UNDP-GEF Project Writeups

UNDP-GEF PROJECT WRITEUPS

A partnership funded by GEF and implemented by UNDP

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Basic Project INFO

FOCAL AREA:
Climate Change
PROJECT TITLE:
Demonstration of Fuel Cell Bus Commercialisation in China
PROJECT NUMBER:
COUNTRY: China
PROJECT STATUS:
PROJECT DOWNLOAD (WORD)

Demonstration of Fuel Cell Bus Commercialisation in China

Facts and figures

Rapid economic reform and accelerated urbanization in China, which is adding to the challenges facing the urban public transportation sector. The average annual rate of population growth in urban areas in China during the 1990s was over seven times the rate seen in rural areas. Today, slightly over 30% of Chinese live in cities.

Although walking and bicycling still account for the majority of passenger trips in cities, but the demand for public transport services is growing at an estimated rate of 4% per year. Buses today account for an estimated 75% of urban public- transport passenger volume, with trolleybuses accounting for an additional 10%.

At the same time air pollution is a major problem in most of China's major cities. Beijing was ranked as the second most polluted mega-city in the world by WHO in 1992 and since then the vehicle population of the city has more than doubled reaching 1.4 million in 1999. (Shanghai, the other host city proposed here for an FCB demonstration, ranked 19th.) The major sources of pollution in Beijing today are coal combustion and vehicle exhaust emissions.

Respiratory illness, to which air pollution is a contributor, is the 4th-largest killer in urban areas of China, accounting for 14% of all deaths in urban areas in 1998. China is the world's largest energy consumer after the United States. In 1998, primary commercial energy consumption in China amounted to 1,360 million TCE. The mix was dominated by fossil fuels with coal at 72%, oil at 20% and natural gas at 2%, and oil consumption is currently growing far faster than the use of coal or natural gas. The transportation sector, which relies almost entirely on oil, is one of the main sources of air pollution in Chinese cities, and vehicle emissions contribute significantly to the environmental degradation and related health problems in Chinese cities. Incidents of respiratory illnesses are increasing, and at least 270 million urban residents are currently experiencing air quality that is below what is considered acceptable

It is estimated that the potential impact of FCBs in terms of GHG reductions in China is an annual savings of 9.1 million tonnes per year.

Project description

The project aims to catalyse the cost-reduction of fuel cell buses (FCBs) and hydrogen refilling stations for public transport in China's cities. It is assisting Beijing and Shanghai to obtain six FCBs each and operate them over a combined total of 1.6 million km.

China's FCB project is part of a three-phase global GEF strategy which is supporting FCB development in the cities of four other developing countries (Brazil, Egypt, India, and Mexico) under the GEF Sustainable Transport Program. In total 46 demonstration projects will be carried out in the six cities

The project will improve performances and reduce costs of FCB transit services by conducting small-scale demonstrations, expanding these to large fleets and more cities to achieve commercialization of FCB vehicles and infrastructure.

The long-term objective of the project is to reduce air pollution and greenhouse gas (GHG) emissions through widespread commercial introduction of fuel cell buses in urban areas of China. It is planned that in cooperation with the GEF projects and other similar projects in industrialized countries, the cost of FCB technology can be brought down to levels that will enable their widespread cost-competitive introduction in the mega-cities of many developing countries.

It is estimated that the potential impact of FCBs in terms of GHG reductions in China could be an annual saving of 9.1 million tonnes per year.

the project will be implemented in two parts of approximately US$16 million each. In Part I of the project, which corresponds to the first 18 months of project activities, a number of study tours will be conducted to gather up-to-date information on fuel cell bus technologies, hydrogen fueling systems and equipment suppliers. System specifications and bid documents for each city will be developed, and suppliers for FCBs and hydrogen fueling system will be selected. The hydrogen fueling systems will be installed, and the first set of 3 buses will be purchased, delivered, and prepared for operation in each municipality. During Part II, which corresponds to the remaining four years of project activities, the initial sets of three buses will be operated along with the hydrogen fuel supply systems, and the second sets of three buses will be purchased, delivered and placed into operation.

SELECTED PROJECT ACTIVITIES

Study tours were organized to fuel cell bus (FCB) manufacturers in North America, Japan and Germany before preparation of the bid document. Four Chinese companies were then invited to tender for the supply of three FCBs for Beijing and, after evaluation Daimler-Chrysler (China) was awarded the contract - the first FCB contract awarded under the GEF-UNDP global programme.
DaimlerChrysler is a leader in the research and development of FCB technology. By 2003, the company had already manufactured 60 hydrogen FCBs, which are running on the streets of Europe, USA, Japan and Singapore. Delivery to Beijing of the Citaro model FCBs took place in November 2005.
The public was given the chance to test-ride the buses at an international hydrogen technology workshop at Tsinghua University when the contract was awarded in April 2004.
In Phase 2 of the project more FCBs will be purchased and a hydrogen refilling station established in Shanghai. Because of the current active state of FC development in China and abroad, a new generation of FCBs will likely be available within two years with improved durability and reliability as well as lower costs. Introducing the new generation of vehicles in Shanghai will help to enlarge the project benefits, including advancing FCBs towards commercialization.
Eventually each municipality will have six FCBs which will run over a combined total of 1.6 million km during the demonstration project.
FCBs have been described as 'moving classrooms' since they can be fitted with information displays about environmental and sustained development issues.
The project maintains a website with news of project activities and information on fuel cell technology in English and Chinese. Phase 2 communication plans include a bi-monthly newsletter; semi-annual reports; annual review reports; public awareness materials (semi-annual); study tour reports (post tours); and other documents made available for broad use by stakeholders.
The project worked closely with BP, the main energy partner, on the design and construction of the hydrogen refilling station.
Preparations for the introduction of the buses included securing a supply of spare parts, setting up garages and a maintenance area, training staff and deciding demonstration routes.
Study tours were organized to Germany and France to investigate Clean Urban Transport Europe (CUTE) electrical vehicle demonstration projects in 2004. A second study tour visited CUTE operations in Stockholm, Hamburg, Reykjavik, Stuttgart and Amsterdam in 2005.
The project is working to overcome barriers to the introduction of FCBs in China and other countries which include: because FCBs are not yet commercially established, their costs are too high to be competitive with diesel buses; the lack of FCB manufacturing and operating experience; a lack of awareness and acceptance of FCB technology; and weak policy and planning capacity in the public transport sector which acts as a barrier to innovation.
The project is working to build related capacity in FCB operational activities including strengthening the policy and planning capacities of public transit companies, enhancing scientific, technological and industrial capacity and promoting FCB technology to government, investors and, thought the media, to the general public.
It is hoped that China will take a global lead in pioneering FCB transport systems and that the benefits of the system will be evident to visitors from all over the world during China's hosting of the 2008 Olympics. Shanghai's accomplishments will be evident when World Expo 2010 takes place in the city.
The FCB programme is one of many measures that China is undertaking to reduce air pollution in its cities, improve energy efficiency and reduce GHG emissions. The Ministry of Science and Technology (MOST) is also leading a national Clean Vehicle Action program involving many cities, research institutions and local auto producers is being implemented to develop technology, policy and national incentive programs, which will foster the reduction in vehicular emissions.
The project will also play an important role in the commercialization of FCBs in developing countries. Both China and Brazil's FCB projects have reached advanced stages of project implementation and are significant because they are the only FCB demonstrations taking place in developing countries. China and Brazil will therefore pursue information exchange during the course of Phase II in various information exchange forums including workshops and virtual discussion groups.
China actively participates in the International Partnership for Hydrogen Economy (IPHE), and has developed a cooperative relationship with the US, European Commission, Canada, France, Italy and the UK in the sectors of sustainable development, renewable energies and hydrogen/fuel cell.
The Chinese Hydrogen Development Roadmap includes a description of a future hydrogen economy and the strategy needed to realize this goal. Three phases are identified: By 2020 - a technology development phase, in which research is conducted to determine customer requirements and establish the business case for FCBs (by 2020); a market penetration phase in which the electric power and transport market begin to develop, backed by infrastructure investment and government policies (by 2050); and a fully developed market in which the hydrogen economy is realized (2050 and beyond).
The China FCB project has become a formal member of the Fuel-Cell-Bus Club (an organization of ten European FCB Demonstration Cities and Perth, Australia), and will participate in the club's information and experience exchange workshops.
Phase 2 will include passenger surveys to help identify potential improvements to FCB services and technology with 600 to 1,000 riders interviewed during the FCBs' first year, and more than 1,000 to 2,000 riders interviewed after the first year. A policy and planning study will also be prepared to evaluate options for improving/optimizing bus-company management, technologies, infrastructure, and operations in Beijing and in Shanghai .

Meetings

In addition to project coordination meeting, reviews and workshops the project was represented at international events including:

International Fuel Cell Bus Workshop (Long Beach CA, November 2003).
Hydrogen and Fuel Cells 2003 Conference and Trade Show (Vancouver, BC April 2003).

Partners etc

Ministry of Science and Technology (MOST).

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