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Materials handling vehicles; an early market sector for hydrogen fuel cells within Europe
Materials handling vehicles; an early market sector for hydrogen fuel cells within Europe I Mansouri, R K Calay School of Engineering & Technology, University of Hertfordshire, UK
ABSTRACT Materials handling vehicles have been identified as a significant early market for hydrogen fuel-cells in the US, Canada and Europe. This paper presents an overview of projects demonstrating the deployment of hydrogen fuel cell within the sector and to gain necessary experience for commercial success for the technology. In this context latest developments of the two ongoing European projects are discussed and comparison with the similar North American endeavours is drawn. It is noted that demonstration projects are important to provide necessary technical, operational and procedural knowhow for reliable use of fuel cells, paving the way for commercialisation. 1
MATERIAL HANDLING VEHICLES
1.1 Forklift trucks Many early successes for fuel cells have been in the area of battery replacement for specialty vehicles including material handling vehicles such as lift trucks. Figure 1 illustrates examples of fuel cell powered specialty vehicles including forklift trucks. Fuel cell powered forklift trucks (FLTs) offer advantages over the competing electrochemical technology, including sustained high performance over the operating period, even under temperature extremes, and faster times to return the system to a full state (1). There are three main types of electric forklifts trucks relevant to the replacement of batteries with fuel cells. These include: counterbalanced and reach forklifts, pallet jacks, and stock pickers. 1.2 Market size The total number of forklifts in the US has been reported to be about 980,000 (in 2009) (2). Electric forklifts (Classes I, II, and III) come in a variety of capacities from 1.5-10t, with a large proportion in the 1.5-3t range. In the UK, the total number of FLTs is estimated at approximately 300,000. During the year leading to June 2011 British Industrial Truck Association (BITA) members reported sales of just over 24,000 units, up 25% from the same period last year. This increase was reflected across both warehouse and counterbalance truck sales which both saw rises of 25% (3). Warehouse truck sales rose to 12,400 units in the
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year to June 2011. Sales of counterbalance trucks reached almost 12,000 units in the same period. Of these, 36% were diesel powered, 34% electric and 30% liquefied petroleum gas (LPG).
Figure 1: Examples of material handling vehicles powered by fuel cell systems 1.3 Hydrogen fuel cell powered forklift trucks Materials handling vehicles are currently powered by either electric motors based on lead-acid batteries, in particular for indoor applications, or combustion engines employing diesel or liquefied petroleum gas, when utilised outdoors. Fuel cell powered forklifts offer notable advantages over the competing technology, and consequently, have been identified as a significant early market sector for the adoption of fuel cell technology. In lead-acid battery-operated forklifts power output declines as batteries discharge over a duty cycle (sometimes referred to as ‘voltage droop’). One major benefit of fuel-cell powered forklifts in contrast to battery-operated models is constant power output. Fuel cells provide the required power level, even under temperature extremes such as cold storage operation. Further benefits are the elimination of periodic battery change over (averaging 15–20 minutes), recharge/cooling time (up to 8 h), freed-up battery storage space, and elimination of expensive battery chargers. In contrast, hydrogen fuelling of the fuel-cell operated models takes 1–3 minutes, leading to increased productivity when compared to traditional battery systems, notably where operating in high-throughput distribution centre and multi-shift warehouse environments. The research and development of hydrogen and fuel cell powered material handling vehicles involves organisations from across the spectrum. Manufacturers of fuel cell stacks, such as Ballard, Hydrogenics and Nuvera Fuel Cells, are involved to ensure their fuel cell technology can be adapted and applied to this vehicle segment. System integrators, such as Plug Power, Jülich Forschungzentrum and H2 Logic, are
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involved in building the fuel cell technology into hybrid power pack units that can be fitted to forklifts, pallet trucks and other similar vehicles. Material handling vehicle original equipment manufacturers (OEMs) are involved, working alongside the system integrators, in fitting of fuel cell systems to their forklift vehicles and promoting the technology, whilst users of material handling vehicles enable testing of the fuel cell vehicles in the field. An array of key organisations active in the research, development and testing of hydrogen and fuel cell powered material handling vehicles in given in Figure 2.
Figure 2: Key organisations involved in the development and testing of hydrogen fuel-cell powered material handling vehicles Hydrogenics (a Canadian company) and Plug Power (an American company) appear to have the most advanced “plug-n-play” fuel cell products designed for the forklift market. Hydrogenics use their own fuel cell stacks, while Plug Power buy their fuel cell stacks from Ballard. Both systems incorporate ultra capacitors and compressed gas hydrogen storage. The Hydrogenics system, called HyPX, can store 1.6 kg of hydrogen at 350 bar, while the Plug Power system, called GenDrive, stores the hydrogen at 700 bar. Both Hydrogenics and Plug Power have been involved in numerous fleet trials of fuel cell powered forklifts across North America since 2005. Plug Power, a US company, holds an 85% market dominance in fuel cell system integration contracts for North American materials handling equipment. The company has more than 650 fuel cells operating in various forklift models, logging run time of over 1.5 million hours, reporting that using their system leads to 15-30% productivity gains, and 70-80% greenhouse gas emission reductions onsite. Ballard Power Systems, a Canadian company, remains one of the first and strongest companies associated with the fuel cell industry. The company delivers its FCvelocity-9SSL proton exchange membrane fuel cell (PEMFC) stack as the core of Plug Power’s GenDrive systems for integration into Class 1, 2 and 3 forklifts. In the
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period 2002-2009, the company supplied FCvelocity stacks for more than 500 forklifts globally, reporting that by 2010, they had operated over 1200 Ballard stacks in the field, with 4.5 million hours of run time (1). Over a period of 5 years (2005-10), some 70 pilot projects were reported involving hydrogen-fuelled proton-exchange membrane fuel cells (PEMFCs) and direct methanol fuel cells (DMFCs), primarily in the US (4). Other activities included launch of a prototype hydrogen ICE forklift by Linde in May 2008. By the end of 2010, more than 1000 fuel cell systems designed for electric forklifts were in operation worldwide. Five years of demonstrations and pilot projects, highlighted that fuel-cell powered FLTs perform well compared to traditional battery operated models. These projects generated crucial data regarding the reliability, durability, cost, safety and performance of fuel cell powered forklifts, operating at multi-site retailers, military depots, hospitals, manufacturing plants, and major airports. 1.4 Life cycle analysis Monetary and environment performance of fuel-cell powered FLTs have been assessed over their life cycle. Majority of fuel cell powered forklift trucks (FLTs) utilise proton exchange membrane fuel cells (PEMFCs), with some using direct methanol fuel cells (DMFCs). A study by Argonne National Laboratory, US Department of Energy (US DOE), analysed energy use and emission data for forklift trucks. The study scrutinised typical run-time for different types, and different sizes of forklifts in the US, and normalized and compared energy use and environmental impact on a per-kWh delivered to the wheel/forklift basis (5). The study reported that the equivalent ratio of energy use for different energy sources did not change with forklift class or size. Moreover, the report indicated that the amount of hydrogen to substitute for 1 kWh of electricity was almost the same for all sizes and classes. Table 1 summarises the equivalent fuels that 1 kg of hydrogen can substitute. Table 1: Equivalent Energy supplied by 1 Kg of Hydrogen Equivalent to 1 kg of Hydrogen use for FC forklift
15 kWh electricity used at the wheels for electric forklift 10.6 litre of propane (ICE FLT) 6.8 litre of gasoline ( ICE FLT) 6.1 litre of diesel (ICE FLT)
Source; adapted from full fuel-cycle comparison of forklift propulsion systems Argonne National Laboratory, 2008 (5)
The study focused on the quantity of H2 (in kg) that substituted for one kWh of electricity delivered to the wheel, taking into account that, with the losses attributable to inefficiency of the charger and forklift battery, merely two-thirds of the electricity purchased from the grid will be utilised by a battery-operated FLT. The study asserted that 1 kg of H2 delivered 15 kWh to the wheel, equivalent to 20-28 kWh of electricity purchased from the utility to operate a comparable battery-powered FLT.
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The analysis assumed that the hydrogen will be supplied either by steam reforming of methane or from coke oven gas (COG). Initial assessment of electrolysis indicated that, based on electricity produced from US fossil mix and the most efficient power generation process using natural gas, the energy required for H2 production will be at least two times as much as that required by steam reforming of methane. The study therefore based the analysis on H2 produced by the latter technique. The energy required for H2 compression was also included. The impact from electricity production was also taken into account based on generation technology and different mixes of fuel used for each process. Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) model was used to analyse the data. US Department of Energy reported that fuel cell (FC) technology compared to batteries offers significant cost advantages; 1.5 times lower maintenance cost, 8 times lower labour cost and 2 times lower net present value of the total system cost (including fuel) Furthermore, fuel cycle greenhouse gas emissions (in g CO2 equivalent) were reported to be 820 g/kWh and 1200 g/kWh for a 3 kW PEM FC-powered forklift and a 3kW battery-powered truck respectively (6). The results are summarised in Table 2. Table 2: Fuel cycle performance of PEM FC-Powered and Battery-Powered Trucks
Estimated Product Life
3kW PEM FC-Powered Pallet Trucks 8-10 years
Cost of Fuel Electricity Maintenance Cost Labour Cost (Refuelling/Recharging) Fuel cycle greenhouse gas emissions (in g CO2 equivalent)
3kW Battery-Powered 2 Batteries/Truck 4-5 years
$6000/year
$13000/year
$1250-$1500/year
$2000/year
$1100
$8750
820 g/kWh
1200 g/kWh
Source; Early markets: Fuel cells for material handling equipment, US DOE FC Technologies Program, Feb 2011 (6)
The aforementioned study also assessed the green house gas emissions for forklift technology, utilising HFC, battery and ICE. Diagram 1 summarises the results.
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Figure 3: Fuel Cycle Greenhouse Gas Emission
GHG NG COG US Mix CA Mix NGCC LPG ICE ICE
Green House Gas Natural Gas; Coke Gas Oven; US Fossil Fuel Mix; California Mix; Natural Gas Combined Cycle Liquid Petroleum Gas Internal Combustion Engine
Source; Fuel-Cell analysis of early market applications of fuel cells: Forklift propulsion systems and distributed power generation, 2009 (2)
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POLICY APPROACH
2.1 EU EU has committed itself to reduce greenhouse gas emissions by at least 20% compared to 1990 levels; increase the share of renewable energy sources in the final energy consumption to 20%; and a 20% increase in energy efficiency by 2020 (7). The EU currently has a target of investing 3% of GDP in R&D (8). However, it has also been noted that R&D spending is lower in Europe (below 2%) compared to US (2.6%) and Japan (3.4%) mainly as a result of lower levels of private investment. The EU2020 strategy aspires to achieve a low carbon and inclusive economy, geared towards a reduction of 80% of CO2 emissions by 2050. It is widely recognised that a technological shift and the deployment of new clean technologies are critical for a successful transition to such a new sustainable economy. Fuel cells and hydrogen (FCH) technologies are among the key enablers that Europe will have to rely on in order to reach its ambition of a low carbon economy (8). At European level, the Fuel Cells and Hydrogen Joint Undertaking (FCH JU) was founded in 2008 to develop and implement a targeted R&D programme, focusing on four main application areas; hydrogen vehicles and refuelling stations, sustainable hydrogen production, stationary FCs for heat and power generation, and FCs for
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early markets (8). It was concluded that market-introduction support in the form of adequate incentives – similar to the US programme – will be needed to bring fuel cell forklifts to a commercial stage and to implement the necessary infrastructure. Targeted demand side stimulus is also needed for the transition to the market (8). 2.2 US and Canada The United States is currently leading the FC-powered material handling vehicles sector. This is mainly as a result of government incentives; fuel cell electric forklifts represent an estimated 2% penetration of annual sales of electric forklifts in the US. At the federal level, two significant policies shape the market for FCs. Investment Tax Credit (ITC) was established in 2008, amounting at $3,000 per kW for Fuel Cells (capped at 30% of the Fuel Cell investment) and at $200,000 for hydrogen refuelling station (capped at 30% of the investment). This mechanism is effective until 2016 (8). Moreover, in 2009, the American Recovery and Reinvestment Act (ARRA) committed $42 million in federal funding to accelerate fuel cell commercialisation and deployment. This was matched by $54 million in cost sharing by the industry (9). The two aforementioned policies have had a significant impact on the take up of hydrogen fuel cell powered forklift trucks. Cumulative ARRA-funded sales of fuel cells to materials handling sector, 77 in 2009 increased to 572 by the end of Dec 2010 (9). Canada is a global leader in the commercial market for fuel cells, accounting for 16% of the worldwide commercial fuel cell revenues in 2008 (10). Canadian companies (Hydrogenics, Ballard,..) have been at the forefront of providing technology solutions. Canadian technology is part of the largest purchase to date of FC FL Technology anywhere in the world. One example include the purchase of 220 FC units from Plug Power by Central Grocers to power the entire truck fleet of its new distribution centre in Illinois, featuring FC technology from Ballard Power Systems (10). At present, Nuvera (US), Plug Power (US) and Hydrogenics offer PEM FC power systems for forklifts that are interchangeable with the standard battery systems. Oorja Protonics (US) offers a different type of system with a direct methanol FC that acts as a battery charger rather than as a direct source of motive power. It is expected that the market will evolve from battery replacement to purpose-built forklift trucks as demonstrated by Raymond Corporation’s partnership with Ballard Power Systems to develop a new generation of FC FLTs (9). 2.3 South East Asia; Japan, China, South Korea The FC market in Japan is almost completely focused on residential combined heat and power (CHP) and uses very small PEMFC units ranging in power from 0.7 to 1 kW electrical output with about twice as much heat output. However, the unit sales are quite high, with sales of over 3,500 units in 2009 and over 5,000 in 2010. Three companies, Toshiba, JX Energy, and Panasonic, account for nearly Japan’s entire stationary FC program, which is focused on small, 1 kW, PEM CHP units chiefly for single-family homes. These three companies provided information on the progress and status of Japan’s micro CHP programme. In Japan, 45% of homes heat with natural gas, 45% with LPG and 10% with electricity. According to these firms the Japanese government considers stationary FCs to be one of 21 key technologies for the future. The government has also spent 1 ¥ billion (roughly $10 million) on FC vehicle demonstrations in Japan to date. There are 60 FC vehicles in operation and 15 public H2 refuelling stations. Japan has a small presence in larger fuel cell technologies. Fuji Electric is the only company in Japan making fuel cells larger than 100 kW (9).
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China put in place its Renewable Energy Law in 2005. It was reported that total renewable power capacity reached 226GW in 2009; accounting for more than one quarter of China’s total installed power capacity of 860GW in 2010, with wind power growing thirty-fold during the 5 year period 2005-2009 (11). With respect to investment in fuel cell and infrastructure RD&D, China has invested $2.8 billion by the end of 2011 (8). For the 2010 World Expo in Shanghai, China demonstrated a 196 fuel cell vehicle fleet – the largest single fleet deployed to date; including 90 mid-size cars, 100 small sight-seeing carts and 6 full-sized city buses (12). South Korea announced a programme to subsidise 80% of the cost of residential fuel cells for heat and power production, scheduled to be reduced to 50% between 2013 to 2016 and to 30% for between 2017 to 2020 (8). South Korea also has set an ambitious goal of producing 20% of the worldwide shipment of fuel cells by 2025 and to create 260,000 jobs in the country. Moreover, a strategic plan the city of Seoul includes 47% of renewable energy generation from fuel cells by 2030 (8). 3
EUROPEAN MATERIAL HANDLING PROJECTS
Although fuel cells and hydrogen technologies have not reached commercialisation phase, certain early markets have been identified that exploit advantages of the technology. In particular, advantages of utilising the technology for material handling vehicles include low noise and heat signature, absence of exhaust fumes, reduction of space requirement and longer runtime (13). However, there are primary barriers to widespread use of hydrogen fuel cells for material handling equipment, including concerns about the safety of hydrogen storage and fuelling equipment, operating costs for fuel and maintenance, and the long-term reliability of fuel cells. The purpose of demonstration projects is to confirm that hydrogen fuel cells are a safe and economical alternative to batteries for powering electric lift trucks. EU’s Multi-Annual Implementation Plan (MAIP) objectives set in 2011, specified a target cost of less than 4,000 €/kW for FLTs. MAIP target for system lifetime (with service/stack refurbishment) was set at 5,000 hours; currently suppliers provide a 18 months guarantee or up to 2,000 hours (8). Two 3-year European FLT demonstration Projects commenced in 2011; Sustainable Hydrogen Evaluation in Logistics (SHEL) and HyLift demo; both projects are partfunded by the European Joint Undertaking for Fuel Cells and Hydrogen(FCH JU). The two latter projects aim to deploy 10 and 30 FLTs in representative sites across Europe, within the EU framework of system cost and lifetime targets. H2 refuelling infrastructure cost to be included within the overall financial analysis. Furthermore, the projects aim to address the requirement for a common approach at EU level to address the certification process for overall site, infrastructure, and material handling vehicle certification. 3.1 SHEL Sustainable Hydrogen Evaluation in Logistics (SHEL) is a consortium of 13 European partners in 6 countries aiming to demonstrate the market readiness for hydrogen fuel-cell materials-handling vehicles and the associated refuelling infrastructure. Figure 4 depicts the partners contributing to SHEL consortium. The SHEL project was set up to evaluate the use of hydrogen fuel cells in logistics starting from a pilot project using Fork Lift Trucks (FLTs). SHEL aims to demonstrate 10 units of Hydrogen Fuel Cell FLTs and the associated hydrogen refuelling infrastructure in the UK, Spain and Turkey within three market segments (Air/Seaport, Light Logistics and Industrial), obtaining real time data
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during the utilisation phase. Each deployment site is representative of one of the market segments deemed likely for early commercialisation. Project also aims to develop a continuation plan for a further 10 sites and an estimated 200 vehicles to create market pull in the 3 market segments. Greece was envisaged to be a part of SHEL’s continuation plan. UNIDO-ICHET, one of SHEL partners in Turkey, has already demonstrated the technology by replacing batteries in a Class 1 forklift built with an 8 kW fuel cell, with a storage capacity of 1.6 kg hydrogen and carrying capacity of up to 1.5 tons. It is refilled from high pressure cylinders with commercial refuelling nozzles. CUMITAS, a major forklift truck manufacturer in Turkey, in association with UNIDOICHET will integrate 12kW-Hydrogenics PEMFCs into FLTs for SHEL.
Figure 4: SHEL Partners The demonstration phases, scheduled for between 6 and 12 months at each site, are due to commence in 2012. Real time data will be gathered with the intention of demonstrating the advantages inherent with the use of hydrogen fuel cell powered FLTs in comparison with incumbent technologies such as diesel, LPG, and batteries currently in widespread use. Table 3 indicates the intended demonstration sites for the SHEL project. Table 3: SHEL demonstration sites Country
Demo Site
H2 Source
Refuelling Method
United Kingdom
Port of Felixstowe
Tube Trailer
Spain
CEGA Logistics
On-site Electrolyser Powered from the Grid
Existing Prototype Modular Hydrogen Refuelling Station
Turkey
Petkim Petrokyma Chemical Complex
on-site Compressed Storage
Existing Prototype Modular Hydrogen Refuelling Station
Commercial Hydrogen Refuelling Station
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3.2 HyLift demo HyLift demo commenced in January 2011; a 3-year project, comprising of 9 partners, which aims to deploy 30 units of 2.5 - 3.5 ton hydrogen fuel cell powered fork lift trucks (FLTs), over a two year demonstration period. Hydrogen refuelling infrastructure planned to be set up at three end-user sites. The project partners include H2Logic, which has developed H2Drive™ fuel cell system for forklifts. Figure 5 depicts HyLift partners.
Figure 5: HyLift partners HyLift also aims to conduct 4,000 hours accelerated laboratory durability tests on life time, shock sensitivity, vibration, and climate exposure of the trucks. Another objective of the project is to plan and ensure commercial market deployment of fuel cell powered forklift trucks (FLTs) in Europe by 2013, involving development of suggestions for European/national/regional deployment support mechanisms (14). Furthermore, HyLift aims to identify future Regulation, Codes & Standard needs to enable commercial high volume certification & use of hydrogen powered fuel cell forklifts. The project is also committed to dissemination of project results and experiences across Europe to fuel cell stakeholders and the material handling industry. This is to motivate national and regional actors to also initiate development and commercialisation activities within the area. 4
CONCLUSIONS
Materials handling equipment have been identified as an important early market adopters of fuel cell products technology. The main rationale for this choice is the utilisation of the vehicles in a defined space, returning to base for refuelling, which circumvents the reliance upon an established hydrogen infrastructure. Moreover, multi-shift usage patterns of forklift trucks in large warehouses allows for significantly shorter pay-back period than other transport vehicles. Demonstration projects provide invaluable data relating to reliability of fuel cells in real application context and provide impetus for a sustained manufacturing and supply base for fuel cell products and systems, facilitating wider deployment of the technology within the automotive sector. In the US, two significant policies shape the market for FCs, provided a major momentum for adoption of FC-powered materials handling equipment, with the purchase of over 500 systems in 2010 (9). The EU has accelerated its commitment to the FC technology by setting specific goals for adoption of technology within each
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market sector. This includes a commitment to contribute to the demonstration of cost-effective fuel cell based solutions for 20,000 materials handling vehicles during the 2014-2020 period, whilst conceding that market-introduction support in the form of adequate incentives – similar to the US programme – will be needed to bring fuel cell forklifts to a commercial stage and to implement the necessary infrastructure. Furthermore, it has been acknowledged that targeted demand side stimulus is needed for the transition to the market (8). Current EU-funded demonstration projects act as a springboard for widespread implementation and future commercialisation of fuel-cell-powered material-handling equipment. Moreover, the projects could provide an impetus for adoption of the technology within the wider context of automotive sector, hence contributing to the ambition of reaching a low carbon economy. ACKNOWLEDGEMENT Authors wish to acknowledge the support of Hydrogen Fuel Cell Joint Undertaking for part-funding the SHEL project. REFERENCE LIST 1.
Fuel Cells in Forklifts Extend Commercial Reach, Vicki P. McConnell, Fuel Cell Bulletin, September 2010, 12-19 2. Fuel-Cycle Analysis of Early Market Applications of Fuel Cells: Forklift Propulsion Systems and Distributed Power Generation, Amgad Elgowainy, Linda Gaines, Michael Wang, International Journal of Hydrogen Energy 34 (2009) 3557-3570 3. http://www.mhwmagazine.co.uk/LatestNews/Half_year_sales_figur es_show_continued_recovery_for_UK_fork_lift_truck_market_9670.html 4. Rapid Refill, High Uptime: Running Forklifts with Fuel Cells, Vikki P. McConnell, Fuel Cell Bulletin, October 2010, 12-13 5. Full Fuel-Cycle Comparison of Forklift Propulsion Systems, L.L. Gaines, A. Elgowainy and M.Q. Wang, ANL/ESD/08-3, Center for Transportation Research, Argonne National Laboratory, Work sponsored by the Fuel Cell and Hydrogen Infrastructure Program of the Energy Efficiency and Renewable Energy (EERE) Office, the US Department of Energy, October 2008 6. Early Markets: Fuel Cell for Material Handling Equipment, US Department of Energy, Fuel Cell Technologies Program, www.eere.energy.gov/informationcenter, 1-877-EERE-INFO(1-877-377-3463), February 2011 7. Europe 2020; A Strategy for Smart, Sustainable and inclusive Growth, Communication from the Commission, European Commission, March 2010 8. Fuel Cell and Hydrogen Technologies in Europe; Financial and Technology Outlook of the European Sector Ambition 2014-2020, New Energy World Industrial Grouping (NEW-IG) of the Fuel Cell and Hydrogen Joint Undertaking (FCH JU), 2011 9. Status and Outlook for the U.S. Non-Automotive Fuel Cell Industry: Impacts of Government Policies and Assessment of Future Opportunities, David L Greene, K G Duleep, Girish Upreti, Oak Ridge National Laboratory, May 2011 10. Assessment of the Economic Impact of the Canadian Hydrogen and Fuel Cell Sector, Final Report Prepared for BC Ministry of Small Business, Technology and Economic Development, March 26, 2010, Ference Weiker & Company Ltd.
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11. Renewable Energy Policy Update for China, Eric Martinot and Li Junfeng, Renewable Energy World.Com, 21 July 2012 12. 2010 Hydrogen and Fuel Cell Global Commercialization & development Update, International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE), www.iphe.net, November 2010 13. 2011 Technology Map of the European Strategic Energy Technology Plan (SET – Plan), Technology Descriptions, JRC Scientific and Technical Reports, European Commission, 2011 14. http://hylift-demo.eu/objectives.html
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ABSTRACT Materials handling vehicles have been identified as a significant early market for hydrogen fuel-cells in the US, Canada and Europe. This paper presents an overview of projects demonstrating the deployment of hydrogen fuel cell within the sector and to gain necessary experience for commercial success for the technology. In this context latest developments of the two ongoing European projects are discussed and comparison with the similar North American endeavours is drawn. It is noted that demonstration projects are important to provide necessary technical, operational and procedural knowhow for reliable use of fuel cells, paving the way for commercialisation. 1
MATERIAL HANDLING VEHICLES
1.1 Forklift trucks Many early successes for fuel cells have been in the area of battery replacement for specialty vehicles including material handling vehicles such as lift trucks. Figure 1 illustrates examples of fuel cell powered specialty vehicles including forklift trucks. Fuel cell powered forklift trucks (FLTs) offer advantages over the competing electrochemical technology, including sustained high performance over the operating period, even under temperature extremes, and faster times to return the system to a full state (1). There are three main types of electric forklifts trucks relevant to the replacement of batteries with fuel cells. These include: counterbalanced and reach forklifts, pallet jacks, and stock pickers. 1.2 Market size The total number of forklifts in the US has been reported to be about 980,000 (in 2009) (2). Electric forklifts (Classes I, II, and III) come in a variety of capacities from 1.5-10t, with a large proportion in the 1.5-3t range. In the UK, the total number of FLTs is estimated at approximately 300,000. During the year leading to June 2011 British Industrial Truck Association (BITA) members reported sales of just over 24,000 units, up 25% from the same period last year. This increase was reflected across both warehouse and counterbalance truck sales which both saw rises of 25% (3). Warehouse truck sales rose to 12,400 units in the
_______________________________________ © The author(s) and/or their employer(s), 2012
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year to June 2011. Sales of counterbalance trucks reached almost 12,000 units in the same period. Of these, 36% were diesel powered, 34% electric and 30% liquefied petroleum gas (LPG).
Figure 1: Examples of material handling vehicles powered by fuel cell systems 1.3 Hydrogen fuel cell powered forklift trucks Materials handling vehicles are currently powered by either electric motors based on lead-acid batteries, in particular for indoor applications, or combustion engines employing diesel or liquefied petroleum gas, when utilised outdoors. Fuel cell powered forklifts offer notable advantages over the competing technology, and consequently, have been identified as a significant early market sector for the adoption of fuel cell technology. In lead-acid battery-operated forklifts power output declines as batteries discharge over a duty cycle (sometimes referred to as ‘voltage droop’). One major benefit of fuel-cell powered forklifts in contrast to battery-operated models is constant power output. Fuel cells provide the required power level, even under temperature extremes such as cold storage operation. Further benefits are the elimination of periodic battery change over (averaging 15–20 minutes), recharge/cooling time (up to 8 h), freed-up battery storage space, and elimination of expensive battery chargers. In contrast, hydrogen fuelling of the fuel-cell operated models takes 1–3 minutes, leading to increased productivity when compared to traditional battery systems, notably where operating in high-throughput distribution centre and multi-shift warehouse environments. The research and development of hydrogen and fuel cell powered material handling vehicles involves organisations from across the spectrum. Manufacturers of fuel cell stacks, such as Ballard, Hydrogenics and Nuvera Fuel Cells, are involved to ensure their fuel cell technology can be adapted and applied to this vehicle segment. System integrators, such as Plug Power, Jülich Forschungzentrum and H2 Logic, are
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involved in building the fuel cell technology into hybrid power pack units that can be fitted to forklifts, pallet trucks and other similar vehicles. Material handling vehicle original equipment manufacturers (OEMs) are involved, working alongside the system integrators, in fitting of fuel cell systems to their forklift vehicles and promoting the technology, whilst users of material handling vehicles enable testing of the fuel cell vehicles in the field. An array of key organisations active in the research, development and testing of hydrogen and fuel cell powered material handling vehicles in given in Figure 2.
Figure 2: Key organisations involved in the development and testing of hydrogen fuel-cell powered material handling vehicles Hydrogenics (a Canadian company) and Plug Power (an American company) appear to have the most advanced “plug-n-play” fuel cell products designed for the forklift market. Hydrogenics use their own fuel cell stacks, while Plug Power buy their fuel cell stacks from Ballard. Both systems incorporate ultra capacitors and compressed gas hydrogen storage. The Hydrogenics system, called HyPX, can store 1.6 kg of hydrogen at 350 bar, while the Plug Power system, called GenDrive, stores the hydrogen at 700 bar. Both Hydrogenics and Plug Power have been involved in numerous fleet trials of fuel cell powered forklifts across North America since 2005. Plug Power, a US company, holds an 85% market dominance in fuel cell system integration contracts for North American materials handling equipment. The company has more than 650 fuel cells operating in various forklift models, logging run time of over 1.5 million hours, reporting that using their system leads to 15-30% productivity gains, and 70-80% greenhouse gas emission reductions onsite. Ballard Power Systems, a Canadian company, remains one of the first and strongest companies associated with the fuel cell industry. The company delivers its FCvelocity-9SSL proton exchange membrane fuel cell (PEMFC) stack as the core of Plug Power’s GenDrive systems for integration into Class 1, 2 and 3 forklifts. In the
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period 2002-2009, the company supplied FCvelocity stacks for more than 500 forklifts globally, reporting that by 2010, they had operated over 1200 Ballard stacks in the field, with 4.5 million hours of run time (1). Over a period of 5 years (2005-10), some 70 pilot projects were reported involving hydrogen-fuelled proton-exchange membrane fuel cells (PEMFCs) and direct methanol fuel cells (DMFCs), primarily in the US (4). Other activities included launch of a prototype hydrogen ICE forklift by Linde in May 2008. By the end of 2010, more than 1000 fuel cell systems designed for electric forklifts were in operation worldwide. Five years of demonstrations and pilot projects, highlighted that fuel-cell powered FLTs perform well compared to traditional battery operated models. These projects generated crucial data regarding the reliability, durability, cost, safety and performance of fuel cell powered forklifts, operating at multi-site retailers, military depots, hospitals, manufacturing plants, and major airports. 1.4 Life cycle analysis Monetary and environment performance of fuel-cell powered FLTs have been assessed over their life cycle. Majority of fuel cell powered forklift trucks (FLTs) utilise proton exchange membrane fuel cells (PEMFCs), with some using direct methanol fuel cells (DMFCs). A study by Argonne National Laboratory, US Department of Energy (US DOE), analysed energy use and emission data for forklift trucks. The study scrutinised typical run-time for different types, and different sizes of forklifts in the US, and normalized and compared energy use and environmental impact on a per-kWh delivered to the wheel/forklift basis (5). The study reported that the equivalent ratio of energy use for different energy sources did not change with forklift class or size. Moreover, the report indicated that the amount of hydrogen to substitute for 1 kWh of electricity was almost the same for all sizes and classes. Table 1 summarises the equivalent fuels that 1 kg of hydrogen can substitute. Table 1: Equivalent Energy supplied by 1 Kg of Hydrogen Equivalent to 1 kg of Hydrogen use for FC forklift
15 kWh electricity used at the wheels for electric forklift 10.6 litre of propane (ICE FLT) 6.8 litre of gasoline ( ICE FLT) 6.1 litre of diesel (ICE FLT)
Source; adapted from full fuel-cycle comparison of forklift propulsion systems Argonne National Laboratory, 2008 (5)
The study focused on the quantity of H2 (in kg) that substituted for one kWh of electricity delivered to the wheel, taking into account that, with the losses attributable to inefficiency of the charger and forklift battery, merely two-thirds of the electricity purchased from the grid will be utilised by a battery-operated FLT. The study asserted that 1 kg of H2 delivered 15 kWh to the wheel, equivalent to 20-28 kWh of electricity purchased from the utility to operate a comparable battery-powered FLT.
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The analysis assumed that the hydrogen will be supplied either by steam reforming of methane or from coke oven gas (COG). Initial assessment of electrolysis indicated that, based on electricity produced from US fossil mix and the most efficient power generation process using natural gas, the energy required for H2 production will be at least two times as much as that required by steam reforming of methane. The study therefore based the analysis on H2 produced by the latter technique. The energy required for H2 compression was also included. The impact from electricity production was also taken into account based on generation technology and different mixes of fuel used for each process. Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) model was used to analyse the data. US Department of Energy reported that fuel cell (FC) technology compared to batteries offers significant cost advantages; 1.5 times lower maintenance cost, 8 times lower labour cost and 2 times lower net present value of the total system cost (including fuel) Furthermore, fuel cycle greenhouse gas emissions (in g CO2 equivalent) were reported to be 820 g/kWh and 1200 g/kWh for a 3 kW PEM FC-powered forklift and a 3kW battery-powered truck respectively (6). The results are summarised in Table 2. Table 2: Fuel cycle performance of PEM FC-Powered and Battery-Powered Trucks
Estimated Product Life
3kW PEM FC-Powered Pallet Trucks 8-10 years
Cost of Fuel Electricity Maintenance Cost Labour Cost (Refuelling/Recharging) Fuel cycle greenhouse gas emissions (in g CO2 equivalent)
3kW Battery-Powered 2 Batteries/Truck 4-5 years
$6000/year
$13000/year
$1250-$1500/year
$2000/year
$1100
$8750
820 g/kWh
1200 g/kWh
Source; Early markets: Fuel cells for material handling equipment, US DOE FC Technologies Program, Feb 2011 (6)
The aforementioned study also assessed the green house gas emissions for forklift technology, utilising HFC, battery and ICE. Diagram 1 summarises the results.
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Figure 3: Fuel Cycle Greenhouse Gas Emission
GHG NG COG US Mix CA Mix NGCC LPG ICE ICE
Green House Gas Natural Gas; Coke Gas Oven; US Fossil Fuel Mix; California Mix; Natural Gas Combined Cycle Liquid Petroleum Gas Internal Combustion Engine
Source; Fuel-Cell analysis of early market applications of fuel cells: Forklift propulsion systems and distributed power generation, 2009 (2)
2
POLICY APPROACH
2.1 EU EU has committed itself to reduce greenhouse gas emissions by at least 20% compared to 1990 levels; increase the share of renewable energy sources in the final energy consumption to 20%; and a 20% increase in energy efficiency by 2020 (7). The EU currently has a target of investing 3% of GDP in R&D (8). However, it has also been noted that R&D spending is lower in Europe (below 2%) compared to US (2.6%) and Japan (3.4%) mainly as a result of lower levels of private investment. The EU2020 strategy aspires to achieve a low carbon and inclusive economy, geared towards a reduction of 80% of CO2 emissions by 2050. It is widely recognised that a technological shift and the deployment of new clean technologies are critical for a successful transition to such a new sustainable economy. Fuel cells and hydrogen (FCH) technologies are among the key enablers that Europe will have to rely on in order to reach its ambition of a low carbon economy (8). At European level, the Fuel Cells and Hydrogen Joint Undertaking (FCH JU) was founded in 2008 to develop and implement a targeted R&D programme, focusing on four main application areas; hydrogen vehicles and refuelling stations, sustainable hydrogen production, stationary FCs for heat and power generation, and FCs for
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early markets (8). It was concluded that market-introduction support in the form of adequate incentives – similar to the US programme – will be needed to bring fuel cell forklifts to a commercial stage and to implement the necessary infrastructure. Targeted demand side stimulus is also needed for the transition to the market (8). 2.2 US and Canada The United States is currently leading the FC-powered material handling vehicles sector. This is mainly as a result of government incentives; fuel cell electric forklifts represent an estimated 2% penetration of annual sales of electric forklifts in the US. At the federal level, two significant policies shape the market for FCs. Investment Tax Credit (ITC) was established in 2008, amounting at $3,000 per kW for Fuel Cells (capped at 30% of the Fuel Cell investment) and at $200,000 for hydrogen refuelling station (capped at 30% of the investment). This mechanism is effective until 2016 (8). Moreover, in 2009, the American Recovery and Reinvestment Act (ARRA) committed $42 million in federal funding to accelerate fuel cell commercialisation and deployment. This was matched by $54 million in cost sharing by the industry (9). The two aforementioned policies have had a significant impact on the take up of hydrogen fuel cell powered forklift trucks. Cumulative ARRA-funded sales of fuel cells to materials handling sector, 77 in 2009 increased to 572 by the end of Dec 2010 (9). Canada is a global leader in the commercial market for fuel cells, accounting for 16% of the worldwide commercial fuel cell revenues in 2008 (10). Canadian companies (Hydrogenics, Ballard,..) have been at the forefront of providing technology solutions. Canadian technology is part of the largest purchase to date of FC FL Technology anywhere in the world. One example include the purchase of 220 FC units from Plug Power by Central Grocers to power the entire truck fleet of its new distribution centre in Illinois, featuring FC technology from Ballard Power Systems (10). At present, Nuvera (US), Plug Power (US) and Hydrogenics offer PEM FC power systems for forklifts that are interchangeable with the standard battery systems. Oorja Protonics (US) offers a different type of system with a direct methanol FC that acts as a battery charger rather than as a direct source of motive power. It is expected that the market will evolve from battery replacement to purpose-built forklift trucks as demonstrated by Raymond Corporation’s partnership with Ballard Power Systems to develop a new generation of FC FLTs (9). 2.3 South East Asia; Japan, China, South Korea The FC market in Japan is almost completely focused on residential combined heat and power (CHP) and uses very small PEMFC units ranging in power from 0.7 to 1 kW electrical output with about twice as much heat output. However, the unit sales are quite high, with sales of over 3,500 units in 2009 and over 5,000 in 2010. Three companies, Toshiba, JX Energy, and Panasonic, account for nearly Japan’s entire stationary FC program, which is focused on small, 1 kW, PEM CHP units chiefly for single-family homes. These three companies provided information on the progress and status of Japan’s micro CHP programme. In Japan, 45% of homes heat with natural gas, 45% with LPG and 10% with electricity. According to these firms the Japanese government considers stationary FCs to be one of 21 key technologies for the future. The government has also spent 1 ¥ billion (roughly $10 million) on FC vehicle demonstrations in Japan to date. There are 60 FC vehicles in operation and 15 public H2 refuelling stations. Japan has a small presence in larger fuel cell technologies. Fuji Electric is the only company in Japan making fuel cells larger than 100 kW (9).
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China put in place its Renewable Energy Law in 2005. It was reported that total renewable power capacity reached 226GW in 2009; accounting for more than one quarter of China’s total installed power capacity of 860GW in 2010, with wind power growing thirty-fold during the 5 year period 2005-2009 (11). With respect to investment in fuel cell and infrastructure RD&D, China has invested $2.8 billion by the end of 2011 (8). For the 2010 World Expo in Shanghai, China demonstrated a 196 fuel cell vehicle fleet – the largest single fleet deployed to date; including 90 mid-size cars, 100 small sight-seeing carts and 6 full-sized city buses (12). South Korea announced a programme to subsidise 80% of the cost of residential fuel cells for heat and power production, scheduled to be reduced to 50% between 2013 to 2016 and to 30% for between 2017 to 2020 (8). South Korea also has set an ambitious goal of producing 20% of the worldwide shipment of fuel cells by 2025 and to create 260,000 jobs in the country. Moreover, a strategic plan the city of Seoul includes 47% of renewable energy generation from fuel cells by 2030 (8). 3
EUROPEAN MATERIAL HANDLING PROJECTS
Although fuel cells and hydrogen technologies have not reached commercialisation phase, certain early markets have been identified that exploit advantages of the technology. In particular, advantages of utilising the technology for material handling vehicles include low noise and heat signature, absence of exhaust fumes, reduction of space requirement and longer runtime (13). However, there are primary barriers to widespread use of hydrogen fuel cells for material handling equipment, including concerns about the safety of hydrogen storage and fuelling equipment, operating costs for fuel and maintenance, and the long-term reliability of fuel cells. The purpose of demonstration projects is to confirm that hydrogen fuel cells are a safe and economical alternative to batteries for powering electric lift trucks. EU’s Multi-Annual Implementation Plan (MAIP) objectives set in 2011, specified a target cost of less than 4,000 €/kW for FLTs. MAIP target for system lifetime (with service/stack refurbishment) was set at 5,000 hours; currently suppliers provide a 18 months guarantee or up to 2,000 hours (8). Two 3-year European FLT demonstration Projects commenced in 2011; Sustainable Hydrogen Evaluation in Logistics (SHEL) and HyLift demo; both projects are partfunded by the European Joint Undertaking for Fuel Cells and Hydrogen(FCH JU). The two latter projects aim to deploy 10 and 30 FLTs in representative sites across Europe, within the EU framework of system cost and lifetime targets. H2 refuelling infrastructure cost to be included within the overall financial analysis. Furthermore, the projects aim to address the requirement for a common approach at EU level to address the certification process for overall site, infrastructure, and material handling vehicle certification. 3.1 SHEL Sustainable Hydrogen Evaluation in Logistics (SHEL) is a consortium of 13 European partners in 6 countries aiming to demonstrate the market readiness for hydrogen fuel-cell materials-handling vehicles and the associated refuelling infrastructure. Figure 4 depicts the partners contributing to SHEL consortium. The SHEL project was set up to evaluate the use of hydrogen fuel cells in logistics starting from a pilot project using Fork Lift Trucks (FLTs). SHEL aims to demonstrate 10 units of Hydrogen Fuel Cell FLTs and the associated hydrogen refuelling infrastructure in the UK, Spain and Turkey within three market segments (Air/Seaport, Light Logistics and Industrial), obtaining real time data
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during the utilisation phase. Each deployment site is representative of one of the market segments deemed likely for early commercialisation. Project also aims to develop a continuation plan for a further 10 sites and an estimated 200 vehicles to create market pull in the 3 market segments. Greece was envisaged to be a part of SHEL’s continuation plan. UNIDO-ICHET, one of SHEL partners in Turkey, has already demonstrated the technology by replacing batteries in a Class 1 forklift built with an 8 kW fuel cell, with a storage capacity of 1.6 kg hydrogen and carrying capacity of up to 1.5 tons. It is refilled from high pressure cylinders with commercial refuelling nozzles. CUMITAS, a major forklift truck manufacturer in Turkey, in association with UNIDOICHET will integrate 12kW-Hydrogenics PEMFCs into FLTs for SHEL.
Figure 4: SHEL Partners The demonstration phases, scheduled for between 6 and 12 months at each site, are due to commence in 2012. Real time data will be gathered with the intention of demonstrating the advantages inherent with the use of hydrogen fuel cell powered FLTs in comparison with incumbent technologies such as diesel, LPG, and batteries currently in widespread use. Table 3 indicates the intended demonstration sites for the SHEL project. Table 3: SHEL demonstration sites Country
Demo Site
H2 Source
Refuelling Method
United Kingdom
Port of Felixstowe
Tube Trailer
Spain
CEGA Logistics
On-site Electrolyser Powered from the Grid
Existing Prototype Modular Hydrogen Refuelling Station
Turkey
Petkim Petrokyma Chemical Complex
on-site Compressed Storage
Existing Prototype Modular Hydrogen Refuelling Station
Commercial Hydrogen Refuelling Station
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3.2 HyLift demo HyLift demo commenced in January 2011; a 3-year project, comprising of 9 partners, which aims to deploy 30 units of 2.5 - 3.5 ton hydrogen fuel cell powered fork lift trucks (FLTs), over a two year demonstration period. Hydrogen refuelling infrastructure planned to be set up at three end-user sites. The project partners include H2Logic, which has developed H2Drive™ fuel cell system for forklifts. Figure 5 depicts HyLift partners.
Figure 5: HyLift partners HyLift also aims to conduct 4,000 hours accelerated laboratory durability tests on life time, shock sensitivity, vibration, and climate exposure of the trucks. Another objective of the project is to plan and ensure commercial market deployment of fuel cell powered forklift trucks (FLTs) in Europe by 2013, involving development of suggestions for European/national/regional deployment support mechanisms (14). Furthermore, HyLift aims to identify future Regulation, Codes & Standard needs to enable commercial high volume certification & use of hydrogen powered fuel cell forklifts. The project is also committed to dissemination of project results and experiences across Europe to fuel cell stakeholders and the material handling industry. This is to motivate national and regional actors to also initiate development and commercialisation activities within the area. 4
CONCLUSIONS
Materials handling equipment have been identified as an important early market adopters of fuel cell products technology. The main rationale for this choice is the utilisation of the vehicles in a defined space, returning to base for refuelling, which circumvents the reliance upon an established hydrogen infrastructure. Moreover, multi-shift usage patterns of forklift trucks in large warehouses allows for significantly shorter pay-back period than other transport vehicles. Demonstration projects provide invaluable data relating to reliability of fuel cells in real application context and provide impetus for a sustained manufacturing and supply base for fuel cell products and systems, facilitating wider deployment of the technology within the automotive sector. In the US, two significant policies shape the market for FCs, provided a major momentum for adoption of FC-powered materials handling equipment, with the purchase of over 500 systems in 2010 (9). The EU has accelerated its commitment to the FC technology by setting specific goals for adoption of technology within each
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market sector. This includes a commitment to contribute to the demonstration of cost-effective fuel cell based solutions for 20,000 materials handling vehicles during the 2014-2020 period, whilst conceding that market-introduction support in the form of adequate incentives – similar to the US programme – will be needed to bring fuel cell forklifts to a commercial stage and to implement the necessary infrastructure. Furthermore, it has been acknowledged that targeted demand side stimulus is needed for the transition to the market (8). Current EU-funded demonstration projects act as a springboard for widespread implementation and future commercialisation of fuel-cell-powered material-handling equipment. Moreover, the projects could provide an impetus for adoption of the technology within the wider context of automotive sector, hence contributing to the ambition of reaching a low carbon economy. ACKNOWLEDGEMENT Authors wish to acknowledge the support of Hydrogen Fuel Cell Joint Undertaking for part-funding the SHEL project. REFERENCE LIST 1.
Fuel Cells in Forklifts Extend Commercial Reach, Vicki P. McConnell, Fuel Cell Bulletin, September 2010, 12-19 2. Fuel-Cycle Analysis of Early Market Applications of Fuel Cells: Forklift Propulsion Systems and Distributed Power Generation, Amgad Elgowainy, Linda Gaines, Michael Wang, International Journal of Hydrogen Energy 34 (2009) 3557-3570 3. http://www.mhwmagazine.co.uk/LatestNews/Half_year_sales_figur es_show_continued_recovery_for_UK_fork_lift_truck_market_9670.html 4. Rapid Refill, High Uptime: Running Forklifts with Fuel Cells, Vikki P. McConnell, Fuel Cell Bulletin, October 2010, 12-13 5. Full Fuel-Cycle Comparison of Forklift Propulsion Systems, L.L. Gaines, A. Elgowainy and M.Q. Wang, ANL/ESD/08-3, Center for Transportation Research, Argonne National Laboratory, Work sponsored by the Fuel Cell and Hydrogen Infrastructure Program of the Energy Efficiency and Renewable Energy (EERE) Office, the US Department of Energy, October 2008 6. Early Markets: Fuel Cell for Material Handling Equipment, US Department of Energy, Fuel Cell Technologies Program, www.eere.energy.gov/informationcenter, 1-877-EERE-INFO(1-877-377-3463), February 2011 7. Europe 2020; A Strategy for Smart, Sustainable and inclusive Growth, Communication from the Commission, European Commission, March 2010 8. Fuel Cell and Hydrogen Technologies in Europe; Financial and Technology Outlook of the European Sector Ambition 2014-2020, New Energy World Industrial Grouping (NEW-IG) of the Fuel Cell and Hydrogen Joint Undertaking (FCH JU), 2011 9. Status and Outlook for the U.S. Non-Automotive Fuel Cell Industry: Impacts of Government Policies and Assessment of Future Opportunities, David L Greene, K G Duleep, Girish Upreti, Oak Ridge National Laboratory, May 2011 10. Assessment of the Economic Impact of the Canadian Hydrogen and Fuel Cell Sector, Final Report Prepared for BC Ministry of Small Business, Technology and Economic Development, March 26, 2010, Ference Weiker & Company Ltd.
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11. Renewable Energy Policy Update for China, Eric Martinot and Li Junfeng, Renewable Energy World.Com, 21 July 2012 12. 2010 Hydrogen and Fuel Cell Global Commercialization & development Update, International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE), www.iphe.net, November 2010 13. 2011 Technology Map of the European Strategic Energy Technology Plan (SET – Plan), Technology Descriptions, JRC Scientific and Technical Reports, European Commission, 2011 14. http://hylift-demo.eu/objectives.html
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