Mr. Chairman and members of the committee, thank you very much for the invitation to meet with you today to talk about how we can accelerate zero-emission automotive hydrogen fuel-cell technology to mass-market commercialization.
My name is Andreas Truckenbrodt, and I'm the CEO for the Automotive Fuel Cell Cooperation. AFCC is a private company located in Burnaby, British Columbia, and is owned and funded by Daimler AG and Ford Motor Company. The company was organized and grown from Ballard Power Systems' automotive fuel-cell operations.
We develop hydrogen fuel-cell technology for commercialization in affordable, high-volume, and mass-market Daimler and Ford fuel-cell vehicles. Complementing our R and D efforts, Daimler opened its fuel-cell manufacturing research laboratory and manufacturing plant in Burnaby in 2011. Just recently as another major step, Nissan has joined Daimler and Ford in a joint fuel-cell program centred here in Burnaby. We have approximately 300 employees in Vancouver and are intending to introduce full-capability affordable zero-emission fuel-cell vehicles to the market beginning in 2017.
Today I'd like to give you four messages:
Number one, the automotive industry is committed to zero-emission vehicles, and hydrogen fuel-cell vehicles are a key element of our propulsion-technology portfolio.
Number two, critical to getting to commercialization of fuel cells are innovations in three technical areas—fundamental understanding, manufacturing, and hydrogen production and distribution—as well as a capable supplier network, consistent regulations, and the development of a hydrogen-fuelling infrastructure.
Number three, Canada has had a leading position in zero-emission, hydrogen fuel-cell technology and should not give this up.
Number four, critical success factors for Canada in this dynamic, high-tech and fiercely competitive global environment are a clear commitment to zero-emission technologies and long-term collaboration between government, academia, and industry.
I'd like to go a little further into those four points.
First, all major automotive vehicle manufacturers, in coordination with their home governments, are investing heavily in hydrogen fuel-cell technology and hydrogen-infrastructure development. This is not only a result of regulatory pressure for reduced automotive emissions; it's also an industry-wide recognition that pure-battery electric vehicles, while needed for urban mobility, have limited consumer appeal due to vehicle range restrictions and long recharging times. In order to have a high volume of vehicles deployed in the market, those vehicles need to be able to compete with today’s internal-combustion-engine-powered vehicles in terms of performance, range, and cost. The hydrogen fuel cell is the zero-emission technology that can achieve this.
To the second point, I would characterize the current state of research, innovation, and technology development in fuel cells as technically demanding, quickly expanding, and extremely globally competitive. Fuel-cell vehicles are now moving beyond small demonstration fleets to true high-volume global commercialization. No longer is the challenge that all of us companies in this sector face to prove that fuel cells work in automotive applications. That's been done, for instance, through the few hundred fuel-cell cars in customers' hands that we have out today.
The goal now is to reduce the cost of fuel cells to levels that make them competitive with today’s internal combustion engines. While we know how to get there, there are still innovations required in tools, in processes, and in human capital in three critical technology areas: the first is fundamental understanding and characterization of fuel-cell materials; the second is high-volume fuel-cell manufacturing technology; and the third is hydrogen-fuelling infrastructure on both the production and the distribution sides. I can expand on these areas, of course, later if you want.
In addition to those technology challenges, the automotive fuel-cell sector is lacking a mature automotive supply base and consistent regulations in the form of policies, codes, and standards. Government policy that encourages supplier investment in Canada could be beneficial in developing Canada’s global competitive technology advantage.
The promotion of high-paying technology innovation jobs in Canada, and protecting against a possible Canadian brain drain, is tied directly to research funding and government laboratory-industry collaboration.
My third point concerns the role of Canada. Canada and the greater Vancouver area, including its universities and research institutes, have a long, successful history in proton exchange membrane fuel cell technology since the first days of Ballard's fuel cell development initiated in 1983. Today, Vancouver is arguably the global centre of excellence in fuel cell technology.
The Canadian government has historically had a significant role in partnering with industry and academia to advance fuel cell technology. One specific example for us is SDTC, which has been contributing to AFCC's development with $11.5 million from 2010 to 2013, which is 22% of our project expenses. The financial and non-financial support provided to innovative technologies through SDTC makes Canada a globally attractive destination for industrial investment, which, at the end of the day, has been demonstrated by Nissan joining this effort here in Vancouver.
Fourth, the Canadian federal government has historically been a strong and capable partner to industry and academia in the initiation of Vancouver’s automotive global fuel cell centre of excellence. However, very frankly speaking, recently that support has waned to dangerously low levels. Unfortunately, to us it feels like the current federal government has given up on the technology. Evidence of this is clear, either with the lack of a clear strategy, cancellation of programs, cuts to overall funding for supportive clean technology funds, or even the last minute removal of funds to R and D projects already committed to.
Today’s high-efficiency, low emissions internal combustion engines have been developed for more than 125 years. By comparison, the technology development progress in PEM fuel cells during the past 30 years is really impressive, but it's still not complete.
Long-term commitment in the forms of a clear strategy, government collaboration with industry and academia, scientific research funding, and tax and incentive policies will be a significant factor in determining if Canada and the Canadian industry can remain competitive in this sector’s dynamic, technologically advanced, and fiercely competitive global environment.
Thank you very much for your attention.