Petro Forum APAC – Bangkok Alan Kneisz – Director of Business Development

1 Projects – Where is the Market Heading

Alstom, Kolon, S. Korea Uniper (e.on), Germany Buses, China

• World’s first commercial • Providing > 1 MW • 1.5 MW single stack • Multiple agreements for contract for hydrogen power using excess Power-to-Gas facility in thousands of fuel cell fuel cell trains hydrogen Germany buses throughout China in the next 2-4 years • 10-year agreement, • 50% LHV electrical •Completed most of the contract value > €50M efficiency large scale Energy Storage projects in Germany

2 Global Hydrogen Market Main source: The , M. Ball, 2009

Steam Reforming INDUSTRY : protecting atmosphere (H2/N2), hardening of metals 6% Float glass Metallurgy Semi-conductors

48%

Crude oil cracking

30% CHEMISTRY & REFINERIES: C, H, O, Amonia 93% Coal gasification

18% 50% 43% H2 by-product

OTHERS: cooling agent, hardening of oil, power generation, mobility 1% 3% Electrical power plants Food industry FCEV

NB: 5 % is merchant hydrogen (free market), 1% onsite production represents 95%

3 Steam MethaneProductionreforming Storage / Transport / Distribution End-use 3 Global Perspective : Hydrogen Economy Key Points

• is now Cheaper than Fossil Fuels on large scale

• Export potential already starting and expansion for demand to Japan and Korea

• Hydrogen transport (fuel cells) lowest Co2 emissions, better technology than batteries for transport - auto industry support

• Fuel cell transport and Hydrogen expanding extensively: – China – Fuel Cell Buses (thousands being deployed) – Japan – Hydrogen Society (100 fuelling stations done) – Europe – Transport (trains, buses and cars) – Korea - 250MW already working for power applications – Australia – $120 million in grants for hydrogen projects Toyota Mirai - ‘The Future’

• Energy Storage is a new growing market for Hydrogen • Hydrogen can be generated locally, not imported!

4 Hydrogen Versatility - Many Options for Hydrogen

POWER GRID

SURPLUS OR LOW-COST Power-to-Industry Wind turbine Industry Power-to-Hydrogen Solar PV H H storage Ammonia Electrolysis 2 2 (optional) Chemical Speciality chemicals Power-to-Power plants H2O O2 Gas turbines Power-to-Fuels Refineries

Fuel cells Low C02 fuels

Refuelling CHP Methanol stations

Heat Power-to-Gas CNG

CO2 Methanation

Blending Power-to-Mobility

Hydrogen Vehicles (FCEV)

GAS GRID

Hydrogen network Power network Gas network Liquid fuels network

5 Shifting the Energy Mix Using Excess Renewables or Grid Power to Create Hydrogen

• A typical grid has extensive excess power available due to seasonal or spikes in the grid - this can be used to create Hydrogen

• Renewables have excess power in most markets - also coal, nuclear have excess power

• Transporting H2 is getting better and better

• Applications are growing and projects are increasing in size

6 Hydrogen has the best potential for Large Scale Energy Storage Among alternative energy storage technologies hydrogen provides large capacity with longer duration capabilities

Size and discharge durations by storage technology

7 Hydrogen Energy Storage System

OPPORTUNITY BENEFITS • Hydrogen can be produced • Match intermittent renewable energy supply & demand and stored economically for power • Enable load profiling including grid optimization and peak shaving • Fuel cells can be used as electricity generators to replace opportunities conventional power

8 Fuel Cell vs Lithium Ion Batteries

Lithium Ion Fuel Cells • Lifetime not easy to determine • 12 000 hour before recycling • Reduce lifetime with heat • Close to temperature intolerant • Not currently recycled • Easily recycled • No local integration • Expect local integration and job creation • Large footprint and real estate • 100kw size of human • Concerns with precious materials • Limited precious materials • Some auto company support • All major auto companies moving toward FC future • Lower cost per kw • Major reductions just starting • Power applications • Versatile: blending gases, fuelling, power, etc.

9 New Technology – Better Cost Efficiency

10 Hydrogen to: Power, Gas, Industry and Mobility

11 Opportunities for Hydrogen and Fuel Cells in Asia

• New Low Carbon Transportation Projects • Buses, trains and fleet systems • Range extenders for EVs

• Remote Power and Island systems • Mini-grid applications

• Back up power applications for power stability Fuel Cell Bus with Canadian Prime Minister Trudeau in China • Excess energy from the grid or renewable energy • For storage or Hydrogen production for other applications

• Use of excess hydrogen or by-product hydrogen • Refineries - Korea • Chemical process – Chlor Alkali • Pulp and paper etc.

Megawatt Fuel Cell at Refinery in Korea

12 Summary: Hydrogen Development for Asia

• Advantages of Hydrogen – Multi-use and applications • gas, power, transport, blending, industrial use – Cost reductions just starting, localization reduces further – Momentum globally (ex. Japan, Germany, China, Korea and California) – Asia specific • Remote areas, islands & excess renewables • New interested in low emission transportation • Adopting Hydrogen in Asia – Large projects and scale needed – Local partners in each market – Demo Project for further adoption – Regulations supporting Hydrogen – Fuelling stations for zero emission

13 14 Alan Kneisz : [email protected]