US Priorities for New and Renewable Energy Technologies

1. US Priorities for New and Renewable Energy Technologies APEC Expert Group on New and Renewable Energy Technologies Shanghai, China October 13-15, 2003

2. The EERE Mission Directly Supports the National Energy Policy The Mission of the Office of Energy Efficiency and Renewable Energy (EERE) is to strengthen America’s energy security, environmental quality, and economic vitality through public-private partnerships that: P promote energy efficiency and productivity; P bring clean, reliable, and affordable energy technologies to the marketplace; and P make a difference in the everyday lives of Americans by enhancing their energy choices and quality of life

3. EERE fulfills its mission through the pursuit of 3 objectives Objective 1: Modernize conservation. EERE energy efficiency programs constitute the majority of Federal efforts to improve the energy performance of the American economy by improving the productivity with which we use energy in our homes, vehicles, factories, and energy production and delivery systems. • Reduce U.S. energy intensity by 29 percent in 2020, compared to expected reductions of 26 percent without EERE Conservation programs. • Complete the weatherization of 753,000 low-income households from 2003 through 2008.

4. Objective 2: Increase energy supplies Accounting for some 9 percent of domestic energy production (including hydropower), America’s vast domestic renewable energy resource base provides substantial opportunity for increasing and diversifying domestic production. EERE focuses on promoting technological improvements necessary to allow the private sector to develop these domestic resources. • Through public-private partnerships, increase renewable energy production by 70 percent in 2020, compared to an increase of 28 percent without EERE programs, including provision of about 22 percent of the expected 240 GW of additional electricity capacity installed between 2005 and 2020 with the EERE portfolio.

5. Objective 3: Modernize our critical energy infrastructure EERE’s portfolio employs an integrated supply and demand systems approach to reducing the stress on our Nation’s energy infrastructure by reducing peak demand for energy, developing on-site energy resources, and improving the efficiency with which energy is provided and distributed. Through public-private partnerships, help ensure the adequacy of our electricity generation and transmission system through the development by 2020 of: • 56 GW of distributed generation (compared to 38 GW without EERE programs) and technologies facilitating an improvement in the operating efficiency of existing transmission capacity. • Demand and load management techniques and practices which allow an approximately 9 percent reduction in the expected 949 GW projected peak electricity demand, and provide the opportunity to reduce peak loads on an emergency basis.

6. The Development of Hydrogen was made a US Priority in 2003 • This $1.2 billion Hydrogen Fuel Cell Initiative was announced by President Bush in his 2003 State of the Union Address • Combined with the FreedomCAR (Cooperative Automotive Research) initiative, President Bush is proposing a total of $1.7 billion over the next five years to develop hydrogen-powered fuel cells, hydrogen infrastructure and advanced automotive technologies. http://www.whitehouse.gov/news/releases/2003/01/20030130-20.html

7. Why Hydrogen?It’s abundant, clean, efficient, and can be derived from diverse domestic resources. Transportation . Biomass Hydro Wind Solar Geothermal HIGH EFFICIENCY & RELIABILITY Nuclear Oil Distributed Generation ZERO/NEAR ZEROEMISSIONS Coal With Carbon Sequestration NaturalGas

8. FY 2004 Hydrogen Production Funding ($38.5M) DOE Offices of Fossil Energy, Nuclear Energy, and Energy Efficiency and Renewable Energy are collaborating on cost-shared hydrogen production R&D: • Coal – $5 million (FE) • Separation of pure hydrogen gas from synthesis gas (CO and hydrogen) • Technologies also applicable to biomass feedstocks • Nuclear – $4 million(NE) • High temperature chemical cycles for splitting water • Renewables – $17.3 million (EERE) • Direct water splitting using solar energy • Thermal processes using biomass • Advanced electrolysis from wind power • Biological WGS Processes • Natural Gas – $12.2 million(FE/EERE) • Small, distributed systems to begin making hydrogen available at local refueling stations • Centralized Production Energy Independence Through Diversity of Domestic Supplies

9. Baseline Hydrogen work has been completed • National Hydrogen Energy Vision document • National Hydrogen Energy Roadmap • Fuel Cell Report to Congress • Hydrogen, Fuel Cells & Infrastructure Technologies Program Multi-Year Research, Development and Demonstration Plan Planned activities for 2003-2010 (Draft 6/3/03) http://www.eere.energy.gov/hydrogenandfuelcells/

10. The International Partnershipfor the Hydrogen Economy(IPHE) U.S. Department of Energy

11. President Bush Launches the Hydrogen Fuel Initiative "Tonight I am proposing $1.2 billion in research funding …. "With a new national commitment, our scientists and engineers will overcome obstacles to taking these cars from laboratory to showroom so that the first car driven by a child born today could be powered by hydrogen, and pollution-free. President George W. Bush 2003 State of the Union Address January 28, 2003

12. President’s Hydrogen Fuel Initiative Complements FreedomCAR On January 9, 2002,Energy Secretary Abraham announced the FreedomCAR Partnership FreedomCAR (Cooperative Automotive Research) is a partnership between DOE and the U.S. Council for Automotive Research, a cooperative endeavor among DaimlerChrysler, Ford, and GM to conduct pre-competitive, high-risk, high-payoff research into advanced automotive technologies. By catalyzing the simultaneous development of both the hydrogen-fueled vehicles through FreedomCAR,and the necessary hydrogen production and refueling infrastructure through the President’s Hydrogen Initiative, government leadership will help advance commercialization of hydrogen fuel cell vehicles and infrastructure by 15 years, from approximately 2030 to 2015.

13. The President’s Hydrogen Initiative FreedomCAR and Hydrogen Fuel InitiativeTimeline May ‘01 November ‘01 January ‘02 November ‘02 January ‘03 February ‘03 November ‘03 IPHE Ministerial Hydrogen Vision and Roadmap

14. National Commitments United States Committed $1.7 billion for the first five years of a long-term hydrogen energy technology and infrastructure development program. European Union Committed up to € 2 billion to long-term research and development of renewable and hydrogen energy technologies. Japan Fuel cell and hydrogen technology research, development, and demonstration program has tripled in size since 1995. Initiated Roadmaps and Programs: Australia, Brazil, Canada, China, France, Germany, Iceland, India, Italy, Republic of Korea, Russia, United Kingdom

15. Clean Urban Transport forEurope Program (CUTE) The European Commission is allocating €18.5 million to support 9 European cities in introducing hydrogen into their public transport system. Twenty seven fuel-cell powered buses, running on locally produced and refilled hydrogen, should prove that zero emission public transport is possible today when ambitious political will and innovative technology are combined. Citaro fuel cell bus prototype which will be the basis for thebus fleet used in the fuel cell bus project.

16. Japan’s Hydrogen Program Fuel cell and hydrogen technology research, development, and demonstration program has tripled in size since 1995. Japanese FCVs running on the public road

17. Japan’s Hydrogen Program Program objectives are to demonstrate: • reliable and safe operation of hydrogen refueling stations • hydrogen fuel utilization to the general public

18. India’s Hydrogen Program India is developing a hydrogen roadmap that will identify pathways forward for its transportation and electricity sectors.

19. IPHE Vision “The vision of the International Partnership for the Hydrogen Economy is that a participating country’s consumers will have the practical option of purchasing a competitively priced hydrogen powered vehicle, and be able to refuel it near their homes and places of work, by 2020.” Secretary of Energy Spencer Abraham, April 28, 2003

20. Partnership Goal Efficiently organize, evaluate and coordinate multinational research, development and deployment programs that advance the transition to a global hydrogen economy.

21. A Successful Partnership will: • Bring together the world’s best intellectual skills and talents to solve difficult problems; • Develop interoperable technology standards; • Develop policy and technical guidance while leveraging resources to advance hydrogen and fuel cell technology development and deployment; • Foster large-scale, long-term public-private cooperation to advance hydrogen and fuel cell technology and infrastructure development; • Address emerging technical, financial and policy issues and opportunities.

22. Partner Characteristics • Substantial, long-term resource commitments to hydrogen and fuel cell technology research and development activities, • Well-defined vision and national strategy to advance technology deployment and infrastructure development, and • Commitment reflected in policies and strategies that effectively advance private sector development of a hydrogen economy.

23. IPHE Terms of Reference • IPHE Terms of Reference (TOR) builds on the success of the Carbon Sequestration Leadership Forum • TOR is a non-binding agreement that is the basis for IPHE operations • Draft TOR is currently being reviewed.

24. IPHE Terms of Reference Draft Operating Structure: Planning Committee • Will govern the overall framework, policies and procedures of the IPHE, periodically review the program of collaborative activities, and provide direction to the Secretariat. Implementation Committee • Will review the progress of collaborative projects; identify promising directions for research, development, demonstration, and commercial use; provide technical assessments for policy decisions, pursue international codes and standards and safety protocols. Liaison Committee: • Will meet with interested international stakeholders to share information on IPHE activities and to develop advice and counsel.

25. Upcoming IPHE Events 9/9/03 – IPHE Diplomatic Reception 9/21/03 – Secretary Abraham’s mission to Russia 10/9/03 – Hydrogen Exposition (Hamburg, Germany) 10/03 – Asia Pacific Economic Cooperation (APEC) Summit 10/03 – Secretary Abraham mission to Australia and Japan 11/20/03 – IPHE Ministerial

26. IPHE Ministerial November 20, 2003 • Secretary Abraham delivers keynote address • Statements by partner country Ministers • IPHE signing ceremony November 21, 2003 • IPHE Committee meetings

27. For More Information: www.eere.energy.gov/hydrogenandfuelcells/partnerships.html Robert Dixon Board of Directors Energy Efficiency and Renewable Energy U.S. Department of Energy 202/586-1394 robert.dixon@ee.doe.gov Tom Gross Board of Directors Energy Efficiency and Renewable Energy U.S. Department of Energy 202/586-1394 tom.gross@ee.doe.gov Michael Mills Liaison to the Board of Directors Energy Efficiency and Renewable Energy Office U.S. Department of Energy 202/586-6653 michael.mills@ee.doe.gov Christopher Bordeaux Office of Hydrogen, Fuel Cells & Infrastructure Technologies Energy Efficiency and Renewable Energy U.S. Department of Energy 202/586-3070 christopher.bordeaux@ee.doe.gov Larisa Dobriansky Deputy Assistant Secretary Policy and International Affairs U.S. Department of Energy 202/586-1524 larisa.dobriansky@hq.doe.gov Robert Manning Senior Counsel for Science and Technology Office of Oceans, Environment and Scientific Affairs U.S. Department of State 202/647-8939 manningra@state.gov