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PILOT PROJECT “ HYDROGEN VALLEY” DEVELOPMENT OF A HYBRID PARK OF WIND & SOLAR POWER PLANTS IN THE WATER AREA OF THE KAKHOV RESERVOIR ( RIVER) WITH SUBSEQUENT CONVERSION OF ENERGY INTO "GREEN" HYDROGEN ("GREEN" AMMONIA) THE MAIN DIRECTIONS OF DEVELOPMENT OF THE HYDROGEN According to Ursula von der Leyen, European agriculture plans to switch 50% to organic products by 2030. This area opens up great potential for Ukraine, which is able to produce The Hydrogen Valley project represents "green ammonia" from green the renewable energy potential of the south of hydrogen, which is needed for organic agriculture in Europe and the world. Ukraine, which, together with the gas transportation infrastructure, will ensure the economically successful export of «green» hydrogen to the European Union and in 2022 - 2050.

The surplus of green energy has the potential to support the EU in achieving the desired climate targets already this decade. Building a thriving energy partnership with the EU creates the economic foundation for the subsequent restructuring of Ukraine's economy in the field of fossil resources and the transition to a green, carbon-free economy. Kakhovskoe reservoir is located in the lower reaches of the River, on the territory of three regions: , Zaporozhye and Dnipropetrovsk. It was put into operation in 1956.

Data from Kakhovsky reservoir: • area 2150 km2 • gross volume 18.18 km3 • depth: average 8.4 m, maximum 32 m, shallow waters - 5% of the area • length 242 km, middle part – lake-alike, width up to 23 km • water level fluctuations - up to 3.3 m (additional studies will be conducted under the Project) • low water flow rate current velocity (from 0.01 - 0.08 m/s to 0.6 - 2.0 m/s depending on the region)

The water surface area of 210 sq. km planned for development is highlighted on the map. The site is not crossed by navigable fairways, infrastructure facilities will cool down, and the depth of the bottom is 2 - 3 m. The site covers 9.8% of the total area of the reservoir. GREEN ENERGY CIRCLE

“HYDROGEN WORLD” HYDROGEN CIRCLE 6 The existing infrastructure and networks of the main and medium pressure gas distribution pipelines can be used for sales of hydrogen.

2 The main pipelines are shown in red lines on the map.

Promising hydrogen pipeline THE GRAND TRANSITION

Currently, the so-called Grand The global transition to a carbon- Transition is underway in the free energy is part of a much world from energy based on the broader transition to a carbon- use of fossil products to renewable free economy. energy using the energy of the sun, wind and water.

The commitment of the Ukrainian leadership to support fossil energy can lead to our country falling out of the global Grand Transition trend, difficulty in accessing financial resources and an even greater lag of the economy from the European one. THE CALCULATION MODEL INCLUDES THE FOLLOWING EXTREME LIMITS OF OPERATION OF POWER GENERATION FACILITIES:

100 years 65 years 45 years HYDRO

NUCLEAR POWER THERMAL POWER PLANT PLANT (COAL, GAS) TOTAL GENERATION POWER (INSTALLED CAPACITY), MW BY YEAR

The diagram clearly shows that even with such critical conditions the Ukrainian energy sector, based on fossil energy resources, is entering a period of deep crisis (already from the 30s). And by 2037 it practically terminate operation.

NUCLEAR POWER PLANT THERMAL POWER PLANT HYDRO TOTAL DROP OUT POWER (INSTALLED CAPACITY) To avoid an energy collapse, today it is necessary to start building a power industry that is independent of fossil sources. These are renewable energy sources (wind power plants, solar power plants, hydro, biogas) using modern hydrogen technologies that ensure uninterrupted stable supply of electricity and heat to industrial facilities and households.

SOLAR GENERATION WIND GENERATION HYDROELECTRIC BIOGAS GENERATION STATION Installed capacity, SPP, MW

Installed capacity, WPP, MW Total installed capacity, NPP, TPP, HPP by years, MW

Total installed capacity, WPP, SPP (to compensate for the output of fossil installed power), MW

Schematic model of replacing the generation capacities of nuclear power plants and The following parameters were used in the calculation: thermal power plants (blue line of the graph), new generated capacities of wind power ICUF NPP - 90% plants and solar power plants (orange line). ICUF TPP - 42% ICUF WPP 34% This model shows that during in Ukraine must be put into operation ICUF SPP 20% 2020-2050 ICUF HYDRO - 37% 88.8 GW installed capacity of renewable energy sources for domestic consumption. The share of wind in RES - 47% Offshore wind share - 5% 80000 Capital expenditures for new wind farms and solar 70000

power plants, million $ 60000

On the right, the model 50000

provides a graphical 40000 representation of the 30000 required investments (by 20000 years of accumulation). 10000

0 The following values are taken in the 2020202120222023202420252026202720282029203020312032203320342035203620372038203920402041204220432044204520462047204820492050 model: CAPEXCapex ВЭСWPP, off off shore,-shore, млн millions $ USD CAPEXCapex ВЭСWPP, on on shore,-shore, млн millions $ USD CAPEX WPP off shore – 1100 $ / KW, CAPEXCapex CSPP,ЭС offoff shore,-shore млн millions $ USD CAPEXCapex CSPP,ЭС onon shore,-shore млн millions $ USD CAPEX WPP on shore – 850 $ / KW, СуммарныйTotal CAPEX CAPEX for new новых WPP ВЭС & SPP, и СЭС, millions млн $USD CAPEX SPP off-shore – 1000 $ / KW, • The model shows that the Ukrainian energy sector will require more than $ 70 billion in investments during CAPEX SPP on-shore – 600 $ / KW, 2020-2050. the same for all years. • The lion's share falls on the 30s (in this model). • If we set non-critical (real) parameters of the operating life of nuclear power plants and thermal power (The model used is easy to recalculate using projected plants, then the main financial burden will fall on the 20s. capital expenditures by year). GREEN ENERGY

Capital expenditures for new wind farms and solar power plants, $ million CAPEX of electrolyzers (by accumulation)

For the stable and uninterrupted functioning of the power system, additional investments will be required in the processing of a part of the electricity from renewable energy sources into hydrogen for balancing.

In this model, it is assumed that 15% of all electricity goes to balancing. Specific Electrolysis Consumption - 55 kW * h / kg H2, Electrolysis Efficiency - 64%, Electrolyser’s CAPEX = 900 USD/kg.

Such significant funds for the modernization of the energy system of Ukraine can be attracted solely following the current trend of carbon-free transit.

But, taking into account the stable long-term need for the import of "green" hydrogen, declared by the EU and, especially, Germany, the potential of Ukraine for the production and export of "green" hydrogen and ammonia should be assessed.

HYDROGEN VALLEY Energy pyramid showing the potential of renewable energy sources in Ukraine by region 60 GW IP , (GW UM). IVANO-FRANKIVSK , CHERNIGIV, TRANSCARPATHIA

Cherkasy

80 GW IP

Thus, Ukraine can place on Kirovograd Khmelnycky Vinnyca its territory about 340 GW Zaporizhzhya of installed capacity of renewable energy sources. 200 GW IP

In particular, on the Odesa Kherson Dnipro territory of the "Hydrogen HYDROGEN VALLEYRES potential by regions of Ukraine, MW of installed capacity Valley" = 200 GW. DNIPRO ODESA KHERSON MYKOLAIV

HYDROGEN VALLEY Characteristics of the Dnipropetrovsk region of Ukraine and its energy potential in Agricultural land area with The territory of the ore quarries The area of water surface of two Area of inland water reservoirs renewable energy sufficient wind load (2% of where ore ended reservoirs of the Dnipro river and largest water watercourses sources agricultural land)

Area, ha 45 000 65 000 98 000 460 000

Wind 1,2 2,4 0,5 2,3 energy, GW Solar 23,0 8,0 3,2 0,0 energy, GW Trunk roads, gas pipelines, oil The area of farmland where it is Free areas of pastures, land, pipelines and ammonia Roofs of public and industrial advisable to locate and hayfields (0.5%) pipelines buildings photovoltaics (0.03%) (0.35% of the entire territory)

Area, ha 7 000 125 000 100 000 10 000 Wind 0,0 0,6 0,0 0,0 energy, GW Solar 2,4 1,5 0,4 0,6 energy, GW CHARACTERISTICS OF THE POTENTIAL . OF RENEWABLE ENERGY SOURCES . BY REGIONS OF UKRAINE, . GW OF INSTALLED CAPACITY .

HYDROGEN VALLEY Characteristics of the regions of Ukraine and their energy potential in renewable energy sources

HYDROGEN VALLEY DNIPRO

MODEL OF THE ODESA ESTIMATED POTENTIAL OF KHERSON THE INSTALLED CAPACITY OF ZAPORIZHZHIA THE HYDROGEN VALLEY MYKOLAIV Installed Capacity Potential of Total installed capacity of wind power plants and solar power Surplus potential of installed Renewable Energy Sources, GW plants for domestic consumption in Ukraine, GW capacity of wind generation and solar generation for export of Green Energy to the EU countries (blue zone)

The entire visible blue zone is the excess potential of the installed GW capacity of the Hydrogen Valley, which can be used to produce "green" hydrogen and ammonia.

The values of the energy demand of Ukraine against the background of the estimated potential of the installed capacity of the Hydrogen Valley are shown in orange on the graph. HYDROGEN VALLEY UKRAINE'S POTENTIAL 19 537 584 33 608 393 FOR "GREEN" HYDROGEN EXPORT 8 695 001 • The potential excess of installed capacity of tons of hydrogen to the Hydrogen Valley, GW, is shown in blue. replace gas generation tons of hydrogen to in the EU countries • Orange color indicates the potential for replace coal generation (2041-2050) export of "green" hydrogen, tons per year. in the EU countries (2031-2040)

GW tons of hydrogen to create a "hydrogen" valley in Ukraine (2021-2030) It is home to approximately PRODUCTION OF AVIATION FUEL 4.2 - 4.5 billions people WITH ZERO CO2 EMISSIONS CH3 (OH) • Mariupil • "GREEN" CLOSURE OF COKE PRODUCTION • Dnipro • Zaporizhia until 2030 - 0.4 million tons PRODUCTION OF NITROGEN FERTILIZERS • Kamenske until 2030 - 1.2 million tons AND EXPORT OF "GREEN" AMMONIA until 2050 - 2.7 million tons

DECENTRALIZATION OF HEAT AND ELECTRICITY DELIVERY. More than 10 million inhabitants CHP PLANTS ARE APPROXIMATELY 50 - 65 YEARS OLD • Kyiv until 2030 - 1 billion cubic meters • Dnipro until 2040 - 4.5 billion cubic meters SUBSTITUTION OF IMPORTS OF NATURAL GAS • Kharkiv until 2050 -12 billion cubic meters • Odesa • Lviv • Zaporizhzhya • Kriviy Rih

HYDROGEN VALLEY Use of hydrogen technologies in the framework of the Project

The subsequent transformation of "green energy" into renewable hydrogen is the most sustainable solution for preserving the environment producing energy from renewable energy sources. Lithium-ion and other batteries will play a supporting role and must be transformed to achieve a minimum carbon footprint during their disposal and recycling.

The project envisages the purchase of The project involves the development of a new electrolyzers with a total installed capacity of potential export niche. 1.1 GW, depending on economic feasibility, the technology will be determined during the According to experts, “Green Hydrogen” may preparation of the feasibility study. become the third largest commodity in terms of export volumes after agricultural and Hydrogen production is planned at: metallurgical products. 0.15-0.20 million tons per year.

2026 2 GW III stage 2025

2024 2 II stage 1,5 GW - 0,8 GW - 0,7 GW 30% H 2023 70% NH3

2022 400 MW I stage 2021

HYDROGEN VALLEY METHODS FOR THE DELIVERY OF "GREEN" HYDROGEN AND AMMONIA

СН4 + Н2 (2%) 0.8 billion cubic meters H2 Ammonia –PipelineOdessa Togliatti (260 km) СН4 + Н2 (10%) * 2 3 2,000,000,000 cubic meters H NН * when a German operator purchases 20 billion cubic meters as a carrier. NН3 Н2 Railway 100% H2 - determined Transport by the throughput of (320 km) the hydrogen pipeline 2 to Odesa Н NН3 Specialized Railway Container vehicles (310km) 1000 kg H2 in one container to Odesa www.dia.dp.gov.ua LABOR MARKET

Dnipropetrovsk region - is one of the main labor markets in Ukraine, where 1.5 mln people (8.5% out of the total number of Ukraine) of economically active population are concentrated. The region ranks second among the regions in terms of working-age population employment - 69.2%, while the registered TRADE AGREEMENTS, www.dia.dp.gov.ua unemployment level is 8% (121.5 thousd. people). TAXES AND PREFERENCES 15.6% 0-14 years EU (28 member states) CANADA CIS ISRAEL 413 thousd. 85.3 thousd. Valid as of: Valid as of: Valid as of: Valid as of: 11% January 1, 2016 August 1, 2017 September 20, 2012 January 21, 2018 70 and above Goal: Goal: Goal: Goal: 289.7 thousd. 65.6 thousd.

73.4% 15-69 years 1 981.6 thousd. Urban population 367.7 thousd. Rural population

Dnipropetrovsk region is one of the leading academic centers of Ukraine In the region there are:

higher education institutions III – IV level of accreditation (universities, academies, institutes), in which more than 24 92.6 thousd. students are studying. About 26 thousd. specialists were graduated in 2018.

31 19 thousd. students are studying. More than 5 thousd. specialists were graduated in 2018. 58 vocational technical schools, in which 22 thousd. students are studying. 13 thousd. DNIPROIN «TOP 20 OF UKRAINE» RANKING, 3 HIGHER EDUCATION INSTITUTIONS OF DNIPROPETROVSK REGION HOLD LEADING POSITIONS

National Technical University Dnipro National University National Metallurgical Academy of Ukraine EUROPEAN FREE TRADE REGION 18% of the ASSOCIATION (EFTA) MACEDONIA MONTENEGRO GEORGIA (Iceland, Liechtenstein, Valid as of: Valid as of: Valid as of: 7 world's iron Norway, Switzerland) July 5, 2001 January 1, 2013 June 4, 1996 ore reserves 110 Km away from Valid as of: June 1, 2012 Goal: Goal: Goal: Hydrogen Valley Goal: PROFILE я The scope of free trade zone agreements:

goods state procurements KRYVYI RIH services gradual legislative approximation and economic integration with the EU

39 Floating solar aeration panels cover 40% of the park A successful business for the export of hydrogen and ammonia to Europe will open by the end of the 20s all spheres of the Ukrainian economy to the transition to carbon-free own resources. With the help of European investments, the country will be able to implement a "green transition" and build a direct transport artery for transporting hydrogen and a new hub for the delivery of "green" ammonia for decarbonization of European agriculture.

All state income from hydrogen production and transportation of finished products is planned to be invested in a joint Ukrainian-European fund to achieve the country's common European climatic goals. Contacts

DNIPRO 77, Dmytra Yavornytskoho Avenue, Oleksandr Pylypenko Maryna Kryvoshey office 401 Dnipro, 49000, Ukraine CEO Lawyer Tel./fax: EMAIL: [email protected] SKYPE: glasha_2011 +38(044)4259700 TEL: +38 050 331 56 22 TEL: +38 050 311 72 79 +38(044)4259701 +38(044)4259702

KYIV 6, Skovorody str., office 41 Kyiv, 04070, Ukraine Tel./fax: +38(044)4259752 +38(050)3315622 Igor Parneta Maksym Mordan +38(050)9721735

Technical Expert Vice-Chairman of Supervisory Board

EMAIL: [email protected] SKYPE: mvmordan TEL: +38 050 972 17 35 EMAIL: [email protected] TEL: +38 050 334 67 00 Acting collaboratively!