Danish Strategy for Hydrogen and Fuel Cells - HY-CO Home

Preface
In January 2004, the Danish Energy Authority began defining a strategy for research,
development and demonstration of hydrogen technology in Denmark. The strategy should
be viewed in the light of the government’s energy strategy for 2025 as presented by the
Danish Minister for Transport and Energy in accordance with the Energy Policy
Agreement of 29 March 2004. The strategy describes some hydrogen technology
prospects that go beyond the timeframe covered by the government’s energy strategy.
The purpose of the hydrogen strategy is to identify areas with development potential and
to provide guidelines for prioritisation that can be used when formulating the various
programmes for strategic research and development (R&D) in the energy field.
Originally, the intention was to focus exclusively on hydrogen, but in the process of
formulating the strategy it became evident that the hydrogen technology development
would be based on Danish competencies in the field of fuel cell technology. The strategy
therefore covers technological research as well as development and demonstration of both
hydrogen and fuel cell technologies.
The government’s energy strategy for 2025 describes the development potential of the
various known technologies in the short and long term. In the long run beyond 2025, the
potential of hydrogen as energy carrier in conjunction with fuel cell technology looks
very promising. The hydrogen strategy shows that hydrogen can potentially play a role in
both combined heat and power production (CHP) and transportation. Hydrogen is already
an important item on the international political agenda for energy and research, and
Denmark has good opportunities for participating in this development.
Public R&D programmes already spend about DKK 50 million per year on research,
development and demonstration of hydrogen and fuel cell technology.
The strategy was prepared by a Strategy Group that included representatives from the
Danish Energy Authority, the Ministry of Science, Technology and Innovation,
Energinet.dk (the former Elkraft System & Eltra), DONG VE and Risø National
Laboratory (consultant). Representatives from hydrogen technology R&D, commercial
and industrial enterprises and other interested parties also contributed.
Denmark is a small player in an international context, as there is considerable focus on
hydrogen technology development worldwide. This fact highlights the importance of
formulating a unified Danish approach to the development and utilisation of Danish
strengths and resources in this field. The strategy does not deal with the issue of future
financing but outlines future challenges and the costs involved.
I would like to thank everyone who has been involved in the process of formulating this
Danish strategy for hydrogen technology development.
Copenhagen, June 2005
Ib Larsen
Director

Contents
Summary and recommendations .........................................................................................4
1. Introduction ................................................................................................................7
2. Goals and means ........................................................................................................9
3. Hydrogen technologies and Danish competencies...................................................10
4. International perspective..........................................................................................17
5. Danish focus on hydrogen technology development ................................................21
6. Implementation.........................................................................................................23
2

Abbreviations
AKF
DTU
EFP
R&D
GW
H 2
IA
IEA
IPHE
IPR
KVL
kW
PEMFC
PSO
RUC
SOFC
UPS
The Institute of Local Government Studies – Denmark (in Danish:
Amternes og Kommunernes Forksningsinstitut)
The Technical University of Denmark (in Danish: Danmarks
Tekniske Universitet)
Energy Research Programme (in Danish:
Energiforskningsprogram)
Research and Development
Gigawatts
Hydrogen
Implementing Agreement
International Energy Agency
International Partnership for Hydrogen Economy
Intellectual Property Right
The Royal Veterinary and Agricultural University (in Danish: Den
Kongelige Veterinær- og Landbohøjskole)
Kilowatts
Proton Exchange Membrane Fuel Cell
Public Service Obligation
Roskilde University (in Danish: Roskilde Universitetscenter)
Solid Oxide Fuel Cell
Uninterruptible Power Supply
3

Summary and Recommendations
Hydrogen as an energy carrier is becoming an increasingly important item on the
international political agenda for energy and research. Many countries in the
world have great expectations for hydrogen and fuel cell technology as an
important contributor to a future sustainable energy economy seeing a gradual
reduction in the reliance on fossil fuels, a reduction of the emission of greenhouse
gases and increased use of renewable sources of energy.
A global development has begun towards a widespread use of hydrogen, the socalled
hydrogen economy. This process will accelerate as oil prices rise and
become unpredictable and new technological progress is made. The propagation
of hydrogen as energy carrier and fuel depends on the commercial availability of
fuel cell technology. This is an area in which Denmark already has a strong
position internationally as a result of ongoing R&D since the early 1990s.
Continued focus on the development and implementation of technologies
involving the production, storage and system integration of hydrogen, partly in
conjunction with fuel cell technology, creates the possibility of diversity and
flexibility in energy supply in the long run. In the short and medium term,
alternative fuels such as natural gas and rape seed oil can help reduce the oil
dependency, and in the long term hydrogen will provide greenhouse gas emissionfree
transportation.
This strategy report describes existing and future technologies for hydrogen
production, distribution and use. The international development in this field is
also described. The report highlights the areas in which Danish R&D can help
promote Danish industry in the future global market for hydrogen and fuel cell
technologies. The report indicates the tools necessary for hydrogen to become part
of the public Danish energy system. Finally, the report describes a possible
organisational framework as well as the costs involved in a project of the
mentioned scope.
The strategy development comprised three stages. The initial stage involved an
overview of key hydrogen technologies and international activities in general as
well as an analysis of interested parties and an evaluation of the previous
hydrogen programme. This stage was followed by intensive work among
interested parties in six working groups spelling out the Danish competencies and
possibilities (Appendix 1 contains a list of project participants). The groups work
covered hydrogen production, storage and distribution, stationary and portable
applications, application in the transport sector, international co-operation as well
as economic aspects and future prospects. The reports from the working groups
underlying the strategy were the subject of a workshop in November 2004. They
were published together with the reports from the initial stage as independent
working group reports and are available (in Danish) at www.energiforskning.dk.
4

The present report was produced by the Strategy Group assisted by the chairmen
of the mentioned working groups and other experts. A workshop was held in
January 2005 on the subject of strategy vision, content and implementation, and a
number of interested parties have commented on the draft for the final strategy.
Individual strategies have been formulated for various technological areas to be
seen as an integral part of the final strategy. This applies to the strategy for the
development of fuel cell technology and the strategy for R&D of liquid biofuel
production.
The prioritisation of the Danish contribution was based on the criterion that the
initiatives should have a commercial potential beyond the domestic market and
that the initiatives should be based on existing Danish competencies.
The overall and long-term aim of the hydrogen strategy is to ensure that Denmark
is at the forefront of the development and demonstration of effective and
competitive technologies and systems that integrate hydrogen – primarily based
on renewable energy sources – as an energy carrier in a clean, effective and
reliable energy supply.
On this basis, the strategy suggests that priority be given to a number of hydrogen
technology R&D areas. These areas include production technologies (small
reformers, fuel cell-based electrolysis, etc.), storage technologies (storage in solid
form, light pressure containers, etc.), use in power plants, transportation
(specialised vehicles and infrastructure) and portable equipment (small emergency
energy supply units, etc.). The strategy also proposes R&D within system and
socio-economic analyses as well as analyses of safety, standards and environment.
Denmark’s ability to compete internationally in the field of hydrogen technology
depends on the one hand on initiatives in specific areas and on the other on
Denmark’s ability to identify new global needs and develop the necessary
solutions to complex problems. The fact that Denmark is used to thinking in terms
of all-inclusive solutions including social aspects, technological development,
design and new markets should be used to Denmark’s advantage. In addition,
Denmark should pursue international collaboration to develop relevant knowledge
that is otherwise difficult to acquire by Danish players on their own.
It is prudent to act now if Denmark is to play a prominent role in the future global
hydrogen and fuel cell technology market. The initiatives should support a
desirable socio-economic development in which Danish business enterprises
cement and expand their competencies and competitive position on the
international hydrogen technology market.
This large and complex task requires strong partnerships and a co-operative
environment involving the private sector, public authorities and research and
educational institutions as well as regional development environments in which
5

competencies can be coordinated and consistent technological solutions be
developed and demonstrated.
In view of the above, the strategy involves the following recommendations:
• to promote the development of core competencies in fields where
Denmark has distinct skills and strengths and that present a commercial
potential in the global market;
• to prioritise international collaboration in fields where Denmark has
specific competencies and to import and promote relevant knowledge that
is difficult to acquire by Danish players alone;
• to organise long-term and flexible Danish research, development and
demonstration initiatives within hydrogen and fuel cell technology that can
be applied on a continuous basis in an international context
• to establish an organisational framework ensuring a strong link between
the leading technology researchers and developers, the parties responsible
for funding, the business community, the education system and society in
general making certain that the strategy is backed up by action; The
organisational structure builds on the existing organisational framework in
the fuel cell technology field. The organisation consists of sponsors, a
secretariat, an international forum, a hydrogen and fuel cell platform and a
number of demonstration and development environments.
In order to make significant progress in the hydrogen and fuel cell technology
field, as suggested by the strategy, it is estimated that the public will have to
spend DKK 1.5–2.0 billion on R&D and demonstration over a 10-year period. It is
also envisaged that most of the funding will be allocated to the fuel cell
technology area, which has an immediate and growing need for funds for
demonstration. The estimate is merely an estimate of costs based on the proposals
that resulted from the consultation of a number of players. The view is that there
is no need for a special new hydrogen programme and that the investments can be
channelled through existing R&D programmes and funds.
6

1. Introduction
Across the globe, many countries have great expectations for hydrogen and fuel
cell technology as an important contributor to a future sustainable energy
economy. Such an economy would result in a gradual reduction in the dependency
on fossil fuels, increased use of renewable sources of energy and a reduction of
the emission of greenhouse gases.
To make this vision become true, it is crucial to develop technologies that allow
the use of hydrogen as energy carrier on a par with electricity. Moreover,
hydrogen presents the advantage that it can be stored in large quantities and can
be used as fuel for transportation. The two energy carriers would thus supplement
each other as a basis for an environmentally friendly energy supply with the
potential to replace fossil fuels in the future. Experts disagree about when oil
production is likely to peak. The Association for the Study of Peak Oil (ASPO)
says 2010, and the International Energy Agency (IEA) thinks it will happen in
2030. However, all parties agree that it is necessary to invest already now in R&D
of alternative sources of energy. Countries like the USA and Japan have already
invested considerable amounts in R&D of hydrogen and fuel cells for a number of
years.
To turn hydrogen into an unavoidable energy carrier is not an easy task. However,
as oil prices rise and become unpredictable and new technological progress is
made, the development will gradually start favouring the use of hydrogen. Fuel
cells is a key technology in the development of a hydrogen economy and an area
where Danish technology is already at the forefront. The challenge is to ensure a
socio-economic development in which Danish companies cement and expand
their competencies and competitive position in the international hydrogen
technology market.
Most hydrogen technologies are still too expensive and ineffective to play a major
role in the energy system. At an international level, everyone agrees that the
challenges remain:
• to develop more effective and cheaper ways of producing hydrogen;
• to develop better storage systems for hydrogen in the transport sector;
• to develop better and cheaper fuel cells;
• to develop international standards and safety regulations for hydrogen
technologies; and
• to create a real infrastructure for the distribution of hydrogen for use in
stationary plants and in the transport sector.
So far, there has been limited Danish R&D in hydrogen technologies apart from
fuel cells. In 1997, a hydrogen R&D programme was set up as a result of a DKK
20 million donation in support of a number of development-focused projects. This
donation had been exhausted by the end of 2000. A continuation of the
programme in 2001–2004 through an additional donation of about DKK 40
million was planned, but the funds were never approved. In 2001, approximately
7

DKK 23 million was allocated by way of a major multi-disciplinary hydrogen
project called “Towards a hydrogen society 1 ” involving both basic research
environments and the industrial sector. In addition, a number of small grants have
been allocated over the years to various hydrogen-related projects.
A Danish strategy for the R&D in a technological field as vast as hydrogen and
fuel cell technology affects a number of R&D areas as well as many research
institutions and commercial entities. In addition, it covers all development stages
from basic research via applied research to development and demonstration.
Strategies were developed in 2003 and 2004 for various subareas that are part and
parcel of a hydrogen technology strategy. This applies to the strategy for the
development of fuel cell technology 2 formulated in 2003 and the strategy for
R&D of liquid biofuel production of 3 formulated in 2005. The financial
requirements in the field of fuel cells are incorporated into this strategy. The same
does not apply to biofuels.
1 In Danish: På vej mod et hydrogensamfund
2 A general strategy for the development of fuel cell technology in Denmark, the Danish Energy
Authority, Elkraft System and Eltra, July 2003 (in Danish: Overordnet strategi for udvikling af
brændselscelleteknologi i Danmark)
3 An R&D strategy for the production of liquid biofuels, the Danish Energy Authority, June 2005
(in Danish: Strategi for forskning og udvikling vedrørende fremstilling af flydende
biobrændstoffer)
8

2. Goals and Means
The overall and long-term goal of the strategy is to ensure:
that Denmark develops and demonstrates effective and competitive
technologies and systems that integrate hydrogen – primarily based on
renewable energy sources – as an energy carrier in a clean, effective and
reliable energy supply, and that Denmark takes on a leading position in this
field.
Danish hydrogen technology research, development and demonstration should
also contribute to meeting energy policy goals in general and thus promoting to:
• secure a future energy supply at competitive prices;
• create an environmentally friendly energy system and ensure that Danish
obligations for a reduction in the emission of greenhouse gases can be
achieved as cost-effectively as possible;
• support economic growth;
• improve the competitive position of Danish companies in foreign markets
for energy and related products;
• maintain and expand Danish research competencies and knowledge
centres within energy technology.
To achieve the defined hydrogen technology goals, it is necessary to:
• promote the development of core competencies in areas with business
potential where Danish research is strong;
• plan long-term and flexible Danish research, development and
demonstration activities in close co-operation with Danish fuel cell
research ensuring that the activities can be adapted on a continuous basis
in line with international development;
• promote hydrogen technology co-operation and synergy between public
research and the private sector;
• participate in international collaborative efforts dedicated to the
development of new standards for hydrogen technologies and their
economic, energy-effective and safe implementation as part of the energy
system;
• position Danish R&D environments in the European research sphere as
well as outside Europe;
• establish optimum framework conditions for hydrogen technology
development that strengthens the competencies and competitive position
of Danish companies and research institutions.
9

3. Hydrogen Technologies and Danish Competencies
This section briefly describes the most important technologies relating to the
production, storage, distribution and use of hydrogen, as well as systems
analyses and other analyses. Danish competencies are also described.
Wind
Conventional Production
(Coal, Gas, Oil)
Consumption - Transport
Sun
- +
H 2
Hydropower
Electricity
Electrolysis
H 2 Compression
Storage
H 2 Hydrogen Fuelling Station
Fuel Cell-based
CHP Production
Biomass
Biomass Fermentation
Natural Gas
Steam Reformation
Purification
- +
Pipeline Transport of Hydrogen H 2
Electrolysis
H 2
H 2 Compression Transport of
Compressed Hydrogen H 2
Chemical Plants
Purification
H 2
Cavernous storage
Refinery
H 2 Hydrogen
Condensation
Transport of
Liquid Hydrogen H 2
Storage of Liquid
Hydrogen H 2
Evaporator
Figure 1. Illustration of the hydrogen chain. Source: The EU's CUTE project
Hydrogen production
Hydrogen is not a naturally occurring energy medium like oil, natural gas and
coal. First, hydrogen has to be produced from another medium that contains
hydrogen, such as natural gas (reforming), water (electrolysis) or biomass
(gasification, fermentation, photochemical processes).
These processes demand energy that can be supplied by the hydrogencontaining
raw material – or in the form of electricity in connection with the
electrolysis process. The electrolysis process as well as the other processes
used to produce hydrogen result in a loss of energy of 20–30% using today’s
technology. Of the approximately 500 million m 3 hydrogen produced in 2003,
almost all (96%) was made from fossil fuels. About half of this was natural
gas, whereas electrolysis played only a minor role with a 4% share of the
industrial hydrogen production 4 .
Natural gas is an indigenously produced Danish form of energy with hydrogen
production potential. Natural gas, however, is a limited resource that has many
4 International Council of Academies of Engineering and Technological Sciences (CAETS),
Council meeting, Stavanger, May 2004
10

other uses. Wind power based electrolysis and gasification/fermentation of
biomass would therefore also be relevant in Denmark.
Reforming
The reforming process typically consists of
a catalytic process in which a fossil fuel
(e.g. natural gas) is converted into hydrogen
and carbon dioxide (CO 2 ). This process can
take place in large centralised plants with
subsequent hydrogen distribution or in
smaller decentralised plants with local
hydrogen use.
Haldor Topsøe A/S is a world-leader in
hydrogen production through catalytic
reforming of natural gas in large
centralised plants. Small decentralised
reforming plants are being developed
in Denmark, e.g. at DTU. DTU
estimates that the area has a potential
that can be developed jointly by the
university and large Danish industrial
companies.
Gasification/fermentation of biomass
The gasification of biomass produces
methane-containing gas that in turn can be
converted to hydrogen in a reforming
process. The biological hydrogen production
involves photosynthesis, known from
nature, and a fermentation process in which
micro-organisms convert organic matter to
hydrogen. The most recent development in
connection with the fermentation of
biomass, however, is the coproduction of
hydrogen and other hydrogen-containing
Danish knowledge of fermentation
is world class (Danish Centre for
Biofuels, DTU, Risø National
Laboratory, KVL, Elsam, and
others), and there is considerable
commercial interest in its
development and use. Denmark has
considerable commercial
experience with small gasification
plants.
fuels 5 according to the so-called “bio-refinery” concept for the production of
e.g.. bioethanol.
Electrolysis
Electrolysis is a process in which electricity
splits water into its basic components:
hydrogen and oxygen.
There are no Danish manufacturers of
electrolysors. However, the knowledge
of fuel cell technology available in
Danish research environments such as
Risø National Laboratory, IRD Fuel
Cells and DTU is an excellent basis for
the development of future, more
efficient electrolysis technologies,
5 In this context, other hydrogen-containing fuels primarily involve liquid biofuel for replacement
of petrol and diesel in the transport sector. It should be noted that all fuels contain hydrogen.
11

The figure below indicates when the various production technologies are likely
to be implemented in Europe 6 .
Fornybar
energi
Renewable
Energy
Elektrolyse Electrolysis fra Using VE Renewable elektricitet (vindkraft) Energy (Wind Power)
Biomasse Gasification gasificering (with/without (m/u CO CO 2 deponering)
2 Deposits)
Fermentering
Fermentation
Photokemi Photochemistry
fri
- fri CO - 2 -Free
Fossil Co brændsler
2
Fossile
CO 2
Fuels
Fossile
brændsler k
Ref. Ref. of Fossil af fos. Fuels brændsler (Natural (NG, Gas, kul, Coal, olie) med Oil) with CO CO 2 2 deping deposits
Elektrolysis Elektrolyse using via el electricity fra fossile from brænsler fossil fuels med with CO CO 2 deponering
2 deposits
Reformering af of naturgas Natural Gas
(centralt)
Decentral Small-scale naturgas Decentralised reformering Reforming i mindre of Natural skala Gas
Hydrogen Production
Brint fra kul
Brintproduktion
Hydrogen from Coal
Elektrolyse via el genereret Electrolysis fra fossile Using Electricity brændsler from 1313Fossil Fuels
2010 – Short term 2015 – Medium term >2025 Long term Time frame
Figure 2. Expected timeframe for hydrogen production technologies
Economy
The table below demonstrates the European production prices for hydrogen
(2004) for selected processes.
Table 1. Hydrogen production prices 7
Hydrogen
costs
- excl.
distribution
Natural gas
(reforming
large plants)
DKK
7.50/kg
* 1 l petrol = 0.28 kg hydrogen
Mains
electricity
(electrolysis)
Wind power
(electrolysis)
DKK 28/kg DKK 45–
60/kg
Biomass
(gasification)
DKK 22–
30/kg
Storage and distribution of hydrogen
Hydrogen is normally stored and
distributed in gaseous or liquid form.
Hydrogen can be distributed through
pipelines from a central production area,
or in pressure tanks. A combination of the
two may also occur. As far as piped
Denmark has not yet determined the
exact type of hydrogen production and
distribution: centralised or
decentralised production, distribution
through pipelines or in tanks.
6 EU HyNet Roadmap, 2004
7 “Deployment Strategy”, Final draft report December 2004, The European Hydrogen and Fuel
Cell Technology Platform.
12

distribution is concerned, the existing natural gas pipe network can be used
temporarily for the distribution of mixtures
of natural gas and hydrogen (up to 10–15%
hydrogen) until a possible hydrogen
network has been established. It is crucial in
this context to bear in mind that the volume
of hydrogen energy is less than 1/3 of the
natural gas energy content – at equal
pressures. The result is a reduction in the
overall energy transportation capacity. It is
not possible to simply use the existing
natural gas network for the transportation of
DTU, the Danish Technological
Institute, Risø National Laboratory,
etc. are competent in the field of light
and strong composite materials
(wind turbine blades, construction
components). This is a good basis for
the development and production of
light pressure containers for
hydrogen storage.
pure hydrogen, and for safety reasons even a small percentage of hydrogen in
the mixture would require adjustment of many traditional types of equipment
that apply natural gas.
Distribution in tanks is today a widely used technology. Storage at a pressure
of 700–800 bar is required to obtain sufficient energy density for transportation
purposes.
In recent years, a considerable amount of R&D work has been carried out on
the hydrogen topic together with solid
matters, e.g. metal hydrides. This sort of Risø National Laboratory, DTU
hydrogen storage is considered very safe
and the University of Aarhus have
participated for a long period of
due to the low storage pressure. The work
time in the development of
mainly involved two types of hydrogen
technologies for the storage of
storage: in the form of metal hydrides where hydrogen in metalhydrides.
hydrogen is bound in a chemical compound, Combined with the extensive
or in a form where the hydrogen is bound to knowledge of nanotechnology,
the surface of solid matters such as graphite this is an excellent basis for
or other carbon structures.
further Danish development in
this field.
Hydrogen can also be distributed and stored
in liquid form. Storage takes place at
atmospheric pressure and at a temperature of -253 o C. The commercial
distribution of large quantities of hydrogen already takes place using
industrially developed technology. This type of storage requires a relatively
fast turnaround, as degassing occurs due to the low temperature and results in a
loss of energy.
Current costs of hydrogen storage
The total of energy and fixed costs of hydrogen storage in pressure cylinders is
DKK 3/kg hydrogen as a minimum, whereas the equivalent cost of liquid storage
is DKK 7–35/kg hydrogen, depending on the size of the container 8 . Storage in
8 Report from working group 6 on economy and perspectives (in Danish: ӯkonomi og
perspektiver”), December 2004.
13

metal (or other) hydrides is much more expensive than other kinds of storage
based on today’s technology, and commercial application is still a long way away.
Use of hydrogen
Hydrogen is a flammable gas similar to natural gas and can be used in the same
way, e.g. for normal combustion in a boiler or for the production of CHP in
engines and turbines or the propulsion of vehicles using standard spark-ignition
motors.
The challenge is to identify areas and applications in which the use of
hydrogen is of benefit to the environment while at the same time ensuring a
more reliable energy supply. In this regard, fuel cell technology is one of the
most promising future technologies due to its high energy-conversion
efficiency.
Fuel cell technology
A fuel cell converts hydrogen to electricity and heating and the only waste
product of this process is steam. In addition, the fuel utilisation ratio, especially
for electricity production, is relatively high (Table 3). A fuel cell can also
reverse the process, i.e. convert electricity to hydrogen and oxygen. Over the
last 20 years, there has been increasing interest in fuel cells all over the world,
and considerable amounts are today being invested in fuel cell systems for both
CHP plants and vehicle transportation with a view to developing commercially
viable solutions.
There are many different types of fuel cells,
but the Danish fuel cell strategy is based on
PEM (Proton Exchange Membrane) and
SOFC (Solid Oxide Fuel Cell).
These two types of fuel cells can probably
be used in other areas than heat and power
production.
Danish R&D in this field is
primarily undertaken by Risø
National Laboratory, Haldor
Topsøe, IRD Fuel Cells, DTU and
APC Denmark. The University of
Southern Denmark and Aalborg
University also contribute. In
addition, many Danish companies
have also shown considerable
interest in fuel cells and their use in
energy and transport systems.
As far the transport sector is concerned
(cars, buses), the PEM cell is expected to be
the preferred fuel cell. In addition, PEM fuel cells are expected to become
popular in various niche markets, e.g. for the propulsion of forklift trucks,
handicap vehicles, as UPS (Uninterruptible Power Supply) back-ups,
emergency power supplies and hand-held electronic equipment (replacing
batteries in laptops and mobile phones).
The table below shows the timeframe for the development of a market for fuel
cells in Europe until the year 2020.
14

Table 2. Visions for the development of a fuel cell technology market in the EU countries
until 2020 9
Expected
state of the
market in
2020
Number of
H 2 / fuel cell
units sold
per year in
2020
Fuel cell
system –
target price
level
Hand-held
electronic
equipment
(replacing
batteries)
Portable
generators
(replacing
batteries)
Niche
markets
Stationary
fuel cells
Systems with
power
production
solutions
Transport
sector
Cars,
buses, etc.
Established Established Growing Pre-commercial
~ 250
millions per
year
DKK 7.5 –
15 / W
~ 100,000
per year (~ 1
GW e )
DKK
4000/kW
100,000 –
200,000 per
year
(2–4 GW e )
DKK
15,000/kW
(Micro-CHP)
*
DKK 7,500 –
11,250/kW
(industrial
CHP)
0.4 million
– 1.8
million per
year
< DKK
750/kW
(for
150,000
units/year)
* Danish fuel cell manufacturers aim for a competitive price of max. DKK 11,250/kW in year
2020 for micro-CHP units.
The transport sector is a specialised market that depends on the successful
development of the PEM fuel cell. The energy efficiency of fuel cell-based
vehicles is about twice as high as that of petrol-driven vehicles (cf. Table 3).
Consequently, the fuel cell-based vehicle only has to store about half the
amount of energy to cover the same distance. A 70-litre hydrogen tank at 700
bar can contain the same amount of energy as a 40-litre petrol tank, resulting in
a satisfactory travelling distance – the same travelling distance as would be
achieved with 80 litres of petrol in a petrol-driven vehicle. As far as the
environment is concerned, a fuel cell-driven vehicle running on hydrogen
generated from a renewable source of energy would be fully pollution-free. At
an international level, the emphasis is on the demonstration of infrastructure-related
projects as well as the demonstration and test of various types of hydrogen-driven
vehicles.
9 “Deployment Strategy”, Final draft report December 2004, The European Hydrogen and Fuel
Cell Technology Platform.
15

Table 3. Efficiency ratio for different types of engines in the transport sector 10
Petrol
engine
Diesel
engine
Hydrogen,
combustion
engine
Hydrogen,
fuel cell
Current 17 % 22 % 18 % 38 %
Potential
2015
20 % 25 % 23 % 42 %
Hybrid *
potential
2015
25 % 33 % 28 % 48 %
* Hybrid = energy-saving combination using e.g. battery, flywheel, compressed air
Systems analyses, etc.
The energy sector traditionally makes use of socio-economic analyses including
energy systems analyses. There is a need, especially in the field of new energy
technologies, such as hydrogen and fuel cells, for knowledge of the economic,
political, social and environmental consequences as well as the safety aspects of
various development alternatives.
The analyses comprise: various sorts of
energy systems analyses (static or dynamic
modelling, input data generated through
projection or foresights or a combination of
the two), life cycle analyses (total costs and
environmental loads from hydrogen
production) as well as policy analyses and
evaluations of various aspects of the
There are many players with
competencies in systems analyses
and other socio-economic analyses,
such as RUC, Risø National
Laboratory, Energinet.dk, Danish
Transport Research, AKF and
several consultancy firms.
development and marketing of new energy technologies including the importance
of standardisation, patenting and IPR. Analyses of potentially undesirable
climatic effects of hydrogen use on the upper layers of the atmosphere would also
be considered.
The use of hydrogen-driven vehicles presents many safety aspects that need to be
investigated before they can be introduced. It may be necessary to conduct
destructive tests (collisions) to gain experience with high-pressure hydrogen.
10 “ Strategic Research Agenda”. Report, 2004 The European Hydrogen and Fuel Cell
Technology Platform.
16

4. International Perspective
The development of new hydrogen and fuel cell technologies requires
considerable resources and is the subject of much competition at a global level. It
is becoming increasingly important for Danish R&D institutions and enterprises to
become part of a network including leading public and private knowledge
environments abroad.
In an international context, it is particularly important to collaborate in areas
where Denmark has special competencies. At the same time, it is necessary to
import and develop relevant knowledge that Danish players have difficulty
acquiring on their own. Overall, networking will benefit both the Danish energy
sector and the Danish labour market.
Key international players
The United States, Japan and Canada in particular have invested large amounts in
recent years in R&D of hydrogen and fuel cell technologies.
In 2003, the US government launched the so-called FreedomCar initiative to find
a hydrogen technology solution to a reliable energy supply and a reduction of
greenhouse gas emission. The federal government intends to invest DKK 7 billion
over a 5-year period in hydrogen research, development and demonstration. Most
of the money will be spent on R&D and approximately 13% on demonstrations. 11
Internationally, the USA took the initiative in 2003 to form the Carbon
Sequestration Leadership Forum (CSLF) followed by the International Partnership
for Hydrogen Economy (IPHE).
In Japan, public investments on R&D of fuel cells and hydrogen amount to
approximately DKK 1.6 billion per year. In 2003, demonstration accounted for
23% of the public funds. R&D in fuel cells commenced in the early 1980s and has
since been supplemented by the so-called WENET programme (International
Clean Energy Network Using Hydrogen Conversion) and demonstrations of
hydrogen cars, filling stations and stationary fuel cells.
For many years, Canada has invested in the development of fuel cell
technologies, in particular. Until recently, funds were mainly allocated to R&D,
but a national programme was recently introduced which, in addition to R&D,
also comprises the development of a hydrogen infrastructure and the marketing of
fuel cell and hydrogen technologies. Canada’s Hydrogen and Fuel Cell
Committee was established in 2003. The Committee is a partnership between
public institutions, industry and research institutions and is responsible for
facilitating and coordinating the investments. The total public investment amounts
to approximately DKK 330 million per year.
Since 1995, Germany has primarily focused on R&D in fuel cells for stationary
use and transport. Several local governments, including Bavaria and North Rhine-
11 Robert F. Service. Toward a Hydrogen Economy. Science Vol. 305 13 August 2004.
17

Westphalia, have established their own R&D programmes for hydrogen and fuel
cells. Clean Energy Partnership is a partnership between large car manufacturers
and public institutions about the development and demonstration of hydrogen in
the transport sector. 70% of all European fuel cell demonstrations take place in
Germany.
The work of the EU within hydrogen and fuel cell technologies has mainly
focused on research programmes. The funds allocated have increased over the
years, and it is expected that they will amount to approximately DKK 2 billion for
the 6th framework programme (2003-2006). The European Commission has
recently taken another step towards the hydrogen economy by introducing two
Quick-Start programmes under the Growth Initiative – Hypogen and HyCom. The
initiatives are expected to involve a combined public/private investment of DKK
21 billion over a 10-year period for large-scale hydrogen production and the
creation of a small number of hydrogen societies around Europe.
A common feature of many international activities is a desire to create synergy
between various programmes and activities ranging from basic research to applied
research and demonstrations. This synergy is created by means of strategy
processes with the participation of a broad range of public authorities, research
institutions and industry and through public/private partnerships in R&D projects
and demonstrations requiring extensive resources. Finally, there is also a desire
for international co-operation and coordination in areas requiring vast resources as
well as regarding standardisation and safety.
International co-operation projects with Danish participation
As far as past international co-operation projects are concerned, Danish R&D
institutions and companies are well represented in the EU framework programmes
involving R&D of hydrogen and fuel cell technologies. Danish players were
included in 9 out of 43 fuel cell projects under the 5th framework programme.
Under the 6th framework programme, Danish players are represented in 5 out of
12 fuel cell projects and in 6 out of 18 hydrogen projects.
In addition, Nordic Energy Research subsidises joint Nordic R&D projects within
bio-hydrogen, electrolysis, metal hydrides and hydrogen storage as well as a fuel
cell network and a foresight project. Danish companies and research institutions
are represented in all these projects.
Danish companies are also actively involved in strategic collaboration and
networks at both Nordic and European level. Danish Haldor Topsøe has for
instance commenced strategic collaboration with Finnish Wärtsilä regarding the
development and use of high-temperature fuel cells. IRD Fuel Cells is a partner in
the European Fuel Cell Group, and Danish Danfoss has invested more than DKK
30 million in Conduit Ventures Limited ("CVL"), the first European venture
investor in fuel cells and related hydrogen technologies.
18

International co-operation forums with Danish participation
Denmark participates actively in a number of key international co-operation
forums within hydrogen and fuel cells.
The European Platform for Hydrogen and Fuel Cells plays a key role in the
planning and implementation of future European R&D work
(www.hfpeurope.org). Danish players are represented in its management
(Advisory Council), in the platform’s group of office bearers (Mirror Group) and
in several working groups (Strategic Research Agenda, Deployment Strategy,
Financial and Business Development and Regulations, Codes and Standards).
Nordic Energy Research also plays a role as intermediary between Nordic R&D
environments and their European counterparts (www.nefp.info). Nordic Energy
Research is actively involved in the Mirror Group under the European technology
platform and participates together with the Danish Energy Authority in the
coordination of European initiatives within the so-called HY-CO-project
(www.hy-co-era.net) that is to promote coordination of the efforts at a general
level.
The International Energy Agency (IEA) and key Implementing Agreements (IA)
traditionally constitute the forum in which Denmark follows and participates in
international R&D work (www.iea.org). Denmark is represented in the IA
Advanced Fuel Cells, IA Advanced Fuels, IA Hydrogen, IA Bioenergy, IA
Greenhouse Gas R&D, IA Clean Coal Centre and in the Hydrogen Coordination
Group.
A number of European and international committees and working groups have
been established to deal with international standardisation. The most significant
of these committees and working groups are: ISO TC 197 Hydrogen
Technologies, IEC TC 105 Fuel Cell Technologies, CEN/CENELEC Joint
Working Party on Fuel Cell Gas Heating Appliances, CEN/TC 19 EWG on Fuels
for Fuels Cells. The Danish Standards Association recently established a new
standardisation committee together with the Danish Energy Authority to ensure
that Danish companies have access to and influence on the content of the
standards for hydrogen and fuel cell technology.
Through the European Commission, Denmark is indirectly a member of the
International Partnership for Hydrogen Economy (IPHE), which was established
in November 2003 at the initiative of the United States (www.iphe.net). The
purpose of the IPHE is to organise, evaluate and implement multilateral R&D and
implementation programmes to promote the transition to a hydrogen economy.
The following countries are members of the IPHE: Australia, Brazil, Canada,
China, the EU Commission, France, Germany, Iceland, India, Italy, Japan, Korea,
Norway, Russia, the UK and the USA.
In the field of energy technology, in particular hydrogen and fuel cells, the Danish
government aims to further strengthen the transatlantic collaboration both via the
EU and bilaterally. In connection with the visit by President Bush in Europe in
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February 2005, the Danish government presented a number of proposals for cooperation
12 .
Goals for international R&D co-operation
A Danish strategy for research, development and demonstration of hydrogen
technologies should strengthen the role of Danish research, development and
demonstration of hydrogen technologies at a global level. This could be achieved
in various ways:
• by strengthening the international dimension and co-operation related to
research, development and demonstration of relevant hydrogen
technologies, e.g. through closer Nordic co-operation around
demonstration, a strong EU involvement and intensified bilateral and
multilateral co-operation with North America;
• by closely following the development in relevant international cooperative
entities, including the IPHE;
• by increasing the mobility of top research students by attracting
outstanding students and researchers from within the EU and other
countries and promoting research stays for Danish students and
researchers at top-level foreign research institutions;
• by attracting partners and investors from abroad to Danish research,
development and demonstration projects;
• by subsidising the development work of Danish research environments in
international research, development and demonstration activities.
12 “In order for the EU and the US to deepen co-operation in the area of new energy technologies
including Hydrogen and Fuel Cell technology the EU and the US should: remove barriers for cooperation
between universities and industry on both sides of the Atlantic; consider this field as a
possible spearhead area for co-operation on standards, IPR and patents; exchange lessons learned /
best practices on public support for strategic research on new technologies; exchange lessons
learned / best practices on public-private co-operation in the field; chart opportunities for EU-US
co-operation in developing new energy technologies.”
20

5. Danish Focus on Hydrogen Technology Development
The following overall criteria determined the prioritisation of Danish focus areas:
• the results of the research, development and demonstrations in the area
must show commercial potential;
• the Danish commercial products, research results and know-how should be
of general interest to the international market (the Danish market will only
be of interest in exceptional cases);
• areas where Denmark has particular competencies and comparative
advantages;
• areas in which there is a need for the development and maintenance of
Danish competencies in order to facilitate the application of foreign
research, development and demonstration results and participate in
international partnerships.
The following table shows the Danish focus areas within research, development
and demonstration in both the hydrogen and the fuel cell technology fields. The
table indicates whether the project involves R&D or demonstration.
Table 4. Danish focus areas
Production
Storage
Application
- stationary,
portable and
transportation
Systems
analyses, etc.
Area where funding is
recommended
Small reformers
(conventional fuel for
hydrogen)
Electrolysis via reversible
fuel cells
Joint production of
hydrogen-containing liquid
fuel and hydrogen from
biomass 1
Metal hydrides and amines,
nanoporous materials and
light pressure containers
Development of fuel cell
technologies and systemintegrated
activities 2
Socio-economic analyses,
system and infrastructure
analyses
Safety, standards and
environmental analyses
R&D
Development and
integration into plants
Improved understanding of
processes; development of
prototypes
Optimised production of
pure hydrogen and
hydrogen-containing
liquid fuel
Lab.-scale optimisation,
nanotechnology – new
materials
Cell, stack and system
development, system
integration, improved
efficiency, useful life,
lower costs
Demonstration
Efficiency, reliability and
price
Design and choice of
materials
Efficiency, reliability and
price
Design and functionality,
low price
Design, operation,
reliability, useful life and
price
Infrastructure
(distribution, filling
stations, etc.)
Socio-economic and other analyses (life cycle, public
acceptance, means, evaluations, etc.)
Integration of new components
Analyses and evaluation of safety and standards (for
both systems and components)
1 An R&D strategy for the production of liquid biofuels, June 2005
2
A general strategy for the development of fuel cell technology in Denmark, July 2003
21

A Danish investment in hydrogen technology necessarily involves the
development of fuel cells, whereas the opposite does not apply. Most of the
development work will concentrate on fuel cells. Demonstration will also play an
important part. The order of priorities can be changed, if necessary, if new and
promising opportunities are discovered.
As for fuel cells, the technological development within hydrogen is typically longterm.
Today, many hydrogen technologies are at a stage where basic research is
needed to ensure a real breakthrough. Most areas of technology also require an
investment in development and demonstration, which in turn may result in
additional need for new research.
Denmark’s ability to compete internationally in the area of hydrogen technology
therefore depends on the one hand on initiatives in specific areas and on the other
on Denmark’s ability to identify new global needs and develop the necessary
solutions to complex problems. Danish industry has traditionally done well in
terms of all-inclusive solutions based on technological development with due
consideration for social aspects and a focus on new markets.
New products are often developed as a result of the contact between suppliers,
users and customers and can lead to the establishment of new strong industries. To
be successful, Denmark therefore needs strong partnerships and co-operation
platforms involving the private sector and public authorities as well as R&D
institutions. Open competition for public funds will also ensure that investments
create value for money.
22

6. Implementation
Effective technological development is required to implement the technology.
Such development presupposes optimum framework conditions, efficient
structuring of the R&D work as well as the necessary funding. This strategy is one
way to achieve this.
Optimum framework conditions
Environmental advantages, a reliable energy supply and business development are
the main reasons for the development aiming at a widespread use of hydrogen and
fuel cell technology. The development towards such an environmentally friendly
and sustainable energy system is not automatic. Danish investments in hydrogen
technologies will represent an investment in the future, as is the case with the
investments made in other countries. It is necessary to take long-term needs and
advantages into account to avoid promoting technology solutions that are
profitable only in the short-term. The more advanced and radical technology
solutions that may only be profitable in the long term require a special effort by
the government.
Widespread use of hydrogen and fuel cells depends therefore to a large extent on
the establishment of the right framework conditions for the development of
hydrogen and fuel cell technology as energy carriers.
Environment and security of supply
One of the main arguments for the development of hydrogen technology is the
environmental advantages it presents and the fact that hydrogen would be an
extremely reliable energy source. The Danish strategy is based on the assumption
that from a long-term perspective hydrogen would be produced from renewable
energy sources without any emission of greenhouse gases. During a transition
period, fossil fuels, especially natural gas – if possible with the deposit of CO 2 or
the use of CO 2 in greenhouses, etc. – can be used as fuel in fuel cells. The use of
biofuels in the transport sector can likewise benefit the environment.
The requirements to a reduction in the emission of greenhouse gases from the
competing fossil fuels become more and more strict. Ongoing investments in the
improvement of existing technologies are required to comply with the
requirements. At some stage, the costs of using fossil fuels will therefore exceed
the costs of using pollution-free hydrogen produced from renewable energy
sources. Future emission limits and quota prices are among the factors that
determine when it will be profitable to use hydrogen and biofuels.
Another factor that will favour this development is the fact that the increasing
implementation of renewable energy sources will limit the use of plants that are
based entirely on fossil fuels.
Today, the transport sector is entirely dependent on a single energy source: oil. In
the short and medium term, biofuels and natural gas can contribute to reducing the
oil dependency and help improve the environment. In the long term, hydrogen can
23

provide pollution-free transportation. As Denmark’s production of hydrogen
increases and hydrogen-driven vehicles are developed, society’s costs of securing
a reliable supply of oil for the transport sector will decrease. A higher degree of
self-sufficiency will make Denmark less vulnerable to oil market fluctuations.
As far as electricity is concerned, the increasing but unpredictable amount of wind
power presents a challenge in terms of energy supply. “Excess” or “cheap”
electricity from wind power can be used to produce hydrogen by electrolysis and
storage of the hydrogen with a view to being used in “expensive” periods. This
can potentially be an important tool in ensuring stable market conditions and
increasing the flexibility of the electricity production.
Business perspectives – a new framework for demonstration
The use of financial instruments in the energy market can help stimulate R&D.
Energy savings and wind power are good examples in Denmark. Financial
instruments are not R&D strategies as such, but they will obviously have an
impact on R&D activities in the desired direction. In Denmark, the use of
different levels of tax on waste and energy play an important role in the
introduction and use of new energy technologies. The same is likely to happen in
connection with the introduction of hydrogen.
Subsidy of a national expansion of wind power and biomass energy was
introduced in the early stages, one of the results of this considerable consumerpaid
PSO subsidisation. A new approach has been proposed for the introduction
of hydrogen and fuel cells. Instead of nationwide implementation in the early
days, an efficient organisational framework should be put in place to promote
strong partnerships between the private sector, authorities and research and
educational institutions. This framework can be combined with a small number of
regional demonstration and development environments that act as development
workshops. These workshops would bring together diverse competencies and
promote seamless technological solutions. In addition to providing support for the
partnerships and demonstration and development environments, the framework
should also help attract as much capital as possible from industrial investors,
venture capital, etc.
The need for pilot and demonstration projects involves not only the testing of
individual plants or technologies but also the testing of the interplay between
various technologies and testing of various economic mechanisms.
24

Organisational framework
The strategy is to be based on extensive co-operation between the technology
researchers and developers, the parties funding the projects,industry, the education
system and society at large and thus build on the existing co-operation about the
formulation of the strategy, cf. Appendix 1. This would ensure a highly
competent, cross-disciplinary and cross-institutional implementation of the R&D
efforts.
The figure below shows a proposed structure for the implementation of a national
strategy for research, development and demonstration of hydrogen and fuel cell
technologies.
Incoming Applications
Assessment and Coordination
Funding Providers
Strategies
International Coordination
and Servicing
International Anchoring
EU, Nordic and
North American
Secretariat
Information and Coordination
Hydrogen and Fuel
Cell Platform
Follow-up
Group
I
Follow-up
Group II
Forum of Dialogue
Follow-up
Group III
Follow-up
Group IV
Follow-up
Group V
Research
Activity
Development
Demonstration
Platform / Network
Hydrogen and Fuel
cells
Demonstration and
Development Environments-
Transport
Demonstration and
Development environments-
Stationary and Portable
PEM
Fuel cells
SOFC
Fuel cells
Hydrogen
Fuel cells
Figure 3. Organisational framework.
Such a framework would match the organisation that is likely to be used as a core
tool in the development of a research forum within Europe 13 . This organisation is
a continuation of the process used to implement the R&D strategy for fuel cells
and will go hand in hand with the proposal presented by the Danish Council for
13 http://www.cordis.lu/technology-platforms/
25

Strategic Research for Innovation Accelerating Research Platforms and Centres
for Strategic Research 14 .
The organisation is based on the experience and results achieved through the
strategy process itself that involved a dialogue about future focus areas between
various interested parties from research, private companies and authorities. The
organisation therefore guarantees that action will follow words in the
implementation phase.
The organisation consists of the following components with the technology
platform as the main forum for dialogue and innovation:
• A group of sponsors to coordinate the processing of postings and
applications in the hydrogen and fuel cell technology fields
• A secretariat to assist the sponsors, the hydrogen and fuel cell platform
and the follow-up groups ensuring active and professional communication
and dissemination of information about hydrogen-related subjects to
people within the industry and to society at large. One year’s full-time
equivalent workload per year is deemed sufficient at this stage.
• International co-operation with the European Technology Platform for
Hydrogen and Fuel Cells, Nordic Energy Research, North America, IPHE,
IEA, etc.
• A hydrogen and fuel cell technology platform and forum for dialogue
consisting of the five follow-up groups with the participation of
representatives from research, industry and sponsors. The individual
follow-up groups comprise key players (industry, research institutions and
authorities) responsible for group-related activities. The task of these
groups is to provide an overview of and define goals for each project area
and to discuss and assess the extent to which the R&D development
contributes to meeting the defined goals for the technical development
(forum for dialogue).
• A number of demonstration and development environments for the
demonstration and development of production, storage and use of
hydrogen and fuel cells in the transport sector and for stationary and
portable applications. These development environments include the two
existing environments dealing with SOFC and PEM fuel cells. These
environments can comprise several large R&D projects representing at
least DKK 10–30 million per year and easily in excess of DKK 100
million per project.
Such an organisational framework makes it possible to carry out the following
tasks:
• to monitor the implementation of the strategy and adjust it, if necessary;
• to assess the needs for funds and coordinate financing;
14 The Danish Council for Strategic Research: ”Research that counts”. The Danish Research
Agency, September 2004.
26

• to establish and maintain the general idea of Danish R&D activities in the
field including Danish participation in international projects;
• to assess the need for education of both researchers (PhDs and industrial
PhDs) and graduates;
• to assess Danish results in the light of international results in the field;
• to coordinate activities with those of other relevant fields of technology
and to promote the contact with relevant Danish environments and
international platforms;
• to inform both people in the field and the public in general of hydrogen
technology development and its future potential by publishing newsletters
and articles in scientific journals, organising seminars and workshops as
well as technical study tours;
• to create an efficient framework for evaluation of the results of the efforts
(after five years as a maximum).
Costs
When assessing future costs, it is beneficial to take into account that hydrogen and
fuel cells are inter-related, as the development of hydrogen technology to a large
extent will be kicked off by the development of fuel cells.
In order to make significant technological progress, as described in this strategy, it
is estimated that the public sector – in addition to the basic funding of the
universities, etc. – will need to allocate around DKK 1.5–2.0 billion over a 10-
year period to R&D and demonstration of hydrogen and fuel cell projects.
The estimate of potential costs has been prepared by a number of players in the
field of hydrogen and fuel cell technology. The estimate is based on an evaluation
of past investments and the expectations to the activities in the fuel cell
technology field in coming years. It also takes into account the requirement for
initiating a similar long-term development in hydrogen technology 15 .
A scenario involving a distribution of costs on various investment areas is shown
in the figure below. The scenario points to fuel cells as the main investment area,
and the figure indicates an immediate increase in funds for demonstrations. The
investment in hydrogen technology increases over time. About half of the total
Danish investment is expected to be allocated to demonstration purposes.
A considerable amount of research and/or development is needed before funding
can be obtained for the demonstration of new technologies. Demonstration
15 Over the past 15 years or so, extensive research has been carried out in the fuel cell
technology field. The total annual Danish investment in 2004 is estimated at around DKK
130 million, of which approximately DKK 60 million represent public funding. Players
within the development environment estimate that the total amount invested will have to
be increased over the next couple of years. The need will continue to grow as the number
of final demonstrations increases, before the market can eventually take over.
27

therefore does not include market maturity, which typically involves the
implementation of several identical plants, although funding may be needed at
that stage.
500
400
Million DKK
300
200
Private
funds
100
Public
funds
0
Fuel cells R&D
Hydrogen R&D
Analyses etc.
- 10 years -
Fuel cells, demo
Hydrogen, demo
Industrial financing of energy (trend)
Figure 4. Example of cumulative Danish investment in R&D and demonstration in hydrogen
and fuel cell technologies over a 10-year period.
The general assumptions are that:
• no need for a separate programme is expected, but funds can be allocated
through existing and planned schemes;
• in principle, public funding will come from EFP, PSO, the Danish Council
for Strategic Research, the Council for Technology and Innovation, the
Danish Councils for Independent Research as well as the new High-
Technology Foundation and the The Danish National Research
Foundation. No attempt has been made at defining how much each of the
different potential sources should contribute;
• the ratio between public and private funding is envisaged to change over
time so that the contribution from industry gradually increases;
• future work will be structured in such a way that it will allow for
participation in international projects;
28

• the level of activity described includes funds to cover increased researcher
education in the field;
• the level of activity described does not include subsidies for activities
involving liquid biofuels. Potential EU subsidy has also not been included.
Danish Outcome
The propagation of hydrogen as energy carrier and fuel depends on the
commercial availability of fuel cell technology. It is expected that the market for
fuel cells for use in the transport sector and for stationary purposes will be modest
until around year 2020, cf. Table 2. Natural gas will be used as fuel for fuel cells
in the transition period. A market will emerge in niche areas (electronic
equipment, emergency power supply, handicap vehicles, etc.) already within the
next 10 years.
It is consequently expected that widespread use of hydrogen as an energy carrier
will only find widespread application in the long term. This is in line with the
strategy for a future energy supply structure in 2025. According to this strategy
fuel cells are expected to play a role within the next 20 years, whereas hydrogen
will only become relevant later.
In the light of the described Danish focus on the development of fuel cell
technologies, Denmark is expected to become one of the main producers of fuel
cells in the world. Danish fuel cell production is a likely scenario, as the
production process will be highly automated. The development and use of
integrated solutions within fuel cell application is also expected to create
opportunities for Danish growth and export of energy technologies. The market
for fuel cells will be substantial if the technology becomes generally accepted
internationally.
Simultaneous investments in the technological development of hydrogen
production processes, storage and system integration, as shown in Table 4, will
ensure energy supply diversity and flexibility. As a result, it would be easy for
Denmark to adapt to a situation in which hydrogen can play a role in integrating
renewable energy in the energy supply, and where hydrogen/hydrogen-containing
liquid fuels replace fossil fuels in the transport sector.
A highly qualified, cross-disciplinary and cross-institutional organisation based on
Danish competencies in hydrogen and fuel cells, including a Danish ability to
identify global needs and develop solutions that meet those needs, would be an
investment in the future that would benefit the Danish private sector.
29

Appendix no. 1:
Working group 1: Hydrogen production
Helge Holm-Larsen, Business Development Manager, Haldor Topsøe A/S – Chairman
Birgitte Kiær Ahring, Professor, Biocentrum, Technical University of Denmark
Claus Bøjle Møller, Consultant, Cand.Polyt, Danish Wind Industry Association
Jens Christiansen, Senior Consultant, Danish Technological Institute
Mogens Bjerg Mogensen, Research Professor, Risø National Laboratory
Ulrik Birk Henriksen, Associate Professor, Department of Mechanics, Technical
University of Denmark
Fritz Luxhøi, Consultant, Eltra, Contact Person, the Hydrogen Strategy Group
Working group 2: Storage and distribution of hydrogen
Allan Schrøder Pedersen, Programme Manager, Risø National Laboratory – Chairman
Arne Fabricius, Technical Director, Air Liquide Danmark A/S
Flemming Besenbacher, Professor, University of Aarhus
Ib Chorkendorff, Professor, Technical University of Denmark
Niels Henriksen, Senior Analyst, Elsam A/S
Torben Larsen, Head of Department, Gastra A/S
T. Lindgren, Senior Engineer, Gastra A/S
Aksel Hauge Pedersen, Senior Asset Manager, Contact Person, Hydrogen Strategy Group
Working group 3: Stationary and portable applications
Frank Elefsen, Manager, Danish Technological Institute – Chairman
Flemming Nissen, Development Manager, Elsam Kraft A/S
Jesper Themsen, R&D Manager, Dantherm A/S
Klaus Moth, Director of Emerging Technology Development, APC Denmark ApS
Niels Jørgen Hyldgaard, Head of Department, County of Ringkøbing
Per Balslev, Manager Business Development, Danfoss A/S
Sonny Sørensen, Customer Manager, ELFOR
Steen Kristensen, Bizz Project Manager, Haldor Topsøe A/S
Søren Knudsen Kær, Centre Director, Aalborg University
Peter Uffe Meier, Special Consultant, Ministry of Science, Technology and Innovation,
Contact Person, Hydrogen Strategy Group
Working group 4: Use of hydrogen for transportation
Benny Christensen, Civil Engineer, County of Ringkøbing
Christel Mortensen, Civil Engineer, Denmark’s Road Safety and Transport Agency
Erik Iversen, Special Consultant, Danish Environmental Protection Agency
Henrik Duer, Consultant, COWI A/S
Jens Oluf Jensen, Associate Professor, Technical University of Denmark
Kaj Jørgensen, Senior Researcher, Risø National Laboratory
Ken Friis Hansen, Centre Director, Danish Technological Institute
Linda Christensen, Senior Researcher, Danish Transport Research Institute
Niels Buus Christensen, Development Manager, COWI A/S
30

Ole Bilde, Consultant, Elkraft System, Contact Person, Hydrogen Strategy Group
Working group 5: International co-operation
Flemming Øster, Chief Consultant, Risø National Laboratory – Chairman
Lars Sjunnesson, Research Director, Sydkraft
Per Øyvind Hjerpaasen, Director, Nordic Energy Research
Thorsteinn I Sigfusson, Professor, University of Iceland
Birte Holst Jørgensen, Senior Researcher, Risø National Laboratory, Contact Person,
Hydrogen Strategy Group
Working group 6: Economy and future prospects
Bent Sørensen, Professor, Roskilde University – Chairman
Aksel L. Beck, Economist, Danish Energy Authority
Helge Ørsted Pedersen, Planning Manager, Elkraft System
Kim Behnke, Planning Consultant, Eltra
Michael Sloth, Engineer, H2 Logic Aps
Poul Erik Morthorst, Research Specialist, Risø National Laboratory
Aksel Hauge Pedersen, Senior Asset Manager, Contact Person, Hydrogen Strategy Group
31

The Strategy Group consists of the following:
Aksel Mortensgaard, Programme Manager, Danish Energy Authority – Chairman
Peter Uffe Meier, Specialist Consultant, Ministry of Science, Technology and Innovation
Ole Bilde, Consultant, Elkraft System
Fritz Luxhøj, Consultant, Eltra
Aksel Hauge Pedersen, Senior Asset Manager, DONG VE
Birte Holst Jørgensen, Senior Researcher, Risø National Laboratory (Consultant)
Issued by: The Danish Energy Authority, June 2005
Circulation: 600 copies
Print:
Kailow Graphic A/S
Cover: ProfiSilk Mat (250 g)
Content: ProfiSilk Mat (150 g)
ISBN: 87-7844-522-1
ISBN www: 87-7844-524-8
The report is also available on the Danish Energy Authority’s web site: www.ens.dk
Copies can be requested from the Danish Energy Authority’s internet bookshop:
http://ens.netboghandel.dk/ or danmark.dk’s bookshop tel. +45 18 81.
32