 Aloha and welcome to Stan Ingeman here in think Tecawaii, Stan Osserman. I'm into Live and Direct from the mighty megalopolis of Kailua, Hawaii. And behind me is the Kilauea crater. Of course, it doesn't look like this picture, which is maybe five years old. You can actually see where people could walk down there. Right now it's actually a pool of lava. So nice time to go visit the big island and check out the volcano as it's erupting away. But this is a special week this week, especially for all of us hydrogen junkies. The atomic weight of hydrogen is 1.0078 blah, blah, blah. A whole bunch of stuff after that. Anyway, they shorten it to 1.008. So that's like 10.8, which is like October 8. So this week is hydrogen week and the eighth of the month is hydrogen day. So happy birthday, all you hydrogen heads out there from Stan Ingeman. And to celebrate today, I've been working with Hyundai because they came out with a really, really awesome video. It's unfortunately too long for my show. It's actually 36 minutes long. So I'm so anxious to show it that I had to do something. So I didn't I'm an artist. I get real sensitive when people play with my art. But I lopped off the first 16 minutes of this show of this video. And we're only going to see the last 20 something minutes of the video. And the first 16 minutes will show next week on Stan The Energy Man. But I'd also encourage you if you like this video and you want to get a sneak of what the first part was, which is really awesome. I didn't cut it because it was junk. I cut it because it's actually good enough on its own to really be exciting. But today's video focuses more on the technical logic and the reasoning that a big company like Hyundai, which is 120,000 plus employees worldwide, would take such a huge step as to commit to hydrogen technology and to commit to such an ambitious goal of seeing hydrogen be the world's clean energy source for transportation and even for the grid. They even talk a little bit about grid in here. So without further ado, look for the video hydrogen wave, W-A-V-E, like in surfing wave, hydrogen wave, but out by Hyundai. And we're going to start off with a segment by Seyoon Kim, who is one of the folks who is really a senior in the company and really passionate about hydrogen. So take it away. Good morning, afternoon and evening, everyone. My name is Seyoon Kim, executive vice president and head of fuel cell center at Hyundai Motor Group. I'm honored to speak at this very special event. Today, I'd like to talk about the present and future of hydrogen technology, particularly our fuel cell system and related efforts toward fostering a renewable energy society. My good old Japanese friend, Professor Hirose, once told me that nomads preserve milk as cheese left over from the summer and use it as a milk substitute during winter. When a renewable energy society is established, hydrogen will play a similar role to cheese, converting excess electricity generated by solar or wind power into hydrogen will be very useful for storing large amount of energy and transporting it over long distances. So electricity is like milk and hydrogen is like cheese. See what I mean? Countries around the world are looking to use hydrogen as our energy alternative for global carbon neutral society. European countries and the United States have boldly announced visions for hydrogen economies and are supporting infrastructure development in transportation and manufacturing. But many people still wonder about hydrogen technology and are skeptical if it could be really used in everyday life. Today, let me show you that fuel cell is a proven technology that can deliver the benefits of hydrogen to people around the world in various fields. Basically, a fuel cell is a power generator, like an engine. It differs from a battery which stores electricity. A fuel cell system consists of a fuel cell stack that generates electricity, a hydrogen supply system and air supply system and a thermal management system. It generates power by combining hydrogen and oxygen similar to the engine of an internal combustion vehicle but without the carbon emissions. Unlike a battery that passively stores energy, a fuel cell system produces energy through chemical reactions and operates as long as hydrogen fuel is supplied. The science is simple. Fuel cell is just a reverse reaction of water electrolysis that many of you learned in school. As recently as 15 years ago, many people still had doubts about hydrogen fuel cell technology. Its success depended on miracles in four areas. Hydrogen production, hydrogen storage, fuel cell technology and infrastructure. At that time, I fully agreed that resolving these four challenges would not be easy. However, since then, Hyundai Motor Group has undertaken the challenges and hasn't given up. Today, clean hydrogen production is one of the most promising means for successfully achieving the European Green Deal and Gigawatt scale projects have already been announced. Recently, the EU and US announced their plans to support the establishment of hydrogen refueling infrastructure. At least for long haul commercial trucks, there is consensus that hydrogen and fuel cells will offer the best alternative to diesel powertrains. We are now at the point where we can confidently show you our vision for realizing a global hydrogen society. The core competitiveness of fuel cell technology is comprised of cost and durability. The most important part for cost reduction is the stack. There are around 400 cells combined in a stack and the cost of this part accounts for the largest portion. The structure of a fuel cell is shown in the figure. The cell consists of two biopler plates, which provide flow channels for hydrogen and oxygen and support the structure of the stack. Two gas diffusion layers and a membrane electrode assembly, which is called MEA. MEA forms the core of a fuel cell and is a key component that generates electricity by causing a chemical reaction between hydrogen and oxygen. Reducing the cost of these components is the key to cost competitiveness. In the case of biopler plates, we have reduced the price by replacing the graphite materials to stainless steel. There are worries that stainless steel would corrode and would not last long in the acidic fuel cell environment. But after more than 10 years of development, we are successfully using stainless steel. Even without special coating for cathode biopler plates. I still hear people saying that fuel cells are expensive because they require a large amount of platinum. That was true 10 years ago. But actually, platinum is not the major cost factor now. And we are steadily reducing the amount of platinum used as a catalyst. Let me show you how the cost of fuel cell system has decreased. In the past, the cost of a fuel cell vehicle was extremely expensive and was notoriously called a million-dollar car. For example, the cost of a fuel cell system applied to a prototype vehicle in early 2003 was tripled the price of my house in Seoul. However, in 2006, the cost was reduced by half. The cost of the first-generation fuel cell system installed in the first mass-produced Tucson FZV in 2013 was reduced to about 10% of the first model developed 10 years before. As you can see in the graph, fuel cell costs have been reduced by nearly 98% over the past two decades. However, the fuel cell vehicle market is still at the early stage of development. Only 10,000 to 15,000 fuel cell vehicles are produced per year and we are not yet benefiting from economies of scale. In comparison, there are 4 to 5 million EVs and nearly 100 million ICE vehicles produced per year. So we still have work to do. Our goal is to achieve cost competitiveness comparable to that of EV batteries by 2030. I also want to point out that durability improvements are progressing at a fast pace. Durability of a fuel cell system depends on various chemical conditions, which makes durability more difficult to ensure. During 2004 and 2009, the U.S. Department of Energy launched the Fuel Cell Vehicle Demonstration Project in order to verify the durability of fuel cell cars. The average durability of the fuel cell stacks at that time was only 821 hours, which is only one and a half year of durability. This was another reason why people doubted that fuel cell technology could be commercialized. Today, the industry standard of durability is 5,000 hours, which corresponds to 10-year life cycle of passenger cars. For commercial vehicles, the durability requirement is much tougher, from 500,000 to 1 million km. I'm sure this requirement can be achieved in the near future, by using better materials, engineering and operation technologies. We are focused on achieving cost reduction and improving durability throughout our development activities. Today, I'm going to share details about the next generation fuel cell system that Hyundai Motor Group will launch in the near future. It's a third-generation system under development, to succeed Nexo's current system. The one on the left is the 100 kW class system, and the one on the right is a 200 kW class system. Compared to Nexo's system, the 100 kW version is significantly smaller, as we reduce its volume by 30%, which ultimately improves vehicle packaging. Compared to Nexo's system, the 200 kW version is almost the same size, but the twice the output. This version was developed for commercial trucks. By using two systems per truck, we can provide around 350 kW, which is equivalent to the power of current diesel engines. We have arranged the first and second generation systems here for your reference. It is easy to see the difference between the two systems, but there is no real difference. In 2013, it was about this size. We had difficulty putting this system in the vehicle, as you can imagine. But the system applied to Nexo in 2018 was reduced in size like this. The third-generation system to be applied in 2023 is this size. It's still in the prototype stage. In 2009, it goes into mass production. You will see a system with much more refined level of completion. The fuel cell power module is a system that's being promoted for the development of megawatt-scale power generation systems. It is possible to provide various outputs, such as 500 kW and 1 megawatt, by expanding several 100 kW unit modular systems. If the technology improves, it can be assembled like LEGO blocks to produce high-capacity output. Just imagine the possibilities. Some people say that replacing conventional power systems with fuel cells is easy, but they are wrong. Other people say it's impossible, but they are also wrong. It's very challenging, demanding us to exert unprecedented efforts, but we are confident that it's possible. And we, Hyundai, will pave the way for the global hydrogen economy with our fuel cells powered by H2. Thank you for your interest and support. Now, let's hear from Sangyeop about the design of future hydrogen mobility. Thank you, Sehun. Ladies and gentlemen, I am Sangyeop Lee. As a car designer, last year was a major wake-up call. For a brief time, when some countries went into complete lockdown, personal mobility was taken away. At the same time, there were glimpses of hope. We saw sign of the earth trying to heal itself. So at Hyundai, we went back to the drawing board to think back from the basics. We had to think different. We knew we had the tools. Let me take you back about 10 years. Do you remember when the smartphone was introduced to public? It was a perfect storm of new technology that resulted in the creation of a completely new value chain. What used to be just a phone is now a highly emotional product with great design, immaculate sound quality, endless media you can stream on the go. A completely new value chain has emerged around it. Do you remember the word telephone? When was the last time you used that word? At Hyundai, the mobility isn't limited to people. We do cargo. Incredible volumes of cargo are transported in trailers, in trains, and in ships. This sounds like a distant industry, but it is actually closer than you may think. That package you ordered, the brand new car you were waiting for. They are transported to your front door through a seamless worldwide logistics system. Due to COVID-19, this system was crippled by inefficiencies last year. It also shed lights on the much needed updates to an archaic logistics system. Hyundai is well positioned to lead the change with a broad business portfolio, from automobile to steel, construction and trains. We are ideally equipped to deploy a rapidly scale innovative technologies. We have been researching for some time now. Back in 2019, we introduced our vision of a hydrogen fuel cell commercial vehicle with a Neptune concept. At CES 2020, we presented the purpose-built vehicle, pushing the boundaries of what is possible when systems go fully autonomous. This blank design slate is a never-before-experienced dream opportunity, and we put everything that we learned in the last few years into this project. The culmination of that effort is the fuel cell E-Boogie. Creating the E-Boogie wasn't as easy as putting one and one together. The requirements of the commercial vehicle were significantly different from that of passenger cars. Who knew? So we had to think completely differently and consider the modularity needed to cover a vast network of the value chain. Devoid of passengers, we could encase the entire fuel cell system in the dedicated chassis with a fully autonomous system. A steering system could be placed at both the front and rear. What does this do? It enables the sideways movement. Lastly, the intelligent package resorted in the entire system being compact enough to sit under the container. Hence, the term Boogie that originates from the rail industry. Rail Boogies are wheels of frame that sit under every train car. The E-Boogie really is more like a smart robot than a traditional car, just like the smartphone revolution. The fuel cell E-Boogie is a platform that offers a limitless business application. Large and heavy containers are limited by their size and space they require to move. But with two E-Boogies in a double Boogie configuration under a container, they can articulate movement from beneath. It helps them minimize the turning radius or to slide sideways into a tight spot. Logistical efficiency is further enhanced by the cluster mode. This allows multiple trailer drones or a single E-Boogie to travel together in unison. In what? It is an almost train-like configuration. It is a true multi-purpose platform that can be adapted to an even wider value chain. Container transportation. Portside logistics. Airport operation. Construction. Fire and rescue. Ladies and gentlemen. Fuel cells. Trucks. Trailers. And robots. All these businesses can now be supported by a single platform. There's an old saying, store new wine and new wine skin. We will realize hydrogen mobility that will accelerate human progress. And Hyundai's innovative design approach will be the key to this transformation. Thank you for your time. Now to wrap up our presentation today. Let's hear once again from our leader, Chairman Chung. What do you think of our story so far? Our presentation today is not just about showcasing Hyundai's corporate performance and vision. We sincerely want to offer a practical solution for the sustainable developments of humanity and our planet. In the meantime, the degree and frequency of environmental disasters is rising fast. In a recent landmark assessment, global experts said that we now face cold red for humanity. Global cooperation is crucial and urgent. This may be the last train to a hydrogen society and time is running out. There's no question that hydrogen is one of the most powerful and pragmatic solutions for overcoming environmental challenges. However, it will take a large global community to foster a hydrogen society. No single company or government can do it alone. As a responsible member of our global community, Hyundai Motor Group will strive to advance the hydrogen society. The hydrogen wave has already started to swell. We welcome all of you to ride this wave of innovation to the shore of a new energy paradigm. Thank you. I really like that. Like I say, we'll have the first 16 minutes, but if you just can't wait, go online, look up Hydrogen Wave and watch the whole 36-minute video. It actually starts off with the chairman showing some of the innovations. The main point of today's show was to celebrate hydrogen day by saying, here's another huge company, Automotive Manufacturer. But like they said, they also do construction and they do logistics. But two companies now, Airbus and Hyundai, have produced really, really forward-looking plans to innovate the logistics in aviation, in ground transportation, in the maritime sector using hydrogen. And I think that this has really, really taken us from where the old saying used to be hydrogen is the fuel of the future and it always will be. Hydrogen is here today. It can solve our problems. The technology is now in the right place at the right time, but we need to work together to move it forward. You know, one of my recent guests on Stan Energy Man, Dan Gohan, he actually looks at world energy markets. That's his job or what he does. He sends out a newsletter talking about natural gas prices and trends and oil prices and trends. And the stuff that he puts out, I read it. I think a lot of other folks in the natural, in the energy sector read it. But not a whole lot of people in the clean energy sector, I think, look at it. And if you understood what was going on besides all the global change and the greenhouse gas effects stuff. If you just look at the sheer economics of the fossil fuel markets and you understood the geopolitics that go into that industry. You can help but understand that gasoline prices are destined to go up. Natural gas prices are destined to go up. Shortage of fossil fuels, including coal are here. They're not forecast. They're not something that somebody else can take advantage of. If you look at the newspaper today, you'll see that China is a little bit nervous about how they're going to move forward in their huge industries. Using fossil fuels because there's not enough, especially for them coal, which they burn a lot for for energy. If you look at some of the geopolitical initiatives like the Belt and Road initiative that China is working on. It's a global initiative has huge ramifications economically. And it's all based on fossil fuels. But they're not going the right direction. They're going the wrong direction. They're actually not getting more plentiful, but they are getting more expensive. Hydrogen and battery technology used in the right mix is going to be the way to go. Fuel cells, batteries, solar power, wind power, hydroelectric. Maybe even advanced nuclear power would be really the way of the future. But Hyundai's come online. They've given us this hydrogen day birthday present to look at and understand and get excited about. And I hope that you'll go online and look at the whole video. And if you can't do that, we'll show you the first 16 minutes next week. So until then, stand the energy man signing off.