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CHAPTER 7 - Conclusions and Chairman's Statement
117. This report demonstrates the wide support for hydrogen applications and associated fuel cell developments as part of a Europe-wide initiative to use these technologies to drive towards more sustainable energy systems with low carbon impacts.
118. The UK generally has been slow to play a substantial part in this work, and has not seen itself as a major innovator or investor in this sector. However, this report highlights the special attributes that Scotland possesses, which make it a prime candidate to benefit from a more aggressive attitude.
119. First, Scotland's ambition to generate 40% of its electricity from renewable sources by 2020 requires the integration of many intermittent sources, particularly wind. As the proportion of wind grows, the situation will arise where useable output is below production capability unless storage systems are developed. This will be particularly true of embedded systems.
120. The EU views hydrogen storage and fuel cells as a method of increasing yield, and balancing energy demand with production, and this is key to delivering an integrated, low carbon, energy economy. Scotland is unique in Europe for the quality and quantity of its renewable sources of energy and, as such, it should take a lead in demonstrating the value of hydrogen storage and distribution systems coupled with fuel cells.
121. Secondly, Scotland has indigenous intellectual property in specific parts of the fuel cell market. Work in the area of solid oxide devices is recognised as world class and is already seen to be moving towards substantial reductions in the cost of production. This work must be properly funded and driven hard for success.
122. Finally, the activities, associated with the two issues already described, offer the potential of new Scottish jobs, both in academia and through the strong growth of new companies associated with emerging fuel cell and hydrogen applications.
123. For all these reasons, the FREDSHEG Sub-Group recommend the Scottish Executive considers carefully the requests for selective support contained in this report, as well as reviewing the need for specific energy policy development to ensure its success.
124. HEG has endeavoured to create imaginative solutions that provide the Scottish Executive with the exciting prospect of developing a range of completely new industries in Scotland. The financial and non-financial actions it proposes promise enormous social and economic dividends with a large multiplier effect many times the size of the initial investment.
Extract from European Hydrogen and Fuel Cell Technology Platform Deployment Strategy Report - August 2005 The state aid issue has to be carefully considered by the European Commission. The possibility for governments and public administrations to support private initiatives in the field of new technologies is often limited by the rules on market competition. The strategic priority of hydrogen and fuel cells technologies as defined by the European Commission should be reflected in some way in the state aid approach: in fact, at present these technologies are clearly not competitive with conventional energy technologies, similarly to the situation with renewable energies. This requires the possibility of public support even in the form of public funding or fiscal incentives in order to speed up transition from the research and innovation phase towards market introduction, growth and maturity. |
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