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Japans ENE-FARM programme Aki MARUTA, Ph.D. Project Manager Technova Inc [email protected] 10/10/2016 Austrian Energy Agency GmbH Open Workshop “Fuel cells: Why is Austria not taking off?”

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Page 1: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

Japan’s ENE-FARM programme

Aki MARUTA, Ph.D. Project Manager

Technova Inc [email protected]

10/10/2016

Austrian Energy Agency GmbH

Open Workshop “Fuel cells: Why is Austria not taking off?”

Page 2: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

About TECHNOVA

Page 3: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

About Technova / Speaker

Technova Inc www.technova.co.jp

consulting firm, based in Tokyo

Founded: 1978

Fields: Energy, Mobility, Environment

(H2/FC, battery, future mobility, renewables, auto-drive)

Clients: national government, local governments, agencies

(& many private customers)

Local host of ICHS (6th International Conference on Hydrogen Safety) in

2015 in Yokohama

Akiteru (Aki) Maruta, Ph.D. [email protected]

Project Manager at Technova

Expert in H2/FC technology and policy analysis

(hydrogen stations / FCV) since 1999

Working with METI / NEDO for international collaborations

(IEA AFCIA, IEA HIA, IPHE)

Member of IA HySafe

Page 4: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

For H2/FC promotion: hydrogen-energy-navi

4

http://www.hydrogen-navi.jp/

Information includes

- How FC works

- Ene-Farm

Page 5: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

METI’s Strategic Roadmap for

H2 / FC

Page 6: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

Strategic Roadmap for H2 / FC

6

Source: Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry

2020

2030

2040

2009: Residential FC

2015: FCV

2017: Stationary FC

around 2020:

FCV fuel cost

≦ HEV fuel cost

around 2025:

FCV cost competitive

≧ HEV

Mid 2020s

-H2 Cost (CIF) :

JPY30/Nm3

-Enhance Supply Chain

in Japan

Around 2030

-Import H2 from overseas

- Full-scale H2 Power Plant

Around 2040

CO2-free H2 by combining

CCS and renewable energy

Phase 1Installation Fuel Cell

Phase 2 H2 Power Plant/

Mass Supply Chain

- Accelerate RD&D

- Realize reasonable

H2 price

Phase 3CO2-free Hydrogen

- Systematic RD&D

Tokyo Olympic/

Paralympics

Market on H2 and FC in Japan

Approx. 1 trillion yen in 2030 → Approx. 8 trillion yen in 2050

• published in June 2014, revised in March 2016

• Step by step approach to realize “Hydrogen Society” (toward 2040)

Page 7: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

Strategic Roadmap for H2 / FC

7 Source: Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry

Phase1 (Current - ) 1. Stationary FC FCs for Residential Application

Sales volume (cumulative)

1.4 mil units by 2020

5.3 mil units by 2030

Payback Time (incl. unit price, installation cost)

7-8 years by 2020

5 years by 2030

Unit Price

PEFC: 800,000 yen (ca 7,000 EUR) by 2019

SOFC: 1,000,000 yen (ca 8,700 EUR) by 2021

Market should be self-sustained by around 2020

FCs for Commercial / Industrial Application

SOFC

Commercialization by 2017

* 1 yen = 0.095 EUR

Page 8: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

Strategic Roadmap for H2 / FC

8

Source: Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry

2. FCVs Market (in stock)

About 40,000 FCVs by 2020,

About 200,000 FCVs by 2025

About 800,000 FCVs by 2030

Small-sized FCVs will be launched by around 2025

3. Hydrogen Refueling Stations Commercial HRS deployment

About 160 stations by FY2020

About 320 stations by FY2025

Need about 900 stations (with capacity of 300Nm3/h) by 2030

Establish self-sustaining business by the late 2020s

Small-capacity HRS using renewable source

About 100 stations by 2020

Page 9: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

Strategic Roadmap for H2 / FC

Phase 2: H2 Power Plant / Mass Supply Chain (Realized in the late 2020s)

4. Hydrogen Power Plant

Reflects a report by study group on H2 power plant (March 2015) ,

embodies the description

Phase 3:CO2-free Hydrogen (Realized in the late 2040s)

5. Hydrogen derived from Renewable Energy

States to launch a working group which handles technical and

economic issues regarding introduction of CO2-free hydrogen and

come to conclusion by March 2017.

Describes the promotion of advanced initiatives such as the reform

2020 project and Fukushima new energy society initiative.

9

Source: Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry

Page 10: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

Strategic Roadmap for H2 / FC: Stationary FCs

10

Around 2015 Around 2020 Around 2030 Around 2040

1.4 mil residential FCs installed Achieving a cost for payback time of 7-8 years

(PEMFC: 800 K yen, SOFC 1 mil yen)

5.3 mil residential FCs installed Achieving a cost for payback time of 5 years

Deployment of H2-based FCs for limited areas

Support for installation Sustained market growth for residential FCs

Domestic market expansion (new houses / standalone existing houses / complexes)

Oversea market expansion (starting from Europe to other regions) Review:

Electricity market

to be open for FC - Price reduction by volume production

- Price reduction by streamlining and standardizing

processes for installation and maintenance

Re

sid

en

tia

l

ap

pli

cati

on

R&D on SOFC and other

type of FCs for cost

reduction and long life

Co

mm

erc

ial an

d

Ind

ustr

ial A

pp

lic

ati

on

- Demonstration of various conditions (load, weather) - Review of regulations

Demonstration & regulation review toward commercialization

Self-sustained market growth - Price reduction by volume production - Price reduction by streamlining and standardizing

processes for installation and maintenance

Ap

plicati

on

D

eliv

ery

&

Sto

rag

e

2017: Market introduction of FCs for commercial / industrial application

System with reformer using city gas or LP gas

Hydrogen pipeline, installed at limited

areas (e.g. areas with HRS)

Demonstration on H2 supply-chain

in collaboration with local communities

With local govs and local SMEs (e.g. Tokyo Olympic games

Full-scale operation of

supply chain of H2 from

overseas unutilized resources

Full-scale operation of supply chain of CO2-free H2

Pro

du

cti

on

Note: Unofficial translation

Page 11: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

Budget for H2 / FCs in FY 2016 (METI)

11

Support the building of

HRSs. Partially

subsidize activities for

creating new demand,

etc.

Installation Fuel Cells

Phase 1

H2 Power Plant/

Mass Supply Chain

Phase 2

CO2-free

Hydrogen

Phase 3

Focus on implementation from the present Realization in the late 2020s Realization in 2040s

Promotion of stationary FCs Promotion of FCVs

Subsidies for Micro-CHP FCs

[JPY 9.5 billion]

Promote the accelerated

introduction of ENE-

FARMs. Promote lower

cost through mass

production.

Subsidies for HRSs

[JPY 6.2 billion]

Support for FCVs

[JPY 15 billion]

(incl. other policy items)

R&D of FCs

[JPY 3.70 billion]

Conduct R&D to

enhance performance

and lower costs of

FCs, and demonstrate

commercial

applications of FCs. Large-

CHP FCs

R&D of FC, etc.

Develop technologies

to lower costs of

HRSs, enhance safety

and security and

collect data so as to

review regulations.

Building a H2 supply chain

Demonstrate how hydrogen can be

produced from untapped overseas

energy resources (by-product hydrogen,

brown coal, etc.), transported in the

form of liquefied hydrogen or organic

hydride, and used to generate power.

Construction of a H2 energy network

Build a network that

effectively connects multiple

hydrogen applications in the

region.

R&D of H2 production, transport and storage

R&D for producing, transporting

and storing H2 derived from

renewable energy

[JPY 1.55 billion] Develop technologies of high efficiency

water electrolysis units, tanks for

storing liquefied hydrogen, etc. with the

use of renewable energy sources in

mind.

R&D of HRSs

[JPY 4.15 billion]

Demonstrations for a H2 supply chain

[JPY 2.80billion]

Construction of a H2

energy network

[JPY 4.5 billion]

(incl. other policy items)

Source: Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry

Page 12: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

ENE-FARM MARKET

Page 13: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

ENE-FARM: Market Overview

13

Source: Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry

2,550 9,998 18,958

34,628

66,217

106,656

142,837

324

2,897

5,588

8,643

11,208

19,282

37,525

71,805

115,299

154,045

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2009 2010 2011 2012 2013 2014 2015

Cu

mu

lati

ve In

stal

led

un

its

Fiscal Year

SOFC

PEMFC

Total

Accumulated volume: more than 150,000 units, achieved within 7

years.

Page 14: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

ENE-FARM: Unit Price and Subsidy

14

2,440

2,250

1,9701,820

1,750

3,0303,000

2,530

2,170

1,720

1,530

1,360

430350

1,400 1,350

1,050

700

450

3803000

500

1,000

1,500

2,000

2,500

3,000

3,500

2009 2010 2011 2012 2013 2014 2015

[,000 yen/unit]

Fiscal year

Price-SOFC

Price-PEMFC

Subsidy-SOFC

Subsidy-PEMFC

Source: Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry

2,440

2,250

1,9701,820

1,750

3,0303,000

2,530

2,170

1,720

1,530

1,360

430350

1,400 1,350

1,050

700

450

3803000

500

1,000

1,500

2,000

2,500

3,000

3,500

2009 2010 2011 2012 2013 2014 2015

[,000 yen/unit]

Fiscal year

Price-SOFC

Price-PEMFC

Subsidy-SOFC

Subsidy-PEMFC

2,440

2,250

1,9701,820

1,750

3,0303,000

2,530

2,170

1,720

1,530

1,360

430350

1,400 1,350

1,050

700

450

3803000

500

1,000

1,500

2,000

2,500

3,000

3,500

2009 2010 2011 2012 2013 2014 2015

[,000 yen/unit]

Fiscal year

Price-SOFC

Price-PEMFC

Subsidy-SOFC

Subsidy-PEMFC

Strategic subsidy program toward cost reduction of units for end

customers.

Page 15: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

ENE-FARM: 2016FY Subsidy Scheme:1

15

PEMFC unit

Subsidy

Below

base price

(1,270,000 yen

= 11,000 EUR)

Above

base price,

below

upper-limit price

Above

upper-limit price

(1,420,000 yen

= 12,400 EUR)

150,000 yen/unit

= 1,300 EUR/unit

70,000 yen/unit

= 610 EUR/unit

Not qualified

SOFC unit

Subsidy

Below

base price

(1,570,000 yen

= 13,650 EUR)

Above

base price,

below

upper-limit price

Above

upper-limit price

(1,690,000 yen

= 14,700 EUR)

190,000 yen/unit

= 1,650 EUR/unit

90,000 yen/unit

=780 EUR/unit

Not qualified

Additional subsidies Retro-fit installation: + 30,000 yen/unit (260 EUR/unit)

LPG unit: + 30,000 yen/unit (260 EUR/unit)

Cold-weather unit: + 30,000 yen/unit (260 EUR/unit)

* 1 yen = 0.095 EUR

Source: Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry

* Base price and upper-limit price exclude tax, and include installation cost.

* Base price and upper-limit price may sift depend on system configurations

and operation conditions.

Page 16: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

ENE-FARM: 2016FY Subsidy Scheme: 2

16

* Base price and upper-limit price may sift depend on system configurations.

Cold-weather proof +300,000 yen

Backup power unit (integrated) +60,000 yen

Backup power unit (not integrated) +40,000 yen

collective housing +120,000 yen

Fuel: LP gas +120,000 yen

Fuel: Domestic natural gas +60,000 yen

Small-sized retailer +100,000 yen

Using existing hot water unit (PEFC) -270,000 yen

Using existing hot water unit (SOFC) -300,000 yen

Base price (standard unit) Base price (Cold-weather unit)

Shift

1,270

1,570 1,570

1,870

1,270

1,570

300 300

2,000

1,600

1,200

800

400

0

2,000

1,600

1,200

800

400

0

[,000 yen] [,000 yen]

Amount of Shift

Page 17: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

ENE-FARM: Market Closeup

17

63% 67%62%

52% 50%

37% 33%38%

48% 50%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015

Installation for exsisting houose

Installation for new construction

85% 82% 82%87% 90%

15% 18% 18%13% 10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015

LPG

City Gas

93%

82%

94% 93% 93%

7%

18%

6% 7% 7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015

SOFC

PEMFC

House type Fuel type System type

Source: Fuel Cell Association

Fiscal Year Fiscal Year Fiscal Year

Page 18: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

ENE-FARM Units in the Market

Toshiba Panasonic Aisin Seiki

Model

Output 700 W (PEM) 700 W (PEM) 700 W (SOFC)

Size (mm) W780 x D300 x H1000 H1750 x W400 x D400 W780 x D330x H1195

Weight 86 kg 88 kg 100 kg

Electrical

Efficiency 39 % 39 % 52 % @700W

Hot water tank

Capacity 200L 140L 28 Litters

Retail Price

(list price)

(excl. tax (8%))

¥ 1,630,000

(excl. installation)

¥ 1,600,000 -

(excl. installation)

¥ 1,785,000

(excl. installation)

Source: Tokyo Gas, Osaka Gas

Page 19: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

FC for Commercial/industrial application

19

Page 20: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

Conclusion - Success Stories Note: speaker’s opinions and analysis

Page 21: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

Behind Success Stories…

Government support & lead

Willingness to lead R&D and market

Stable policy on R&D and subsidy (with sunset option)

Roadmap: consensus-building among stakeholders

Supply channels

Main retailers are city gas companies

(e.g. Tokyo Gas, Osaka Gas, Toho Gas, Saibu Gas).

They are competing with utilities in housing apparatus market.

(Recently) Ene-Farm as backup power supply

Several earthquakes (2011, 2016):

Prepare for next ones.

Culture?

Relatively low energy consumption of houses in Japan.

Heat demand: hot water for bath tab 21

Note: speaker’s opinions and analysis

Page 22: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

Common portal

22

ENE-FARM PARTNERS

http://www.gas.or.jp/user/comfortable-life/enefarm-partners/

Note: speaker’s opinions and analysis

Page 23: Japan s ENE-FARM programme · 2018-04-03 · Support for installation Sustained market growth for residential FCs Domestic market expansion (new houses / standalone existing houses

Issues

Electricity market

Currently, user cannot sell (feed) electricity from Ene-Farm to the

Grid.

Units for large cities

Small enough to fit collective

housing (Tokyo, Osaka)

National target: 5.3 mil units

(number of households:

52 mil in 2014)

23

Note: speaker’s opinions and analysis

Ratio of collective housing