Ontario: World Leader in Hydrail

Presented on behalf of:

at the Hydrogen Business Council - Fall Seminar

Electrified rail is in demand ...

• Major investments are being made in light rail transit and regional commuter rail systems, globally

• Urbanization is driving demand for more effective transportation solutions

• Electric train systems are desirable, consistent with a shift to a decarbonized economy, and appealing to communities concerned with air quality impacts

• Established more than 100 years ago, direct contact with overhead power lines (i.e., catenary) persists as the common approach to electrifying rail

… but the costs can be prohibitive

• Construction and maintenance of elaborate catenary and wayside infrastructure

• Expanded clearances for tunnels, bridges, overpasses and public safety (i.e., structure gauges); visual impact

• What if zero-emissions, zero-carbon performance of electric trains could be achieved without the time, capital cost and maintenance expense of catenary infrastructure?

A better solution is sought ...

• In late 2014, four German states jointly communicated their interest in procuring 40 fuel cell-powered trains, provided that:

- They could be in service on regional lines in Germany by 2020

- They conformed with the existing diesel-powered articulated railcar platform in use, but with diesel powerpacks replaced by some combination of hydrogen storage, fuel cells and battery system

- They matched the performance expected of electric multiple units

• The Federal Ministry for Transport and Digital Infrastructure in Germany committed €8 million to the enterprise

• Alstom - a French multinational and maker of high-speed trains, tramways and track work - signed on, with work to start at their competence centre for regional trains in Salzgitter

• All that remained was for Alstom to select a fuel cell provider with whom to partner on the development

Alstom Transport President Henri Poupart-Lafarge signed letters of intent with four German regional

authorities to develop 'zero emission trains'.

24-Sep-2014

Credit: House of Logistics & Mobility (HOLM) GmbH website

... and Ontario is delivering!

• In May 2015, Alstom announced the outcome of its rigorous selection process: Ontario’s own Hydrogenics

• In an exclusive agreement valued at more than €50 million, Alstom and Hydrogenics will develop, build and deliver the world’s first major fleet of fuel cell electric trains

• Based on Hydrogenics’ HD series fuel cell power modules, the trains will begin entering commercial service in 2018

• The prototype was unveiled in Berlin this past September …

Alstom’s Coradia iLint, with Ontario technology at its core• Watch video: https://www.youtube.com/watch?v=O3bUE9uHkqM

A moment of leadership … and of opportunity

• Ontario is playing a leading role in decarbonizing a major mode of transportation, globally

• We believe that Ontario’s leadership position in hydrogen fuel cell electrified rail – or “Hydrail” – represents a rare and valuable commercial opportunity, which government and industry should work together to develop

• Practically and tangibly deliver on the “3 Cs”:

Climate Change

Clean technology

Canada

1st C: Climate Change

• Hydrogen gas can integrate with grid-scale energy storage systems

• At times, the generation capacity of renewable and nuclear sources exceeds the system-wide demand for power

• “Power-to-Gas” systems use electrolysis to convert this power into hydrogen gas –a storable, portable supply of zero-carbon of energy for fuel cell electric trains

• The hydrogen can be produced when the supply of electricity is economically and environmentally optimal (traditional catenary electrification draws power on-peak)

• Power-to-Gas integrated with Hydrail supports the simultaneous decarbonization of both the electricity and transportation systems

2nd C: Clean-tech

• Build world-leading knowledge and experience in Hydrail by complementing the Alstom-Hydrogenics initiative in Germany with new pilots in Canada

• The value of this knowledge would scale globally; commuter and freight rail operations are backbones of commerce in nations around the world

• By establishing the foundation for hydrail systems engineering and core specifications here in Canada, we can generate wealth through direct exports and through licensing partnerships with transportation sector multinationals

“If policy makers can establish a smooth hand off of the baton from the domain of innovation to the domains of regulation and infrastructure, Canada stands to gain a unique advantage in the form of policies that translate public investments in innovation into broadly enjoyed benefits for society. If the baton is dropped, clean technology will go the way of other leading Canadian innovation-based industries that scaled up elsewhere.”

Excerpt: 2016 Canadian Clean Technology Industry Report, Analytica Advisors, released on April 19, 2016

Hon. Catherine McKenna, Minister of Environment & Climate Change, and Céline Bak, President of Analytica Advisors on 19-Apr-2016

3rd C: Canada

• Supporting hydrail is also a fulfillment of the government’s mandate to grow middle-class jobs, to expand Canada’s footprint in the global clean-tech sector, and to fight climate change - not simply by reducing our own domestic greenhouse gas emissions inventory, but also by exporting scalable solutions that are highly sought in a rapidly decarbonizing world

• "We will deliver more support to emerging clean tech manufacturing companies, making it easier for them to conduct research and bring new products to market.”

- Real Change: A New Plan for a Strong Middle Class, 2015

• “Investing in the research, development and demonstration of new clean technologies accelerates the innovation required to bring these technologies closer to commercialization. This will help meet climate change objectives, increase the productivity and competitiveness of Canadian firms, and create clean jobs.”

- Growing the Middle Class; Federal Budget 2016

A moment of leadership … and of opportunity

• Let’s recap…

• Because hydrail practically and tangibly delivers on the “3 Cs”…

• Climate Change

• Clean technology

• Canada

• …we believe that Ontario’s leadership position in fuel cell electrified rail represents a rare and valuable commercial opportunity that government and industry should work together to develop

Ontario’s Climate Change Strategy drives transformation in five areas –Hydrail delivers in each

1. A prosperous low-carbon economy with world-leading innovation, science and technology

Hydrail is a low-carbon innovation with a business case that will attract risk capital, as it has in Europe

Hydrail can reduce GHGs in Ontario and other jurisdictions where energy storage and low-carbon public transit are needed

Hydrail expands the suite of fuel-switching options and complements other hydrogen and fuel cell-based vehicle innovations

2. Government collaboration and leadership

Hydrail supports government policy on emissions by helping ‘capped’ facilities (such as fuel refineries and natural gas-fired power plants) to shed carbon from their inventories

Hydrail procurement leads to specialized skills development and know-how in advanced energy and transportation systems

Ontario’s Climate Change Strategy drives transformation in five areas –Hydrail delivers in each

3. A resource-efficient, high-productivity society

Hydrail integrates electricity and transportation energy systems for improved operating efficiency and versatility, and creating new value through innovation

Hydrail could be deployed more rapidly and seamlessly, compared to the time needed for catenary infrastructure construction, helping Metrolinx and other local transit authorities to achieve higher service levels sooner

4. Reducing greenhouse gas emissions across key sectors

Hydrail would establish the experience and validation needed for other modes of transportation to incorporate hydrogen and fuel cell technology into a new generation of zero-emissions, zero-carbon vehicles, including buses and commercial trucks

Ontario’s Climate Change Strategy drives transformation in five areas –Hydrail delivers in each

5. Adapting and thriving in a changing climate

Hydrail facilitates climate change adaptation, by maintaining operability even when intense wind and ice-buildup on overhead power lines would disrupt or strand electric locomotive and rail cars (just like streetcars during power outages)

Recommendations

• Pilot to test, evaluate and showcase Hydrail technology in Ontario

• Public policy to encourage procurement among transit authorities

• Trade and export development

Thank you for your interest and support.

Ontario:World Leader in Hydrail

Bob Oliver, P.Eng.

647.330.1903

bob.oliver@tech-ko.ca

Appendices (supporting materials)…

Bob Oliver, P.Eng.

647.330.1903

bob.oliver@tech-ko.ca

Typical Power-to-Gas opportunities

Ability to store energy facilitates the expansion of passive renewable sources of electricity