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Title:
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Support hydrogen for transport: a comparison of incentives for producers and consumers in Europe and the US
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Author(s):
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Published by:
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Publication date:
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ECN
Policy Studies
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30-3-2008
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ECN report number:
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Document type:
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ECN-M--08-029
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Conference Paper
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Number of pages:
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Full text:
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9
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Download PDF
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Presented at: NHA conference 2008, Sacramento, USA, 30 maart 2008-3 april 2008.
Abstract:
Large scale demonstration projects ‘Lighthouse projects’ are an important step towards commercialisation. However, costs for disruptive technologies such as hydrogen, are high in the first phase of the innovation trajectory. Therefore, technology specific policy support is needed to facilitate the introduction of hydrogen. But, how can the government support and stimulate (early) market introduction and use of hydrogen in the transportation sector? What kind of policy instruments are needed in what phase of the introduction trajectory? And what are the current instruments in the EU and US? Can these affect the introduction of hydrogen in transport?
Generally, the hydrogen chain can be stimulated by providing an investment subsidy, production subsidy, tax exemptions and a (production or sales) obligation. Technology specific configurations of these support mechanisms for the diverse technologies in the hydrogen chain have to be taken into account. Besides that, the support measures have to be able to adapt to the rapid changing (improving) competitiveness of the hydrogen technology as deployment goes up.
A comparison of the EU and US policies shows differences in the approach of bringing the hydrogen vehicles to the market. The amount of support differs. The US funds RD&D 50% and stimulates the market by obligating sales (ZEV obligation) and procurement, while the EU funds R&D 50%, demonstration 35% and is now looking into large scale demonstration projects, after which the commercial market introduction of hydrogen vehicles is envisaged.
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