U.S. Department of Energy HYDROGEN PROGRAM

1. U.S. Department of Energy HYDROGEN PROGRAM FY 2008 Budget Update to IEA Hydrogen Implementing Agreement Executive Committee November 8, 2007 Carole Read U.S. Department of Energy

2. E E R E PROGRAM SUMMARY– Participants • DOE – Office of Energy Efficiency & Renewable Energy • Research, develop, and validate fuel cell and H2 production, delivery, and storage technologies for transportation and stationary applications. • DOE – Office of Nuclear Energy • Operate sulfur-iodine thermochemical and high-temperature electrolysis experiments to gather data on operability and reaction rates. • DOE – Office of Science • Expand basic research on nano-materials for storage, catalysis for fuel cells, and bio-inspired and solar H2 production. Increase emphasis on nano-structured design, novel synthesis, and theory and modeling of the physical and chemical interactions of hydrogen with materials. • DOE – Office of Fossil Energy • Continue studies for scaling up hydrogen membrane reactors and CO2/H2 separation technologies for coal-based hydrogen systems.

3. Challenges & Barriers • Hydrogen Cost (target: $2 – $3/gge) • Hydrogen Storage Capacity & Cost (targets: 2.7kWh/L, 3kWh/kg, and $2/kWh) • Fuel Cell Cost and Durability • (targets: $30 per kW, 5000-hour durability) Technologies must be validated under real world conditions. Technology Barriers • Delivery Infrastructure • Domestic Manufacturing and Supplier Base • Safety, Codes & Standards Development • Public Awareness & Acceptance Economic & Institutional Barriers

4. HYDROGEN FUEL INITIATIVE — Total Funding • President Bush committed $1.2 billion over five years (FY04 – FY08) to accelerate R&D to enable technology readiness in 2015. • The President’s cumulative request of$1.267 B (for FY04 – FY08) has been consistent with the original commitment of $1.2 B. • Congress has appropriated $880 M for FY04 – FY07, compared to the administration’s request of $958 M for that period. ¹ Includes EERE, FE, NE, SC and Department of Transportation

5. HYDROGEN FUEL INITIATIVE FUNDING — By Participant Organization

6. OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY (EERE) — H2 Budget

7. OFFICE OF ENERGY EFFICIENCY & RENEWABLE ENERGY (EERE) — H2 Budget

8. PROGRAM SPENDING — A balanced, diverse portfolio Large Industry 16% National Labs 35% Industry Developers 35% Small Business 9% Universities & Institutes 20% Energy Companies 2% Auto Companies 8% Other* 10% FY 2007 Hydrogen Program Spending Distribution – by Recipient Type Total : $268 million *Other includes: SBIR/STTR and various crosscutting support activities, such as the Annual Merit Review and required EPAct studies and reports.

9. Technology Validation — Vehicles & Infrastructure Technologies are validated and progress evaluated through learning demonstrations DOE Vehicle/Infrastructure Demonstration Four teams, in 50/50 cost-shared projects, operating 77 fuel cell vehicles and 14 hydrogen stations Verified fuel cell vehicle performance: • EFFICIENCY: 53 – 58% (>2x higher than internal combustion gasoline engines) • RANGE: 103 – 190 miles • FUEL CELL SYSTEM DURABILITY: 1600 hours(~48,000 miles) Demonstrated Fuel Cost: $3/gge, from natural gas DOT isdemonstrating fuel cell buses and providing data to DOE for analysis Eight buses in California, Massachusetts, New York, South Carolina, and Washington, DC

10. Wind Turbine 100kW Utility Grid Compressor 150psi-3,500psi Alkaline and PEM Electrolyzers H2 Fuel Cell AC-DC Converter H2 Fueling Station H2 Storage (85kg) Xcel-NREL Wind2H2 Project TECHNOLOGY VALIDATION — Integrating Renewable Power & Hydrogen Production • DTE Energy (ongoing) • Hydrogen production using water electrolysis with on-site solar energy (Southfield, Michigan). • Xcel/NREL Wind/Hydrogen Project (ongoing) • Integrates electrolyzers and wind turbines to understand the benefits and impacts of adding hydrogen production facilities to the electric power grid (NREL wind site at Golden, Colorado). • Hawaii (planned) • Hydrogen production using curtailed wind and geothermal energy to generate electricity and to fuel hydrogen buses at national parks. Three Demonstration Projects

11. Questions? For more information visit: www.hydrogen.energy.gov Hydrogen Posture Plan For more information on the Hydrogen Program www.hydrogen.energy.gov/roadmaps_vision.html Learning Demonstration Interim Progress Report For more information on the vehicle/infrastructure demonstration www.hydrogen.energy.gov/news_learning_demo.html Hydrogen Overview Book For more information on hydrogen and fuel cell technologies www1.eere.energy.gov/hydrogenandfuelcells/education/h2iq.html

12. background

13. PROGRAM APPROACH -Integrating Basic Science, Applied R&D, and Technology Validation Technology Validation & Demonstration • Test Systems under Real World Conditions • Demonstrate and validate performance against targets • Gain knowledge (e.g. fueling time, driving range, durability, cost, etc.) and apply lessons learned to R&D Applied Research & Development • Apply theory & experimentation to design & develop novel, high-performance materials to meet specific performance targets: • Develop new materials, leverage knowledge from basic research • Optimize materials and testing to improve performance • Design, develop and demonstrate materials, components and prototype systems to meet milestones Basic Research • Develop and use theoretical models & fundamental experimentation to generate knowledge: • Fundamental property & transport phenomena • Novel material structures, characterization • Theory, modeling, understand reaction mechanisms

14. Hydrogen Program Activities The DOE Hydrogen Program is structured to tackle the wide range of barriers facing H2 and fuel cell commercialization Hydrogen and Fuel Cell Commercialization and Market Penetration