Hydrogen and its competitors, 2004

22Risø Energy Report 3Hydrogen in the Danish energy system4strategies that are comprehensive and consistent acrossdifferent programmes and institutions, backed up byfunding that is both adequate and continuous.A reasonable balance between fundamental research,applied research and demonstration projects is needed.Demonstration projects are important in proving thattechnology is viable, and in providing valuable operatingexperience, but they are expensive. Although mostdemonstrations include some research, they are notdesigned to make technological breakthroughs. Demonstrationsshould therefore be limited to projects wherethere really is something new to demonstrate. Theyshould be based on Danish research and industrialcompetences, and should be closely aligned with majorongoing and future EU demonstrations, therebyensuring that new knowledge is created.Breakthroughs created through continuous R&D effortare essential if Danish research institutions and industryare to compete in the global market for hydrogen andfuel cell technologies. This will require large resources,and in the long term it will be necessary to attract moreinvestments, both public and private. Funding should betargeted at areas in which Danish institutions and firmsare already strong, and at new areas from whichDenmark could gain particular benefits.The challenge is to get critical mass and strategic intelligenceinto R&D and demonstration projects, and thusstrengthen the overall competitiveness of Danishresearch and industry. This is the task for stakeholders asthey draw up a national research, development anddemonstration strategy for hydrogen energy.