Kenta IidaDirector

Hydrogen and Fuel Cell Promotion Office,Energy Conservation and Renewable Energy Department

Agency for Natural Resources and Energy

Trends of Hydrogen and Fuel Cell Efforts by the Japanese Government

February 28, 2011

Contents

1.Policy Trends2.Stationary Fuel Cell Systems 3.Fuel Cell Vehicles and Hydrogen Stations4. Demonstration Project on Hydrogen Utilization

Systems in Society

1

1. Policy Trends2. Stationary Fuel Cell Systems3. Fuel Cell Vehicles and Hydrogen Stations4. Demonstration Project on Hydrogen Utilization

Systems in Society

2

Promote the review in an integrated manner with new growth strategyShow concrete measures and set the numerical goal

○Ensure the security of energy of the nation, stepping-up policies regarding global warming and the efficient supply of energy of the Basic Energy Plan.

○Realize economical growth in the environmental energy field as well as revise the structure of the energy industry

○Revise the energy supply-demand structure drastically towards 2030

Revision of the Strategic Energy Plan of JapanThe Strategic Energy Plan shows the fundamental orientation of the Basic Act on Energy Policy based on the energy laws of Japan.Under the present law, the act is reviewed every three years. After the basic draft was introduced in 2003, the regulations were revised in 2007. The second revision was approved on June 18, 2010 by the Japanese cabinet.

Basic viewpoint Economical Growth

Solve global warming issues

Ensure efficiency

Energy Plan

Ensure energy stable supply

Change of social system and industrial structure

Ensure safety and civil understanding

3

○Double the energy self-sufficiency rate as well as self-development rate of fossil fuelImprove the voluntary energy rate from 38% (*) to around 70%*Taking into account the independently developed assets in addition to existing self-sufficient energy (domestic + nuclear energy)

○Increase Zero-Emission Power rate from 34% to around 70%○Halve CO2 in daily life (Household)○Maintain and enhance the world’s top-level energy usage efficiency in the industrial field○Domestic companies will attain top-class share of energy products in the international market

Numerical Goals set in the Strategic Energy Plan (2030)

①Ensure energy to protect the nation②Realize low-carbon economical growth that can serve as the model of the world③Implement reforms in daily life which can be experienced by the people④Realize contribution to CO2 reduction in the world and call for investments in our country simultaneously

○Reduce energy-originated CO2 by 30% more compared to the levels in1990 in 2030, byrigorously driving the agenda of this plan

○Such a goal is extremely ambitious, as it equals half of the reductions targeted, which is an improvement of 80% compared to1990 in 2050

4

Specific Efforts for Meeting Targets (Supply side)

・Enhance bilateral relationship with nation-wide approach that the government and relevant institutions have unified in the field of resource diplomacy at the summit and ministerial level・Enhance supply support of risk money (JOGMEC, ODA, Policy Finance, Trade Insurance, etc)・Target more than 50% of self-sufficient rate of rare metal (Strategic Rare Metal) which needs strategic approach for stable supply, and more than 80% of Base Metal・Enhance our resource exploration and development in the adjacent sea. Secure interest in the Exclusive Economic Zone and develop institutions in order to execute applicable rights.・Increase the rapid reaction capacities

○Expand use of renewable energy・Construct fixed priced buy-back program (Enhance buy-back items from solar power to wind power, small hydropower, geothermal power, and biomass power generation)・Enforce Install Support Measures (Introductions study, lowering initial costs, measures of dissemination enhancement that increase installment incentives) ・Implement stabilization measures, technical development and demonstration projects, review and ease regulations (review based on discussions by the Government Revitalization Unit)○Promote nuclear power generation・9 newly added plants (rate of utilization : approx. 85%) by 2020 and more than 14 newly added plants (rate of utilization : approx. 90%) by 2030. ・Fulfill the scientific and legitimate safety regulation applying the latest knowledge.・Promote mutual understanding with local residents and regional promotion. Further reform of grants for location electric power plants (review the re-examination of inclined distribution to power energy)・Early establishment of atomic fuel cycle and enhance on approach to high level waste disposal・International contribution of nonproliferation and nuclear safety・Unified approach towards International deployment of nuclear industry (systematic exportation including construction, operation and management, fuel delivery, development of legal systems, and nurturing of human resources, and establishing new companies)○High-degree application of fossil fuel・Newly built plants and renewals of coal fired power restrain discharge amount of CO2 of IGCC basis.・Further renew the world’s best standards of coal fired power technology・Accelerate the technical development in order to commercialize the CCS at 2020.・Future coal-fired power plants will install CCS Ready and will consider the installment of CCS to the coal-fired power by 2030○Enhance supply system of electrical power and gas・Construct world’s leading edge next generation energy transmission and distribution network that enable interactive communication between the entire power and consumers by early 2020.・Double wholesaling of electricity deals within three years

Comprehensive approach for securing resources and stable supply enhancement

Realization of energy supply structure harmonious with self-sustaining environmentally friendly energy

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Realize the new energy society

Implement the development of revolutionary energy technologies, expansion of dissemination, and International development

Realization of energy demand structure enabling low carbon growth

・Adjust overseas deployment support structure which is formed with public and private entities・Construct a new mechanism that can appropriately evaluate contribution to the International greenhouse gas mitigation.

○Industrial Sector・Maintain and enhance the world’s highest level of energy-saving by cutting-edge technical installment at the facilities renewal・Enhance the management of energy-saving regulation, promote the natural gas usage and practical use of revolutionary technique (environment-consciousiron manufacture process, revolutionary cement manufacture process, etc)○Domestic Sector・Realize ZEH (Zero Energy House) as a standard of new residential housing by 2020 and as an average of all new housings by 2030.・Mandatory adaptation of Energy-saving Basis, utilize high-efficient home electronics or solar power, nation’s mentality change by spread of smart meter and resolve of life style・Spread the high-efficiency water heater for domestic use to the most households excluding single-person households by 2020 and 80 to 90% of the nation’s entire households by 2030・Spread the high-efficiency lightings (LED) 100% in flow by 2020 and 100% in stock by 2030○Business Sector・Realize ZEB (Zero Energy Building) for newly built public building by 2020 and as an average of all new buildings by 2030.・Install Labeling Institution which evaluate energy-saving capability of buildings・Formulate new Energy-Saving Basis that integrate energy consumption volume of the entire buildings by 2011・Realize energy-saving IT devices (router, storage, and server) by 2015 and disseminate 100% by 2020.○Transportation Sector・Realize the ratio of next generation vehicles up to maximum 50% of the new cars sales by 2020 and maximum 70% by 2030.・Install 2 million ordinal battery charger and 5000 rapid battery charger by 2020.・Formulate Auto Fuel Economy Basis by 2020○Cross-sectional Approach・Optimization of energy use at the level of cities and city blocks

・Launch demonstration projects which construct next generation energy and social system. Install smart meter to basically entire consumers by early 2020.・Intensive input of relevant measures by unified ministries concerned, towards technical establishment of regional energy management system・Specific-district-approach including the re-examining the regulation・Promote Internationally expanding strategy, deepening the road map, strategic standardization to develop smart community into business・Support infrastructure of hydrogen supply such as hydrogen stations in order to disseminate fuel cell vehicles from 2015.

・Accelerate revolutionary technology development and formulate new energy revolutionary technology road map

Specific Efforts for Meeting Targets (Demand side)

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○ Support the installment as well as implement the technology development to reduce cost of fuel cell (stationary / automobile) including basic parts such as mechanism elucidation of fuel cell , cutting down the usage of Platinum and manufacturing, transportation and storage of hydrogen.

○ Implement the system development that corresponds to component constitution of each country’s fuel in order to promote the international deployment of stationary fuel cell systems, as well as implement the research and development for the fuel cell credibility and endurance, the improvement of tank storage capability for the fuel cell vehicles.

○ It is necessary to reduce drastically the maintenance cost *of supplied infrastructure of hydrogen stations for fuel cell vehicles. Hence, to accommodate the design basis of pressure container set in the High Pressure Gas Safety Act and regulate the constraint of enabled steel stock is the challenge. Based on the international trends and in order to solve the problem, we will evaluate the safety based on data and implement the technology development.

* Currently , on the commercial basis each station costs approximately between 1 Billion JPY (700 atmospheric pressure) – 500 Million JPY (350 atmospheric pressure)

○ A technical and social demonstration for fuel cell vehicles (including large automobile such as busses) , demonstrate the largely produced hydrogen transportation, storage and refueling. Enhance the demonstrated efforts including supplied infrastructure by cooperating and liaising with private enterprises in the local area of Japan, United States and Europe in order to start the installment of fuel cell vehicles in 2015.

○ Construct social system utilizing hydrogen energy which emits no CO2 at the application level for mid and long term

○ Utilize hydrogen derived from fossil energy for the moment and operate efficient use of fossil fuel as well as utilize the residual hydrogen from iron manufacturers. In the future, we aim to establish hydrogen manufacturing technique that emits no CO2 by combining hydrogen derived from fossil energy and CCS and implement the development and utilization of hydrogen derivative of non-fossil energy.

○ Expand the market of domestic use fuel cell that was realized in the run up to the rest of the world, as well as promoting the utilization of dispersed power system or the deployment to the large scale demand such as business use. Also implement support of supplied infrastructure such as hydrogen stations to support dissemination of fuel cell vehicles 2015.

○ Adjust the domestic spread of fuel cell as well as aggressive international deployment including international standardization.

Goal

Specific Efforts

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The Strategic Energy Plan (Realizing Hydrogen Energy Society) *Excerption

“Realizing Hydrogen Energy Society” is given to realize new energy society

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1. Policy Trends2. Stationary Fuel Cell Systems3. Fuel Cell Vehicles and Hydrogen Stations4. Demonstration Project on Hydrogen Utilization

Systems in Society

“ENE-FARM”The unified logo for Residential

Fuel Cells

Removes hydrogen from fuel (urban gas, LPG, kerosene).

Generates electricity and produces boiling water by he chemical reaction between hydrogen and oxygen in the air.

燃料電池

Stationary Fuel Cell Systems

Released in May 2009 ahead of the rest of the world

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［Stationary Fuel Cell Systems ］

Large-scale demonstration

Market scale (Units)

System price (per unit)

Introduction stage

Full commercialization

Large-scale demonstration

Creation of market through

policy-based support

Construction of independent market

2020～2030400000 yen

3～3.5 million yen

8 million yen

2015500000～

700000 yen

Commercialization Scenario of Stationary Fuel Cell Systems

2005 2009 2020

500 units

Approx. 5000 units

Current Status of Stationary Fuel Cell Systemsand Commercialization Scenario

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●For stationary fuel cell systems (ENE-FARM ), sales started from May 2009 ahead of the rest of the world.

●The target sales for 2030 in the long-term demand/supply prospects (May 2008 General Resource Energy Survey Committee/Supply and Demand Sub-Committee) is 2500000 units.

●A subsidiary system will be established to promote dissemination and realize independence as soon as possible (upper limit of subsidy per unit in 2010 was 1.3 million yen.)

●The price of ENE-FARM system is about 500000 to 700000 yen in 2015 as a result of mass production .

Situation of Residential Fuel Cells for Public Use (2009 to 2010)

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Figures are sum of top and bottomTop (red): Units applying for subsidy in 2010（※）Bottom (Blue)：No. of units subsidized in 2009※As of December 27, 2010

※Graph data is taken from ?Fuel Cell Dissemination Promotion Council homepage

No. of units subsidized in 2009 and no. of units applying for subsidy in 2010 (total 9814 units) As of December 27, 2010

（台）

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1. Policy Trends2. Stationary Fuel Cell Systems3. Fuel Cell Vehicles and Hydrogen Stations4. Demonstration Project on Hydrogen Utilization

Systems in Society

・Implement actions to deal with global environment problems and resource limitations (reduction of greenhouse gases, diversification of fuel, etc.)

・Intensification of global competition surrounding next generation vehicles.・The automobile and related industries in Japan help boost the economy and

employment in the country. They need to continue playing this role.

Objective and Background of Measure

National strategy on the sharing of awareness of tasks related to technical development and infrastructure, and ideal mid and long term approaches for this in the automobile and related industries and whole society.Devised on April 2010.

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Next generation vehicle strategy 2010

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○With the progress of global warming measures at the international level in the future, the power train applied in each market will change extensively.

○The key to reinforcing industrial competitiveness lies in maintaining and strengthening the present comparative superiority of Japan’s automobile industry while establishing R&D infrastructures in the country.

Driving range

Vehicle size

Large

Long

EVs

Commuter inside/ near distance area

HVs and PHVsFCVs

Clean diesel car area

Electricity Gasoline, diesel oil, CNG, LPG, bio-fuel, synthetic fuel, etc. HydrogenFuel

（Market introduction stage）

（Full-scale dissemination stage/Market introduction stage）

（R&D stage）

＜Conceptual illustration of compartmentalization by model＞

Future Prospects of Next Generation Vehicles ～Compartmentalization by Model～

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Fuel Cell Commercialization Conference of Japan (FCCJ）

○Established：March 19, 2001 ○Objective：Aim to contribute to the progress of the fuel cell industry in Japan by reorganizing tasks and proposing policies to disseminate and practically apply fuel cells in Japan.○Activities：（1） Propose policies to the government（2） Survey and research（3）Provide information, promote interchange○Members：

114 companies, groups, individuals（As of January 2011）○Other：

METI is an observer

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Current Status of Fuel Cell Vehicles (FCVs) and Commercialization Scenario

For fuel cell vehicles, efforts are being made to realize low costs, reliability, and durability, and on-road demonstration tests are currently being implemented. In July 2008, FCCJ developed a commercialization scenario of FCVs and hydrogen stations, and declared the introduction of FCVs from 2015.In the independence and expansion stage in 2025, it is projected that there will be about 2 million FCVs and 1000 hydrogen stations.

Source: FCCJ

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Extraction of tasks in realizing hydrogen energy society and fostering public understanding

Common themes○Promote PR and educational activities

Hold and participate in various eventsJHFC Park tourEnhance media such as homepage

○Draw up long term PR and educational strategies

Make proposals on school education and social education

Demonstration research on hydrogen infrastructure, etc.

Demonstration research on FCVs

～Hydrogen supply～

Kasumigaseki station

World’s first fuel cell limousine

Kansai○Urban stations, simple hydrogen supply facilities (satellite stations)

Verification of hydrogen supply to diverse systems, verification of future visions○Verification of emergency facilities

Emergency power using fuel cells○Verification of new hydrogen uses and fuel cell systems

Verification of wheelchair, automobiles (Hydrogen Storage）

Monitor tests through cooperation of general users, etc.

Metropolitan Tokyo○Demonstration drive tests envisioning dissemination

Fuel cell vehicle fleet drive by third partyDemonstration of driving under commercial use

conditions such as delivery operations, etc.○?Hydrogen stations using diverse materials and manufacturing methods

Improvement of safety, reliability, and performance of various stations, and verification of future visions○Verification of 70MPa hydrogen supply system

Establishment and operations of 70MPa refueling facilities

70MPa FCV on-road driving

Chubu area○Demonstration trial drives envisioning dissemination

（Jointly with Ministry of land, Infrastructure, and Transport)

Verification of fuel cell busOperation of route and ramp buses in Chubu

International Airport○Improvement of urban gas and offsite hybrid hydrogen stations

Verifications related to mass supply of hydrogen, verification of future visions

Japan Hydrogen & Fuel Cell Demonstration Project （JHFC）

Hydrogen station; 14 locations（9 in Tokyo, 1 in Chubu area, 2 in Kansai area, and 2 in Fukuoka ）

FCVs participating in demonstration; About 60

METI

NEDO

■OutlineTo demonstrate that FCVs are capable of practical and long-distance drive, drove for 1.100 km between Tokyo and

Kita-Kyushu with two hydrogen refuels (in Tokai-shi of Aichi Prefecture, Hayajima-shi in Okayama Prefecture).

The departure ceremony was held in the presence of deputy ministers Matsushita and Masuko in the starting line in Tokyo Kasumigaseki.

Arrived in the Kita-Kyushu Hydrogen Station in the next evening.

■Related events・Prevents10 (Tuesday)：Opening ceremony at Nikko Station

(Participated by mayor Fumio Saito)

・Long-distance drive demonstration11(Wednesday)：Departing ceremony in garden of METI

Aichi Prefecture courtesy call (Participated by Inagaki deputy governor), arrived in Osaka

12(Thursday)：Osaka office courtesy call (Participated by Kimura vice-governor Kimura)

Kita-Kyushu station “Goal”

・Post events13(Friday)：Media coverage

(Kita-Kyushu station⇒Kyushu University station)Completed driving ＠Kyushu University

(Participated by governor Aso, director Kittaka of Kyushu Economic Agency）

NissanX-TRAIL FCV

ToyotaFCHV-adv

HondaFCX-CLARITY

○Vehicles participating in drive demonstrations

Demonstration of Durability and Reliability Through JHFC Long-Distance Drive

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Chubu area

Kansai

1)Centrair(2006/7)

Nikko

Metropolitan Tokyo

Kyushu

1) Nikko (Sept. 2009)

1) Kita-Kyushu University (Sept. 2009)2) Kita-Kyushu (Sept. 2009)

1) （ ） shows year operations started2) are JHFC-sponsored stations.

1)Yokohama, Daikoku (Mar. 2003, 70MPa:Dec. 2008))2)Yokohama, Asahi (Apr. 2003,70MPa:Feb 2009)3)Senju(May 2003,70MPa:Sept. 2008)4)Kawasaki(Aug. 2003)

*Demonstrations to end in Mar. 20115)Sagamihara(Apr. 2004)

*Demonstrations to end Nov. 20106)Kasumigaseki (Dec. 2002,70MPa:Feb. 2009)7)Funabashi(Jun. 2007)

* Demonstrations to end Dec. 20108)Ariake(May 2003)9)Haneda(Dec.2010)10)Narita

(To start operating from Feb. 2011)11)Suginami(Feb. 2010) Es

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Hydrogen Stations Operating in JHFC and Hydrogen Highways Project

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Announcement of Developments related to FCVs during Toyota Environment Technology Press Conference

Announced Toyota’s future plans for environment technologies (November 18, 2010)

・ Develop sedan type fuel cell hybrid vehicles (FCHVs), and release them in areas with hydrogen supply infrastructures in Japan, U.S., and Europe.

・ At this point, prices in Japan are expected to be less than 10 million yen. However, efforts will be made to further reduce costs to realize prices that are reasonable to customers in preparation for market release.

Source：TOYOTA homepage

TOYOTA Vice President UchiyamadaDuring Toyota Environment Technology Press Conference

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Joint Declaration on Domestic Market Release of FCVs and Establishment of Hydrogen Supply Infrastructure

Three automobile manufacturers and 10 energy companies have announced a joint statement on releasing FCVs on the market from 2015.(January 13, 2011).

The statement declares that in 2015 when market release of FCVs will start on a full-scale, automobile companies will start selling mass produced FCVs (*), and prior to this, energy companies will aim to establish the first hydrogen stations of the required scale according to the prospects on the number of mass produced FCVs that will be sold (about 100 locations), centering around the four major cities Tokyo, Aichi, Osaka, and Fukuoka.

※Mass produced cars are generally cars which can be sold according to user needs by establishing quality assurance and after-care service systems. It is expected that when FCVs are first released, they will sell about a thousand to several thousand vehicles should the trends be the same as the initial sales performance of next generation cars sold until now, although it will also depend on the progress of technology development in the future and market trends.

Joint statement

＜13 companies＞Automobile manufacturers：Toyota, Nissan, HondaPetroleum companies：JX Nikko Nisseki Energy, Idemitsu Kosan, Showa Shell, CosmoCity gas companies：Tokyo Gas, Osaka Gas, Toho Gas, Seibu GasIndustrial gas companies：Iwatani Sangyo, Taiyo Nissan

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Review of Building of Leading Hydrogen Stations

＜Concept of the building of leading hydrogen stations＞• Built leading hydrogen stations in four major cities prior to the start of FCV sales in 2015• Concentrate the hydrogen stations in areas concentrated with potential FCV customers.• Also built STs on highways linking the four major cities, to enable travel between the cities• Ensure user-friendliness in the above areas concentrated with hydrogen stations, to create

initial demands from potential FCV customers.

13 companies in the private sector (automobile, infrastructure) have started reviewing strategies

to create initial demands in four major cities

Discussions started in meetings and reviews run by local governments and municipals are the

Secretariat in Kansai, Chukyo, and Fukuoka.

Source: JX Nikko Nisseki Energy 22

Built on highways

Total about 100 locations

Concentrated in four major cities

As of January 2011

地域水素供給インフラ技術・社会実証

Objective of study Outline of study○R&D tasks (Technical tasks for achieving objectives）

R&D Item A Technological and social demonstrationsCarry out demonstrations of technologies required for starting dissemination to general

users in 2015 in cities playing a core role in the initial stage of dissemination (Tokyo area,Nagoya, Osaka).

R&D Item B Regional demonstration researchCarry out technological demonstrations mainly in regions around major cities, using

their infrastructure, resource, and technologies.R&D Item C Regional cooperation surveyCarry out surveys on potentials of implementing future hydrogen supply infrastructures

and locations in addition to areas around major cities.R&D Item D Joint International Research

Carry out joint international research on hydrogen supply infrastructures leading toepoch making low costs and enhanced reliability through information exchange based onNEDO-NOW’s MOU.

Aim to carry out technological demonstration on FCVsand hydrogen supply infrastructures under conditionsclose to actual use as well as social demonstrationverifying user-friendliness, business launchability, andsocial receptivity, etc. towards the start of disseminationof FCVs to general users in 2015.

Project scale

○R&D period2011 to 2016 ( 5 years)

Posit on technological strategy map

Positioned as important task in technological strategy map “Energy Field”.

Positioning of project

Survey on Locations which can Implement Future Hydrogen Supply Infrastructures （new as of 2011)

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Regional Hydrogen Supply Infrastructure Technological and Social Demonstrations

Regarding the construction costs of hydrogenstations, one station costs about 600 million yen inthe current situation. Therefore the aim is to reducethis to about 150 million yen in 2015.

Hydrogen prices are 110–150yen／Nm3でat present,but aiming at 40 yen/Nm3by 2030.

①Hydrogen’s molar weight is extremely small and can penetrate any material easily. Therefore, under a high pressure environment, when the hydrogen ingress one material, the material become brittle and hydrogen embrittlement occurs. In order to leverage hydrogen safely and in low cost, the breakthrough of basic principle such as hydrogen embrittlement.

②main assignment for hydrogen stations is to cut cost. Hydrogen currently costs 100 – 150 JPY per Nm3 and it is aimed to set to 40 JPY per Nm3

Characteristics of Hydrogen

The molar weight of hydrogen is very small and it is the lightest gas on earth

For this feature, it can penetrate any material including steel or rubber

Hydrogen EmbrittlementProcess of a material becoming brittle with hydrogen

ingress one material

Hydrogen tribologyPhenomenon in which materials wear out

by friction in hydrogen environments

By clarifying the basic principle of hydrogen, enable selection of materials which allow use of hydrogen

safely and at low costs.

Hydrogen Feature

Direction of resolving tasks• Construct low cost hydrogen station systems• Compact and low cost hydrogen station devices• Review of regulations resulting in high costs• Review of measures to disseminate hydrogen

stations in the future

Direction of resolving tasks

Tasks of hydrogen stations

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■ Regulation Reform ：“Review standards related to Fuel Cell Vehicles and Hydrogen Stations”

＜Basic Vision (Excerpt)＞・Adjust cost reduce by reviewing the current regulations meeting the technical progress based

on security for 2015 commercializing projects.・Adjust global harmonization as much as possible for regulations that has much severe

restrictions compared to the international standards, by showing clearer evidence and collecting established data.

・It is possible to warrant good safety by verifying it with scientific data. To verify the safety, both public and private entities should store knowledge together. In such situation, they should verify the possibility of using special zone institution.

＜Revised Policy＞・Draw up and notify the “Exemplified Basis” which shows specifications related to hydrogen

stations based on the revision of High Pressure Gas Safety Act of 2005 (Midterm measure of 2010)

・Give technical advise related to the permission of rational Hydrogen Store Basis, after the Exemplified Basis is set forth.

・Review regulations impeding commercializing projects for dissemination at 2015 and by confirming the technical progress and ensuring global harmonization, give advise to establish the performance that enables technical progress. Compose future specific schedule of the review after coordinating each relevant ministry (METI, MLIT, and FDMA) (Midterm measure of 2010)

Policy Reforms Related To The Regulatory System by The Government Reform Congress （Cabinet Decision, June 18, 2010）

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Composition of Regulation Review Related Operation Sheet for Dissemination of Fuel Cell Vehicles and Hydrogen Stations

■ObjectiveIn order to achieve a full-scale dissemination of fuel cell vehicles, a vast amount of consolidating cost cutting of hydrogen supply infrastructure such as hydrogen stations for fuel cell vehicles.To achieve the cost cutting, the correspondence to regulations restricting design basis of pressure container and usable steel stock defined in the High Pressure Gas Safety Act

In December 2010, together with MLIT and FDMA, METI announced the operation sheet consisting 16 items related to the regulation review for 2015 dissemination of fuel cell vehicles and hydrogen stations .

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③Maintain Technical Basis and Exemplified Basis compliant to 70MPa hydrogen stand

High Pressure Gas Safety Act

④Alleviate the distance regulation that facilitate of building CNG stands

⑤Formulate Safety Inspection Regulation to simplify process of safety inspection and assign at the Safety Inspection Announcement⑥Simplify the application of Technical Standards Adaptation for specific facilities and pluming of low design coefficient⑦Enhance of usable steal stock mentioned in Exemplified Basis⑧Revise the Exemplified Basis in order to raise the maximum refueling pressure (35MPa to 45MPa) of the compound vessels for compressed hydrogen vehicles

⑨Revise the Exemplified Basis of accessories to add thermal actuation safety valve (glass bulb) to the compound vessels for compressed hydrogen vehicles⑩Establish exception for stamping compound vessels and accessories for compressed hydrogen vehicles⑪Simplify the application of Technical Standards Adaptation of compound vessel usage for hydrogen stand accumulator⑫Establish alternative measures for barriers related to the distance between public roads and dispensers⑬Allow hydrogen refueling to those who are not permitted of high pressure gas manufacturing, set forth to realizing self-refueling hydrogen stands

⑭Clearly articulate the explosion protection zone basis related to hydrogen dispensers

⑮Ensure refueling stands to accommodate out of gas vehicles on public roads

⑯Change maximum refueling pressure for Full-refueling and revise Exemplified Basis (container related) Change maximum refueling pressure for Full-refueling and revise Exemplified Basis (general related)

16 Priority Issues For Policy ReformsIssue Regulation

①Increase of hydrogen holdings in the urban area Building Standard Law

②Rationalize regulations of fueling stations related to the setting of the hydrogen stations Fire Service Law

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Other cooperating organizations：

Automobile Society, JARI,JGA

Meetings(Secretariat：

Petroleum Federation)Reexamination

of regulations, etc.

METI NEDO projects

Nuclear Safety and Security Association (Security Department)

Ministry of Internal Affair and Communications, Fire Defense Agency,

Ministry of Land, Infrastructure, and Transportation

●Based on advise from the relevant authorities, acquire, analyze, and evaluate data for the concerned entities to review regulations in NEDO projects, and prepare draft of technical standards.●The Petroleum Federation reexamines the regulations and organizes meetings for all those related to the establishment of standards, and centrally controls implementation plans and progress （PDCA).

The actual work shall be led by the leader for each review item.

System for Reexamining Regulations

Leader of each review item（Petroleum Federation, JGA,

Japan Automobile Manufacturers Association)

・Work schedule (December 2010)・Carry out work according to schedule

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Before reexamination Construction costs above 600 million yen

Cost Reduction of Hydrogen Supply Infrastructure by Reexamining Regulations

Source：Petroleum Federation data 29

After reexamination

Cost Reduction of Hydrogen Supply Infrastructure by Reexamining Regulations

Construction costs below approx. 200 million yen

Source：Petroleum Federation data 30

31Source：JX Nikko Nisseki Energy

Comparison with Overseas Hydrogen Stations＜Washington DC Hydrogen Station＞

Schedule for Starting Introduction of FCVs in 2015

FCV普及開始

By 2012, reach a conclusion on the reexamination of principal regulations, andimplement technical development to enhance performance of dispensers andaccumulators, and reduce costs.

Towards starting introduction in 2015

From 2013, start building leading hydrogen stations reflecting the above results.

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1. Policy Trends2. Stationary Systems3. Fuel Cell Vehicles and Hydrogen Stations4. Demonstration Project on Hydrogen Utilization

Systems in Society

Demonstration Project on Hydrogen Utilization Systems in Society

Implement the demonstration of models on the efficient use of hydrogen and fuel cells in the whole region to build a hydrogen society.Verify the launchability of businesses such as hydrogen supply, etc.

Project duration：2009 to 20102009 supplementary budget

Implemented by：The Research Association of Hydrogen Supply/Utilization Technology （HySUT）

■Hydrogen highway demonstration project(Implemented in Metropolitan Tokyo)

・Verification of hydrogen supply network centering around hydrogen stations in whole area

・Regular operations on highways using FC buses and limousines

■Hydrogen Town demonstration project(Implemented in Fukuoka Prefecture, Kita-Kyushu-shi)

・Demonstration of hydrogen supply technologies using hydrogen pipelines

・Verification of operating pure hydrogen stationary fuel cell in whole area

・Demonstration of various applications for using pure hydrogen as fuel

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(1) Member companies (13 companies)JX Nikko Nisseki Energy, Idemitsu Kosan, Cosmo, Showa Shell, Tokyo Gas,

Osaka Gas, Toho Gas, Seibu Gas, Iwatani Sangyo, Taiyo Nissan, Nippon Air Liquid, Mitsubishi Kakoki, Kawasaki Heavy Industries

(2)Launched ： July 31, 2009

(3)Activities: Installation and operations of

hydrogen supply infrastructureSupply of hydrogen to

fuel cell vehicles, etc.(4)Duration： 2009 to 2015

Hydrogen manufacturing device（Already installed）

High pressure hydrogen lorry

Oil refinery

Lorry transportation

FCVs driven by general users

Construction and operation of

stations

Hydrogen station

Pipeline transportation

Shipment from oil refinery

Sal

es o

f hy

drog

enＨ２

Pure hydrogen FCHydrogen TownLNG base

Ｈ２

Manufacture of hydrogen

Urban gas pipeline（Already installed）

Promote social demonstration tests, accumulate results of technological development and operating new standards, to establish an environment for starting dissemination of FCVs.

Implemented by：The Research Association of Hydrogen Supply/Utilization Technology (HySUT)

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Hydrogen Highway Project■OutlineConstruct and operate the three hydrogen stations “Tokyo Suginami Hydrogen Station”, “Haneda Hydrogen Station”, and “Narita Hydrogen Station”, and carry out regular operations of the first fuel cell buses and vehicles in Japan via highways.■Fuel cell buses started operating on December 16, 2010Route：Shinjuku Station West Exit～Haneda Airport, Tokyo City Air Terminal～Haneda Airport, to and from once a day.

December 15, 2010 Opening ceremony at Haneda Airport

Tokyo Suginami hydrogen station

Haneda hydrogen station

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Hydrogen Town Project■OutlineLaid the pipeline from the Kita-Kyushu Hydrogen Station (Hachiman-Higashi-Ku, Kita-Kyushu-shi, Fukuoka Prefecture) which uses hydrogen manufactured by Nippon Steel to nearby housing complexes, houses, commercial facilities, and public facilities. Verify through demonstrations odorizing and deodorizing techniques for the safe use of hydrogen, hydrogen gas measurement systems required for charging hydrogen in the future, and operability of pure hydrogen fuel cells.■Demonstrations started January 15, 2011

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January 15, 2011 Opening ceremony at Kita-Kyushu City, Inochi no Tabi Museum

1kW級 12台3kW級 1台100kW級 1台パイプライン総延長 1.2km

Thank you for your kind attention.