International Conference, Tuesday, April 12, 2005
"Hydrogen + Fuel Cells on their way to commercialisation"

Technova Inc.

Company Information: Technova
Technova Inc. is an independent energy consultant in Japan. Since its establishment in 1987, Technova has been working for the government (METI, NEDO) and local municipalities. The major clients include automakers, utilities, gas companies, construction companies, and national agencies.

Technova conducts many research in renewable area, including biomass, hydrogen, fuel cells and other energy technologies. The company is also promoting micro wind power (license from Tokai University), and CO2 separation (funds from NEDO).

Technova's Activities on Hydrogen and FC
Hydrogen becomes one of main research topics for the last a few years. Technova has been working for NEDO (New Energy Development Organization), JARI (Japan Automobile Research Institute), and NEF (New Energy Foundation).

For the last 7 years, I have been a member of JARI FC Working Group, and I am one of organizer for the Working Group's oversea research mission (every year, METI / JARI arrange missionary to the EU and the US with 10 industry members).

Technova's Position
Because Technova is an independent consultants in energy technologies, its role in the Conference is to provide the latest information on Japan, as well as objective view on Japan's programs (neutral from government and industry sector).

Akiteru Maruta
Project Manager Research & Development Department Technova Inc., Japan

Biography Akiteru Maruta
Mr. Maruta, Project Manager at Technova, is in charge of many energy projects both in Japan and the World. He has been working for JARI, METI, utilities and many other national agencies. Since 1999, he has been a member of JARI/METI Fuel Cell Working Group.

He has been an energy consultant since 1991. Before joined Technova in 2003, he had been a partner at a private energy consultancy, Interlink Corporation, in Tokyo.

Degrees:
M. Public Administration, Harvard University
M.A. (International Relations), Waseda University
M.Sc (Engineering), Keio University

Japan’s hydrogen and fuel cells projects
Akiteru Maruta
Project Manager Research & Development Department
Technova Inc., Japan

In 2002, Japanese government launched PEFC System Demonstration Project, which consists of (1) JHFC project (47 FCVs), and (2) Stationary FC Demonstration project (31 field test sites). METI has already request 35.5 billion Yen (=$340 mil) to continue hydrogen RD&D projects.

We already have many encouraging results from the projects, but there may be more fundamental questions for Japan’s hydrogen and fuel cells projects. Why and how does Japan promote the hydrogen projects? This presentation may answer some of your questions.

[Why Japan Goes Hydrogen]

Q. There are still many unclear factors for hydrogen. We need more time to evaluate all aspects of hydrogen and other renewable energies. Why does Japanese government rush into hydrogen technologies?

A. For Japan, hydrogen is an energy, not the energy. It is one of options of future energies. The main policy target of Japan is to reduce energy consumption of the nation, and reduce the GHG emissions. Because we need to know more about hydrogen as fuel, learning by doing approach is the best solution.

[Japan’s Targets, Too High?]

Q. Japanese government has very ambitious fuel cell targets; for FCVs, 50,000 by 2010 and 5 millon by 2020; and for stationary PEFC, 2.1 GW by 2010 and 10 GW by 2020. Can Japan achieve the targets? What is the status today?

A. The history gives us some lessons; in 1991, METI (MITI) announced an ambitions target for electric vehicles; 200,000 EVs by 2000. But, because of disappointed progress of battery technology, there were only 1300 EVs by 2000. For the target achievement, technology development really matters. Today, many people believe Japan’s targets are very high (or too high). But it is still early to judge. We expect technology innovation through the demonstration projects. According to Japanese government, we are in the introduction stage of fuel cell technology (from 2005 to 2010). So the next five years are the most critical period for the target achievement.

[Or, Too Low?]

Q. Human beings are moving toward less carbon-content energy; from coal to natural gas. So, it is clear that hydrogen is the energy of future. Therefore, industrial countries, including Japan, have to invest more money and human resources into hydrogen R&D. True?

A. Unlike other carbon-content energies, hydrogen is not available as a natural resource. We have to produce it. So, we need to identify the most energy-efficient path for the production. This is why Japan’s JHFC project has 10 hydrogen supply stations from different sources to evaluate the net energy-efficiency of paths.

[Automobile or Stationary…Which Comes First?]

Q. Traditionally, fuel cell / hydrogen community believe that potable and stationary markets are the starters. But, because of slow growth of stationary market, more and more people believe the opposite; Auto-market comes first. So, which comes (or should come) first?

A. Doesn’t matter. Markets always need commodities prior to customers. No Prius, no hybrid car market. Any R&D efforts contribute the cost reduction of the fuel cell technology (especially FC components). This is why Japanese government took double track approach; JHFC Project and stationary demonstration project in parallel.

[Prius Kills Fuel Cell Vehicles?]

Q. According to Toyota, the new Prius achieved net energy efficiency of 32%, which exceeds current fuel cell vehicles’ energy performance. Does this means hybrid cars win? No future for fuel cell Vehicles?

A. No. Basically, hybrid technology can be applied to all types of vehicles, including fuel cell vehicles. The technology can optimize the energy outputs from the stack and battery. Fuel cell hybrid vehicles are the ultimate targets of automakers.

[Commitment, Competition, and Cooperation]

Q. There are so many failed stories of government-funded mega-projects. Are Japan’s hydrogen/fuel cell projects going to the same stories?

A. Maybe no. Basically governmental funds lower the risks of technology innovations. But, the innovations need the commitments from both government and industry. Photovoltaic is the typical example. Japanese government’s firm commitments on PV technology helped industries to invest money into PV production.
No company follows the national policy, if they see any lip service (or politics) in the government’s comments.
Also, international competition works as the holding environment for the commitment. The US PNGV really stimulated Japanese automakers (Maybe PNGV is the real mother for Prius). Today, Japan-EU-USA hydrogen projects are stimulating each other’s policies, creating synergy for hydrogen R&D --- cooperative works.
We see “Commitment, Competition, and Cooperation” today.

Download the presentation (pdf)