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Taiyo KawaiTaiyo KawaiToyota Motor CorporationToyota Motor Corporation

Progress and ChallengesProgress and Challengesforfor TOYOTATOYOTA’’ss

Fuel Cell Vehicle DevelopmentFuel Cell Vehicle Development

Oct. 14, 2008Oct. 14, 2008

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Since 1980, oil discoveries in new oilSince 1980, oil discoveries in new oilfields have lagged oil consumption,fields have lagged oil consumption,hencehence ‘‘Peak OilPeak Oil’’ seems to beseems to beinevitable.inevitable.

Source:Source:http://www.http://www.oilposteroilposter.org.org((Cautious Theory)

Prospect for Supply andProspect for Supply andDemand of Conventional OilDemand of Conventional Oil

20301930 1950 1970 1990 2010

60

50

40

30

20

10

0

Bill

ions

of B

arre

ls

(Yea

r)B

illio

ns o

f Bar

rels

(Y

ear)

YearYear

ProjectedProjectedDiscoveriesDiscoveries

DiscoveriesDiscoveries

ConsumptionConsumption

Peak OilPeak Oil

250

300

350

Time (before 2005) [year]0500010000

ppm

Car

bon

Dio

xide

[

]

250

300

350

Time (before 2005) [year]0500010000

ppm

Car

bon

Dio

xide

[

]

Time (before 2005) [year]0500010000

ppm

Car

bon

Dio

xide

[

]pp

mC

arbo

n D

ioxi

de [

]

Assessment Report 2007:Source: IPCC Fourth Assessment Report 2007

Changes in COChanges in CO22 ConcentrationConcentration

Atmospheric COAtmospheric CO22 concentration hasconcentration hasdramatically increased since the 20thdramatically increased since the 20thcentury.century.

Prompt countermeasures and significantPrompt countermeasures and significanttechnology innovation are vital.technology innovation are vital.

3Concept of Energy Source UtilizationConcept of Energy Source Utilization

MobileMobile

StationaryStationary

IndustryIndustry HomeHome

(1) ICE / ICE(1) ICE / ICE--HVHV(2) EV(2) EV(3) FCHV(3) FCHV

HydrogenHydrogen(Gas Fuel)(Gas Fuel)

ElectricityElectricity

Liquid FuelLiquid Fuel

Electricity and hydrogen are expectedElectricity and hydrogen are expectedto be alternatives to liquid fuel.to be alternatives to liquid fuel.

BiomassBiomass

Solar / WindSolar / Wind

Hydro / NuclearHydro / Nuclear

PetroleumPetroleum

Natural gasNatural gas

CoalCoal

4TOYOTATOYOTA’’ss Plan for Sustainable MobilityPlan for Sustainable Mobility

Toyota is actively developing hybrid technology to serve as aToyota is actively developing hybrid technology to serve as acore technology applicable to allcore technology applicable to all powertrainspowertrains

Ultimate ecoUltimate eco--carcar

Right placeRight placeRight place Right vehicleRight vehicleRight vehicleRight timeRight timeRight time

GaseousGaseousfuelfuel

ElectricityElectricityHydrogenHydrogenSyntheticSyntheticfuelfuel

Bio fuelBio fuel

Hybrid TechnologyHybrid TechnologyHybrid Technology

Gasoline /Gasoline /DieselDiesel

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Present 2015

’02 FCHV(lease model)

Vehicle

210km 230km 500km or more

15 years or more

Dec. 2002 ~ Jul. 2005 ~

0degC ~

-- Toyota has significantly improved actual cruising range and colToyota has significantly improved actual cruising range and cold start /d start /driving capability.driving capability.

-- Toyota continues its efforts especially on FC stack durabilityToyota continues its efforts especially on FC stack durability and FC systemand FC systemcost reduction, targeting commercialization in 2015.cost reduction, targeting commercialization in 2015.

TOYOTA FCHV ProgressTOYOTA FCHV Progress

’08 FCHV-adv(lease model)

1/10 or less(design / materials)

* Fuel CellCommercializationConference of Japan

’05 FCHV(lease model)

TechnicalChallenges

2. Actual CruisingRange

1. Cold Start / DrivingCapability

3. FC Stack Durability

4. Cost reduction

0degC~

FCCJ* Target

-30degC ~

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The coldThe cold--weather performance tests verified that the cold start andweather performance tests verified that the cold start anddriving performance of the TOYOTA FCHVdriving performance of the TOYOTA FCHV--adv was equivalent to thatadv was equivalent to that

of gasolineof gasoline--powered vehicles.powered vehicles.

1.1. Cold Start / Driving CapabilityCold Start / Driving CapabilityPerformance Test in CanadaPerformance Test in Canada

°°CC

-40-30-20-10010

ŠO‹C‰·[�

Ž]

2/102/10 2/122/12 2/142/14 2/162/16 2/182/18

--3737degdegCC

Am

bien

t Air

Tem

p.A

mbi

ent A

ir Te

mp. 1010

((degdegCC))

00

--1010

--2020

--3030

--4040

5050

32322020

00

--2020

--4040

((degdegFF))

2/82/8DateDate

Ambient Air Temperature at TimminsAmbient Air Temperature at Timmins

TimminsTimmins, Canada, Canada

Yellowknife, CanadaYellowknife, Canada

7

0

10

20

30

40

50

60

70

0 10 20 30 40 50 60 70

05model FCHVImproved FCHV

Load [%]

Fuel

cel

l sys

tem

ef

ficie

ncy

[%]

64%64%

55%55%

The FCHVThe FCHV--adv achieved an actual cruising range of over 500 kmadv achieved an actual cruising range of over 500 kmwith increased fuel cell system efficiency.with increased fuel cell system efficiency.

830830 kmkmLA#4 test cycle 790790 kmkm

10-15 Japanesetest cycle

Actual drivingcycle *1

In-house test

2. Cruising Range2. Cruising RangeTOYOTA FCHVTOYOTA FCHV--advadv

*: measured by internal test cycle**: Gasoline equivalent

Amount of fuel [liter]On-board fuel capacity [liter] *2

’08 modelFCHV-adv**’’08 model08 model

FCHVFCHV--advadv****600km600km

500km500km

400km400km300km300km

200km200km

’05 modelFCHV

’’05 model05 modelFCHVFCHV

GasolinevehiclesGasolineGasolinevehiclesvehicles

Act

ual f

uel e

cono

my

*1 [k

m/li

ter]

90%90%25%25%

++++

0

5

10

15

20

25

0 20 40 60 80

’’05 model05 modelFCHVFCHV

> 500> 500 kmkm

83. FC Stack Durability3. FC Stack Durability

Max

imum

M

axim

um

Out

put

Out

put

DurabilityDurability Equivalent to 15 yearsEquivalent to 15 years00

Cro

ssov

er

Cro

ssov

er

Am

ount

Am

ount

Reduction ofphysicaldeterioration

MEA1MEA1 MEA2MEA2

Reduction of chemical

deterioration MEA3MEA3

ThreshholdThreshholdlimit valuelimit value

MEA1MEA1

MEA2MEA2

MEA3MEA3

ThreshholdThreshholdlimit valuelimit value

-- Durability has been improved by more than three times.Durability has been improved by more than three times.-- Further efforts are being made especially for reduction of MEAFurther efforts are being made especially for reduction of MEAdeterioration under realdeterioration under real--world conditions.world conditions.

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As an initial step, we aim to reduce the cost to 1/10 of the curAs an initial step, we aim to reduce the cost to 1/10 of the current levelrent levelby design / manufacturing engineering and materials improvement.by design / manufacturing engineering and materials improvement.

Reducing costsReducing costsReducing costsBy innovativeBy innovativedesign, material,design, material,manufacturingmanufacturingengineeringengineering

’’05 Model05 ModelFCHVFCHV

By mass productionBy mass production

Cos

t

’’08 Model08 ModelFCHVFCHV--advadv

ModelModelgenerationgeneration

ModelModelgenerationgeneration

Resolvingtechnical issuesResolvingResolvingtechnical issuestechnical issues

1/101/101/10

1/101/101/10

4. Cost Reduction4. Cost Reduction

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2. Vehicle marketabilityResolving technical challenges, reducing cost, and adding newappeal to the products

Factors for Successful Commercialization ofFactors for Successful Commercialization of FCVsFCVs

Fine-N2003 Tokyo Motor Show

3. Hydrogen infrastructure developmentH2 production, transport & supply;CO2 sequestration technology; Codes & Standards

1. Increased societal acceptance of various energy sourcesGlobal warming, depletion of resources, energy security

Fine-X2005 Tokyo Motor Show

11Challenges of Infrastructure Development,Challenges of Infrastructure Development,Hydrogen PathwaysHydrogen Pathways

RefuelingRefuelingHH22 Transport / Storage / SupplyTransport / Storage / Supply

LiquidLiquidHH22

HH22 ProductionProduction

2. Liquid H2. Liquid H22 by truckby truckFCHVFCHV

SolarSolar/Biomass/Biomass

ElectricityElectricity

PetroleumPetroleum

CoalCoal

StationStation

Hydrogen �������Hydrogen �������

Liquid HLiquid H22

Onsite HOnsite H22 ProductionProduction

TrigenerationTrigeneration StationStationElectricity/Hot water/HElectricity/Hot water/H22

1. Pipeline1. PipelineGaseousGaseous

HH22

ExcessExcessbyby--product Hproduct H22

HighHighPressure HPressure H22

with CCSwith CCS

What is the optimum pathway?What is the optimum pathway?In terms of right timing, right place, and right technologies.In terms of right timing, right place, and right technologies.

Natural gasNatural gas

Others?Others?

3. Chemical hydrides3. Chemical hydridesby truckby truck

Chemical hydridesChemical hydridesetc.etc.

12Towards Popularization of FC Vehicles

In Japan, FCCJ has agreed that automakers and energy companiesIn Japan, FCCJ has agreed that automakers and energy companiespromote technology development and codes & standardspromote technology development and codes & standards

establishment targeting 2015.establishment targeting 2015.

LowLowemissionemission

20022002 20082008 20302030

LowLowemissionemission

20152015

Business phaseBusiness phase

CO2 reductionCO2 reductionEnergy securityEnergy security

PhasePhase

FCVFCVDevelopmentDevelopment

1st FCHV,1st FCHV,Limited leasingLimited leasing

DemonstrationDemonstration

R&D / Product DevelopmentR&D / Product Development

Manufacturing EngineeringManufacturing Engineering

MassMassproductionproduction

MassMassproductionproductionLow volumeLow volume

productionproductionInitial marketInitial marketpenetrationpenetration

HydrogenHydrogenInfrastructureInfrastructure

Social NeedsSocial Needs

Government support phaseGovernment support phase

FCCJ TargetFCCJ Target

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1. For the diversification of energy sources and CO2 reduction,early commercialization of FCVs are urgent and vital matters.

2. The popularization of FCV requires:1) Increased societal acceptance of various energy sources2) Vehicle marketability3) Hydrogen infrastructure development

3. Toyota is overcoming the technical challenges of:

Summary

Towards commercialization of FCV, Toyota focuses on improvingdurability/reliability and reducing costs.

1) Actual cruising range of 500 km or more2) Cold start capability at -30degC

4. Toyota is working together with energy companies and thegovernment towards creating a hydrogen society, including codes& standards development and hydrogen infrastructure preparation.

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TODAY for TOMORROWTODAY for TOMORROW

15

5050

100100

Volu

met

ric E

nerg

y D

ensi

ty (G

asol

ine=

100)

Volu

met

ric E

nerg

y D

ensi

ty (G

asol

ine=

100)

Volu

met

ric E

nerg

y D

ensi

ty (G

asol

ine=

100)

MH(2wt%)

MH(2wt%)

Highpressurehydrogen(35MPa)

Highpressurehydrogen(35MPa)

CNG(20MPa)

CNG(20MPa)

Ethanol

Lithium-ion batteryLithium-ion battery00

Gasoline

Diesel

Liquid fuelLiquid fuelGaseous fuelGaseous fuelElectricityElectricity

Highpressurehydrogen(70MPa)

Highpressurehydrogen(70MPa)

Toyota estimateToyota estimateToyota estimate

Volumetric Energy Density of Various FuelsVolumetric Energy Density of Various Fuels

Hydrogen has lower volumetric energy density than liquid fuels.Hydrogen has lower volumetric energy density than liquid fuels.LiLi--ion batteries have even lower energy density.ion batteries have even lower energy density.

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Press release issued by FCCJ (July 4, 2008)“Commercialization of fuel cell vehicles and hydrogen stations to commence in 2015”

FCCJ Commercialization ScenarioFCCJ Commercialization Scenario

Source: Fuel Cell Commercialization Conference of Japan (FCCJ)