a surrounding-installed wire-coillocated inside the reactor- ... and...

The spiral ofhellum-atom-nudei-ions are then directed downthe center core ofa spiral-output-winding-wire-coil (alsolocated inside the reactor-vacuum-chamber) that acts ilkethe output-winding ofa.. ... Where outputelectron current is induced by the pulse ofmagnetic flux(Z e. a phenomenon first observed by Michael Faraday, 1830)but in thLc case, generated by the accelerated, spiral-coiled,hellum-ions...

These accelerated induced-electrons can be fed to thecommerdalgrid and can be also used by the reactor toproduce the ori~’inal “ball” ofconcentrated electrons and the“externally-furnLched~ focusing ill1 Ill

The depleted, inert, positively charged, hellum-ion gasexiting the output coil can be evacuated by a vacuum pumpand the hellum-ions can be neutrali~ed by electrons drawnfrom the ground through a useful-load(e.g. the coil-winding of the vacuum pump motor)Refer to the August, 2012 Scientific American for an artidedescribing a similar reaction (with justpositively-chargedhydrogen-ions in douds ofwater-vapor) in thunder storms.]

Perhaps it is di icult for us ... and everyone else ... tocomprehend the enormous energy stored in eachboron atomFirst, it is necessary to visualize the structure of thecomposition and characteristics of the particles from whichthe boron atom is assembled

The primary particle is the electron ... that has a negativeelectrostatic charge that dissipates exponentially, inverselywith the square of the distance from the electron ... andit is the primary carrier of electrical current from atom toatom ... and the wide spectrum of radiated, electro-magneticenergy (e.g. low & hi~ih frequency, ampiltude-modulatedradio si~inals; frequency-modulated radio signals;televLcion signals; cell-phone si~’naIs; RADAR signals;all colors of vi:cible li~’ht; X-rays and Gamma-rays)(i~ e. a moving chargedpartide creates a magnetic field ofpolar&”ed, north-south, “magnetic-flux” as first noted byHans Christian Orsted in 1820) .

The mass of the electron is equal to 1/1863 that of aproton ... it retains kinetic energy to sustain a speed in thevacuum of space around the nucleus of an atom and thus isable to maintain an orbit diameter (energy-level) thatequalizes its centrifugal force with the mutually-attracting,electrostatic force of the positive-charge of the protons inthe nucleus

Another primary particle is the positron ... that is identicalto an electron except that the positron has a positiveelectrostatic chargeThe positron is normally located as a primary part of thePr ton particle that is a composite part of the nucleus of allatoms (that in turn, compose all elements and compounds,i.e. everything)The positive electrostatic-charge of the positron (similar tothe electron) provides an electrostatic force that isexponentially, inversely-proportional to the square of thedistance from the center of the positron •1•

[This m tall -repelli g, electro-static force thatincr s s expo entially (t an astron mic II Iaf c in er e -propo iona to he squar 0 t edistance from the center of the p sitrons •1I

(per Char! SAugustine de Coul mb, 1806)... is theso ceo pow rfr mall nucl arrea ionsinn cle r

e ns and nuclear-po e -plants ... i.e. includinnova’s, super-nova’s, h per-nova’s in outer sp ce ...]

If an electron loses its kinetic energy by decreasing itsvelocity, it can be attracted by the mutually-attractingpositive charge of the positron in a proton and thus forman electrically-neutral (thus invisible “dark-matter’2 neutron

oran electron when it loses its kinetic energy by decreasingits velocity ... it could instead, be attracted by the mutually-attracting positive charge of a dynamically-free positronduring a nuclear reaction ... (e.g. a nova exploding star)

and thus form an electrically-neutral (thus invisible “dark-matter” butpolarL?’edpositive-negative) neutrino (whichthus, then contains the mass ofan electron p/us the massofa positron)The electrically-neutral neutrino (containing the mass ofanelectron plus the mass ofa pa itron) thus has themutually-attracting force of gravity ... plus its polarizedpositive-negative composite particles that can mutuallyattract it to other neutrinos to form other exotic, sub-atomicparticles yet to be fully defined experimentally (e.g. quarks,mesons, hadrons, bosons, etc.) ... but ... primarily aquantum 916 neutrinos and one positron compose theprotonThemasso eneurinoisth souceotemut aIIy-attra ting force of gravity that increxponentially (to an astron mcally large “nude r”force) myers ly-p opo ional to the s uare o thdista e from the ce ter of the ma s(per Isaac Ne ton, 1642) ... andas th distance betwe n utual -repelli g, P0 i I echar ed-protons approach s zero, ... the mut Ilyattractin force of gravi andthemut al -re !lielect ostatic forc of the proton ... are as m trcbecause the loca i n of h n utrinos with r c tothe location of the sitron I rot n I nosym etrical ... bec use ... th u ally-attractingforce of gra ity of the neu mo and the mutu II -

repel i g electrostaic force of th p0 itron willone t t e protons s ch that dista ce between t e

mutual-attracting neutrinos ill a proach zerobefore ... the di tance be een the mutually-repelling positro s can approa h zero ... a dsomewhere ... (at a distance approaching zero) theforce of gra ity of the n utrinos increasesexpon ntially to an astronomic Ily lar e force(e.g. any value divided b zero equals infiniM ... tmatch, an latch the astro ornicall larg mutuall -

repelli g, electro-st ti fo ce of t e positro sSimilar to a latched “jack-in-t e-bo “.

The “latch” of the matched astronomically-large opposingforces is tenuous ... and any time the match no longerremains equal ... the difference between the astronomically-large opposing forces ... quickly, instantaneously becomesrelatively, astronomically-large •1• releasing anastronomically-large amount of stored energy ... ... storedfor millions of years by the force of gravity compressing theastronomically large mutually-repelling, electro-static forceof the protons together under the astronomically-largeweight of the mantel of the earth and astronomically-largeforces of moving continental plates ...

These natural gravitational forces latched, and thus formedthe relatively light elements like boron ... composed of fiveprotons and six neutrons, ... compressed and latched into asingle nucleus ...

The neutron particle is inherently stable, because thegravitational forces of its mass and electro-static forces of itscomposite equal number of electrons and positrons ... are allastronomically-large, mutually-attracting forces...

The helium nucleus is also inherently stable, because thenucleus is composed of two neutrons and two protons ... or

four protons and two electrons compressed into amutually-attracting, structurally-extremely-stable, cubic-structureTherefore borane gas (BH3) .... when contained in a vacuumchamber with a “plasmoid” (a “ball” of high-negatively-charged, compressed, spinning-circular-spiral, of electrons)

this BH3 (borane-gas) will be stripped of its electrons(ioni~’ec1) by the mutually repelling force of the “plasmoid”,“ball” of high-negatively-charged, compressed, spinning-circular-spiral, of electrons ~.. andThis ionL~’ed “fuel” of hydrogen and boron ions will then beaccelerated toward the common target, ball of negatively-charged electrons ... and fuse together to momentarily forma nucleus of carbon ... but ... immediately the kinetic energyof the fusing impact causes the carbon-atom-configurationto fission (unlatch) into three, structurally-stable, helium ionsaccelerated by the over-powering, astronomically-large,mutually-repelling, electrostatic-force of positively-chargedhelium-ions ... that will create a pulse of magnetic flux whichcan directly induce electron current output for thecommercial electric grid

This plentiful, safe, economical electricity can then be used to:(1) Desalinate the ocean-water into drinkable water(2) Pump the clean water to where it is needed for:

Homes, schools, hospitals, business, industry, & farms.(3) Reprocess sewer/waste water...(4) Power home and business lighting & appliances(5) Recharge electric cars and trucks(6) Produce Hydrogen gas by electrolysis of ocean-water to be

used for:A. fuel for hybrid cars, buses and trucksB. replacing natural gas for heating and cooking...

(7) Fund construction & power local-metropolitan subwaycommuter transportation to:A. Industrial & business centersB. Shopping & health centersC. Tourism & recreation centersD. Intercity & international high-speed-transportation hubsfor bus, trains and aircraft~.

(8) Fund construction & power electro-magnetic levitation &propulsion of intercity, high-speed (350+mph) trains inbob-sled-run-like tubes thatA. allows the train-vehicles to bank as required at variousspeeds to coordinate centrifugal and gravitational forces forpassenger comfort during the turns of a curvingtransportation corridor (e.g. interstate freeway right-of-way)B. can be depressurized to reduce aerodynamic drag...C. remain clean & secure from intrudersD. compete with short-flight, intrastate aircraft that arelimited to 288mph while flying be/ow 1O,000ftby federalregulations.

Humbly submitted...

Charles GriffinProfessional Control System EngineerCalifornia Certificate No. 4092

Products included: various nuclear weapons including theNuclear-Armed:U.S Army, Honest-John, ground-to-ground rockets,Nike Ajax/Zeus ground to air, radar-guided missiles,U.S. Air Force, Genie, air-to-air rockets,U .S. Navy A4D ttack Bombers for deilvering atomic-bombsfrom aircraft carriers...

alsoDC-8, DC-9, DC-10 & MD-80 Commercial Aircraft

andU.S. Air Force KC-10 Tankers for in-fli~’htrefuellng,

andU.S. Air Force C-17 Transportsto carry M-1 Tanks to Yugoslavia, Iraq & Afghanistan &transport the body ofOsama Ben Laden for burial at sea,

andU.S. Air Force B-2 Stealth Bombers for capab/ilty to deilverretallatoiy hydrogen bombs to Moscow, Russia and deteraggression throughout the world.

ENERGY NEW ENERGY

Startup nuclear energy companies augur safer, cheaperatomic power

• E-mail• Tweet• Facebook• Google Plus• Linkedin

Share icons• by• Mark Halper• @markhalper

July 3, 2014, 3:30 PM EDT

S .1

/

8

Fuel rods at a nuclear power plant in Dukovany, Czech Republic. A wave of startup companies aims to improvenuclear power with new technologies and materials. Martin Divisek/Bloomberg—Getty Images

New Jersey’s LPP Fusion is one ofmany maverick nuclear energy startupsoffering safer, cheaper atomic power to cut the C02 cord.

Nothing captures how fashionable the startup has become quite like crowdfunding. The craze for raisingcontributions via websites like Kickstarter and Indiegogo is helping to launch companies from scootermanufacturers to lightbulb vendors to filmmakers.

Now, even nuclear fusion is game.

Yes, the Holy Grail of cheap, clean, safe, plentiful, low-carbon energy that has remained 40 years in the futuresince scientists proposed it over half a century ago has entered the crowdsourcing era. International governmentprojects like ITER in France and the National Ignition Facility in California may have spent billions of dollarsin pursuit of the technology, but that doesn’t mean there can’t be a little grassroots action, too.

LPP Fusion, a tiny company based in Middlesex, N.J., launched in May an Indiegogo campaign to raise$200,000—loose change in this business—that it believes will help it reach a major fusion developmentmilestone in a year and commercialize fusion reactors by 2020.

LPP (it stands for “Lawrenceville Plasma Physics”) is representative of a new class of companies emerging toaddress the world’s energy crisis: Nuclear startups. Dozens of small new reactor companies are either chasingthe elusive fusion dream or pursuing fission designs that trump those on the market today. All are promising todeliver a knock-out blow to the carbon-intensive fossil fuels that bedevil the world with environmentalimpact and volatile geopolitics and economics. Many of these innovative firms are positioning their reactors notjust for electricity, but also to provide clean heat for high temperature industrial processes and for waterdesalination.

While LPP might be the only crowdfunded member of the group, it is determined like its young peers to shakeup the staid nuclear industry. Reactor designs have not fundamentally changed since utilities first connected

fission machines to the grid in the 1950s, marking a conservatism that has mired nuclear in the era of black-and-white television while colorful possibilities abound. The startups aim to brighten the palette.

For LPP, that would mean not only delivering fusion—melding atoms together rather than fission’s waste-creating process of splitting them apart—but it would also eliminate the time-honored need for costly turbinesand generators. Nuclear power, including most fusion concepts, functions mechanically the same way fossil fuelplants do by creating heat to produce steam to drive a turbine. LPP is working on a type of fusion called“aneutronic” that emits charged partióles for electricity.

“The nuclear industry is stuck using the same method for making electricity that utilities have used since thedays of Thomas Edison—generate heat to make steam to drive a turbine and generator,” says Eric Lerner,president of LPP Fusion. “We can change all that. We can convert energy directly into electricity and slashcosts.”

First, he’ll need the $200,000 he seeks on Indiegogo (he has until July 5 to raise it), which would buy him somefancy new beryllium electrodes that would withstand rigors far better than the copper variety that LPP has beenusing. He hopes to install them by the end of this year in his experimental fusion reactor, which Lemer operatesat the Friendly Storage premises in Middlesex, a place otherwise full of surplus boxes and furniture.

Lemer is boldly confident that the beryllium would by the middle of next year enable his lab to overcome theproblem that has vexed fusion projects forever: It would harness more energy out of its reactor than what goesinto it. Additional financing might then rush in. LPP will need $50 million in total, virtually nothing next to thenearly $18 billion that ITER has budgeted for only the next 10 years of an expected 30 years of construction anddevelopment of a 20-story “tokamak” facility.

With the financing, Lerner believes that by 2020 he could license the mass-production of small $3 00,000-to-$500,000 fusion machines—each the size of a one-car garage—with a capacity of 5 megawatts, enough topower 3,000 houses.

If only he had the wherewithal of rival fusion startup Tn-Alpha Energy, which has rounded up over $140million from Goldman Sachs, Microsoft co-founder Paul Allen, and Russian state-owned company Rusnano,among others. Like LPP, frvine, Calif.-based Tri-Aipha hopes to develop an aneutronic machine that deliverselectricity without using turbines.

ITER and NIF, the government groups, are taking a more “conventional” fusion approach, aspiring to driveturbines with heat released by fusing isotopes ofhydrogen. (In contrast, an aneutronic process tends to fusestandard hydrogen and boron.) So, too, are a number of startups that believe they can crack fusion long beforethe big science projects do by developing smaller machines (NIF’s facility is 3 football fields long and 10stories tall) and deploying different technologies.

“We liken it to the Human Genome Project or SpaceX, where large government programs were ultimatelyoutrun by more nimble and more practical innovation in the private sector,” notes Nathan Gilliland, CEO ofGeneral Fusion near Vancouver, Canada. General Fusion has raised $32 million from sources including theCanadian oil company Cenovus and Jeff Bezos, Amazon’s chief executive.

As intriguing as fusion is, there is probably more startup activity in fission, where novel approaches promisegreat improvements over the industry’s addiction to fissioning solid uranium fuel rods then cooling andmoderating them with water.

A host of startups are experimenting with different approaches including the use of liquid fuel, the use of solidfuel with different shapes (such as bricks or pebbles), and the use of alternative coolants and moderators such assalts and gases. Many of the designs draw on ideas that politics suppressed decades ago. Some, like Bill Gates-chaired TerraPower in Bellevue, Wash., are designing “fast reactors” that don’t moderate neutrons. Someenvision using the element thorium instead of uranium.

Between them, they portend leaps in safety, cut way down on nuclear waste, use “waste” as fuel, minimizeweapons proliferation risks, slash costs and tremendously boost efficiencies. Many fit the “small modular” formthat enables mass production and affordable incremental power. (Oregon startup NuScale Power recentlysecured $217 million in federal funds to develop a small but comparatively conventional reactor.)

“There is a growing market pull for innovation in the nuclear space, so you’re beginning to see a blossoming ofstartup companies doing different things in nuclear,” says Simon Irish, CEO of startup Terrestrial Energy,Mississauga, Canada, which is developing a “molten salt” reactor (MSR) based on liquid fuel.

In the U.S., Russ Wilcox, CEO of Cambridge, Mass.-based MSR developer Transatomic Power, implores theU.S. Nuclear Regulatory Commission to broaden its focus beyond conventional reactor safety, which he says“freezes progress.”

Many observers believe that countries other than the U.S., such as Canada and China, will deploy first. Beijingis funding innovative Chinese fission projects, with collaboration from the U.S. DOE. Meanwhile, Westerncompanies seek funds. Like Cenovus at General Fusion, more oil companies might pony up, because they wantclean heat to process petroleum. As Fortune reported last month, a lack of industry funding appears tohave slowed progress in DOE’s mission to develop an advanced reactor.

LPP Fusion doesn’t seem to be worried. For the young company, the next financing stage could simply be amatter ofwarming up the crowd.

Martin Divisek/Bloomberg—Getty Images

813I2014 Japan readies hid cdl subsidies in bet an To~*a’s ne~ big tNng I Reuters

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I OF 2. Toy ota Motor Corp’s Fuel Cell Vehicle (FCV) concept car is seen at the 43rd Tokyo Motor Showin Tokyolu this November 20, 20i3 file photo.CREDIT: REUTERSrYUYA SHINOIFILES MORE REUTBI.S RESULTS FOR

“toyota fuel cell cars”Login or regIster je~~om Toyota drearre of green car future, but tied to gas-guzzler

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powered fuel cell vehicles that could top $400 million over the Japan readies fuel cell subsidies in bet on Toyota’s next bIg

next several years if the most bullish projections for the technology play out Wed, Jul 232014

~I-Japan readies fuel cell subsidies in bet on Toyota’sPrime Minister Shinzo Abe’s planned consumer rebates of at least $20,000 per vehicle next big

would be the largest government support plan for hydrogen vehicles yet, raising the stakes Wed, Jul23 2014

for a commercially unproven technology with roots in the space race that Toyota and Japan PM says wiN offer about $20,000 subsidy for fuel-cell

others see headed for the mainstream over the coming decades. Sa~ Jul 192014

The taxpayer-funded program would bring down the cost of Toyota’s soon-to-be-launchedhydrogen-powered fuel cell car to around $50,000 in Japan, about the cost of a small Follow Reutersluxury sedan such as the BMW 3 Series.

Abe announced the outline of the plan last week and details are still being finalised. Facebook Twitter RSS YouTube

The cost savings could be enough to make the Toyota vehicle affordable for taxi operatorsand other companies with fleets of vehicles within driving range of the ioo hydrogen RECOMM ENDED ViDEO

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fuelling stations that Japan expects to have built by March 2015. Letters reveal steamy affair of 29th U.S. preaL..

“It’s still difficult to make these cars popular among ordinary consumers, but the subsidy (GRAPHIC IMAGES) Gruesome Islamic Sta...

has certain effects on companies interested in promoting themselves as green,” saidTomohide Kazama, Senior Consultant at Nomura Research Institute. “It’s a move to plant ChIna~s drone king says the revolution depend...

a seed for future growth.”An American suicide bomber In Syria

Fuel ceU vehicles, which run on electricity made by cells that combine hydrogen andoxygen, have been in testing since the 196os, when the technology was also being developedby NASA. . FINANCIAL COMMENTARIES AND GUIDES

- LEP~KED:AppIes Neal Smart De~ce (Motley Fool)Smce the vehicles emit only water and heat, they have been seen as an environmentallyfriendly alternative to those powered by combustion engines.

• My Retirement Plan® can help put ~vu on the right

It could also help Japan shift to hydrogen energy as the country, dependent on imported track to retirement (Wells Fargo)

fossil fuel as an energy source after the 2011 Fukushima nuclear disaster, seeks to cut • U.S-based middle-market companies poised for

carbon emissions. While much of the hydrogen used in the country now is made from fossil opportunities in China (Bank ofAmerica)

fuel, the government hopes to implement carbon-free production by 2040.• Whysmart watches are aireadythe smartest new

mobile deMce (Personal Capital)Promoting the technology last week, a smiling Abe test-drove Toyota’s fuel cell sedan, set togo on sale in Japan by end-March, and fueled hydrogen into a Honda Motor Co (7267.T) • Don’t buys stock unless Zacks sa~,s it’s a Strong

FCX Clarity car, currently leased to governments and some companies. Buy (Zacks)Content from ~onrom ~2

COMMERCIAL CHALLENGESAds by Mb~ade

The challenges to commercial use of fuel cell cars have been the lack of a hydrogen fuelling ~ ~ megainfrastructure and tl~eir high cost. Abe’s government has taken aim at both barriers in thehope of protecting an area of emerging technology where automakers and suppliers believethey have a lead over rivals in the United States and Europe. V New currency law want Into effect

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The $20,000 rebate per car means taxpayers may support subsidies of up to around $200

million a year. Annual sales forecast for fuel cell vehicles in the early years of marketintroduction vary from several hundred to 10,000 vehicles. V V V Mom Kills Teeth Stains Using

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To put 100 hydrogen fuel stations in urban areas by end-March 2015, the ruling party hassuggested a subsidy of up to $2 million per station - which cost $4-5 million each to build -

meaning another $200 million in taxpayer money.

The government plans to continue offering subsidies and tax breaks so that fuel cell cars cansell at around the same price as gas-electric hybrids in the 20205.

“The subsidy is a huge driving force for sales, but it won’t be offered forever and I think themessage here is that we need to continue cutting costs,” said Koichi Kojima, a senior Toyotaengineer who has been involved in fuel cell vehicle development for a decade.

The hydrogen supply chain has been benefiting from growing interest in the technology.Shares in Iwatam Corp (8o88.T), which opened the country’s first commercial hydrogenstation in western Japan this month and plans to build a total of 20 stations by 2015,jumped nearly 50 percent this year, while hydrogen tank maker JFE Container (59o7.T)rose 14.3 percent.

Besides Toyota, Honda also plans to start selling its fuel cell vehicle in 2015. Automakersincluding General Motors Co (GM.N) and Ford Motor Co (F.N) have been working on fuelcells for years and Daimler AG (DAIGn.DE) and Hyundai Motor Co (oo538o.KS) lease fuelcell cars in the United States, but so far there are no plans for sales in Japan.

That means the subsidy will be offered exclusively to Toyota and Honda for the time being.

http:/I~reuters.conVarDde12O14IO7I231us-japan-autos-fuelcelIs-idUSKBNOFS1942O14O723 214

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Mon 4 Aug 2014 10:31 - Australia Markets close in 5 hrs and ~g mins

Toyota gambles on fuel cell car•aapAA[~ — Tue. Jul 22. 20(4 tt:oi AM AEST

Rocket science, long dismissed as too impractical and expensive for everyday cars, is getting a push into the mainstream byToyota, the world’s top-seffing car manufacturer.

Buoyed by its success with electric-petrol hybrid vehicles, Toyota is betting that drivers will embrace hydrogen fuel cells, aneven cleaner technology that runs on the energy created by an electrochemical reaction when oxygen in the air combineswith hydrogen stored as fuel.

Unlike internal combustion engines which power most vehicles on roads today, a pure hydrogen fuel cell emits no exhaust,only some heat and a trickle of pure water. Fuel cells also boast greater efficiency than the internal combustion process,which expends about two-thirds of the energy in petrol as heat. -

Toyota’s fuel cell car will go on sale before April next year Despite advantages that are seemingly compelling, thetechnology has struggledto move beyond its prototypes after several decades of research and development by industry andbacking from governments. V :V V :

For the auto industry in particular, there have been significant hurdles to commercialisation, including the prohibitiveexpense of such vehicles. VV : V V

On top of that, fuelling stations are almost non-existent. V V V V V

Doubters also quibble about the green credentials of fuel cells because hydrogen is produced from fossil fuels.

But Satoshi Ogiso, the engineer leading the Toyota project, is confident there’s a market that will grow in significance overtime.

Part of Ogiso’s optimism stems from his background. He worked for 20 years on Toyota’s Prius hybrid.

The Prius, which has an electric motor in addition to a regular petrol engine, was met with extreme scepticism at the start.But it went on to win over the public as a stylish way to limit the environmental damage of motoring. Worldwide sales ofToyota’s hybrids have topped six million vehicles since their debut in 1997.

“The environment has become an ever more pressing problem than in 1997,” Ogiso said in an interview at Toyota’s Tokyooffice.

“Hydrogen marks an even bigger step than a hybrid. It is our proposal for a totally new kind of car. If you want toexperience this new world, if you want to go green, this is it.”

Toyota, which began working on fuel cells in 1992 but won’t disclose how much it has invested, is not the first carmaker toproduce such a vehicle. Forklifts powered by fuel cells are becoming more common in factories and fuel cell buses havebeen trialled in some cities.

General Motors Co has also been working on the technology and Honda Motor Co already sells the FCX Clarity fuel cell

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sedan in limited numbers and is plsnning a new fuel cell car, with a more powerful fuel cell stack, next year.

But Toyota’s decision as the world’s top-selling carmalcer to start commercial production of a fuel cell car is an importantboost to the technology’s prospects for wider adoption. Its release will also win the carmaker plaudits for corporateresponsibility.

“It works to symbolically enhance the automaker’s ecological image,” said Yoshihiro Okumura, auto analyst at Chiba-ginAsset Management.

Toyota’s still-to-be-officially-named vehicle goes on sale in Japan sometime before April 2015, and within a half year afterthat in the US and Europe.

~ 212

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Fuel Cells and Hydrogen in

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ACKNOWLEDGEMENTS

Fuel Cell Today gratefully acknowledges the contribution of the many individuals and companies who contributed to the compilation of this report.In particular, the author would like to thank: Steffen Møiler-Holst (Chairman of the Norwegian Hydrogen Council) for his careful reading of the finaldraft, and Bjprn Simonsen, Ulf Hafseld, Bjørg Andresen, Jan Carsten Gjerløw, Magnus Thomassen, Atle Taalesen, Stig Hvoslef, Stuart Morris, as wellas all the other members of the Norwegian hydrogen community that provided information and assistance.

The report Is for the most part based on Information available up to December 2012.

COPYRIGHT & DISCLAIMER

‘Fuel Cells and Hydrogen in Norway’ is the copyright of Johnson Matthey PLC trading as Fuel Cell Today. Material from this publication may bereproduced without prior permission provided that Fuel Cell Today is acknowledged as the source.

Johnson Matthey PLC endeavours to ensure the accuracy of the information and materials contained withIn this report, but makes no warranty as toaccuracy completeness or suitability for any particular purpose. Johnson ~latthey PLC accepts no liability whatsoever In respect of reliance placed bythe user on information and materials contained in this report, which are utilised expressly at the user’s own risk.

In particular, this report and the information and materials in this report are not, and should not be construed as, an offer to buy or sell or solicitationof an offer to buy or sell, any regulated products, securities or investments, or making any recommendation or providing any Investment or otheradvice with respect to the purchase, sale or other disposition of any regulated products, securities or investments Including, without limitation, anyadvice to the effect that any related transaction is appropriate or suitable for any investment objective or financial situation of a prospective investor.

A decision to invest in any regulated products, securities or investments should not be made in reliance on any of the information or materialsin this report. Before making any investment decision, prospective investors should seek advice from their financial, legal, tax and accountingadvisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such Investmentdecisions. This report does not, and should not be construed as acting to, sponsor, advocate, endorse or promote any regulated products, securitiesor investments.

PUBLISHED JANUARY 2013

I I.It~I ~_I_IIO UI LU I I 7SIl ~J5t., I III I’ILJI vvay

Contents

Summary 2

1. Introduction 4

2. Energy in Norway 4

2.1 Supply, Consumption and Emissions 4

2.2 Facilitating Transformation 5

Minimising CO2 from Norway’s Natural Gas 8

2.3 Adding Low-Carbon Capacity 10

Norway: A Green Battery for Europe? 12

2.4 Implications for Hydrogen and Fuel Cells 14

The NorWays Study 16

3. The Norwegian Hydrogen Strategy 17

3.1 State Initiative 17

3.2 FirstAction Plan 2007—2010 17

3.3 Second Action Plan 2012—2015 18

NHC Recommendations for National Lighthouse Projects 19

The Norwegian Hydrogen Forum 20

Utsira: Demonstrating Wind to Hydrogen 20

4. New Technology for Hydrogen Production 21

4.1 Electrolysis and Renewables 21

4.2 Sorption-Enhanced Steam Methane Reforming 22

4.3 Microwave Plasma Method 24

S. Implementing Hydrogen in Road Transport 25

5.1 The HyNor Project 25

5.2 Key Initiatives in Scandinavia 26

Hydrogen in Akershus and Oslo: a Regional Approach 27

5.3 From Demonstration to Commercialisation 28

5.4 Existing Hydrogen Refuelling Stations 29

R&D at the Oslo Gaustad Hydrogen Station 31

5.5 Fuel Cell Vehicle Deployments 32

ZERO Rally 33

Fuel Cells in Shipping 34

6. Concluding Remarks 35

Norwegian Engagement in R&D Projects Under the FCH JU 36

References 37

Picture Credits 41

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Summary

Due to the considerable petroleum resources of its continental shelf,Norway is one of the largest energy producers in the world, rankingin the top ten oil exporting countries and in the top five natural gasexporters.

Almost half of its domestic energy consumption is met by electricityand electricity is about 95% based on hydropower, leading to a highproportion of renewable energy in Norway’s energy supply.

Norway has pledged to cut domestic GHG emissions by 20% by 2020and to be carbon neutral by 2050. Subject to international reciprocity,the 2020 cuts may be increased by 10% and carbon neutrality may bebrought forward to 2030.

The country faces a challenge in finding significant emissionsreduction opportunities. As its electricity supply is already largelydecarbonised, the transportation sector must supply a substantialproportion of emissions cuts.

Hydrogen will have a key role to play in decarbonising transportation.There are practical limits on the use of electricity and biofuel, so fuelcell vehicles are considered the best solution for at least 50% ofNorway’s passenger transportation.

Norway has abundant resources for the production of hydrogen: bywater electrolysis driven by renewable electricity, from natural gas(potentially with CO2 capture), industrial byproduct hydrogen, and jfrom some biomass and biogas.

There is also an economic opportunity for Norway here: as an earlyadopter developing expertise in and technology for producing,storing, distributing and using hydrogen, this can be exported. Thecountry can also become a leading producer of sustainable hydrogen.

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In 2003 the Norwegian government appointed a committee todevelop a national hydrogen programme and a national hydrogenstrategy was formulated, intended to position Norway to profit froman emerging global hydrogen economy.

The new ‘Action Plan 2012—2015’ from the Norwegian HydrogenCouncil sets out recommendations for Norway to retain its pioneeringrole in hydrogen and benefit from value creation. The total cost forimplementation is around NOK 1.6 billion (~€ 218 million).

New technology for producing environmentally-friendly hydrogen isbeing developed in Norway, including new electrolyser technologyand novel processes for producing hydrogen from methane withintegrated carbon capture.

The HyNor project was started in 2003 to demonstrate hydrogen intransportation. It facilitates creation of refuelling infrastructure, theacquisition of hydrogen vehicles, and the provision of carbon-dioxide-neutral hydrogen, such as from the above processes.

Statoil has pulled back from hydrogen to focus on its core business,and a new company called HYOP was formed in 2012 to drive thedevelopment and operation of hydrogen infrastructure from thedemonstration phase through to commercialisation.

Norway has six operational hydrogen stations, five establishedunder HyNor and one under the H2moves Scandinavia project. TheHyNor Oslo Buss station falls under the FCH JU CHIC project. HYOP iscurrently operating three of these hydrogen stations.

Norway’s hydrogen activities have attracted the involvement of vehicleOEMs and the country has emerged as one of the candidate earlymarkets for the commercial rollout of FCEV. Five fuel cell buses andseventeen fuel cell cars have been deployed so far. y,,,. ~ .

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1. Introduction

SnapshotCapital: OsloMember of the EEA; non-member of the EUIndexed GOP per capita (EU27=100): 181Population: 5 million; urbanisation 77%Area: 385,252 sq. km; 7% under water; 33% forestedKey renewable energy: hydroelectricity

When it comes to energy, Norway has a high international profile: it is among the top oil and gas exportersin the world and yet, at the same time, has taken one of the most progressive stances on emissions cutsamong the developed nations. For both these reasons, energy developments taking place in Norway havebroad relevance — as this report seeks to show, this is particularly true in the discussion of hydrogen asan energy carrier. The report first examines Norway’s energy context, then looks at the opportunities forhydrogen and fuel cells within that, and summarises some of the latest developments and deploymentsthat have taken place in the country.

2. Energy in Norway

2.1 Supply, Consumption and Emissions

Norway is not a country that faces challenges in energy security. Due to the considerable petroleumresources of its continental shelf it is one of the largest energy producers in the world, ranking in the topten oil exporting countries and in the top five natural gas exportersl*. This has been successfully commutedinto wealth and a better quality of life for its citizens (through free healthcare and universities, for example),but the country uses relatively little oil and almost no natural gas domestically. Norway has the highest percapita consumption of electricity in the world after Iceland2; almost half of its total energy consumption ismet by electricity (see figure below3) and electricity production is almost all based on hydropower.

Hydropower is thus the single largest sourceof energy in the country’s total primary energysupply (TPES) and is almost solely responsiblefor the high proportion of renewables in theTPES: this averaged 44% over the decade to2011 (or 56% excluding the energy sector)3, oneof the highest levels among the OECD membercountries. However, Norway has recognisedthe need to improve flexibility in the energysupply and diversify into renewables other thanhydropower, which will struggle to supportsustained growth in demand and is vulnerableto annual variations in precipitation.

Having said this, the countiy is more than a decade past peak oil and output is In decline. For the moment, most of this exportloss is being filled by increased production of natural gas, sales of which are expected to peak in 2020.

Net Domestic Energy Consumption, 2011

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Norway’s per capita consumption of energy is relatively high (6.39 tonnes oil equivalent per head in 2010,compared to theOECD average of 4.4o)~; demand is boosted by its cold climate, the size of the country andthe low population density, but especially the prevalence of energy-intensive industry — particularly theoil and gas sectors themselves, plus light metal and other electrochemical production. Energy data fromthe 1970s onwards show that energy consumption increasedV.quite rapidly up to 2000 and more slowlysince;.however, this increase has tracked economic growth as energy intensity (energy use per unit of GDP)declined to 2000 and has now plateaued4.

The country’s offshore oil and gas productionand its manufacturing industry are substantialcontributors to overall greenhouse gas (GHG)emissions, but are offset to a degree by minimalemissions from electricity production (includedunder ‘energy supply’ in the figure alongside6).Transportation is the single largest source ofdomestic emissions, contributing 19% fromroad traffic and 14% from other forms such asshipping and aviation3. Not included in thesefigures is international sea and air traffic, whichconstitutes around a fifth of Norway’s overall

____________________________________________ GHG emissions6.

Norway’s carbon dioxide (C02) emissions from fuel combustion per capita have been increasing steadily overthe last 40 years and have now overtaken the European average. This can be largely ascribed to increasedindustrial output as CO2 intensity (weight of emitted CO2 per unit of GDP) dropped significantly up to 2000,as for many other OECD countries, and although it has plateaued it is still low by European standards5.

The increases derive primarily from oil and gasextraction; by contrast, GHG emissions from otherindustries have declined (right), partly due toreduced production. Emissions from transportationhave also grown, with emissions from road traffic upby 30% since 1990 because of increased passengervehicle use and emissions from other forms oftransport having increased by a similar proportion6.Emissions from heat and electricity generationincreased sharply after 2007 as some natural gaswas introduced into the supply (hydroelectricityconsumption remained flat in the same period)3.

2.2 Facilitating Transformation

2.2.1 Targets

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In 2009, Norway pledged to reduce GHG emissions by the equivalent of 30% of its 1990 domestic emissionsby 2020 and to be carbon neutral by 2050 (including accounting for natural carbon sinks such as forests).Subject to international reciprocity, the 2020 cuts may be increased to 40% and carbon neutrality may bebrought forward to 2030~. Two-thirds of the cuts will be made domestically, bringing Norway’s emissions inline with EU targets8, while the rest will be emissions reductions elsewhere, such as in developing nations,facilitated by Norwegian investment. A variety of means will be used to achieve these cuts.

Domestic GHG Emissions to Air by Source, 2011

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Unlike the majority of fossil fuel producers,Norway acknowledges an obligation tocontiibute to emissions cuts beyond itsborders. The country is thus also in the difficultposition of being ‘climate conscious’ while atthe same time the oil and gas sector is of crucialimportance to its economy. It needs to find themeans to implement an energy transformationwith minimal economic impact — or better yet,one which adds economic value. This apparentdichotomy can only be addressed by significantinnovation and new technology that allows for‘sustainable’ use of its natural gas.

The government recognises the challenge~ its

Norway has had a CO2 tax since 1991, when it was applicable to ~‘.68% of CO2 emissions (about half of totalgreenhouse gas emissions); it varies for each sector and some are exempt. Although overall GHG emissionshave grown since the tax was introduced, the evidence is that it has helped to cap energy intensity andhas led to modest reductions in emissions from certain industrial sectors13; significantly, it stimulatedinvestment by Statoil in carbon sequestration during offshore gas upgrading which has been taking place atthe Sleipner gas field since 1996~~ — the first such operation in the world. The tax has also led to diesel and

The share of renewables in gross final energy consumption Is calculated differentlyfor the EU renewable energy directive.

Norway’s renewable energy strategy is formulated on the terms of its adoption of EU Directive 2009/28/ECon renewable energy. Although Norway is not formally subject to European Union directives, its policy isstrongly influenced by them through its obligations under the European Economic Area (EEA) Treaty. To bein line with the Directive, Norway has agreed to increase its current “58% renewables share* in total energyuse to at least 67.5% by 2020g. The Directive also sets a blanket target for the EU of 10% transportationenergy to derive from renewable sources by 2020, which Norway has adopted.

2.2.2 Challenges

Norway is facing the challenge of having to make absolute cuts to its GHG emissions, while for the lastdecade economic growth appears to have been coupled to both energy consumption and emissions. Tobreak this link, energy efficiency must be increased and more renewable sources must be introduced intothe energy supply — where possible. For many countries, decarbonising the electricity supply is the firstangle of attack on emissions. Norway, however, with electricity that is already over 95% renewable10, willhave to look elsewhere for significant reduction opportunities. V

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budget for research, development and demonstration(RD&D) in renewable energy, energy efficiency and carbon capture and storage (CCS) stood at NOK 800million (€109 million) in 2011, up from around NOK 200 million (€27 million) in 200711. The lEA recentlyreported that Norway’s per capita public funding for clean energy RD&D is now among the highest of thelEA member countries7. Investment in energy transformation remains on an upward trajectory: for example,the 2013 budget is establishing a new climate and energy fund to support innovation in energy technology,augmenting the existing fund that supports energy efficiency and renewable energy implementation byenterprises12. These measures and others adopted by the government to stimulate investment in alternativeenergy are discussed further below.

2.2.3 Carbon Taxes and Trading

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petroleum pump prices which are much higher than would be expected in an oil-producing nation. For the2013 National Budget, the Norwegian government has announced a near-doubling of the CO2 tax on NorthSea oil and gas extraction from the 1st of January. It is also increasing the CO2 element in the car purchasetax12. In 2008, Norway joined the EU GHG emissions trading scheme, and this now covers 40% of Norwegianemissions. Quotas apply to emissions from energy production, oil refining, aviation, and production of anumber of commodities15.

2.2.4 Clean Energy RD&D

In 2008, the Ministry of Petroleum and Energy launched a national strategy for energy research anddevelopment, called Energi2l Its mandate is limited to stationary energy production/consumption andcarbon capture, and there are twin aims: the development of ‘climate-friendly’ energy systems whilecreating economic value and internationally competitive expertise The strategy was revised in 2011 andrecommended focusing activities in six priority areas within fourteen technology areas16; these are:

• Solar cells (industrial development in the supply chain for the export market);• Offshore wind power (industrial development and use of domestic resources);

• Use of domestic resources to provide grid balancing services to the European market;• CCS technology to safeguard the future economic value of Norwegian gas resources;• Flexible energy systems: smart grid operation and the integration of renewable sources;• Technology for the use of waste heat and conversion of low-grade heat to electricity.

Energy research and development has been taking place within a highly structured framework in the formof the RENERGI ‘Clean Energy for the Future’ programme, which runs from 2004 to 2013. It is financedthrough the Research Council of Norway (Forskningsrâdet), the government body responsible for stimulatinginnovation through research. Its objectives dovetail with the aims of the Energi2l strategy but its scopeincludes transportation17. The successor programme, ENERGIX, will run for a ten-year period from 2013.

2.2.5 Carbon Capture and Storage

:. The Norwegian government intends for Norway

• ‘~.-‘ ~ to take a pioneering role in the developmentof workable CCS18. This would act as long-term

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‘~ where emissions penalties could render theiruse uneconomical19. Since Norway is the only

~ net fossil fuel exporter in Europe, CCS wouldcontribute towards safeguarding European

/ energy security.Public funding of RD&D in carbon capture frompower plants and industrial sources takes placethrough the CLIMIT Programme for PowerGeneration with Carbon Capture and Storage.

It is jointly managed by the state enterprise for CCS, Gassnova SF, established in 2005, and the ResearchCouncil of Norway. The focus for CLIMIT is on co-funding prototype and demonstration projects with clearcommercial potential on the 2020 horizon20. The Norwegian government has committed a sizeable amountto large-scale CCS demonstration projects: $1.3 billion, out of a global public funding total of $25 billion (asof 2010). Only a small handful of (more populous) countries have put forward more.

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Domestic emissionsThe use of natural gas in domestic electricity generationhas been a bone of considerable political contention, inNorway and only a small handful of gas-fired power plantshave been constructed~. Much hinges on what gas-firedcapacity replaces: in a country with coal-fired power plants,gas can be seen as a low-carbon alternative, but this is not thecase in Norway The use of gas in the country has hus beenclosely tied to the discussion of carbon capture and storage(CCS). The 420 MW gas-fired power plant at Kârstø, Norway’sfirst, was commissoned in 2007 on the back of plans for full-scale ca bon capture to deal with approximately 1.2 milliontonnes of c?rbon dioxide generated annually by the plant atfull capacity~ These plans ere shelved, however, with theplant’s operational intermittency cited as a major obstacle~.

Testing carbon captureThe future for post-combustion CO2 capture in Norway is looking brighter. In May 2012, a CO2 capture pilot facility wascommissioned at the gas-fuelled combined heat and power (CHP) plant at Mongstad refinery. Known as the TechnologyCentre Mongstad (TCM), it is the world’s largest facility for testing and optimising carbon capture technology, designedto capture 100,000 tonnes of CO2 per year. It is co-owned by the Norwegian government, Statoil, Shell, and SouthAfrican petrochemical company Sasol. TCM is aiming to identify and accelerate viable vendor technology that canminimise both the cost of CO2 capture and the parasitic load it imposes on a power stationd.

Cleaner productionSeparation and storage of CO2 extracted from natural gas during upgrading is already being practised in Norway. TheSleipner gas field in the North Sea has a high concentration of CO2 and since 1996 Statoil has been extracting a milliontonnes of CO2 a year during upgrading of the gas on an offshore platform and injecting it into a vast pocket below the seabede. A similar practice has started at the Søhvit field in the Barents Sea to the north of the country~.

This is not CO2 from combustion of the gas, but it highlights the potential for carbon sequestration beneath the oceanfloor of Norway’s continental shelf. This may be considerable: the North Sea seabed is considered favourable for CO~storage due to its geology and the availability of depleted oil and gas reservoirs and saline aquifers. In 2006, Statoil statedthat there could be sufficient capacity for the CO2 produced by all Europe’s fossil fuel power plants for hundreds of years,if this can be technologically and economically achieved~. However, care would need to be taken to ensure this storage issecure and stable, and will not leak C02h.

A low-carbon alternativeMost of the emissions from Norway’s gas are of course generate outside of Norway; it supplies around 20% of thenaturai gas used in Europe and also exports liquefied natural gas (LNG) to the USA, Japan and South Kore&. In thesecountries, unlike in Norway, the use of natural gas is increasingly viewed as a means to reduce emissions — with nucleargeneration falling out of favour in Germany, for instance, and plans for more coal-fired power plants on the cards, gas-fired capacity is certainly the lesser of two evils1. But by minimising CO2 released during extraction, providing fundingtowards the commercialisation of CO2 capture technology and hosting CO2 storage reservoirs, Norway can make furthercontributions to emissions reduction.

Beyond that, natural gas, if it is to be used at all, should be used in the most efficient way possibIe.~CHP generation is oneway to do this and fuel cells are another. In the long run, if Norway’s expertise can be applied and adapted to producinghydrogen from natural gas with integrated CO2 capture and storage at source, it will deliver the ultimate prize.

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2.2.6 Energy Fund

State-owned body Enova administers the government’s energy fund, tasked with funding measures forenterprises to increase energy efficiency and implement renewables.

Energy provision to buildings carries a comparatively low ~emissions burden in Norway because ofthe use of hydroelectricityand wood for residential heating. However, Norway needs to cutemissions where it can and improving the energy efficiency ofbuildings is a policy focus area. In April 2012, the gâvernmentstated its intention to tighten energy use requirements inbuilding regulations to passive house standard by 2015, andto a nearly zero-energy standard by 202021 Owners of existingcommercial, public or residential buildings can apply to Enovafor grants to carry out energy efficiency measures and receive apayment per kilowatt-hour of saved or renewable energy.

Enova also aims to stimulate diversification in the sources of heating, including the introduction of woodpellets. Historically low electricity prices have led to a high proportion of electricity being used for spaceheating and hot water3, but oil is also used for heating and displacing it with renewables is desirable. Thegovernment is specifically targeting the phasing out of oil-fired boilers and generators21~22. New buildingsmust comply with technical requirements for renewables in heating.

The availability of cheap energy resoUrces has supported the growth of energy-intensive industry in Norway.In the industrial sector, Enova’s primary focus has been to stimulate better energy management for easywins in energy efficiency, but support for projects implementing more complex energy efficiency measuresis also available. Grants are available to industry for projects leading to energy savings of more than0.1 GWh through optimisation, waste heat recovery or the use of renewable sources. Industrial heatingsystems delivering up to 5 GWh annually qualify for funding where the heat source is renewable or wasteheat recovery. The implementation of new energy technology In industry is receiving increasing attention,as shown by the creation of the new climate and energy fund under Enova21.

2.2.7 Vehicles and Fuel

Road transportation offers the most scope for emissions reduction outside of industry. The governmentis investing in improved public transport and other measures to combat growing numbers of passengervehicles on urban roads21, but the bulk of emissions must be addressed by fuel substitution and moreefficient drivetrains. The integration of the stationary and transportation sectors would allow for moreefficient use of clean energy but, despite this, the focus of the Norwegian Energy Strategy (Energi2l) is onstationary energy production and use, and does not include transportation.

Initiatives to switch to alternative fuels and more efficient forms of transportation are implemented bythe state through Transnova, which has a similar function to Enova and supports a number of pilot anddemonstration projects. The budget for Transnova, however, is relatively low at around NOK 10 million perannum (a factor of 20 lower than that of Enova) and this is hampering the introduction of alternative fuels.

There is policy support on the purchase side: biofuels, biogas, CNG and hydrogen are all subject to lower,or exempt from, fuel and CO2 taxes23. Incentives for electric vehicles (EV) are generous, in line withthe government ambition to have 50,000 zero-emission vehicles on the road by 2018. All-electric cars,including fuel cell electric vehicles (FCEV), are exempt from purchase tax and VAT, receive a 90% discounton annual road tax, pay no toll or municipal parking fees, qualify for free ferry passage, and have access

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to bus lanes and thousands of public charging points24. (There is also a grant available for establishingprivate charging points.)

Norway has one of the highest vehicle purchase tax levels in the world, rendering the cost of a family cararound twice as expensive as in countries like Sweden or Germany. The fact that this tax is not applied toEV and FCEV is a major driver for the introduction of these vehicles25.

2.2.8 Electricity Generation Subsidy

Norway has no feed-in tariffs per se, but electricity generated from renewable sources may receive a higherprice through the common Norwegian—Swedish Green Certificate market, which came into force at thestart of 2012 and will run through 2035. Certificates are issued to producers that add renewable generationcapacity and consumers are obliged to buy a number of certificates when purchasing electricity, as a formof subsidy for producers and a tax on consumers (although certain sectors are exempt). The incentive isexpected to add 26.4 lWh of annual renewable energy generation between 2012 and 202026. This capacity,which may not be equally distributed between the two countries, would derive particularly from windpower but also from hydropower and biomass. The next section discusses these resources in more detail.

2.3 Adding Low-Carbon Capacity

2.3.1 Hydropower

Norway is well-equipped for hydropower: it is the mostmountainous country in northern Europe and has high levelsof precipitation; it also benefits from a long coastline and theeffects of glaciation that created many steep-sided fjords.

The Norwegian Water Resources and Energy Directorate(NVE) puts the mean annual production of hydroelectricity atabout 124 TWh, with annual variation of ±20% dependent onprecipitation. Installed capacity at the end of 2011 was 29.6 GWin 1,250 hydropower plants. The country’s reservoir capacity isa massive 83.4 TWh, and can be used to level out seasonal andannual variation27. This has relevance beyond Norway’s borders;see the feature on page 12.

The total hydropower potential in the country is 206 TWh, of which 45 TWh is in protected areas andcannot be developed. The development of the remainder is subject to licensing which may be delayed forlong periods or withheld. There is very limited scope for growth in large-scale hydropower with reservoirsbut somewhat more scope in small hydroelectric projects27. Renovation of old plants with more efficienttechnology will also add some capacity.

2.3.2 Wind Power

Given its geographical position and long coastline Norway’s theoretical potential for wind energy is high —

over 1,000 TWh per year28, but of course much of this is not practically exploitable. Wind power currentlycontributes about 1% of the electricity supply29.

In November 2011, the NVE had received applications for new wind power plants amounting to atotal of 60 TWh of additional annual capacity, and it had granted licences for 10 TWh with another

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4 TWh under appeal27. The Norwegian Wind EnergyAssociation estimates that installed capacity in 2020will be between 3,000 MW and 3,500 MW, with annualproduction at around 8 TWh. State-owned electricityenterprise Statkraft installs wind farms in Norway, aswell as in Sweden and UK; its stated goal is to install1,100 MW of land-based and 150 MW of offshore windenergy by 2015~°. Technology development for offshorewind farms reaps the benefit of the knowledge andexperience of Norway’s offshore oil and gas industry.

2.3.3 Biomass and 810gas

In 2010 bloenergy took a 6% share of the TPES, ‘~‘17 TWh. Current sources are mostly wood for heatingin individual homes and waste in district heating, plus wood waste and black liquor used by forestry andother industries3~. The use of wood/agricultural and solid waste biomass for electricity generation orcogenerated heat and power outside of the forestry industry is minimal. Around half a terawatt-hourof digester and landfill biogas is produced in Norway; some of this is flared but an estimated 0.3 TWh isharnessed as electricity and heat32.

Norway makes relatively little use of its biomass for energy compared to Sweden and Finland as it has hadless need to exploit this resource~ The Norwegian government target for bioenergy in heat and electricityproduction is relatively modest: an additional 14 lWh over the 2009 level by 202031, equating to 28 TWhin total. Within that, potential energy from agricultural and food waste and landfill gas is estimated at6 TWh, the government is aiming for 30% of livestock manure and 600,000 tons of food waste annually tobe treated in biogas plants by 2020 and is legislating waste management accordingly32.

The need for bioenergy is much greater in the transportation sector and it is probable that much of thebiogas generated from waste will find its way into transportation. Biogas is currently the preferred fuel forbuses in cities. The infrastructure for refuelling of cars with biogas is also under construction, but it is likelythat buses and large public utility vehicles will take the greatest share of the supply.

2.3.4 Other Sources of Electricity

A small amount of solar power capacity is installedin Norway, around 8 MW, most of which is grid-connected, and capacity is expected to remain lowuntil 2O20~~. Over the last two to three decades, asubstantial number of small photovoltaic panelshave been installed in numerous remote mountaincottages, most of which are not grid-connected.

Public funding is supporting the developmentand demonstration of technology for wave, tidaland osmotic power (collectively ocean energy); anumber of small-scale and full-scale prototypesand demonstrations are in progress and there are

plans for permanent capacity in all three energy sources~. These are only expected to make a significantcontribution to the TPES by about 2050 and the current Norwegian—Swedish Green Certificate Schemedoes not provide certificates for ocean energy35.

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2.3.5 Other Sources of Heat

Norway has a rapidly growing proportion of geothermal energy in the form of ground source heat pumps(borehole thermal energy storage is also used). Penetration of heat pumps generally is high in Norway,where the market has been growing rapidly since 2001; over 600,000 households now have a heat pumpof one type or another36. Solar heating is also used: a number of Norwegian companies have developedactive and passive solar heating systems for energy-efficient buildings, which are finding application inthe domestic market (the Norwegian Solar Energy Association estimates up to 4 lWh of building heat isgenerated by passive solar heating annually31).

Energy consumption from district heating (DH) more than tripled from 2000 to 2010, when it supplied4.3 TWh (1.5% of the TPES), but is still a full order of magnitude below Sweden, Denmark and Finland.However it continues to grow very rapidly and recent years have seen record investment in DH. Abouttwo-thirds of DH in Norway is from low-carbon sources, including waste, waste heat, heat pumps, biomassand hydroelectricity38’39’40.

There has been limited use of combined heat andpower (CHP) generation in Norway, as one wouldexpect for a country that has not had to rely on fuelcombustion for electricity, but this is also on theincrease. Some heat generated in DH plants is beingused for electricity production, while new gas- andbiomass-fired power plants are being operated inCHP mode41’42. There is potential for energy efficiencygains in the use of fuel resources by implementingCHP at various scales.

2.3.6 Energyfor Transportation

Adding renewable capacity in transportation can be accomplished two ways: either by implementingrenewable fuels directly, as is the case with biofuel, or using energy carriers that are generated by renewablemeans, such as hydroelectricity. In Norway, energy consumption for all forms of transportation is presentlyabout 1.2% from electricity and 2.3% from biofuel, with the remainder fossil fuels3.

Sales of liquid biofuels (biodiesel and bioethanol) areincreasing rapidly, in line with government targets.Only second-generation biofuels are likely to receivepolicy support in the future, but availability is limited:the practical maximum for transportation energysourced from second-generation biofuel is estimatedat about 10%~~.

Currently around 2.5% of new cars sold in Norwayevery month are electric, benefiting from thegenerous incentives for these vehicles. TheTransnova-backed ‘Grønn Bil’ (Green Car) projectreports that at the end of September 2012, 9,162 rechargeable cars (including some plug-in hybrids) wereon the road in Norway”. Because the electricity supply is largely carbon-free, these cars are essentiallyusing renewable energy. However, as in any other country, there are practical limits to how much of theNorwegian fleet can be powered using grid electricity to charge batteries directly, due to the populationdistribution and driving patterns.

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2.4 Implications for Hydrogen and Fuel Cells

2.4.1 The Domestic Opportunity

As Norway’s electricity supply is already largely decarbonised, the transportation sector must supply asubstantial proportion of emissions cuts. Emissions targets apply to the total primary energy supply, someeting these targets from just one sector will mean that sweeping measures are necessary within that.As the previous section has indicated, biofuels and clean electricity will not be sufficient for the changesneeded in the transportation sector.

As a result, hydrogen is being considered as part of a three-pronged approach, with electricity and biofuel,to help decarbonise Norwegian transportation — primarily road transportation, but its application in ferriesand ships is also being studied. Like electricity, hydrogen is an energy carrier rather than a fuel in theconventional sense, and can be generated by energy-efficient or renewable means to act as a low-carbonor carbon-free source of energy for vehicles.

Although hydrogen can be combusted in specialised internal combustion engines, when used in fuel cellvehicles it offers the most benefits in terms of energy efficiency, local air quality and other factors suchas driving experience. The introduction of FCEV as a substantial proportion of the domestic fleet is thusintegral to the implementation of hydrogen in transportation in Norway.

No country is better suited than Norway to implementing hydrogen as a transportation fuel. It has thepolitical will to cut carbon emissions and has committed to challenging targets. It is backing this up withinvestment in energy efficiency and new sources of energy. Further, it has recognised the role of innovationin helping to meet energy challenges and there is an appetite for the adoption of new technologies.

2.4.2 Feasibility

In 2005, Statkraft, Norsk Hydro and Statoil commissioned the NorWays study to assess the introduction ofhydrogen as a transportation fuel in Norway. The resuts were published in 2009 (more information on thestudy can be found on page 16). The use of hydrogen in FCEV was found to be a “prerequisite” for Norwayto reach longer-term (post-2020) targets for clean transportation, when available bioenergy is not sufficientand hybrid vehicles do not allow for sufficiently deep emissions cuts.

It was concluded that hydrogen fuel can become competitive at around 5% market penetration; this couldbe achieved by 2025 with sufficient policy support and innovation. According to this assessment, by 2050the hydrogen supply base in Norway would most likely be a mixture of on-site electrolysis, natural gas andby-product hydrogen, plus some gasified biomass (the share of each strongly dependent on technologicaldevelopments). The overall investment required was assessed at €1.5 billion (in 2005 terms) until 2050.

2.4.3 Resources

Part of the appeal of hydrogen for Norway is that it can be sourced from abundant domestic resources, allof them preferable to gasoline or diesel. As the NorWays study concluded, a combination of these can beused in practice to yield a range of benefits:

A. By using electricity to drive water electrolysis (splitting water into hydrogen and oxygen):

• Grid electricity is already 95% carbon-free so this would be an immediately exploitablesource of renewable hydrogen;

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• Addition of wind power capacity to the grid will add variability and the production ofhydrogen from excess wind energy will help to stabilise the grid, will store the energy ina usable form, and will add value to wind energy as a source of vehicle fuel;

• The use of electrolytic hydrogen to store energy will thus facilitate the addition ofrenewable generation capacity in Norway and, potentially, Europe.

B. From natural gas:

• Energy efficiency gains versus conventional transport solutions are possible by using thehydrogen in FCEV, even without applying CCS technologies;

• Moving the production of carbon emissions from the tailpipe to a point source allows forthe implementation of carbon capture when viable technology is available;

• Likely to be comparatively low-cost, depending on technology used.

C. From gasified biomass such as wood, or from biogas:

• May maximise the value of these underexploited resources where they are not neededfor heat or electricity;

• Most likely to be used for distributed, smaller-scale production at source;• Later application of CCS is also possible.

D. As a by-product of some industrial processes:

• Extracts value from what would otherwise be a waste product;• Low cost but limited availability.

But there are other, less tangible, resources in Norway that are useful in this regard. These include decadesof relevant experience in the production of hydrogen from renewable and fossil sources and its industrialuse, and a solid research base to build upon in an environment that promotes energy innovation.

2.4.4 The Strategic Opportunity

As Norwegian agencies develop the means to effectivelyintroduce hydrogen in transportation they will buildup significant expertise. This will cover technology forproducing hydrogen from the above-mentioned sources;economic storage and distribution of hydrogen; hydrogenrefuelling of vehicles; and the effective exploitation of (hydrogen through fuel cell technology. This is expertisethat can be exported, and to a great extent is applicable inthe stationary power sector as much as in transportation.Because Norway’s energy resources are abundant andfar outstrip its domestic needs, this opportunity may alsoencompass the export of hydrogen itself.

These considerations have led to Norwegian strategic interest in hydrogen: it is pursuing the use of hydrogento decarbonise its own transportation sector while recognising the economic opportunity offered by aglobal hydrogen economy. This strategy will be discussed in more depth in Section 3. Section 4 examinessome of the hydrogen production technology development currently taking place in Norway and Section 5looks at progress so far in implementing hydrogen and fuel cell vehicles.

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I. A

Creating a road mapThe NorWays project sought to inform policymakers about the introduction ofhydrogen in transportation and how this could be achieved. It was coordinated bySINTEF and carried out in association with the EU HyWays project and involved, amongothers, the research institute IFE, the Norwegian University of Science and Technology(NTNU), Statkraft, Hexagon and Statoil/Hydro. The project was financed by theResearch Council of Norway and the industrial partners. In May 2009 it culminated ina set of recommendations to the Norwegian government.

The study developed a number of scenarios for the adoption of hydrogen, with thefocus on early markets. Regional models were used to analyse the use of hydrogen incompetition with other alternative energy sources such as natural gas, biofuels andgrid electricity.

Best use of energyThe study recommended that due to the limited quantities of biofuel likelyto be available this is best reserved for heavy-duty vehicles. BEV could cover ~25% of passenger kilometres and PHEV a further “25%, but the use ofhydrogen in FCEV was found to be the best solution for at least 50% of passenger transportation. Using renewable electricity directly in BEV is abouttwice as efficient on a well-to-wheels basis; however, hydrogen offers thebenefits of faster refuelling and longer range. The latter is important in alarge country with low population density and means that for a considerable proportion of the domestic fleet electromobility can only be accomplished using FCEV.

ources of hydrogen200,000

According to NorWays, due to Norway’s population 180.000

distribution the use of distributed hydrogen produc- 160,000

lion tech ologies, particularly electrolysis, will play ~ i~o,oooa crucial role in establishing a supply infrastructure. ~g 120.000

Conventional centralised steam methane reforming ~with carbon capture was not found to be economically ~ 80 ~

competitive with distributed generation by electroly- ~sis, primarily due to the high cost of hydrogen distribu- ~lion and the assumption of a C02-quota price of €25per tonn . The projected supply mix for the base case •

scenario is shown alongside. 2010 2015 2020 2025 2030 2035 2040 2045 2050

Core message For further information see:

a) www.ntnu.no/norwaysb) NorWays: Core Message and ExecutiveSummary, Coordinated by SINTEF Materials andChemistry, Dr S. MØller-Holst, May 2009c) Stiller et aL, International Journal of HydrogenEnergy, 35 (2010), 2597—2601

• Blo~ss gasification• Byproduct hy&ogantj NG-SM~

Sectrotysia•cGH2trai)er

I F~eIfne

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The study conc uded that ‘substan al intervention from governmentis required’ to effect a transition to a sustainable form of transport —

but in addition to the benefits for the environment, economic benefitswould accrue to Norway by making sustainable use of its resources andby becoming a pioneer in hydrogen technologies. This as become thecore message oft e Norwegian hydrogen initiative.

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In 2003, the Norwegian government appointed a committeeto develop a national hydrogen programme, with supportfrom the Ministry of Petroleum and Energy and the Ministryof Transport and Communication. The committee receivedinput fromindustry and academia on production of hydrogenand its use in stationary power generation, and on the useof. hydrogen as a transportation fuel. This resulted in OfficialNorwegian Report NOU 2004:11 on ‘Hydrogen as the EnergyCarrier of the Future’45. . . V

3. The Norwegian Hydrogen Strategy

3.1 State Initiative

V it assessed Norwegian competence and resources, thecharacteristics of hydrogen as an energy carrier, the levelof international effort in hydrogen and fuel cells, and the

- .~ ~ advantage to Norway of investing in hydrogen. It then laidout a detailed vision for Norwegian activity in hydrogen and

- ~ -~- emphasised the need for robust funding support

The committee set four overarching goals:

1. Production of hydrogen from natuial gas with carbon capture, at a cost that is cómpétitivewith petrol or diesel, for use in Europe; V

2. Early introduction of hydrogen vehicles in Norway;

3. Development of internationaIly~leading competence in . hydrogen ,storage, withcompetitive products and services; V . V

4. Development of a ‘hydrogen technology industry’, comprising: participation ofNorwegian companies in international supply chains for hydrogen technology; the supplyof hydrogen refuelling stations using electrolysis; competence in the use of fuel cells onships; and R&D of an international standard in fields related to hydrogen.

This report was followed up by the Ministries of Petroleum and Energy and of Transport and Communicationin 2005 when they jointly formulated a national hydrogen strategy. The intention of the strategy, for whichinternational activity in hydrogen energy is regarded as a prerequisite, is to position Norway to profit from aglobal hydrogen economy that would create demand for Norwegian resources, expertise and technology19.

The strategy resulted in the creation of the Norwegian Hydrogen Platform, with the Secretariat based atThe Research Council of Norway, and the appointment of the Norwegian Hydrogen Council (NHC) to act asliaison and advisor to the Ministries and formulate action plans.

3.2 First Action Plan 2007—2010

The first Action Plan from the Norwegian Hydrogen Council was published in December 2006 and coveredthe period 2007 to 2010, with milestones for the overall strategy as shown in the figure on the next page46.Outcomes of the first Action Plan include FCEV receiving equal treatment with other electric vehicles inincentive schemes and the establishment of Transnova (in which the environmental foundation ZERO alsoplayed a key role by lobbying politicians). This has led to increased public support for alternative fuels andfor more efficient vehicle technology.

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No.wcgfanejpØam ~ ~ Progress towards meeting alldii C~T1PCWVO and ~a~’~ooc~Ucns •Iean hyømgen and ~ these targets has been good. For

storage solutions be CO~.ioun’ ~ptvdix*lon at hydrogen to EUtOtd~St1ndOfl ____ example, the demonstration of

Hydrogen avaduole Iticogyicrtiricute~ fcrtoo~tationin fuel cell APU in a marine vessel was

production to EU 5 regIons N StoleOS liOnssuccessfully concluded in 2010, asdescribed in the feature on page

II I I I 3447, and demonstration of fuel cell

vehicles is well underway in NorwayConercaI~dati~etstor (see Section 5), with Norwegian

Sill Ship technology for distributed hydrogen

M~Evehldes Norway Ma~hlcles ~ production also being trialled (seeavutiable at cceptubl. demonstrates available at ceptable cempelilive cost Uircughout ma~et Section 4).

prices for FCs for auxiliary prices for EC 14mm vetildes sold tolaflydemonstration powor In ships demonstration Norway Same share (10.50 000)

3.3 Second Action Plan 2012—2015

The second Action Plan from the Norwegian Hydrogen Council was published in May 2012~. A full Englishtranslation is now available and it is recommended reading, as it sets out a comprehensive and ambitiousvision for Norway’s role in an international hydrogen market (download it at www.hydrogen.no).

The document presents an updated plan for the Hydrogen Initiative, taking into account the recentwithdrawal of Statoil from hydrogen (see page 28), political processes and trends within Norway, theforthcoming commercialisation of FCEV, and new applications such as using hydrogen for grid balancing.The aim of its recommendations is for Norway to be one of the global leaders in hydrogen and benefitfrom value creation.

The recommendations are grouped as follows:

‘Business Development for Increased Value Creation’, including measures to involveNorwegian SMEs in the emerging hydrogen technology market;

‘Research and Development, Network and Infrastructure’, including extending and focusingR&D in hydrogen production, storage, distribution and use, as well as the creation of anational network of test laboratories;

‘National Facilitation’, involving: the strengthening of Transnova to reflect the challenges it ishandling, funded through an gradual increase in the fuel tax; the creation of a national planfor fuel supply for future vehicles, including incentives and support for hydrogen refuellingstations; and the investigation of the potential for large-scale export of sustainable hydrogenfrom Norway based on Norwegian energy resources;

‘Effective Tools for Early Introduction of Hydrogen Vehicles’, including incentives for zero-emission vehicles, with a required proportion of these vehicles in public fleets, subsidies forhydrogen cars until they are competitive, and coordinated procurement of FCEV with a focuson hydrogen in urban transport or fleet vehicles.

The Action Plan also recommends national lighthouse projects focusing on four particular areas; these aresummarised in the box below. The total cost for implementation of all the recommendations is estimatedby the NHC at around NOI< 1.6 billion (‘~€ 218 million) over the four years from 2012 to 2015.

The document urges political backing to allow Norway to capitalise on its investments in hydrogen overmore than two decades, to use its natural resources and fully benefit from the emerging hydrogen economy.

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A p11 t project for hydrogen production at power plants with CCS:Co-location of hydrogen production with gas-fired power plants would take advantage of shared infrastructure for bothnatural gas supply and CO2 handling, reducing investment costs. This could work, to a different extent, with both post- andpre-combustion carbon capture. When projects to scale-up hydrogen production technology are proposed, this sort ofco-location should be considered, for example at the Technology Centre Mongstad (see page 8).

A national project to demonstrate fuel cells in ship propulsion:This would build on the first phase of the FellowSHIP project (see page 34). The use of fuel cells in industrial vessels andthe numerous car ferries operating along the Norwegian coast could address this significant source of emissions.

Demonstration of ‘green harbours’:Norway has heavy shipping traffic and a number of harbours. When docked, ships tend to switch to diesel generators tokeep auxiliary systems powered; the Action Plan quotes a figure of 3,000 litres of diesel consumed per hour for an averagecruise ship. A reduction in emissions could thus be achieved by allowing the ships to connect to shore power, but this mayrequire investment to upgrade the local power grid. Hydrogen-based solutions can be a viable alternative, and the ActionPlan recommends that a feasibility study is launched to investigate this, to be followed by a demonstration project. Otheradvantages would result from the use of hydrogen in the harbour, as it could also be used to fuel land-side vehicles suchas cargo handling equipment.

~

Demonstration of grid balancing with hydrogen and fuel cells:With the integration of an increasing proportion of variable renewable energy sources into the electricity grid, technologyfor energy storage is needed to keep the grid supply and demand in balance. Although Norway has abundant hydropowercapacity that can be used in this regard (see Page 12), in some regions this is not feasible. Here, hydrogen production byelectrolysis can be used; fuel cells could be used to return electricity to the grid or the hydrogen could also be used asvehicle fuel. The Action Plan recommends the initiation of a project to demonstrate the feasibility of this concept for localgrid balancing.

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i-uei c~eIis ana Hydrogen in norway

ENORWEGA

Established in 1996 as a non-profit organisation, the Norwegian Hydrogen Forum (NHF) acts as a coordinating body forhydrogen activities in Norway. Members are drawn from industr~ç universities, research institutes, and other organisationsand people~

Its activities encompass:

• Promoting the advantages of hydrogen as an energy carrier;• Information dissemination;• Supporting research and innovation in hydrogen technology;• Securing increased political awareness in close association with the Norwegian Hydrogen Council;• Constructively partnering public authorities and otheI~ bodies in the development of policy;• Stimulating start-ups and involving SMEs in the emerging hydrogen industry;• Active membership of the European Hydrogen Association.

The NHF compiles ‘The Norwegian Hydrogen Guide’. This is a useful overview of all the Norwegian companies andorganisations involved in hydrogen for energy — the 2012 edition is available in English on the NHF website.

The website also hosts the outreach material from the Norwegian Hydrogen Council, including its mandate and actionplans, with English translations available for downloading. The NHF website can be found at: www.hydrogen.no

D ~ONSTRATINGWINDTO

The earliest practical use of water electrolysis in an energy application in Norway was in the Utsira Wind Power andHydrogen Plant, on the small island of Utsira, just off the south-west coast of Norway. This landmark project was one ofthe first in the world to demonstrate the concept of wind-to-hydrogen production at full scale, under real-life conditions.An integrated renewable energy system was constructed on Utsira to demonstrate reliable power provision to localhouseholds, which have a weak grid connection to the mainland. Excess electricity generated by the wind turbine wasused in the electrolyser to produce hydrogen. This was compressed and stored, and fed through a generator or fuel cellwhen electricity was required and wind power was not sufficient.

Over four years of operation, from 2004 to 2008, the concept was successfully proven as energy for ten households wasexclusively supplied by the pilot plant. However, several challenges were identified, not least low energy efficiency, and itwas concluded that “further technical improvements and cost reductions” were needed for commercial viability.

Utsira wind and hydrogen plant components:

• 600 kW wind turbine Gnd ~ub~t~t,on

• 10 Nm3/h, 48 kW alkaline electrolyser ~ I :.,~

(l2bar),suppliedbyHydro

• 11 Nm3/h hydrogen compressor (200 bar)

• 2,400 Nm3 hydrogen gas storage (200 bar) —.~

• 55 kW hydrogen genset (rebuilt dieselengine)

• 10 kW PEM fuel cell system, from IRD

Reading:

Ulleberg et al., mt. J. of Hydrogen Energy, 2010, 35, 1841-1852

Hydro Oil & Energy, ‘Utsira Wind Power and Hydrogen Plant: lnauguration~ 1 July 2004

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4. New Technology for Hydrogen Production

4.1 Electrolysis and RenewablesI

Electrolysis has a long industrial history in Norway. The earlyuse of the technology for fertiliser production dates back to thefounding of Norsk Hydro in 1905, and can be directly attributedto the availabilityof abundant hydropower. In 1927 Norsk Hydrostarted to convert its original fertilizer production method to the IHaber—Bosch process, for which pure hydrogen is required49.This marked the beginning of the manufacture and use of waterelectrolysers in Norway, producing large quantities of hydrogenfor industrial use.

The use of electrolysers to produce hydrogen is therefore nothing new, but interest in the technologyas a means to renewably produce hydrogen as an energy carrier has gathered momentum over the lastdecade. Energy applications fall into four broad areas, with much overlap between them: renewable energystorage; grid demand-side management; remote/off-grid energy systems; and production of fuel for FCEV.These have specific requirements that differ from the requirements of industrial use, and innovations inelectrolyser technology are needed for it to be efficient, effective and economic in energy applications.

4.1.1 Alkaline Electrolyser Development

Norsk Hydro’s water electrolyser arm ultimately evolved into NEL Hydrogen, which continues to supplyelectrolysers for industrial hydrogen production and is now exploring opportunities in hydrogen for energyapplications. Its strong industrial base puts it in a good position to do so, as it is profitable with growingannual turnover.

For industry, NEL Hydrogen has supplied hundreds oflarge alkaline electrolysers that work at atmosphericpressure, producing from 10 to 500 Nm3H2/h. Itis adapting the technology for use in large-scalerenewable energy installations, and has recentlyreleased a pressurised electrolyser specifically designedfor energy applications such as hydrogen refuellingstations. (NEL Hydrogen supplied the electrolyser forthe first commercial hydrogen station, which opened inIceland in 2003.)

NEL Hydrogen sees opportunities in transportation, grid energy storage, isolated energy systems andenergy independence. To realise these opportunities, electrolysers must have flexible load operation withultra-fast response time. After extensive testing of a 3.4 Nm3H2/h prototype at the Energy Park test facilityin Porsgrunn, it has been verified that NEL Hydrogen’s new 60 Nm3HJh electrolyser (above left) can start upimmediately from standby, has a response time of <1 s and an operational range of 10_100%50.51.

An alternative approach to alkaline electrolyser design is being taken by start-up RotoBoost, which haspatented a rotating stack electrolyser technology, the RotoLyzer. The rotation facilitates gas and liquidseparation by centrifugal force, allowing for increased efficiency in a more compact unit. The company sayscapital costs may be halved by using this design. It will be engaged in development through 2013 and 2014and is looking for investment or partnership to commercialise be.yond that. This timeframe would allow itto target the emerging hydrogen refuelling market52.

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[uei cells and Hydrogen in Norway

4.1.2 PEM Electrolyser Development

Proton exchange membrane (PEM) water electrolyser development in Norway was initiated in 1997 and hadits origin in the PEM fuel cell research at the Norwegian University of Science and Technology (NTNU) thatcommenced in 1990. Since 2001, however, the Norwegian Institute for Scientific and Industrial Research(SINTEF) has grown to take the leading role in R&D in this area; NTNU is still active in fundamental R&D.

A €3.4 million EU project coordinated by SINTEF has the objective of developing an efficient PEM electrolyserfor sustainable hydrogen production. The two-year NEXPEL project started in January 2010 with the aimof improving electrolyser efficiency and lifetime while reducing cost; the targets are 75% efficiency (LHV),hydrogen production cost of around €5,000 per Nm3/h (system) or €2,500 per Nm3/h (stack), and lifetimeof 40,000 hours53.

The approach has seen the electrolyser essentiallyredesigned from the ground up. The projecthas involved development of new catalyst andmembrane materials, component redevelopmentwith cost-effective materials, and new stackand system design with advanced constructionmethods. Significant progress has been made:using the N EXPEL design, cost per stack at a -

production volume often stacks has been reducedby over a third compared to the conventionaldesign. The target of €2,500 per Nm3/h (stack) isreached at a production volume of 100 units, andeconomies of scale are more pronounced for thenew design54.

The electrolyser is intended for use with wind or solar power: it can sustain intermittent operation and hasa power range of 10—200%. It produces >99.99% purity hydrogen, suitable for fuelling fuel cell vehicles.The final stage of NEXPEL is integration into the renewable energy system at Porsgrunn Energy Park (whichincludes two 6 kW wind turbines, two 2.1 kW solar panels, and a hydrogen refuelling station, above), testingthese capabilities from late 2012.

The successor to NEXPEL is the four-year NOVEL project, which started in late 2012. This will continuematerials development and system optimisation; extensive durability studies on the newly-developedstacks will also be conducted. This project is specifically intended to develop a cost-effective, small-scale PEM electrolyser for home or community use (around 1 kWe) with overall system efficiency ofover 70% (LHV)55.

4.2 Sorption-Enhanced Steam Methane Reforming

4.2.1 The ZEG Process

One of the challenges facing implementation of carbon capture is the significant parasitic load it usuallyplaces on the plant, but a novel approach could solve this problem and actually increase the efficiencyof power production with integrated carbon dioxide capture. The zero-emission gas (ZEG) process wascollaboratively developed by the Institute for Energy Technology (IFE) and Christian Michelsen Research(CMR). ZEG Power was established as a joint spin-off company to commercialise the technology, which hasbeen patented56.

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Fuel Cells and Hydrogen in Norway

In the ZEG process, methane is reformed using no~’el sorption-enhanced steam methane reforming (SE-SMR) technology. The Water

process uses a circulating solid sorbent to remove the carbon Fuel

dioxide from the gas mixture in Reactor 1 as soon as it is formed,allowing the reforming and water-gas shift reactions to proceedsimultaneously and driving the equilibrium further towardshydrogen production57. The sorbent is regenerated in Reactor 2, Heat 950•C

releasing a pure CO2 stream ideal for storage or further industrialuse. The heat required. for this process is provided by anintegrated solid oxide fuel cell (SOFC), which uses the hydrogen Air Electrici

produced by the SE-SMR reactor to generate electricity. Excess • Hydrogen

hydrogen can be recovered and used elsewhere, for example in arefuelling station for FCEV.

According to ZEG Power, this relatively simple and elegant process has a potential energy efficiency of over80%, and almost 100% carbon capture can be accomplished at low cost. The developers are targeting ahydrogen yield of over 95%. Any gaseous hydrocarbon fuel can be used, and the proportions of electricity,hydrogen and heat generated are flexible. The process is being developed to be scalable from kilowatt upto megawatt-level output.

ZEG Power has verified the technology in a 1 kWe + 1 kWH2 unit, It is now working on a demonstration ina 20 kWe + 30 kWH2 plant; this is being done as part of the HyNor Lillestrøm project at Akershus EnergyPark (see below). The next step is a 400 kW scale pilot plant; the possibility of testing the technology at theTechnology Centre Mongstad is under discussion.

The ultimate objective is to market the technology for large-scale power plants58. To do this ZEG Powerneeds commercial partners, and it has invited interest from industry and investors.

4.2.2 Testing at HyNor LiIiestrØm

HyNor LillestrØm is both a company and a project; the company was founded in 2009 and is owned byAkershus Energi AS, IFE Venture, Lillestrøm Centre of Expertise (Kunnskapsbyen), Kjeller lnnovasjon AS andSkedsmo municipality. At Akershus Energy Park near Oslo it is demonstrating Norwegian competence inintegrated hydrogen energy systems.

Solar Power(local PV) Weste Heat

H,.atorag.Hydra Power e (high prusur.)(grid)

Metal HydrideCompressor

Blogas : - Dispinser H2(landfill) I Mechanical

Compressor

i~a~te H.at

ElectricityIIt.buffer

(medium pressure)

Primery Energy H.-produclion H~-cornpression H.-~torage & Filling

The project incorporates hydrogen production from two different renewable energy sources (solar PV andlandfill gas), hydrogen compression and storage driven by renewable thermal energy, and hydrogen vehiclerefuelling. Phase 1 of the project is illustrated below.

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Hydrogen is generated both bywater electrolysis driven by renewable electricity and by methane reforming.For the latter, biogas is piped in from the Berger landfill site in Skedsmo municipality and is cleaned andupgraded before being fed to the reformer. The fluidised bed SE-SMR technology was developed by theInstitute for Energy Technology (IFE): it is a one-step process that produces hydrogen at a relatively lowtemperature (625°C) and with high yield. Production capacity of the unit is 12.5 Nm3/h.

In the second phase of HyNor LillestrOm, starting in 2013, the ZEG process will be demonstrated; i.e. anSOFC will be thermally integrated with SE-SMR, generating electricity, hydrogen and a pure CO2 wastestream ideal for CO2 storage or industrial use. As the process will be using biomethane from upgradedlandfill gas, it has been dubbed the ‘BioZEG concept’.

Waste heat from the reforming. process is used tocompress hydrogen in an .innovati~ie metal hydridesystem frOm HYSTORSYS (also i.spih-off’from IFE). Itcompresses,hydrogen from 10 to 200 bar using twodifferent metal hydride alloys at two pressure levels.This solid-state storage method has a number ofadvantages compared to a mechanical compressor: nomoving parts, no detrimental effect on hydrogen purity,and a high volumetric density of hydrogen storage canbe achieved at moderate pressure and temperature.Further compression to 850 bar takes place, in thehydrogen refuelling station provided by Denmark’s H2Logic (see Section 5.5)59~60.

HyNor Lillestrøm is intended as a showcase, test-bed and training facility for Norwegian hydrogen technologythat can be capitalised on by the local economy. Technical visits to Akershus Energy Park are welcomed.

4.3 Microwave Plasma Method

GasPlas AS may have another solution for producing emission-free hydrogen. The company uses novelmicrowave plasma technology to convert methane directly to hydrogen and carbon powder, a valuablecommodity in its own right, producing only usable heat as a by-product. Microwave plasmas are notnew to science, but GasPlas says its proprietary technology has for the first time allowed scale-up andimplementation at an industrially useful level. It delivered its first reactor to the SINTEF Materials andChemistry laboratory in Oslo in March 2012.

QasPlas HydrogenThe GasPlas reactor is scalable and can form the basis for a distributed Reader

hydrogen generation system, producing fuel for transportation fromfossil methane or biomethane. It has called this the Hydrogen2U (H2U)concept, and is looking to address the market through commercialpartners to which it will license the technology. Carbon

According to GasPlas, the capital cost of such a system is “low” and operating costs would be comparableto decentralised reforming, while carbon capture is accomplished without a sacrifice in system efficiency.Production of one kilogram of hydrogen with this technology requires 24 kWh of electricity (much lowerthan electrolysis but a supply of renewable electricity would still be a benefit) and has a cracking efficiencyof about 85%. Production of 1 kg hydrogen by efficient, centralised SMR requires just 3 kWh energy input —

but this creates 9 kg CO2 which must be captured and stored in some way, while the GasPlas process insteadleaves you with high-quality dry carbon61.

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Fuel Cells and Hydrogen in Norway

5. Implementing Hydrogen in Road Transport

5.1 The HyNor Project

Recognising the strength of Norway’s position, anational project called HyNor was started in 2003 tointroduce hydrogen in transportation, with support fromindustrial, academic and regional government partners.The secretariat is run by the Zero Emission ResourceOrganization (ZERO). HyNor’s initial purpose was to createsufficient hydrogen refuelling infrastructure for markettesting of hydrogen as vehicle fuel. In the first phase, thiswas intended to take the form of a hydrogen corridorbetween Oslo and Stavanger; in the second phase from2009, the focus has been on building a cluster of hydrogenrefuelling stations in and around Oslo62.

HyNor facilitates cooperation on both the creation of hydrogen refuelling infrastructure and the acquisitionof cars and buses for the project. It is highly proactive: to begin with it acquired hydrogen internalcombustion engine cars to allow early testing of hydrogen mobility to begin (these were fifteen specially

modified Toyota Prius acquired early in 2007 and four MazdaRX-8 Hydrogen RE acquired in 2009 under a collaborationwith Mazda, left). FCEV have been added to the project from2011 onwards (below; see Section 5.5).

- R As for the creation of hydrogen refuelling stations

~ (HRS), HyNor has been very successful: at the time ofwriting Norway has six operational HRS, five establishedunder HyNor’s aegis and the sixth under the H2 MovesScandinavia project in which HyNor is a partner. This is

sufficient to mark the country out as an important early market for FCEV — which in turn has attractedthe interest of global automakers looking to commercially launch FCEV from “2015 onwards. In orderfor this commercial introduction to succeed, a dense and stable refuelling network in the Oslo region isthus the main priority for HyNor for the period to 2015, rather than the full realisation of the hydrogencorridor between Oslo and Stavanger.

The project’s scope has grown to encompass theprovision of carbon-dioxide-neutral hydrogento its stations through renewably-poweredelectrolysis, use of steam methane- and plasma-reforming of biogas (also incorporating carboncapture), and the use of industrial by-producthydrogen. The aim is to foster collaborationon the development and implementation ofhydrogen production technologies to growNorwegian competence in this area63. Workingtowards 2015, HyNor is also collaborating onthe creation of ‘hydrbgen links’ with Denmarkand Sweden under the Scandinavian HydrogenHighway Project (SHHP).

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5.2 Key Initiatives in Scandinavia

5.2.1 The Scandinavian Hydrogen Highway Partnership

The SHHP has existed since 2006 and comprises the three bodies which coordinate hydrogen intransportation activities within their respective countries: Hydrogen Sweden, Hydrogen Link (Denmark),and HyNor (Norway). Its aim is to ensure that Scandinavia will be one of the first regions in the world whereFCEV are commercially deployed.

The partnership emphasises that the introduction of FCEV requires some level of infrastructure to be inplace well ahead of 2015. It is working to achieve this in Scandinavia through a number of demonstrationprojects, with a few smaller stations interconnecting these. The SHHP also aims to get overt governmentbacking to support hydrogen infrastructure until it becomes self-sustaining, in order to create a ‘predictable’environment for early deployments by the various vehicle OEM5M.

5.2.2 H2moves Scandinavia

The H2moves Scandinavia project was a lighthouse project under the EU FuelCells and Hydrogen Joint Undertaking (FCH JU), and ran for three years from2010 to 2012. The principal aim of the project is to gain customer acceptancefor FCEV in Scandinavia.

Its main activities have been: deploying and demonstrating nineteen FCEV;building one new HRS in Oslo (at Gaustad); designing, assembling anddemonstrating a mobile hydrogen refueller; and conducting a EuropeanHydrogen Road Tour, which took place from 13 September to 10 October2012. The Norwegian component of this project, co-funded by Transnova, hasoverseen the establishment of the new HRS and its commercial operation (seeSection 5.4.5).

5.2.3 Next Move

The Next Move project runs for three years from April 2011 and is EU fundedby the lnterreg IVA Oresund—Kattegat—Skagerrak programme; the Oresund—Kattegat—Skagerrak (OKS) region incorporates parts of Norway, Denmark andSweden, as shown alongside65.

This cross-border partnership aims to facilitate the acquisition of FCEV bycertain municipalities and communities within this region which share anambition to introduce zero-emission vehicles. The partners will collaborate onpurchase, servicing and competence building; and will establish one new HRSand deploy tens of FCEV66.

The Norwegian partners in Next Move are Akershus Energi, Hynor Lillestrøm, LillestrOm Kunnskapsbyen(Centre of Expertise), Skedsmo Municipality in Akershus County, Ruter AS, the Council for Drammen Regionand ZERO. Akershus County has for some years been actively pursuing hydrogen in transportation and is inthe process of launching a hydrogen strategy for 2013 to 202567; see the feature on the next page.

Further information and news from all these Scandinavian initiatives can be found on the SHHP website at:www.scandinavianhydrogen.org.

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I I IN AKERSHUS AND 0 I GIONAL AP’ ‘ I

Cutting emissions in half:Akershus County Council has an ambitious target: to reduce GHG emissions in Akershus to half of 1990 levels by 2030.Its neighbour, the City of Oslo, has the same ambition and the two are collaborating on strategies and initiatives toimplement clean and efficient transportation.

Increasing use of public transportation is an important target, which would have emissions benefits in itself, but thetwo councils also intend to completely eliminate fossil fuels in public transportation by 2020. This will be significantfor Norway as a whole: the Oslo-Akershus Metropolitan Area has 1.2 million inhabitants (around a quarter of Norway’spopulation), is among the fastest growing metropolitan regions in Europe and has a substantial proportion of thecountry’s public transportation, and overall road traffic.

The region is already successful in implementing battery electric vehicles: BEV now make up 5 % of new car sales in theregion and almost a thousand charging points have been installed. Biogas and biofuel have made significant inroadsinto public transportation: public transport authority Ruter AS, jointly owned by Oslo Municipality and Akershus CountyCouncil, has more than a quarter of its buses running on these fuels. Ruter AS is operating the CHIC-Oslo project withfive fuel cell buses in regular operation and a 350 bar hydrogen refuelling station for these buses.

Launching a hydrogen strategy:In 2012, Akerhus County C~uncil beganworking on a regional hydrogen strategy,to be launched in 2013 for the period until2025, and will encompass the deploymentof hydrogen infrastructure as well as fuelcell electric vehicles and buses in the greaterOslo-Akershus region. Establishing a viable Akershu$infrastructure in the region is important for 7”attracting commercial FCEV deployments.Further, an early introduction of FCEV will be.of vital importance for Norway as a whole.

A project group of 25 people from interestedparties have been working on formulatingthe strategy. The group includes participants from IFE, Hynor LillestrOm, the Norwegian Hydrogen Forum, AkershusEnergi, HYOP, The Institute for Transport Economics, Ruter, Mercedes Benz and Toyota among others.

The project group has proposed three phases forthe strategy: the pre-commercial phase with small-scale infrastructure,lasting until the commercial rollout of FCEV starts around 2015; the early commercial phase from 2015 to 2020, withmore cars and stations available; and the maturing market beyond 2020 when the market will gradually becomeself-regulating. The process has been divided into three working groups which focus on: (1) hydrogen production,distribution, and refuelling; (2) public and private finance mechanisms and incentives; and (3) communication, publicityand knowledge creation.

Challenges remain, especially related to the current high cost of hydrogen production and distribution. There is also stillambivalence as to whether hydrogen is the ‘right solution’ — not just among the public but also at national governmentlevel — and highly visible political commitment in Oslo and Akershus will be important.

The commitment is there: Akershus County Council has decided to take a lead role in supporting hydrogen research,development and demonstration to ensure the success of its strategy, and both the council and the City of Oslo aremaking funds available while working to secure further EU funding and private investment. The region is likely tobecome increasingly prominent in driving forward hydrogen development and deployment~’°~~.

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Fuel Cells and Hydrogen in Norway

5.3 From Demonstration to Commercialisation

5.3.1 HYOP: Operating Hydrogen Stations

State oil and gas company Statoil was prominentlyinvolved in the early establishment and operation ofhydrogen refuelling stations in Norway, working closelywith HyNor, but the company withdrew from theseactivities during 2011 and in early 2012 announced thatit would end its involvement in hydrogen vehicle fuelling.This is primarily due to a change in Statoil’s businessmodel: the company has pulled back from downstreamactivities to focus on upstream oil and gas extraction, itscore business. This included divesting its stake in StatoilFuel & Retail, selling itto Canadian companyAlimentationCouche-Tard in June 2012.

The move could have derailed Norwegian demonstration activities, had the H2moves Scandinavia projectnot been rescued by a number of stakeholders and had a new company not stepped in for the Statoilhydrogen stations. The company, HYOP AS, was established by Kjellerlnnovasjon on behalf of the interestedparties in the Lillestrøm region, including Akershus Energi, IFE, and the Lillestrøm Kunnskapsbyen, with theintention of maintaining progress in establishing hydrogen infrastructure.

On 8th May 2012, HYOP acquired Statoil’s hydrogen stations at Porsgrunn, Drammen and Oslo Økern. Itis also discussing the possibility of assuming responsibility for operating the HyNor Lillestrøm station andthe H2moves station in Oslo, should these fit with its business model. The Drammen and Økern stationsare on ex-Statoil forecourts and HYOP has an agreement for the continued use of these; they are open tothe public and operate automatically around the clock with high uptime. The Porsgrunn station will beconverted to 700 bar operation by the end of January 2013, with the intention for this to be the standardfor all stations68’69’70.

Having become familiar with operating hydrogenstations, HYOP CEO Ulf Hafseld says the company nextaims to gain an understanding of the characteristicsof commercial stations serving two to three hundredcars a day. It should be possible to establish largercommercial stations from around 2014 — if enoughhydrogen cars are available. HYOP has regular dialoguewith automotive GEMs to ensure that Norway remainsunder consideration as one of the early markets for thecommercial rollout of FCEV. ~

5.3.2 Business Model

With the certainty provided by increasing numbers of these cars on Norwegian roads, HYOP will begin toattract private investment. For the moment, it is mainly funded by national and local government and thiswill continue to be the case for the next few years. Despite the disappointment of national bodies such asStatoil and Statkraft drawing back from hydrogen, HYOP says there is still sufficient government commitmentto implementing hydrogen in transportation to drive progress forward during this intermediate phase.

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But ultimately, HYOP must survive as a commercial ~ ~W1~entity. In order to make money, its operationswill have to integrate the production of hydrogenwith supply to. consumers; production will beby on-site electrolysis to begin with, moving tosome centralised electrolytic production at a laterphase. The provision of renewable electricity iskey, playing to Norway’s strengths in this area andopening the way for utility companies to becomeinvolved in the enterprise. .

Hydrogen stations could be a valuable market for their electricity — especially if the Green Certificatescheme leads to a surplus of renewable electricity, which may well be the case. HYOP has calculated thatto supply renewable hydrogen to the entire Norwegian fleet will require no more than about 10% of theannual consumption of electricity.

Its pricing model will set the price of hydrogen so that it costs the consumer the same to travel 100 km onhydrogen as it would on petroleum. For a station designed for 200 to 300 cars per day and at current pricesof grid electricity and petroleum, this would allow a profit to be turned at about 60 to 70% capacity.

However, it is very important that the customer won’t have to compromise in other ways —for example,by having limited range. HYOP intends to facilitate a driving experience that is as ‘normal’ as possible. Forthis, more hydrogen stations will be needed so the pace and location of further infrastructure rollout willbe carefully planned, with a good balance to be struck between a duster (focused on Oslo) and corridorsto facilitate longer trips. From there, a network can be rolled out nationally71.

5.4 Existing Hydrogen Refuelling Stations

5.4.1 HyNor Stavanger

Norway’s first HRS was opened in August 2006 in Stavanger, the nerve centre of the Norwegian oil and gasindustry. An initiative to use hydrogen as vehicle fuel had been running in Stavanger since 2003, a result ofwhat was Statoil’s interest in the application at the time. The Stavanger station has been dismantled andmoved to Risavika Harbour, where hydrogen will be produced locally from natural gas and five fuel cellforklifts will operate in the port area. It is not currently operational62’72.

5.4.2 HyNor Porsgrunn

Statoil has a test centre in Porsgrunn, in the Grenlandregion, and a hydrogen station was opened at thisfacility in June 2007. The station has access to ahigh-capacity hydrogen pipeline, carrying industrialby-product hydrogen, that could potentially serve

~ ~ d thousands of cars. The station supply can also besupplemented with hydrogen from an on-site

NY~OGa~STASJON electrolyser test unit integrated with renewable

energy. Originally serving a fleet of nine convertedPriuses for five years, these have now been takenout of service and the station is being upgradedwith a 700 bar line to serve fuel cell vehicles11.

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Fuel Cells and Hydrogen in Norway

5.4.3 HyNor Oslo Økern

The HRS at Økern (shown top of page 28), Oslo’s first, was opened in May 2009. Ex-Statoil, this station isnow owned and operated by HYOP. It uses packaged hydrogen, produced by centralised electrolysis62’72, andis open to the public.

5.4.4 HyNor Drammen

The HRS (shown top of page 29) is the product of a collaborative effort to develop and demonstrate theproduction of carbon-neutral hydrogen to fuel a local fleet. Also opened in May 2009 and also ex-Statoil,the station is now ownedand operated by HYOP. It is identical to the Økern station, and is currently suppliedwith packaged hydrogen from renewable sources (produced by alkaline electrolysis), but a project isunderway to produce hydrogen locally by reforming biogas generated from waste62’72.

5.4.5 H2moves Scandinavia/HyNor Oslo Gaustad

Norway’s first HRS to use hydrogen exclusively generated by on-site electrolysis opened in November2011, at Gaustad, on the premises of SINTEF’s research centre in Oslo73. The station is part of the H2movesScandinavia project and was manufactured in Denmark and established under the aegis of SINTEF by Danishcompany H2 Logic, which continues to own and operate it. The station currently serves seventeen FCEV inthe Oslo area62 and the mobile refueller has been used for outreach activities at various events74.

The Gaustad station has been included in the HyNor network and has also been used to develop tools forthe optimal operation and use of HRS (see the feature on the next page).

5.4.6 HyNor Oslo Buss

Part of HyNor, the Oslo Buss project falls underthe FCH JU CHIC project. Project partnersare the regional transport authority Ruter,ZERO, Oslo City Council and Akershus CountyCouncil. Air Liquide supplied the refuellingstation, which is located at Ruter’s Rosenholmbus depot and was commissioned at the endof May 2012; the company will continue tooperate the station for five years. Hydrogen —

is generated on-site using two Hydrogenicselectrolysers and renewable grid electricity75’76

5.4.7 HyNor Lillestrøm

The Lillestrøm test and demonstration facility’s hydrogen station was delivered by H2 Logic in April 2012and formally opened on 13 June77. The station is owned by HyNor Lillestrøm AS and it is refuelling Think cityH2EV, Daimler B-Class F-CELL, and Hyundai ix35 FCEV cars.

The hydrogen supply is currently only from renewably-driven electrolysis (using solar PV panels on the roofof the facility), but reforming of landfill gas will begin early in 2013, making it the world’s first refuellingstation to be supplied by hydrogen generated this way62’72. The demonstration of second-generation carboncapture technology will commence at the facility later in 2013; for more information see Section 4.2.

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Hydrogen quality assurance at lower cost

Next-generation hydrogen refuellingstations:As part of the H2moves Scandinavia project,three research and development programmeshave been carried out with the aim of facilitatingthe further development of hydrogen refuellingstation (HRS) technology and increasing customeracceptance.

The activities are geared at providing high-qualityhydrogen at the lowest possible cost and meetingvehicle drivers’ everyday needs by assisting themin finding the nearest HRS.

Hydrogen is produced from various sources by utilising different technologies.However, irrespective of production method, the hydrogen must be very pure —

nearly 100% — for use in fuel cell electric vehicles (FCEV). Even ultra-low levels ofimpurities in hydrogen fuel can damage fuel cells severely, and must therefore bereliably identified and removed.

SINTEF has measured hydrogen quality at three HRS in the Oslo area, and the datahave been used as input for developing new, more efficient strategies to predict andmitigate impurities.

Hydrogen supply at lower cost by optimisation

SINTEF Energi AS has developed concepts and models for using HI3S as grid-balancing units. Various power conversion system topologies have beenassessed and simulations have revealed how HRS system control may facilitatefrequency, fault and voltage support for the grid.

Such systems for HRS in Germany, the Nordic Countries and in Norway requiredifferent optimised designs due to the nature of the price variations in thespecific regions.

Hydrogen refuelling station availabilityfor FCEV drivers

In the early phases of FCEV deployment the number of available HRSwill be limited, and the distance between them may be inconvenientlylong. Stations will also periodically undergo maintenance. Ensuringthe availability of hydrogen for drivers is an issue that is key to gainingcustomer acceptance.

SINTEF has developed a common server solution and user-friendlyapplications for the internet, both iPhone and Android platforms, aswell as SMS. The user can select their personal preference and willreceive GPS directions to the nearest HRS.

Information and images courtesy ofSteffen MØIIer-Halst, Norwegian Hydrogen Council

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Fuel Cells and Hydrogen in Norway

5.5.2 Think H2 Logic Retrofit

Ruter, the public transport authority for Oslo andAkershus, handles over 200 million passengerjourneys per year. It aims to have climate-neutraloperation by 2020 and already has buses running onsecond-generation biofuel and biogas. It is using theOslo Buss project to trial hydrogen fuel cell buses for•its fleet78. In thisFCH JU funded CHIC project, five VanHool fuel cell buses started operating at the beginningof June 2012~~. They run on route 81A, from outsideOslo to the city centre, as part of Ruter’s regular fleet.The buses are fitted with Ballard HD6 Velocity fuelcell modules80. V

Battery electric Think City Cars were equipped with fuel cell range extenders by H2 Logic and five weredeployed in Oslo in 2011 under the H2moves Scandinavia project. These are equipped to take 700 barhydrogen and have a 250 km range so can be tested on a par with other FCEV. These cars are intended onlyfor demonstration and test purposes and will not be commercially deployed59.

5.5.3 Daimler

Daimler, which was part of the original H2moves Scandinaviaproject consortium, supplied ten Mercedes-Benz B-ClassF-CELLs for deployment in the Oslo area in 2011. Theleasing of these vehicles to customers is managed by thelocal Mercedes-Benz dealer Bertel 0. Steen. Daimler choseNorway for demonstration of its FCEV due to the attractiveincentives for EV and the high share of renewables in theenergy mix74; although it is a relatively small market, Daimlersees Norway as an important pilot for much larger marketsin the USA and Germany~.

5.5.4 Hyundai

In early 2011, Hyundai signed a memorandum ofunderstanding (MoU) with representatives from Norway,Denmark, Sweden and Iceland under which Hyundai wouldprovide FCEV for demonstration and the countries wouldcontinue to develop the necessary refuelling infrastructure82.In May 2011, Hyundai test-drove its ix35 FCEV in Oslo, amongother cities.Then, at the opening of the H2moves hydrogenstation in Oslo in November 2011, Hyundai officiallyconfirmed that it was joining the H2moves Scandinaviaproject and supplied two ix35 FCEV SUVs for deployment inOslo, as well as two for Copenhagen83.

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In May 2012, in a significant development, Hyundai signed an M0U with HYOP, to coordinate the supply ofits fuel cell vehicles to Norway. The M0U is intended to support an Oslo-based pilot project to provide FCEVfor public agencies, commercial fleets and taxi firms. At the signing, HYOP indicated that it plans to buildadditional hydrogen stations in accordance with the rollout of vehiclesM.

Hyundai was joined by Toyota, Nissan, and Honda on the 9th October 2012 when the automakers gatheredin Copenhagen to sign an agreement with representatives from Norway (HyNor), Denmark (Hydrogen Link),Hydrogen Sweden and Iceland on the market introduction of fuel cell vehicles in the Nordic countries.

Specifically, the partners agreed to cooperate on:

• FCEV introduction and hydrogen refuelling infrastructure development from 2014through to 2017;

• Advocating publicfinancing and support measuresfor FCEV and hydrogen infrastructure;

• Engaging key national car dealerships;

• Engaging key national energy and infrastructure companies.

Under the terms of the MoU, the automakers will work towards a market launch of FCEV in 2015 or later,while the infrastructure collaborators will endeavour to introduce sufficient refuelling facilities; in bothcases, the efforts are subject to the creation of sufficient public financing and support mechanisms85.

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1 In 2010, road traffic in Norwaygenerated 10.1 million MtCO2e (metrictonnes carbon dioxide equivalent) ofgreenhouse gas emissions. Statistics

/ . Norway reports~ that, in the sameyear, international ocean transportin Norwegian territory generated

~ 10.5 million MtCO2e. Domestic coastaltraffic and fishing vessels made afurther contribution on top of that.Shipping is thus a significant target forthe reduction of GHG emissions.

Air pollution Is no less of an issue, as ships emit large quantities of sulphur dioxide (SOx), particulate matter, and nitrogenoxides (NOx), greatly affecting the quality of coastal air. However, international regulatory limits on these emissions fromshipping are becoming tighterr, with certain Emissions Control Areas such as the North and Baltic Seas deemed especiallysensitive and subject to a higher level of protection3.

Against this backdrop, the Norwegian hydrogen strategy has from early on included the use of fuel cells in ships. Thefirst action plan (published at the end of 2006) envisaged fuel cells demonstrated as maritime APU by 2010, and fuel celltechnology in ship propulsion demonstrated by 2014 (see page 18). So what progress has there been in implementingfuel cells in ships?

In 2002, work began on an EU scoping study called FCSHIP looking at fuel cells for both propulsion and as APU; this washeaded by the Norwegian Shipowners’ Association and had several Norwegian partners in the consortiumt. Among themwas Det Norske Veritas (DNV), a standards-setting organisation and provider of risk-management services, aiming to takea leading role in facilitating the “safe and reliable” introduction of fuel cells into maritime vessels’~.

DNV subsequently took part in two EU projects. METHAPU assessed the use of fuel cell APU running on methanol on acar transporter, the MV Undine, owned and operated by Swedish company Wallenius Wilhelmsen Logistics. The 20 kWsolid oxide fuel cell (from Finland-based Wärtsilä) operated successfully, proving the concept during a year-long trialthat concluded in 2010. lmportantl , the project showed that the use of fuel cell technology with an alternative fuelposes no more of a risk to a commercial vessel than conventional equipment and fuel, laying the foundation for furtherdeployment”.

The second project is FellowSHiP, managed by DNV and co-funded by the Norwegian Research Council and InnovationNorway, demonstrating the use of a fuel cell as a supplementary part of the propulsion system of a merchant vessel”’.Norwegian company Eidesvik Offshore ASA is a specialised fleet operator working in supply, subsea operations, seismicsurveying and cable installation; it has a progressive environmental policy and introduced the first gas-fuelled supplyship in 2003”. There are now several LNG-fuelled ships in its fleet~, among them the Viking Lady (photo, top). Thegas—electric propulsion system of the Viking Lady facilitated the installation, in September 2009, of a 330 kW moltencarbonate fuel cell from MTU Onsite Energy, which can use natural gas without pre-reforming. During the trial, the fuelcell logged 18,500 successful operating hours, providing supplementary power to the ship at an electrical efficiency ofover 52% at full load.

While cost, weight and footprint of the fuel cell system would need to come down for commercial implementation (and isexpected to do so), this first phase of the project demonstrated the feasibility of using a fuel cell power pack in a merchantship — well in advance of the 2014 target. The next phase of FellowSHiP will continue this world-leading demonstration,and the installation of a battery pack for energy storage to create a true hybrid propulsion system for the Viking Lady isnow underway”.

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Fuel Cells and Hydrogen in Norway

6. Concluding Remarks

Norway’s development of hydrogen refuelling infrastructure, motivated by its unique energy profile andits need to decarbonise transportation, has been an important factor in attracting the automakers’ interestand involvement. With a commitment from these companies to provide fuel cell electric vehicles to theNordic countries as an important early market, investment in further infrastructure can now take place withthe assurance that there will be vehicles available to use it.

However, continuing political support is neededfor hydrogen to play its pivotal role in reaching thecountry’s ambitious emissions reduction targets. Thestrategic efforts and recommendations ofthe NorwegianHydrogen Council should prompt government action.Further progress of Norwegian demonstration projects,facilitated by hydrogen refuelling station operators,must be assured in order for Norway to maintain aleading role in implementing hydrogen technologies.Certainly, the members of the Norwegian HydrogenForum are anxious to see technologies given theopportunity to mature and become widespread.

It is also clear that Norway is equipped to play a leading role in sustainable hydrogen production, bothby capitalising on its own resources to produce the gas, for domestic use and for export, and through thedevelopment and export of innovative hydrogen technology. This will require some far-sighted investment,but if this is forthcoming Norway stands to benefit from the commercialisation of fuel cells and hydrogen inEurope and the rest of the world. Equally, export markets would reap substantial benefits from Norwegianinnovation — not least if it allows environmentally benign use of Norwegian natural gas and efficient use ofrenewable energy sources.

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ORWEGIA CTS UNDER THE FCH JU

Norwegian stakeholders were active in~ the establishment of theEuropean Fuel Cells and Hydrogen Joint Undertaking (FCH JU), initiallywith Statoil as a member of the Industry Grouping (www.new-ig.eu) andSINTEF as a member of the Executive Board of the Research Grouping(www.nerghy.eu).

The Norwegian Institute of Science and Technology (NTNU) and theInstitute of Energy Technology (IFE) have since become members ofN.ERGHY, whereas Statoil has withdrawn from the Industrial Grouping.

In addition to the demonstration projects, H2moves Scandinavia~ (Section 5.2.2 and 5.4.5) and CHIC (Sections 5.4.6 and 5.5.1), SINTEF

is engaged in the LBST-coordinated HyLift DEMO project, in which fuelcells are incorporated in forklifts and tow tractors. But the majority ofthe Norwegian effort is devoted to R&D, the Norwegian activity totallingto close to €10 million. The funding level of the FCH JU programmes issupplemented by top-up funding (up to 75%) from the Research Councilof Norway. This is a prerequisite for the participation of Norwegian R&Dinstitutes in the FCH JU programme.

Norwegian stakeholders are involved in the following collaborative R&D projects:

Project name (coordinator, country) Start date Focus area Norwegian partners

NEXPEL (SINTEF, Norway) 1/1/2010 PEM water electrolysers NEL Hydrogen, SINTEF

KeePEMalive (SINTEF, Norway) 1/1/2010 Degradation of stationary SINTEFPEMFC for CHP applications

STAYERS (Nedstack, the Netherlands) 1/1/2011 Degradation of PEMFC for SINTEFstationary applications

RAMSES (CEA, France) 1/1/2011 Solid oxide fuel cells SINTEF

SSH2S (University of Torino, Italy) 1/2/2011 Fuel cells and solid-state IFEhydrogen storage

IdealHy (Shell, the Netherlands) 1/11/2011 Efficient liquefaction of SINTEF Energi AShydrogen

RE4CELL (Tecnalia, Spain) 1/2/2012 Advanced multi-fuel reformer SINTEFfor fuel cell CHP systems

BOR4STORE (Helmholtz ZG, 1/4/2012 Boron-hydride-based solid- IFEGermany) state hydrogen storage

STAMP’EM (SINTEF, Norway) 1/6/2012 Bipolar plates for PEMFC SINTEF

NOVEL (SINTEF, Norway) 1/9/2012 Materials, design and life- SINTEFtime of PEM electrolysers

Sapphire (SINTEF, Norway) 1/2/2013 Intelligent control for increased SINTEFlifetime of PEMFC

SmartCat (CEA, France) 1/5/2013 New catalysts for automotive SINTEFPEMFC

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Fuel Cells and Hydrogen in Norway

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2011; link to text accessed on 8 November 2012: http://www.regjeringen.no/en/dep/oed/whats-new/speecheS-and

12. Norwegian Ministry of the Environment, Press Release, ‘National Budget 2013: The Government is following up onthe Climate Agreement’, 8 October 2012: http://www.regjerlngen.no/en/dep/md/press-centre/PresS-releases/2012/the-government-ls-foliowing-up-on-the-cl.html?id=704137 V V V V V V V

13. A. Bruvoil and B. M. Larsen, Statistics Norway, Research Department, Greenhouse gas emissions in Norway: Do carbontaxes work?, Discussion Paper No. 337, December 2002: http://www.ssb.no/publikasjoner/DP/pdf/dp337.pdf V

14. Statoil, C02 Capture and Storage, Sleipner West, 11 February 2009: http://www.statoil.com/en/Technologylnnovation/NewEnergy/Co2Management/Pages/SieipnerVest.aspx - V V V V V

15. KPMG International, “Taxes and Incentives for Renewable Energy”, June 2012: http://www.kpmg.com/lu/enissuesandinsights/a rticlespu blications/pages/taxes-and-incentives-for-renewable-energy-2012.aspx V

16. Energi2l, “Energi2l: National Strategy for Research, Development, Demonstration and Commercialisation of NewEnergy Technology”, 2011, download at: http://www.energi21.no/prognett-energi21/Homej~age/1253955410599 V

17. The Research Council of Norway, RENERGI, Programme Description: Clean Energy for the Future (ENERGiX), 14 June2012: http://www.forskningsradet.no/prognett-renergi/Programme..deScriptiOfl/122699384692718. Norwegian Government, Office of the Prime Minister, New Year’s Address, 1 January 2007: http://www.regjeringen. V

Square-London/statsministerens-nyttarstale-2007/new-yearS-addreSS.html?id=44566919. Norwegian Ministry of Petroleum and Energy and Ministry of Transport and Communications, ‘Norwegian HydrogenStrategy: Strategy for hydrogen as an energy carrier in transport and stationary energy supply in Norway~ 200520. CLIMIT website: www.climit.no21. Norwegian Government, Office of the Prime Minister, Press Release 53/2012, ‘Ambitious Norwegian white paper onclimate efforts’, 26 April 2012: http://www.regjeringen.no/en/dep/smk/press-center/Press-releases/2012/ambitious-norwegian-white-paper-on-cllma.htmi?id=67941922. ENOVA website: www.enova.no23. Clean Vehicle Europe, Info per Member State, Norway, http://www.cleanvehicie.eu/info-per-country-and-eu-pOlicy/member-states/norway/nationai-level/24. The Norwegian Electric Vehicle Association, in English: http://elbil.no/om-elbilforeningen/engiish-please25. Views and News from Norway, ‘Norwegians’ most-hated taxes’, 14 July 2011: www.newslnenglish.no/2011/07/14/norwegians-most-hated-taxes!26. Norwegian Ministry of Petroleum and Energy, Press Release 117/10, ‘Norway and Sweden agree on a common marketfor green certificates~ 8 December 2010: http://www.regjeringen.no/en/dep/oed/press-center/press-releaSes/2010/g.htmi?id=62738427. R. Flatby, Norwegian Water Resources and Energy Directorate, ‘Hydro Power in Norway: Status, Opportunitiesand Challenges~ 22 November 2011: http://norwegen.ahk.de/fileadmin/ahk_norwegen/Dokumeflte/PresentaSjOner/wasserkraft/Hydro_Power_inNorway-Status_Opportunitles..and_ChaliengesNVE_Flatby.Pdf

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Fuel cells and Hydrogen in Norway

28. SFFE — Centre for Renewable Energy, Presentation, February 2009, http://www.sffe.no/om/materiell/dokumenter/SFFE-presentation_FebO9.pdf

29. Norwegian Wind Energy Association: http://norwea.no/

30. Statkraft wind website

31. E. Trømborg, Department of Ecology and Natural Resource Management, Norwegian University of Life Sciences, ‘lEABioenergy task 40— Country report 2011 for Norway’, 2011: htt~i://www.bioenergytrade.org/downloads/iea-taSk-40-country-report-2011-norway.pdf V V

32. E. Govasmark, Norwegian Institute of Agricultural and Environmental Researchm, ‘lEA Bioenergy —Task 37: Energy fromBiogas and Landfill Gas: Country Report, Norway’, PresentatIon, 15 April 2011:http://www.iea~b~ogas.net/.,download/publications/country-reports/april2011/Norway_.Country_.RePOrt~Pdf

33. SINTEF and KanEnergi, ‘Mullghetsstudie solenergi I Norge’, February 2011, http://www2.enova.no/publikasjoñsoversikt/publicationdetails.aspx?publicationlD=637 V V V

34. Ø~S.Sandvik, P. Hersleth and K. Seelos, Statkraft, ‘The forces of osmosis and tidal currents’, Article. HYDRO2009,October 2009: http://www.statkraft.no/lmages/HYDRO%202009%20-%2oUnleashing%2orenewable%2oenergieS%20from%2othe%2oocean..tcmlo-5099.pdf V V V V V

• 35. lEA, Ocean Energy Systems, Ocean Energy in the World, Norway: http://www.ocean-energy-systems.org/country-info/norway/ V :V V V V:V V. V V V V V V V V V

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va rmepumpeinfo-med-ny-design V V V V V V V V

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V 43• ‘NorWays: Core Message and Executive Summary’, Coordinated by SINTEF Materials and Chemistry, Dr S. Møller-Host,May 2009: http://www.ivt.ntnu.no/docs/norways/Deliverables/Core%2OMeSS%20&%20EX%2OSUmmary%2ONorWayS%2OFINAL.pdf V VV VV V V V V V V V~ V V VV V V V V V V V V VV

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ny-salgsrekord-for-plug-in-hybrider-i-oktober-article300-239.html V V V V

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49. NEL Hydrogen, an 85 year history: http://www.nel-hydrogen.com/home/?pid~54

50. A. Taalesen, NEL Hydrogen, presentation at the ‘Hydrogen and Fuel Cells In the Nordic Countries’ conference in Malmö,Sweden in Octpber 2011, and correspondence

51. NEL Hydrogen, news release ‘NEL P.60 — Extreme Flexibility’, 23 November 2012: http://www.nel-hydrogen.com/home/?pid=70

52. Roto boost AS, Energy Technology: http://rotoboost.com

53. NEXPEL project website: http://www.sintef.no/Projectweb/nexpel/

54. Magnus Thomassen, SINTEF Materials and Chemistry, presentations in Malmö, Sweden in October 2011 and in Risø,Denmark in May 2012: http://www.hydrogennet.dk/fileadmin/user..upload/PDF-filer/Aktiviteter/Kommende...aktiviteter/Elektrolysesymposium/Magnusjhomassen.pdf

55. NOVEL project website: hftp://www.cordis.europa.eu/search/index.cfm?fuseactionproj.document&PJNGEN&P&.RCN=13177699&pid=0&q=66D2875520449A1D51C34037E81A7FF9&type=Sim

56. ZEG Power: www.zegpower.com

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Fuel Cells and Hydrogen in Norway

57. Meyer et al, Energy Procedia, 2010

58. B. Andresen, ZEG Power, presentations in Malmö, Sweden in October 2011 and at Cleantuesday, 16 October 2012, andcorrespondence V

59. J. Carsten Gjerløw, Hynor Lillestrøm AS, presentation In Malmö, Sweden in October 2011 and correspondence

60. Hynor Li!lestrøm AS: http://hynor-lillestrom.no/ V

61. GasPlas: www.gasplas.com, and correspondence with S. Morris

62. HyNor: http://hynor.nó/ and correspondence with B. Simonsen

63. B. Simonsen, presentation at HyNor Conference, Oslo, 22 November 201164. Scandinavian Hydrogen Highway Partnership (SHHP): www.scandinavianhydrogen.org V V V

65 EU Interreg IVA http //www Interreg oks eu/se/Menu/Projektbànk/Projektlista+OKS/Next+Move

66. Next MoveVprOject website: http://www.scahdinavianhydrogen.org/nextmove/the-project V V

67. Akershus County Council, Hydrogensatsningen I Akerhus: http://www.akershus.no/tema/miljo/hydrogefl/ V V

68. Akershus county Council, newsV release ‘HYOP AS hãr ovértatt driften av Statoils hydrogenstasjoner’, 8 May 2012:http //www akershus no/tema/miljo/hydrogen/arkiv/?arttcle_id=57144

V 69. Kjellerlnnovasjón, ‘VI onsker HYOP velkommen til Campus Kjeller lnnovasjonssenterl’: http://lnnovasjonssenter.

campuskjeller.com/leieta kere/hyop/2-nyheter/60-vi-onsker-hyop-velkommen-til-campus-kjeller-innovasjonssenter70. Campus Kjeller Iniiovasjonssenter, HYOP AS: http://innovasjonssenter.campuskjeller.com/leietakere/hyop V V

71 Discussion with Ulf Hafseld of HYOP, 17 December 2012, and correspondence V

72. TUV SUD, Hydrogen and Fuel Cells, Hydrogen Filling Stations Worldwide: h2stations.org73. H2 Moves Scandinavia, news release, ‘Inauguration of H2moves station in OsIo~ 21 November 2011: http://www.scandinavianhydrogen.org/h2moves/news/inagu ration-of-h2moves-station-in-oslo

74. Discussion with S. Møller-Holst, 14 January 2013

75. i. Stigsdotter, Ruter AS, presentation in Malmö, Sweden in October 2011 V

76. CHIC, ‘The Oslo hydrogen refueling station’: http://chic-project.eu/cities/phase-1-cities/oslo/oslo-refuelling/oSlo-hydrogen-refueling-station77. H2 Logic press release,’H2 Logic Delivers Fourth Hydrogen Station in Twelve Months’, 13 June 2012: http://www.h2logic.com/com/shownews.asp?lang=en&id=397

78. B. Reitan Jenssen, Ruter AS, presentation at HyNor Conference, Oslo, 22 November 2011

79. Fuel Cell Today, news article, ‘Five Hydrogen Fuel Cell Buses Begin Operating in Norway’, 5 June 2012: http://www.

80. Fuel Cell Today, news article, ‘Ballard to Supply 21 Fuel Cell Bus Modules to Van Hool’, 14 December 2011: http://www.fuelcelltoday.com/news-events/news-a rchive/2011/december/ballard-to-supply-21-fuel-cell-bus-modules-tO-van-hool

81. J. K. Danielsen, Mercedes-Benz Norway, presentation at HyNor Conference, Oslo, 22 November 2011

82. Fuel Cell Today, news article, ‘Fuel Cell Vehicles for ScandinavIa’, 4 February 2011: http://www.fuelcelltoday.com/newsevents/news-archlve/2011/february/fuel-celI-vehlcles-for-scandinavia83. H2 Moves Scandinavia, news release, ‘Hyundai joins European fuel cell electric vehicle demonstration program,H2moves Scandinavia’, 21 November 2011; http://www.scandinavianhydrogen.org/h2moves/news/hyundai-joinS-european-fuel-cell-electric-vehicle-demonstration-progra m-h2moves-sca ndinavia

84. Fuel Cell Today, news article, ‘Hyundai Signs Agreement to Coordinate the Supply of Fuel Cell Cars to Norway’, 17 May2012:supply-of-fuel-cell-cars-to-norway

85. Scandinavian Hydrogen Highway Partnership, ‘Toyota, Nissan, Honda & Hyundai sign M0U on market introduction offuel cell vehicles in Nordic Countries~ news release 9 October 2012: http://www.scandinavianhydrogen.org/shhp/presS/toyota-nissan-honda-hyu ndal-sign-mou-on-market-introduction-of-fuel-cell-vehicles-in-nord

Features

Gas:a) S. Aarvig, Gassnova, C02 Capture and Storage, Norwegian Power Plant History: 18 April 2008: http://www.gassnova.no/co2-captu re-storage/power-plant/norwegian-power-plant-historyb) Norwegian Ministry of Petroleum and Energy, Carbon capture and storage at K~rstØ, Updated May 2010:http://www.regJerlngen.no/en/dep/oed/Subject/carbon-capture-and-storage/ca rbon-capture-and-storage-at-karsto.html?id=573777c) ZERO, Projects Database, Naturkraft Kârstø: http://www.zeroco2.no/projects/naturkraft-kaarstoed) Technology Centre Mongstad: http://www.tcmda.com/en/

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F - -‘ rells and Hydrogen in Norway

e) Statoil, Annual Report 2008, Sleipner CCS: http://www.statoil.com/AnnualReport200s/en/SuStainability/Chmate/Pages/5-3-2-3_SleipnerCCS.aspx V

f) Statoll, Carbon storage started on Snøhvlt, 23 AprIl 2008: V

http://www.statoil.com/en/NewsAndMedla/News/2008/Pages/CarbonStorageStartedOnSfl%C3%B8hVit.aSPX

g) BBC News, “Rocks ‘could store all Europe’s C02”, 16 February 2006: http://news.bbc.co.uk/1/hi/business/4717578.stm

h) Subsea World News, ‘Norway: Tougher Seabed Screening Needed for Carbon Capture Plans’, 26 September 2012: http://su bseaworldnews.com/2012/09/26/norway-tougher~seabed-screening-needed-for-carbofl~Capture-PlaflS/ V

I) Norwegian Petroleum Directorate, Gas export from the Norwegian shelf, 11 April 2012: http://www.npd.no/en/Publications/Facts/Facts-2012/Chapter-7/ V V V V V V

j) BBC News, “German coal power revival poses new emissions threat”, 9 August 2012: http://www.bbc.co.uk/news/business-19168574 V V V V V V V

Green Battery: V V V V V V V V

k) BjOrn Heineman, ETH Zurich, “The Green Battery of Europe: Balancing Renewable Energy with Norwegian hydro power”,20 April 2011.

m) Marie Lindberg, ZERO, “Possibilities for Electricity Exchange between Norway and Germany”, 20 June 2012.

Akershus:

n) S. Schytz, Akershus County Council, ‘Hydrogen in Akershus: Regional Strategy Process 2012— status so far’ — presentationand correspondence.

o) Akershus fylkeskommune, Hydrogenstrategi, updated 21 August 2012, and references therein: http://www.akershus.no/tema/miljo/hydrogen/?articleJd=57051p) HyER, Akershus, 11 November 2012: http://www.hyer.eu/members/scandinavia/norway/akershus/akershus-norway

Ships:

q) Statistics Norway, Emissions of greenhouse gases: 1990-2010, Increased greenhouse gas emissions in 2010, 13 February2012: http://ww.ssb.no/vls/klimagassnen/arklv/art-2012-02-13-01-en.htm~ V

r) International Maritime Organisation, Prevention of Air Pollution from Ships: http://wwwamo.org/OurWork/Environment/PollutionPreventiôn/AirPollution/Pages/Air-Pollution.aspx V V V V V

s) International Maritime Organisation, Special Areas under MARPOL: http://www.imo.org/OurWork/Environmeflt/PollutionPrevention/SpecialAreasUnderMARPOLlPages/Default.aspx V V V V V VVV

t) EU, F~Ship, Marine application of fuel cells: http://ec.europa.eu/research/energy/pdf/efchpjuelcell39.pdf

u) DNV, Fuel Cells for Ships: http://www.dnv.corn/resources/positionj,apers/fueLcellsjor_ships.asp V V

v) E. Fort, Lloyds Register, ‘Stistainable Marine Power—The Methapu Project’, Paper 15, 2011: http://vk.od.ua/uflles/MethapuProject.pdf V V V V V V V V V

w) DNV, Fuel Cells for Ships, Research and Innovation, Position Paper 13— 2012: http://www.dnv.com/binaries/FueI%20CelI%2oPosPaper%2OFINAL_tcm4-525872.pdf V V

x) R. Almeida, gCaptain, ‘Eidesvik’s LNG-Powered PSV Gains Royal Attention at Naming Ceremony’, 15 September 2012:http://gcaptain.com/eidesviks-lng-powered-gains/ V V

y) Eidesvik Offshore ASA, Eidesvik - the largest provider of vessels powered by LNG: http://www.eidesvik.no/forsidesakereng/eidesvik-the-largest-provider-of-vessels-powered-by-lng-article464-292.html

z) DNV, ‘First true hybrid system to be installed on board an offshore supply vessel’, 14 March 2012: http://www.dnv.com/press_a rea/press_releases/2012/firsttruehybridsystemtobeinstalledonboa rdanoffshoresupplyvessel.asp

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Fuel Cells and Hydrogen in Norway

Picture CreditsFuel Cell Today is grateful to the following organisatlons and people for the use of their illustrations In this report. For copyright Information or permission to use any of these Images, please contact the relevant organisation and credit the source.

Cover photoKristiansand, Inside cover & p.35Troll A platform, p.2 & p.6Alta Dam, p.2 & p.12Passive house in Olso, p.2 & p.9Electric vehicle charging, p.2 & p.13Hydrogen refuelling, p.2 & p.15Carbon storage at Sielpner,p.2 & p.8Hyundai ix35 FCEV, p.2 & p.16Stortinget Lion, p.3 & p.17 :Minister of Transport & Communication receiving the

Action Plan 2012-2015 from NHC Chairman, p.3 & p.35NEL P.60 electrolyser, p.3 & p.21BJørn Simonsen of HyNor, p.3 & p.25Ulf Hafseld (HYOP) signing with Statoil, p.3 & p.28HyNor LillestrOm HRS opening, p.3 & p.24Van Hool fuel cell buses for Ruter, p.3 & p.32Slelpner platform, p.7Southern Norway, p.10Smola Wind Farm, p.11Holiday cottage In Norway, p.11Mongstad refinery CHP plant, p.13Images from NorWays report (figure & cover), p.16Action Plan 2007—2010 milestones, p.18MS QE II & Statfjord B In Stavanger harbour, p.19Utslra wind to hydrogen plant, p.20Norsk Hydra electrolysers 1940, p.21Porsgrunn Energy Park, p.22ZEG Process schematic, p.23Lillestrøm process schematIc, p.23GasPlas fIgure, p.24GøriI Andreassen & Marianne Harg with Mazda RX8, p.25 ZEROFCEV in Oslo, p.25UlrIch Bunger in Daimler F-CELL, p.26Map Oresund-Kattegat-Skagerrak regIon, p.26Inge Solli In Think H2EV retrofit, p.27HyNor Oslo Økern HRS, p.28 LBSTHyNor Drammen HRS, p.29Statoil/Hydro HRS at Porsgrunn, p.29Air Liqulde hydrogen station for Ruter, p.30Oslo Gaustad HRS and other images, p.31Daimler B-Class F-CELL in Oslo, p.32Hyundal ix35 FCEV refuelling in Oslo, p.32Team Hyundal at ZERO Rally 2011, p.33FCEV at ZERO Rally 2012, p.33Viking Lady in Copenhagen in 2009, p.34R&D collage, p.36

Stefan63 / FotopediaChristian Haugen / FlickrAnette Westgard / StatoilStatkraftStein StoknesZero EmissIon Resource Organisation (ZERO)Mercedes-Benz EuropeAlligator film/BUG / StatollHyundal Motor CompanyChris Brown / Fllckr

Svein TOnseth, S1NTEFNEt. HydrogenZEROKnut Hilmar Hansen / Statoil Fuel & Retail Norge ASH2LogIcHanne UslerudKjetil Alsvik / StatoilJeff Schmaftz / NASA

StatkraftFC Nikon / FflckrØyvind Hagen / StatoilNTNU I IFE / SINTEF, courtesy of Steffen Møller-HostNorwegian Hydrogen CouncilLeif Berge / StatoilHydraNEL HydrogenFCHJUZEG Power, courtesy of Bjørg AndresenHyNor Ullestrom, courtesy of Jan Carsten GjerlOwGasPlas AS, courtesy of Stuart Morris

H2moves ScandInaviaCourtesy of Steffen Møller-Hostlnterreg IVA-program of the EUAkershus Venstre

Scandinavian Hydrogen Highway PartnershipStatoilHâkon JacobsenSteffen Møller-HostH2moves ScandinaviaH2moves ScandinaviaElrlk Helland UrkeZEROSten Donsby I DNVMelinda Gaal

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I Cells and Hydrogen in Norway

Acronyms

APU auxiliary power unitBEV battery electric vehicleCCS carbon capture and storageCHP combined heat and powerCNG compressed natural gasDH district heatingEEA European Economic AreaEU European UnionEV electric vehicleFCEV fuel cell electric vehicleFCH JU Fuel Cell and Hydrogen Joint UndertakingGDP gross domestic productGHG greenhouse gasHRS hydrogen refuelling stationlEA International Energy AssociationLHV lower heating valueLNG liquefied natural gasM0U memorandum of understandingNG natural gasNHC Norwegian Hydrogen CouncilNHF Norwegian Hydrogen ForumNOK Norwegian KroneNOU Official Norwegian ReportNVE Norwegian Water Resources and Energy DirectorateOECD Organisatlon for Economic Co-operation and DevelopmentOEM original equipment manufacturerOKS Oresund-Kattegat-Skagerrak regionPEM polymer electrolyte membrane / proton exchange membranePHEV plug-in hybrid electric vehiclePV photovoftaicR&D research and developmentRD&D research, development and demonstrationSE-SMR sorption-enhanced steam methane reformingSHHP Scandinavian Hydrogen Highway PartnershipSME small and medium enterprisesSMR steam methane reformingSOFC solid oxide fuel cellSUV sports utility vehicleTCM Technology Centre MongstadTPES total primary energy supplyVAT value-added tax

Exchange rate used in this report: 1.00 NOK= 0.136 EUR

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