Dr Cordellia Sita Hydrogen South Africa Presentation to the Portfolio Committee 12 September 2012

1. Dr Cordellia Sita Hydrogen South Africa Presentation to the Portfolio Committee 12 September 2012

2. Presentation Outline Why Hydrogen for South Africa What is the Strategy focus Who are the implementating agencies The 15 year R&D Programme The Role of strategic partners Associated challenges

3. Presentation Outline • Proposed Implementation Plan • Success indicators • Current Status • Proposed way forward • Advantages

4. Why Hydrogen Fuel Cells World platinum resources: Cawthorn, 1999 • Cabinet approved 15 year R&D Programme • Value added manufacturing for PGM by acquiring 25% of the market share

5. Our Hydrogen Vision “ to create knowledge and human resource capacity that will develop high value commercial activities in hydrogen and fuel cell technologies utilising local resources and existing know-how”

6. The Outputs and Outcome • South African IPR portfolio • Demonstrators and Prototypes • Pilot-scale manufacturing facilities • Product development for short/long term markets • Support for value-added jobs and businesses • Human capital development  create jobs locally • Implement a Hydrogen Fuel Cell (HFC) Supply Chain in South Africa (SA) • Centre of Excellence for Hydrogen & Fuel Cells SA to become a global player & leader in HFC technologies based on SA Natural Resources

7. HySA Centers of Competence DST NWU / CSIR UCT / MINTEK UWC

8. R&D Programme Formulation • Submission of the 15 year business plans Plans • Review by 3 panels of experts • International study trip • Identify gaps and opportunities • Reformulation of the 15 year business plan • Second review • Approval of the business plan • Initiation of R&D work

9. HySA R&D Programmes Materials and Components Components and Systems Systems and Infrastructure Key Programme 1: Combined Heat and Power Key Programme 2: Portable Power Systems Key Programme 3: Hydrogen Fuelled Vehicles Key Programme 4: Hydrogen Filling Stations Key Programme 5: Renewable H2 Production Value Chain

10. Laboratory and Infrastructure HySA Systems: 2,000 m2 R&D building on the UWC campus hosting world-class and state-of-the-art equipment within the SAIAMC Innovation Centre SUCCESS!

11. Laboratory and Infrastructure HySA Catalysis A national footprint with R 44 million investment in laboratories in Cape Town, Johannesburg and Durban HySA Infrastructure NWU has allocated a 2 storey building with a triple volume area to host HySA Infrastructure, which will be commissioned by the first quarter of 2013. Another facility is at the CSIR Campus.

12. Role of Private Sector Partners • Local Industry • R&D co-funding (at arms length) • Anglo Platinum (R 2 million, HySA Infrastructure) • Petro SA (R 10 million, HySA Systems) • Joint creatorship of IP • Impala Platinum (R6 million, HySA Systems) • Hot Platinum ( Spoke - Contract research, HySA Systems) • TF Design (contract research, spoke arrangement)

13. International Partners • Private Sector • Technology transfer • Inbound technology transfer then improve on it • Joint creatorship of Intellectual Property • Joint commercialisation • Research Institutions • Staff/student exchange programmes • Knowledge transfer • Joint Intellectual Property development

14. Can SA do it alone?……

15. Can SA do it alone?……

16. Implementation Phases • Establishment of a national R&D capability, comprising of three established Centres of Competence • Establishment of a commercial platform in the form of a group of public/private entities (HySA Pty Ltd) • Establishment of R&D capabilities within the group possibly through incorporation of the CoCs • Privatisation

17. Governance and Management • A Government substructure, • Advisory Board • Programme Office • the inter governmental committee on the hydrogen economy has already been established • supporting committees • An R&D sub-structure • 3 Centres of Competence • 3rd party partners(academia and private sector) • A Commercialisation sub-structure • PPP, nucleus for the HFCT industry in South Africa

18. Overview of Public Private Interaction SA Gov DTI DoE DST DMR ETC. Inter-Governmental Committee Public SPs (CoC) Programme Office/HySA Group Private SPs Private Sector Commercialisation R&D CoCs

19. Measurement of Success • Business creation (Industry Cluster) • Spin offs • Job creation • Licenses and royalties • Human Capital Development • Postgraduates • Absorption into local HFCT industry • Industry participation • R&D co-funding(Anglo Platinum, Petro SA) • Joint IP creatorship plus co-funding (Implats) • Joint commercialisation (Private sector partners) • Knowledge creation

20. Way Forward • Establishment of the Programme office • Appointment of all the relevant committees • Establishment of a commercial vehicle • Drive incentives in partnership with other government departments • Tax incentives • HFCT to benefit from existing renewable energy incentives • inclusion in the IRP

21. Advantages • Ensure that the required incentive are in put in place • Ensure positive competition between the Centres • Facilitate transformation towards a knowledge economy • Paradigm shift in academia, transition from only teaching to product development • Economic growth through the commercialisation of intellectual property generated by the Centres

22. Advantages • Establishment of an Industry HFCT to achieve the 25% goal • Create Jobs for the human capital developed by the CoCs • Equity and Wealth sharing (SMMEs) • Public-Private interaction at an R&D and Commercialisation level (Germany model in HFCT – industry consortium coordination)

23. DOMESTIC APPLICATIONS Department of Science & Technology Achievements to Date

24. Human Capital Development

25. Domestic Applications Manufacture of the FIRST PEM fuel cell (HT) stack and Bipolar Plates in South Africa with local and key international manufacturers SUCCESS!

26. Domestic Applications Manufacture of the FIRST 2.5 kW Fuel Cell backup power system prototype in South Africa for the Telecommunication & UPS Markets SUCCESS!

27. Domestic Applications Continued Manufacture of the FIRST 2 kW HT-PEMFC Combined Heat & Power unit for Domestic Applications in South Africa SUCCESS!

28. Domestic Applications Continued Manufacture of the FIRST fuel cell electrodes (HT MEA) manufacturing line in South Africa together with a local Engineering company & a renowned key International Partner SUCCESS!

29. Automotive Achievements The FIRST demonstration of a Fuel Cell powered Tricycle in South Africa SUCCESS!

30. Automotive Achievements The FIRST metal hydride hydrogen storage unit fuel cell based forklift truck in South Africa SUCCESS!

31. Automotive Achievements Manufacture of the FIRST CombiLit battery on a small-scale prototype manufacturing line in South Africa SUCCESS!

32. Success Highlights of first 5-Year Phase • Portable Power Key Programme • Portable Power System demonstrator complete, commercial development activities underway • Catalyst Development • First internationally competitive fuel cell catalyst at commercially relevant scale (for LT-PEM application)

33. Summary of HySA/Catalysis’ achievements Infrastructure Investments and Laboratory Fitment HySA/Catalysis has a national footprint with two main laboratories at UCT and Mintek and a spoke laboratory at UKZN Importation of International Know-How to “leapfrog” Three international high-calibre experts appointed International commercial development underway International partner network established with partners in UK, Germany, Switzerland, USA, South Africa and China Technology Platforms and Key Technology Competence Rational approach to build competence along the value chain Technology platforms to launch product development Performance competitive catalyst at commercially relevant scale

34. Thank you