here - The Canadian Hydrogen and Fuel Cell Association

Canadian Hydrogen and Fuel Cell
SECTOR PROFILE 2009

Canadian Hydrogen and Fuel Cell
Sector Profile 2009
Since 2004, the Government of Canada, the Canadian
Hydrogen and Fuel Cell Association (formerly Hydrogen
& Fuel Cells Canada) and PricewaterhouseCoopers have
collaborated to develop a comprehensive profile of the
Canadian hydrogen and fuel cell sector. The 2009 Sector
Profile follows the previous five editions and provides an
overview of the sector’s activity. The profile describes the
sector in terms of revenue, research, development and
demonstration activity, employment, strategic alliances, and
research partnerships. These statistics help policy makers,
investors and other stakeholders to stay informed about the
state of Canada’s hydrogen and fuel cell sector.
The Profile is published annually to monitor trends and
recognize growth and achievements for this important
sector of the Canadian economy. We would like to thank all
the organizations that contributed to the development of the
Canadian Hydrogen and Fuel Cell Sector Profile 2009.
canadian hydrogen and fuel cell sector profile 2009
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Cat. No. Iu41-3/2009E
978-1-100-15466-4
Aussi offert en français sous le titre Profil 2009 du secteur
canadienne de l’hydrogène et des piles à combustible.
ii

Introduction
The Canadian Hydrogen and Fuel Cell Sector Profile 2009 measures key
performance indicators and helps to provide an objective assessment
of Canada’s position within the increasingly competitive global industry.
The interest in clean energy research and technologies continues to gain
momentum, driven by concerns over the environment and energy security
in addition to opportunities associated with industrial development. As
the industry advances towards commercialization, the Canadian sector
continues to be a world-recognized leader in the field of hydrogen and fuel
cell technology. Consistent with other industry sectors in Canada, however,
the results of this year’s profile suggest that the hydrogen and fuel cell sector
experienced the detrimental effects of the global economic downturn and
credit crisis in the form of reduced employment and expenditures.
The Industry at a Glance in 2008:
• Revenue was $195 million.
• Product sales generated $88 million of revenue.
• Research, development and demonstration expenditures were $142 million.
• Employment was 1,556.
• There were 103 demonstration projects reported.
• The number of strategic alliances reported was 79.
• There were 124 research partnerships reported.
canadian hydrogen and fuel cell sector profile 2009
1

Organization Profile
March 2010
canadian hydrogen and fuel cell sector profile 2009
2
Organization Type
The 2009 survey divides the corporate
category into private, public, and division/
subsidiary company subcategories. Overall,
corporate organizations represented
64% of total survey participants. Nearly
half (49%) of total respondents were
private companies, followed closely by
government organizations (21%). Public
companies and education organizations
each made up 11% of respondents.
The remaining contributors were
subsidiaries of public companies, nonprofit
organizations and non-government
organizations.
Headquarters
Most respondents (95%) reported
headquarters of hydrogen and fuel
cell activities in Canada. Others were
headquartered in the United States and
Europe.
Years of Involvement in Hydrogen
and Fuel Cell Activities
Over half of respondents (53%) reported
involvement in hydrogen and fuel cell
activities for ten years or less.
Areas of Expertise
The main areas of expertise were fuel cell
developers or manufacturers (18%) and
research organizations (16%). Hydrogen
production and policy development and
program administration each occupied 9%
of industry expertise. The ‘other’ area of
expertise category (10%) includes legal
services, hydrogen fueling infrastructure
and research funding. Each of the
remaining areas of industry expertise
accounted for less than 9% of overall
responses.
Non-governmental
organization
2%
Non-profit organization
incl. associations
2%
Division/subsidiary
of public company
1. Organization Type Type
Public company
11%
Private company
49%
4% Government
organizations
21%
Education
organization
11%
< 5 years
13%
5 – 10 years
40%
Not provided
17%
March 2010
2. Years of Involvement in Hydrogen and Fuel Cell Activities Metal-Air
4. Market Focus
> 20 years
9%
Small Stationary Large Stationary
Photo: Man with hard hat | Sacre-Davey Engineering
50kW or less
50kW
20%
> 16%
11 – 20 years
21%
Non-governmental Fuel cell user
organization
Fuel cell 2% distributor or agent
Non-profit organization Hydrogen distribution
incl. associations
2%
Mobile – Primary
Power and
Drivetrain
14%
Division/subsidiary
of public company
Public company
11%
Private company
49%
4% Government
organizations
21%
Education
organization
11%
1. Organization Type 6%
March 2010
Years 5. of Technology Involvement Focus in Hydrogen
2. Years of Involvement and Fuel Cell in Hydrogen Activities and Fuel Cell Activiti
Hydrogen Distribution < 5 years
13%
Direct Liquid
Direct Methanol
Molten Carbonate
Other
Small Stationary
50kW or less
20%
Not provided
17%
4. Market Focus
> 20 years
9%
Large Stationary
50kW
> 16%
11 – 20 years
21%
Mobile – Primary
Power and
7. Total Revenue ($ millions) Drivetrain
14%
200
195
Fueling
Infrastructure
Portable
150
168
31%
(including
micro)
133 Mobile –
100
14%
Auxiliary Power
5%
50
6. Hydrogen and Fuel Cell Facilities by Region
Rest of World
10%
3. Areas Areas of Expertise of Expertise
0
Fuel cell developer
or manufacturer
Research organization
Hydrogen production
Policy development and
program administration
Supplier to developer
or manufacturer
Commercialization support
Systems integrator
Professional services provider
Education, safety and training
Hydrogen storage
Other
2%
2%
1%
4 8 12 16 20
0 5 10 15 20 25 30 35
Proton Exchange 5 – 10 years
31%
Membrane 40%
Hydrogen Production
21%
Solid Oxide
12%
Hydrogen Storage
8%
Phosphoric Acid
0
1%
1%
4%
3%
3%
7%
2006
9%
17. Patents
2007
3%
6%
6%
6%
6%
2008
British Columbia
29%
9%
9%
10%
Ontario
16%
18%

Education, safety and training
Hydrogen storage
Fuel cell user
Fuel cell distributor or agent
Hydrogen distribution
3%
2%
2%
1%
6%
Other
10%
1. Organization Type
Market Focus March 2010 Hydrogen and Fuel Cell Facilities
Private company
Stationary applications, including both
by Non-governmental Region
49%
organization
2%
small and large subcategories, combined Survey participants reported 84 locations
Non-profit organization
represent the largest area of market focus incl. associations for hydrogen and fuel cell facilities and
2%
at 36%. The combined mobile application activities in 2008. In total, 80% of facilities
Division/subsidiary
subcategories of portable, primary of public were company located in Canada, 10% in the
power and drivetrain and auxiliary
4% Government
United Education States, the remaining organizations 10% were
power represented the next largest overseas organization in Germany, Japan, Denmark,
21%
11% Public company
area of market focus at 33%. Fueling Belgium, South Korea, 11% Italy, and the UAE.
infrastructure was another area of focus
in 2008 with 31% of respondents listing
Within Canada almost every province
2. Years of Involvement in Hydrogen and Fuel Cell Activities
fueling infrastructure 1. Organization as Type their main area of
was engaged in hydrogen and fuel cell
focus. The results are broadly in line with
activities. 5 – The 10 years majority of facilities and
40%
Private company
those of the 2007 survey.
activities resided in British Columbia,
Non-governmental
49%
organization
followed by Ontario, Quebec, 11 Alberta, – 20 years
2%
21%
Saskatchewan, Manitoba, Prince Edward
Technology Focus
Island, New Brunswick, Newfoundland and
2%
Proton Exchange Membrane (PEM) fuel
< 5 years
Labrador, Saskatchewan and Nova Scotia.
Division/subsidiary
13%
of public company
cells continued to dominate the focus of
> 20 years
4% Government
9%
technology
Education
activities at 31%.
organizations
This finding
Not provided
supports organization Canada’s global reputation 21%
17%
11% Public company
as a leader in 11% the development of PEM
fuel cell technology for mobile, small
4. Market Focus
2. Years of stationary Involvement and in portable Hydrogen applications. and Fuel Cell The Activities
‘other’ area of technology focus included
Small Stationary Large Stationary
5 – 10 years
50kW or less
50kW
the government 40% focused areas of policy
20%
> 16%
development, program administration, and
11 – 20 years
commercialization support, as 21% well as the
Mobile – Primary
Power and
areas of hydrogen internal combustion
Drivetrain
14%
engines, fuelling infrastructure, inverter,
< 5 years
and 13% control systems.
n-profit organization
incl. associations
Not provided
17%
> 20 years
9%
Fueling
Infrastructure
31%
Mobile –
Auxiliary Power
5%
Portable
(including
micro)
14%
Proton Exchange
Membrane
Hydrogen Production
Solid Oxide
Hydrogen Storage
Hydrogen Distribution
Direct Liquid
Direct Methanol
Molten Carbonate
Metal-Air
Phosphoric Acid
Other
5. Technology Technology Focus Focus
0 5 10 15 20 25 30 35
7. Total Revenue ($ millions)
200
150
100
50
0
1%
1%
4%
3%
3%
133
7%
2006
8%
9%
12%
17. Patents
168
2007
21%
195
2008
31%
Small Stationary
50kW or less
20%
Fueling
Infrastructure
31%
Rest of World
10%
4. Market Focus
Market Focus
Mobile –
Auxiliary Power
5%
Large Stationary
50kW
> 16%
Mobile – Primary
Power and
Drivetrain
14%
Portable
(including
micro)
14%
6. Hydrogen and Fuel Cell Facilities by Region
British Columbia
29%
Hydrogen and Fuel Cell Facilities
6. Hydrogen and by Fuel Region Cell Facilities by Region
Rest of World
10%
USA
10%
Rest of Canada
13%
Product sales
50%
Alberta
8%
British Columbia
29%
Quebec
10%
Ontario
20%
8. Revenue by Category
R&D contracts
150
133
100
110
50
0
Patents approved
Patents pending
18. Employment
2,100
2,043 2,001
1,400
700
1,556
canadian hydrogen and fuel cell sector profile 2009
3

3. Areas of Expertise
organization
11%
Public company
11%
21%
4. Market Focus
Fuel cell developer
Research organization
Revenue
or manufacturer
Hydrogen production
Policy development and
program administration
Supplier to developer
or manufacturer
Commercialization support
2. Years of Involvement in Hydrogen and Fuel Cell Activities
< 5 years
5 – 10 years
40%
In 2008, nearly (47%) of respondents participated in 13% revenue generating activities.
Systems integrator
6%
> 20 years
Survey participants reported revenue from hydrogen and fuel cell activities
9%
of $195
6%
Not provided
million. In 2007, survey respondents reported revenue of $168 million.
Professional services provider
Education, safety and training
Proton Exchange
Membrane
Hydrogen Production
Solid Oxide
Hydrogen Storage
Hydrogen Distribution
Direct Liquid
Direct Methanol
Molten Carbonate
Metal-Air
Phosphoric Acid
Other
33% Hydrogen of companies storage surveyed 3% reported more than $5 million in revenue in 2008.
Similarly, 29% of respondents reporting revenue had revenue 4. between Market Focus
Fuel cell user
$1 and $5
2%
million, and 29% had less than $1 million of revenue.
Fuel cell distributor or agent
Small Stationary
Hydrogen distribution 1%
A breakdown of revenue was provided for $176 million 50kW or of less the $195 million 50kW of revenue
20%
> 16%
reported. In Other
10%
2008, the three categories that generated the most revenue were product
sales with revenue of $88 million ($83 million in 2007), R&D contracts, (excluding Mobile – Primary
government funded contracts) which generated revenue of $44 million, and provision
Power and
Drivetrain
of services producing revenue of $32 million.
14%
Foreign government funding and Canadian government Fueling support were recognized as
5. Technology Focus
Infrastructure
Portable
revenue and together represented 7% of overall revenue 31% in 2008. Additional (including details for
micro)
government funding are provided in the research, development and
Mobile
demonstration
–
0 5 10 15 20 25 30 35
14% and
Auxiliary Power
funding sections of this study.
5%
21%
Total regional revenue made up $174 million of total revenue of $195 million. The two
countries with
12%
the most hydrogen and fuel cells 6. Hydrogen related sales and Fuel were Cell Germany Facilities at by 28% Region
and the USA 8% at 25%. Canada generated 19% of total revenue. The results indicate that
British Columbia
most Canadian revenue was generated in British Columbia.
29%
1%
1%
4%
3%
3%
7%
9%
0
2%
4 8 12 16 20
6%
6%
6%
31%
9%
9%
16%
18%
Rest of World
10%
USA
10%
Rest of Canada
13%
17%
Alberta
8%
Large Stationary
Quebec
10%
11 – 20 years
21%
Ontario
20%
Small Stationary
50kW or less
20%
Fueling
Infrastructure
31%
Rest of World
10%
USA
10%
Rest of Canada
13%
Mobile –
Auxiliary Power
5%
Alberta
8%
Large Stationary
50kW
> 16%
Quebec
10%
Mobile – Primary
Power and
Drivetrain
14%
Portable
(including
micro)
14%
6. Hydrogen and Fuel Cell Facilities by Region
Product sales
50%
Canadian
government support
recognized as revenue
2% Foreign
government
funding
5%
British Columbia
29%
Provision
of services
18%
Ontario
20%
8. Revenue by Category
R&D contracts
excluding
government
funded contracts
25%
Total Revenue
7. Total ($ Revenue millions) ($ millions)
200
195
Product sales
50%
Revenue by Category
8. Revenue by Category
Revenue 9. Revenue by by Region Region
Other
9%
Germany
28%
canadian hydrogen and fuel cell sector profile 2009
4
150
168
133
100
50
0
2006 2007
17. Patents
150
133
100
110
50
0
2008
Canadian
government support
recognized as revenue
2% Foreign
government
funding
5%
Europe
5%
Russia
8%
Other
9%
British
Columbia
15%
Rest of
Provision
of services
18%
9. Revenue by Region
Japan
Germany
28%
Rest of
Asia
R&D contracts
excluding
government
funded contracts
25%
USA
25%
Europe
5%
Russia
8%
Japan
Rest of Canada 2%
3%
Ontario
3%
Quebec
4%
British
Columbia
15%
Rest of
Canada
4%
Japan
3%
Rest of
Asia
3%
13. R&D by region
Other
3%
British Columbia
85%
USA
25%

Research, Development
and Demonstration (RD&D)
In 2008, 53% of respondents participated in RD&D activities, reporting total RD&D
expenditure of $142 million. Total research and development (R&D) expenditure
amounted to $128 million or 90% of total RD&D spending. Demonstration
expenditure for 2008 was $12 million. The $2 million in RD&D spending by Academia
and Non-Profit organizations was reported in aggregate.
R&D expenditure reported in 2007 was $211 million which suggests that consistent
with other industries in Canada, expenditure activity was affected by the economic
downturn and credit crisis.
2008 Total RD&D Expenditure ($ millions)
R&D Demonstration RD&D* Total
Corporate $124.1 $6.1 – $130.2
Government $3.7 $6.1 – $9.8
Academic and non-profit* – – $2.2 $2.2
Total RD&D $127.8 $12.2 $2.2 $142.2
* Reported in aggregate
Photo: Night-time stationary fuel cell | Enbridge Gas Distribution
canadian hydrogen and fuel cell sector profile 2009
5

Rest of 13%
Canada
Quebec
Alberta
Research and Development 10%
8%
10%
USA
10%
Ontario
20% Canadian
government support
recognized as revenue
2% Foreign
government
funding
5%
1,400
Provision
of services
700 18%
9. Revenue by Region 2006
0
2,043
government
2,001
funded contracts
25%
2007
1,556
2008
canadian hydrogen and fuel cell sector profile 2009
6
Sources of Funding for R&D
Of the $128 million total reported for
R&D expenditure, the various funding
sources was provided for only $87 million.
Corporate operations supplied funding
for 49% of R&D expenditure in 2008,
followed by parent affiliated or subsidiary
organizations (39%), and Canadian
governments (8%). The ‘other’ category of
funding included tax credits.
R&D by Region
Geographic data was provided for $94
million of R&D expenditure. British
Columbia led all regions with 85% of
R&D expenditure. Quebec and Ontario
contributed 4% and 3% respectively with
the rest of Canada making up a further
3%. Regions included in the ‘other’
category (3%) include Denmark and
China.
Product sales
50%
Canadian
government support
recognized as revenue
2% Foreign
government
funding
5%
Europe
5%
Russia
8%
Japan
Rest of Canada 2%
3%
Ontario
3%
Quebec
4%
Other
9%
British
Columbia
15%
8. Revenue by Category
People Involved in Research
Participants reported that a total of 298
people were involved in hydrogen
R&D contracts
and
fuel cell related research activity. excluding Of the
government
total research people, 32% funded were contracts Canadian
25%
graduate and postgraduate students, 25%
were academic/research staff, and 18%
were international students.
Rest of
Canada
4%
Provision
of services
18%
9. Revenue by Region
Japan
3%
Germany
28%
Rest of
Asia
3%
R&D by Region
13. R&D by region
Other
3%
British Columbia
85%
USA
25%
200
218
15. Focus of Demonstration Projects
211 195
2008
Sources
Sources
of
of
Funding
Funding for
for
RD&D
R&D
Expenditure
Expenditure
R&D Demonstration 188 Total
179
177
14. People Involved in Research $ millions % $ 150 millions % $ millions %
168
Fueling
134
Other
Infrastructure 133 135 133
Corporate operations $ 43.2 49% $ 1.6 13% $ 44.8 45%
Technicians 1%
100
58%
Parent, affiliated or subsidiary organization 10%
Canadian $ 34.3 39% $ 0.7
97
6% $ 35.0 35%
graduate and
postgraduate
50
Canadian government (all levels) Undergraduate
$ 6.8 8% $ 8.2 67% $ 15.0 15%
students Mobile – Primary
students
Foreign government 32% Power and Drivetrain
including coop
$ 0.6 1% $
2%
0 0.6 5% $ 1.2 1%
14%
2001 2002 2003 2004 2005 2006 2007 2
Other $ 2.4 Mobile – 3% $ 1.1 9% $ 3.5 4%
Revenue R&D Employees
Auxiliary Power
Total $ 87.3 4% 100% $ 12.2 100% $ 99.5 100%
International
Large
Small Stationary
graduate and
Stationary
50kW or less
postgraduate
Academia/
> 50kW Portable
28%
students
research staff
4% (incuding micro)
18%
4%
25%
15. Focus of Demonstration Projects
Fueling
Infrastructure
Germany
28%
Other
9% Sources of Funding for
12. Sources R&D of Expenditure Funding for R&D by Organization
Expenditure by Organiza
Europe
5%
Russia
8%
Japan
Rest of Canada 2%
3%
Ontario
3%
Quebec
4%
Undergraduate
students
including coop
14%
14. People People Involved Involved in Research in Research
Other 6
International
graduate and
postgraduate
students
18%
Technicians
10%
Alberta
4%
USA
Corporate operations
Parent, affiliated
or subsidiary
British
Columbia Canadian government 3%
Rest of
15% Rest of (all levels)
Japan Asia
Foreign
Canada
government 3% 3% 1%
4%
13. R&D by region
Other
3%
British Columbia
300
250
19. Employment by Region
Rest of
Canada
2%
Ontario
Europe
Rest of Canada
USA
Other
1%
Other
USA
25%
British Columbia
85%
16. Demonstration Projects by Region (Number of Project
4
6
1%
7 23
10
6 6
0 5 10 15 20 25 30 35 40 45
Corporate
9%
0 20 40 60 80 100
Canadian Government
graduate and
postgraduate
students
32%
28. Growth since 2001
276
Academia/
research staff
25% 290
British Columbia
65%
41%
52%
0% 20% 40% 60% 80% 100%
Corporate
Government
237
24 2
6
100%
94%
Academic and
non-profit
Academia and non-profit

Russia
8%
British
Columbia
15%
Rest of
Canada
4%
Japan
Demonstration 3%
Projects
Sources of Funding for
Demonstration
In 2008, Canadian governments funded
67% of the reported $12 million
demonstration expenditure and
14. People Involved in Research
corporate operations funded 13%.
Other
Rest of
Asia
3%
13. R&D by region
USA
25%
Fueling infrastructure Technicians 1% was the main area
10%
Canadian
of focus in 58% of overall demonstration
graduate and
postgraduate
projects. Undergraduate Some 73% of government students
students
projects focused on fueling infrastructure.
32%
including coop
14%
Corporate organizations also focused
most (53%) of their attention on
International
demonstrating
graduate and
fuel infrastructure projects
with postgraduate 32% of their efforts spent Academia/ on small
students
research staff
stationary 18% projects.
25%
18. Employment
Other
2,100
Japan
British Columbia
2,043
3%
2,001
85%
Rest of Canada 2%
In 2008, 3% survey participants reported their participation 1,556
1,400
in 103 demonstration
Ontario
3%
Quebec
respondents
4%
from academia took part in 8 demonstration 700 projects.
0
0
Demonstration 2006 by 2007 Region 2008
36% of demonstrations took place in
British Columbia, followed by Ontario
hosting 30% of total demonstrations.
Europe and ‘other’ locations hosted
16% of total demonstrations (including
52%
Corporate operations
Germany, Scandinavia, Italy, the
Netherlands Parent, affiliated
41%
and China). Other Canadian
or subsidiary
Canadian provinces government accounted 3% for 12% of
100%
(all levels)
demonstrations with the USA hosting
94%
the
1%
remaining
Foreign government
6% of demonstration projects.
12. Sources of Funding for R&D Expenditure by Organization
Other
Patents approved
Patents pending
projects around the world. Government respondents reported their involvement in 55
demonstrations, while corporate organizations took part in 40 demonstrations. Survey
1%
9%
0% 20% 40% 60% 80% 100%
Corporate
Government
Academic and
non-profit
0 20 40 60 80 100
Proton Exchange
Patents
Membrane
5. Technology Focus
0 5 10 15 20 25 30 35
31%
Hydrogen Production
21%
Solid Oxide
12%
Hydrogen Storage
8%
Hydrogen Distribution
In 2008, corporate
7%
respondents
reported Direct Liquid133 newly 4% approved patents
Direct and Methanol 110 patents 3% awaiting approval.
In 2007, survey 3% participants held 615
patents.
Molten Carbonate
Metal-Air
Phosphoric Acid
Other
7. Total Revenue ($ millions)
200
150
100
50
0
1%
1%
133
2006
9%
168
2007
195
2008
15. Focus of Demonstration Projects
Focus of Demonstration Projects
Mobile – Primary
Power and Drivetrain
2%
Mobile –
Auxiliary Power
4%
Large
Stationary
> 50kW
4%
USA
5%
Other
6%
Quebec
7%
Alberta
4%
Ontario
11%
Academia and
Portable
(incuding micro)
4%
Rest of
Canada
2%
Fueling
Infrastructure
58%
Small Stationary
50kW or less
28%
19. Employment by Region
British Columbia
65%
20. Employment by Organization
Corporate
86%
Demonstration Projects by Region
16. Demonstration (Involvement Projects by in Region Projects) (Number of Projects)
British Columbia
Ontario
300
250
200
150
100
50
$ 0
Europe
Rest of Canada
97
USA
Other
179
2001
Revenue
4
0 5 10 15 20 25 30 35 40 45
28. Growth since 2001
134
2002
6
6
7 23
R&D
10
6 6
Corporate
276
188
290
2003
Government
133
2004
Employees
237
24 2
6
Academia and non-profit
218
135 133
177
168
211 195
128
2005 2006 2007 2008
3,000 1,400
2,500
700
2,000
1,500
1,000
500
12. Sources of Funding for R&D Expenditure by Organization
7
0
150
100
50
0
2,100
Corporate operations
17. Patents
18. Employment
0
133
2,043
2006
110
Patents approved
Patents pending
2,001
2007
52%
1,556
2008
canadian hydrogen and fuel cell sector profile 2009

Employment
Technicians 1%
Undergraduate 10%
students 150
Undergraduate
including coop
students
14%
133
including coop 100
110
14%
International
graduate 50 and
postgraduate
International
graduate
students
and0
postgraduate
18%
Patents approved
students
18%
Patents pending
graduate and
postgraduate
Canadian
graduate
students
and
postgraduate
32%
students
32%
Academia/
research staff
Academia/
25%
research staff
25%
15. Focus of Demonstration Projects
Consistent with other industry sectors in Canada, the employment trend suggests that
the hydrogen and fuel cell sector experienced the effects of the economic downturn
and credit crisis.
Survey participants reported a total of 1,556 employees involved in hydrogen and fuel
cell activities in 2008. A breakdown by region was reported for 1,348 of the 1,556
employees. In 2008, the largest proportion of industry employees was located in
Canada at 89%, 5% in the United States, and the remaining 6% overseas in Scandinavia,
Belgium, China and Germany.
In Canada, most employees were located in British Columbia (874), followed by
Ontario, Alberta and Quebec.
49% of companies surveyed had fewer than 10 employees. 27% had 10 to 25
employees, 8% had between 25 and 50, and 16% had more than 50 employees.
Based on the data provided for number of employees and total salaries, the average
annual salary paid to employees was $77,622. Extrapolating the average salary for 2008
to the 1,385 employees in Canada, the sector contributed $108 million in salaries to
the national economy.
15. Focus of Demonstration Projects
18. Employment Fueling
Infrastructure
Fueling
58%
2,100
Infrastructure
2,043 2,001
58%
Mobile – Primary
1,556
Power and Drivetrain 1,400
Mobile
2%
– Primary
Power and Mobile Drivetrain –
Auxiliary 2% Power
Mobile
4%
– 700
Large
Small Stationary
Auxiliary Power Stationary
50kW or less
4% >
Large
50kW Portable
Small
28%
Stationary
Stationary
4% (incuding micro)
0
50kW or less
> 50kW 2006 Portable
4%
2007 2008 28%
4% (incuding micro)
4%
19. Employment by Region
Employment by Region
19. Rest Employment of
12. Sources of Alberta
by Region
Funding Canada for R&D Expenditure by Organiza
4%
Rest
2%
of
British Columbia
Alberta
USA Canada
65%
4%
5% 2%
52% British Columbia
Corporate operations
Other USA
65%
6%
Parent, affiliated 5%
41%
or subsidiary Other
Quebec
6%
Canadian government 7%
3%
100%
(all levels)
94%
Quebec
1%
Foreign government 7%
Ontario
11%
9%
Other Ontario
1%
11%
0% 20% 40% 60% 80% 100%
Corporate
Government
Academic and
non-profit
20. Employment by by Organization
0 20 40 60 80 100
20. Employment by Organization
canadian hydrogen and fuel cell sector profile 2009
8
Photo: Enbridge Gas Distribution and Fuel Cell Energy | Direct Fuel Cell-Energy Recover Generation Power Plant in Toronto, Ontario
Corporate
Academia and
86%
non-profit
16. Demonstration Academia
4%
Corporate
andProjects by Region 86% (Number of Project
non-profit
Government 4%
10%
British Government Columbia 7 23 6
10%
Ontario 4
24 2
Europe
Rest of Canada
USA
Other
6
6
10
6 6
21. Funding Allocation by Area - Gov’t & Academia & Non
0 5 10 15 20 25 30 35 40 45
21. Funding Allocation by Area - Gov’t & Academia & Non
Corporate Government Academia and non-profit
Monitoring
Policy and reporting
development
Monitoring
1%
Policy
2%
R&D
and reporting Intramural
Marketing development
and
1%
R&D
38%
business development 2%
Intramural
Marketing
2%
and
38%
business Education, development
safety and 2% training 28. Growth since 2001
Education,
4%
safety 300 and Demonstration
training
4% and pilot projects
290
Demonstration
18%
276
R&D
250and pilot projects
In-house
18%
237 R&D
35%
In-house
200
218
35%
211 195
188
179
177
150
168
22. Sources of Funding - Corporate
134
133
135 133

development USA
2% 5%
Marketing and Other
business development 6%
2%
Quebec
Education, 7%
safety and training
Funding Requirements
4%
Demonstration
Ontario
and pilot projects11%
18%
and reporting
1%
65%
R&D
Intramural
38%
R&D
In-house
35%
4%
Marketing and
business developmentUSA
2% 5%
Education, Other
safety and training6%
4%
Demonstration Quebec
and pilot projects 7%
18%
Ontario
11%
2%
Intramural
British 38% Columbia
65%
R&D
In-house
35%
20. Employment by Organization
22. Sources of Funding - Corporate
Continued education of governments and the public on the benefits of investing in
Corporate
the hydrogen and fuel cell industry is an important Academia part and of the industry’s efforts
86%
to
secure funding. Given the industry’s long development
non-profit
Operations
period and demanding RD&D
Other 4%
48%
requirements, adequate financing is necessary to bring 10% commercial products to
market.
For both government and academia and non-profit organizations funding was
allocated primarily to the areas of R&D intramural (38%), in-house R&D (35%), and
Government
demonstration and pilot projects (18%). British Columbia 25% received 57% of the funding
allocation, 28% went to Ontario, and the remaining 15% to Quebec, Private Alberta, equity Prince
Edward Island, and Saskatchewan.
17%
Corporate
Corporate participants report the top three
sources of funding for 2008 from operations
(48%), government (25%) and private equity
(17%). The financial requirements for the
next five years are estimated to be $271
million with funding expected to come from
private equity (73%), operations (16%), and
government (7%).
Government
The total budget for hydrogen and fuel cell
related activities reported for 2008, for
which government was directly responsible,
(including employee salaries and benefits) was
$26 million. Programs contributed 51% of
funding requirements with A-base operations
contributing 42%. Details of the ‘other’
category were not provided.
Academia and Non-Profit
The total budget for hydrogen and fuel cell
related activities reported for 2008, for
which academia and non-profit was directly
responsible, (including employee salaries
and benefits) was $15 million. The top three
sources of funding for 2008 were from the
National Science and Engineering Research
Council of Canada (NSERC)/Canadian
Foundation for Innovation (30%), other
federal funding, (27%), and departmental
budget allocation (22%).
Government
10%
22. Sources of Funding - Corporate
20. Employment by Organization
Other
10%
Academia and
non-profit
4%
Government
10%
Government
25%
Other
4% Other
10%
Other federal Private investor/donation
government funding 6%
27%
Provincial
government funding
Government
11%
25%
Allocated through
departmental budget
Private 22% equity
17%
Operations
48%
Corporate
86%
21. Funding Allocation by Area - Gov’t & Academia & Non-profit 23. Sources of Funding - Government
Funding Allocation by Area –
23. Sources
Sources
of
of
Funding
Funding
-
–
Government
21. Funding Government Allocation & by Academia Area - Gov’t & Non-profit & Academia & Non-prof
Government
Monitoring
Policy and reporting
Other
development 1%
7% Monitoring
Policy
Programs
2%
R&D
and reporting
Other
Intramural
development
51%
1%
Marketing and 7%
Programs 38%
2%
R&D
business development
51%
Intramural
2%
Marketing and
38%
business development A-Base
Education,
2% 42%
safety and training A-Base
4%
Education,
42%
safety and training
4%
Demonstration
and pilot projects
18%
NSERC/Canadian
Foundation for Innovation
Other 30%
10%
Other
4%
Private investor/donation
6%
Government
25%
Provincial
government funding
11%
Other
5%
Automotive A-Base
OEM 42%
9%
Other OEM
14%
Private equity
17%
Allocated through
departmental budget
22%
23. Sources of Funding - Government
25. Strategic Alliances
Public-private partnerships Programs
28% 51%
Energy providers
22%
Demonstration
and pilot projects
18%
Private equity
17%
R&D
In-house
35%
Sources of Funding –
24. Sources of Funding – Academic and Non-Profit
22. Sources
Sources
of Funding
of Funding
- Corporate
–
Academia and Non-Profit
24. Sources of Corporate Funding – Academic and Non-Profit 22. Sources NSERC/Canadian of Funding - Corporate
Foundation for Innovation
30%
Other
7%
R&D
In-house
35%
Operations
48%
25. Strategic Alliances
Operations
48% Other federal
government funding
27%
23. Sources of Funding - Government
Public-private partnerships
28%
Other
5% Other
7%
Programs
Automotive
51%
OEM
Energy providers
9%
22%
A-Base
42%
Other OEM
14%
Hydrogen and
fuel cell companies
22%
Hydrogen and
fuel cell companies
22%
9
24. Sources of Funding – Academic and Non-Profit 27. Profile participation rate
24. Sources of Funding – Academic and Non-Profit
canadian hydrogen and fuel cell sector profile 2009

23. Sources of Funding - Government
Other
Strategic Alliances
7%
Programs
51%
Research Partnerships
A-Base
42%
In 2008, respondents reported 79 strategic partnerships
and alliances, demonstrating the value and importance of
relationships and partnerships to the industry. There were 77
strategic 24. alliances Sources reported of Funding by – participants Academic and in 2007. Non-Profit
Public/private partnerships NSERC/Canadian represented 28% of strategic
Foundation for Innovation
partnerships. Energy 30% providers and hydrogen and fuel cell
companies each made up 22% of partnerships. Other original
equipment manufacturer Other (OEM) accounted Other federal for 14%, while
4%
automotive OEM made up 9% of partnerships.
Private investor/donation
6%
government funding
27%
Research partnerships promote closer collaboration between
the university research community and other sectors, including
government and Canadian industry. There were 124 research
partnerships reported in 2008. Partnerships with industry
in Canada represented nearly a third (31%) of all research
partnerships. Partnerships with academia/non-profit/associations
represents 28% of total research partnerships.
The number of research partnerships signifies the necessity
of pre-commercial collaboration in order to address common
technical challenges.
Provincial
government funding
11%
Allocated through
departmental budget
22%
The chart below illustrates the many varied types of partnerships
and collaboration in the hydrogen and fuel cell sector within
Canada and outside the country.
25. Strategic Alliances
Other
5%
Automotive
OEM
9%
Other OEM
14%
Public-private partnerships
28%
Hydrogen and
fuel cell companies
22%
Energy providers
22%
27. Profile participation rate
Research Partnerships (Number of Partnerships)
Total
In partnership with industry in Canada 39
In partnership with Canadian academia/
non-profit/associations 35
In partnership with industry outside of Canada 18
In partnership with foreign government 16
In partnership with Canadian governments
(federal, provincial/territorial and municipal) 14
Other 2
Total 124
canadian hydrogen and fuel cell sector profile 2009
Declined
7%
No reply
44%
Completed survey
49%
10

Methodology and Response Rates
The 2009 Sector Profile is the sixth
annual publication of information on
the Canadian Hydrogen and Fuel Cell
Industry. As in previous years, existing and
potential members of Canadian Hydrogen
and Fuel Cell Association, academic
institutions, government stakeholders
and partners in current hydrogen and
fuel cell demonstration activities were
asked to voluntarily complete a survey
questionnaire.
While the survey questionnaire has
remained substantially consistent from
the survey’s inception, each year the
organizers have refined the questions
to gather more detailed information
to better reflect the industry and its
trends. Since the 2007 survey, sections
relating to RD&D and funding, specific
questions were asked for three types of
stakeholders:
3 Corporate (public and private
organizations);
3 Government (government and
government agencies); and
3 Academia and non-profit (educational
organizations, non-profit, and nongovernmental
organizations (NGO).
In the 2008 study, the organization profile
questions were restructured to better
align with the Worldwide Fuel Cell Survey
and additional data was requested on
funding requirements.
A total of 92 organizations associated
with hydrogen and fuel cells in Canada
were invited to participate in the
development of this sector profile.
Forty-seven completed responses were
received, representing an overall response
rate of 49%. A participant list is included
at the end of this report.
Not all respondents provided information
for every category requested. No
investigation was conducted as to the
completeness of the data provided by
respondents or reasons for non-provision.
All monetary results are presented in
Canadian dollars.
Presentation of Data
Figures presented for 2008 were collected
by an online questionnaire in 2010. Figures
presented for 2007 are as reported in the
2008 Sector Profile and, therefore, may
not be fully comparable due to differing
respondents and/or basis of individual
responses.
Photo: Ford fuel cell vehicle | BC Hydrogen Highway
canadian hydrogen and fuel cell sector profile 2009
11

12. Sources of Funding for R&D Expenditure by Organization
Conclusion
In 2008, the Canadian hydrogen and fuel cell sector
reported:
3 revenue of $195 million in 2008 with Germany
representing the largest revenue region,
3 continued commitment to RD&D with $142
million of expenditure,
3 employment at 1,556,
3 a steady number of demonstration projects
(103) since 2007 and a substantial decline in
expenditure in demonstration projects ($13
million),
Corporate operations
Parent, affiliated
or subsidiary
Canadian government
(all levels)
Foreign government
The Government of Canada, 9% the Canadian
Other
1%
Hydrogen and Fuel Cell Association and
0% 20% 40% 60% 80% 100%
PricewaterhouseCoopers
Corporatewould Government
like to thank
Academic and
non-profit
the organizations that took part in this survey. By
participating, stakeholders from private industry,
government and academia showed their support
for improving publicly available industry intelligence.
This information will be used to support funding
decisions, 16. Demonstration influence Projects alliance by partnerships, Region (Number and of Projects)
strengthen the overall competitive position of the
Canadian hydrogen and fuel cell industry.
British Columbia
Ontario
Europe
4
3%
1%
7 23
10
41%
52%
0 20 40 60 80 100
24 2
6
100%
94%
3 a consistent number of strategic alliances
(79) and fewer research partnerships (124)
compared to prior years,
3 hydrogen and fuel cell related facilities and
activity, RD&D expenditure and employment
were largely concentrated in British Columbia.
Rest of Canada
USA
Other
6 6
6
6
0 5 10 15 20 25 30 35 40 45
Corporate
Government
Academia and non-profit
canadian hydrogen and fuel cell sector profile 2009
Sector Profile Summary
An initial sector profile, The Economic Impact of
Industrial Hydrogen Activity in Canada, conducted
by Sypher Mueller and Natural Resources Canada
in 2001, provided the first glimpse into the sector’s
early days. Subsequent Government of Canada,
Canadian Hydrogen and Fuel Cell Association and
PricewaterhouseCoopers Sector Profiles have
updated the original industry benchmark study
to demonstrate an active hydrogen and fuel cell
sector within Canada. Although some data may not
be fully comparable due to differing methodology,
the chart provides a view of the industry over the
eight year period. The results for 2008 suggest that
like many, the sector is experiencing the challenges
of the economic downturn and credit crisis.
3 Revenue has grown 101% – from $97 million in
2001 to $195 million in 2008,
3 R&D expenditures have decreased by 29% from
$179 million in 2001 to $128 million in 2008.
Adding demonstration expenditure brings the
RD&D total of $142 million,
3 Employment in the industry has decreased by
12% from 1,772 in 2001 to 1,556 in 2008.
$ Millions
28. Growth since 2001
300
290
276
250
237
200
188
179
150
134
133
100
218
211 195
177
168
135 133
128
97
50
$ 0
2001 2002 2003 2004 2005 2006 2007 2008
Revenue R&D Employees
Sector Profile Summary
3,000
2,500
2,000
1,500
1,000
500
0
Employment
12

Canadian Hydrogen and Fuel Cell
Association (CHFCA)
Industry Canada
PricewaterhouseCoopers
The Canadian Hydrogen and Fuel Cell
Association (CHFCA) is the national
association accelerating Canada's worldrecognized
hydrogen and fuel cell sector. As
the sector’s collective voice, the CHFCA
works to raise awareness of the economic,
environmental and social benefits of
hydrogen and fuel cells. We are a national,
non-profit association providing services
and support to Canadian corporations,
governments and educational institutions
promoting, developing, demonstrating and
deploying hydrogen and fuel cell products
and services in Canada.
Our members cover most types of hydrogen
and fuel cell technologies, components,
systems supply and integration, fuelling
systems, fuel storage, and engineering and
financial services.
Industry Canada's goal is to enhance the
competitiveness of Canadian industry. The
organization is responsible for maintaining
channels of communication with key sectors
to facilitate informed advocacy of industry
interests in government decision-making
and to convey the government perspective
back to industry; analyzing the challenges
and opportunities that face key sectors in
the economy; developing policy options
for possible government response to
extraordinary challenges and opportunities;
and delivering the subsequent program
and services.
PricewaterhouseCoopers understands and
supports the fuel cell industry in Canada
and around the world. Our Alternative
Energy network of professional staff drawn
from over 163,000 people in over 151
countries has a firm grasp of the issues
facing companies in the industry as it
evolves towards commercialization. We are
continually expanding our knowledge and
client base with the goal of being the preeminent
advisor to the industry in local,
national and global markets.
The CHFCA was formed in January of
2009 as a result of a merger between the
Canadian Hydrogen Association (CHA) and
Hydrogen & Fuel Cells Canada (H2FCC).
The merger unites the members of the
former associations to create a vibrant,
influential association that represents the
majority of the stakeholders in Canada’s
hydrogen and fuel cell sector.
For more information on the Canadian hydrogen
and fuel cell sector profile please contact:
John Tak
President and CEO,
Canadian Hydrogen and
Fuel Cell Association
1 604 822 8061
jtak@chfca.ca
Eric Barker
Senior Advisor, Clean Energies
Energy Industries Division
Resource Processing Industries
Branch, Industry Canada
1 604 666 1426
eric.barker@ic.gc.ca
John Webster
Partner, Clean Tech and
Renewable Energy,
PricewaterhouseCoopers LLP
1 604 806 7726
john.webster@ca.pwc.com
Alastair Nimmons
Director, Energy & Utilities,
PricewaterhouseCoopers LLP
1 604 806 7620
alastair.nimmons@ca.pwc.com
canadian hydrogen and fuel cell sector profile 2009
13

2009 Participants
Air Liquide Canada
Angstrom Power Inc.
Atlantic Hydrogen Inc.
Automotive Fuel Cell Cooperation
Ballard Power Systems Inc.
Bereskin & Parr LLP
Canadian Hydrogen and Fuel Cell Association
CERC Clean Energy Research Centre
Dantherm Power A/S
Department of National Defense
DMA Technical Services Inc.
dPoint Technologies Inc.
Enbridge Gas Distribution
Four Stones Ltd.
Government of BC, Ministry of Small Business,
Technology, and Economic Development
Greenlight Innovation
HRH Consulting Services Inc.
HTEC Hydrogen Technology & Energy Corp.
Hydrogen Research Institute
Hydrogenics Corporation
Hyteon Inc.
Industry Canada – Industrial Technologies
Office
(formerly TPC h2EA and TPC R&D)
Industry Canada – Resource Processing
Industries Branch
Kraus Global Inc.
Ku Group
Membrane Reactor Technologies Ltd.
National Research Council Canada
Natural Resources Canada, CANMET Energy
Natural Sciences and Engineering Research
Council of Canada
NORAM Engineering & Constructors Ltd.
Government of Ontario
Palcan Energy Corporation
Plug Power Canada
Powertech Labs Inc.
Sacré-Davey Engineering
Sarnia-Lambton Economic Partnership
Tekion Inc.
TISEC Inc.
University of Calgary
University of Ontario Institute of Technology
University of Toronto, Mechanical & Industrial
Engineering Department
University of Toronto, Mississauga
Versa Power Systems
Western Economic Diversification Canada
Xebec Adsorption Inc. (merger of Xebec
Adsoprtion Inc. and QuestAir Technologies Inc.)