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Power-to-X for Applications Annual Report 2019

Frankfurt / Brussels, January 2020

VDMA Overview

» Foreword » Power-to-X for Applications  The VDMA Platform in a nutshell » Lobbying focus  Approach of Parliamentarians and Administration  German national hydrogen strategy  PtL in aviation  International markets and export opportunities » Public Relations » Structure and Committees  Members  The P2X4A Board  Advisory Board – The P2X4A network in Germany  Building a new P2X4A network in Brussels  Your P2X4A-Team @ VDMA » Outlook – Events 2020

VDMA Power-to-X for Applications | Annual Report 2019 Foreword

Dear Members and Partners,

2019 was the year in which climate policy was back on the political agenda – hence a good time to kick-off our activities after the official launch of VDMA P2X4A. But while the younger generation protested in the streets during the "Fridays for the Future" demonstrations, particularly German climate policy was marked by hesitation. Nevertheless, one important milestone was achieved as the German government made a commitment to renewable gases and fuels. The result is a National Hydrogen Strategy, which is to be adopted by the Federal Cabinet in 2020.

Another window of opportunity may arise at European level: In 2019 the new Commission announced a European Green Deal to make the continent climate neutral by 2050. Hydrogen and other P2X products will be decisive for making the Green Deal a success. This is particularly true for sectors that are difficult to defossilise, such as the chemical and steel industries, aviation and shipping. But also the transport sector is under great pressure to achieve rapid emission reductions.

P2X creates new value-added chains, which open up a wide range of export opportunities in a globally emerging hydrogen market, especially for mechanical and plant engineering. Therefore we advocate for an industrialised and internationally competitive P2X market. Our cooperation with the German Ministry for Economic Cooperation and Development to build a demonstration plant in Morocco is a first step towards achieving this goal.

We look forward to continuing our cooperation with you in 2020.

Peter Müller-Baum Dr. Carola Kantz Managing Director VDMA P2X4A Deputy Managing Director VDMA P2X4A

VDMA Power-to-X for Applications | Annual Report 2019 Power-to-X for Applications The VDMA Plattform in a nutshell

» Network  We are a strong network of the relevant stakeholders along the P2X value chain.  End of 2019 we have 80 member companies covering renewable energy, components and process engineering, automotive industry, and petroleum. » Lobbying Focus  We represent the voice of the industry and position the topic in politics 2019 both at national and EU-level. » Public Relations  We position the topic in selected media as an important contribution to a comprehensive energy system transformation and provide background material for reports. » Research  We cooperate with important research associations, support the necessary research transfer and develop roadmaps and application concepts. » Standardisation  We set standards in the relevant standards committee and establish short-term instruments (e.g. VDMA standard sheets) to accelerate the standardization processes. P2X4A

VDMA Power-to-X for Applications | Annual Report 2019 Approaching Members of Parliaments and Administration

» Bilateral discussions with ~50 MEPs, MdBs, political and administrative representatives of administration in Berlin and Brussels, other stakeholders » Active and passive participation in the most important events » Letters to all relevant Federal Minister in Germany  , Federal Ministry for Economic Affairs and Energy  , Federal Ministry of Education and Research  Dr. Gerd Müller, Federal Ministry for Economic Cooperation and Development  , Federal Ministry of Transport and Digital Infrastructure  , Federal Ministry for the Environment, Nature Conservation and Nuclear Safety » Letter to almost 150 Members of German Parliament, covering the Committees for Economy, Environment, Transport, and Development » Open Letter to the new Executive Vice-President Frans Timmermans and the relevant EU Commissioners, initiated by VDMA in cooperation with 17 associations

VDMA Power-to-X for Applications | Annual Report 2019 German National Hydrogen Strategy » P2X and hydrogen gained political momentum during the “Gasdialog 2030” held by the Ministry of Economics. VDMA P2X4A was an active member. » A political decision was made to adopt a national hydrogen strategy. VDMA P2X4A widely circulated its position. The three main messages:  Focus on scaling-up and application of hydrogen is essential  A fast and ambitious REDII implementation is key (20% RES in the transport sector in 2030, reduce barriers for taking electricity from the grid)

 Establish tradeable guarantees of origin to account for H2 produced in non-EU countries » VDMA P2X4A currently discusses these positions with high representatives from the Ministries for Economics, Environment, Transport and Development as well as members of the German . » An event in cooperation with DVGW and VKU is carried out in January 2020 to communicate the positions more broadly.

VDMA Power-to-X for Applications | Annual Report 2019 PtL in Aviation

-717235285 » The public climate debate hit the aviation sector more than initially expected (“flygskam”).

-on-runway  In Germany there is a shared political understanding that there is no alternative to the use of PtL in aviation.  PtL performs better with regards to sustainability criteria (e.g. land use, water) than biofuels. ane-landing-sunset » VDMA P2X4A is engaged in discussions with aviation industry and political decision-makers.  In July 2019, VDMA P2X4A and the aviation sector held a workshop on the necessary supply chain for PtL-production. age-photo/passenger-airpl  VDMA P2X4A takes part in the Berlin based “Roundtable zu PtL in der Luftfahrt” to discuss a market ramp-up with relevant stakeholders and political decision-makers. » We expect political support for a new PtL demonstration plant in a non-EU country in the context of the German national hydrogen strategy. Source(picture): https://www.shutterstock.com/de/im

VDMA Power-to-X for Applications | Annual Report 2019 International Markets and Export Opportunities

» Federal Ministry for Economic Cooperation and Development started a process in autumn 2019 in order to build up a ap-1299583933 demonstration project for a large scale PtX plant in Morocco. » VDMA and its members are considered the most relevant ed-flag-on-m project partners. » MoU to be signed in 2020 » PtX plant to be build within the next few years with German technology age-photo/morocco-mark

» Furthermore: Information on business trips to MENA region or delegates from these countries https://www.shutterstock.com/de/im Source (picture) (picture) Source

VDMA Power-to-X for Applications | Annual Report 2019 Active via multiple Channels to provide Information on Power-to-X to the Public and Politicians

Press Releases and Social Media » Media refers to our releases, VDMA Social Media Channels reach more than 13K Followers Publications are available in print and online » Used for dialogue with political decision-makers Webpage with up-to-date information » Events, News, Research and Innovation

VDMA Power-to-X for Applications | Annual Report 2019 The P2X4A Members (selection) Some 80 member companies from the complete value chain

VDMA Power-to-X for Applications | Annual Report 2019 The P2X4A Board

» Dr. Uwe Lauber, MAN Solutions AG, Chairman of the Board » Dr. Arthur Heberle, Mitsubishi Hitachi Power Systems Europe » Dr. Volkmar Pflug, Siemens AG » Andreas Rupieper, Linde AG » Dipl.-Ing. Christof Schernus, FEV Europe GmbH » Dr. Martin Teigeler, Rolls-Royce Solutions GmbH

We will continue to expand the Board in 2020 to represent all sectors and components of the P2X value chain.

VDMA Power-to-X for Applications | Annual Report 2019 Advisory Board The P2X4A network in Germany

» VDMA P2X4A cooperates with other industry associations along the P2X value chain. They are represented in the advisory board. » The advisory board assists in assessing the political developments. » Wherever possible we aim for alignment of political positions. » Planning of joint events and activities » The advisory board meets once per quarter.

VDMA Power-to-X for Applications | Annual Report 2019 Building a new P2X4A Network in Brussels

» Launch of an informal P2X network among European industry associations representing the P2X value chain » Joint assessment of political developments and alignment of positions wherever possible » Planning of joint activities at EU level; e.g. the joint and open letter on hydrogen and PtX to Executive Vice President Timmermans in December 2019 » Meetings once per quarter

VDMA Power-to-X for Applications | Annual Report 2019 Outlook – Events 2020

28 January 2020 Parlamentarischer Abend in Berlin – Power-to-X Neue Wertschöpfungsketten aufbauen

10/11 March 2020 Energie.Cross.Medial – Wie kann die Konvergenz der Systeme gelingen? www.energiecrossmedial.de

11/12 March 2020 DVGW Kongress – Symposium Zukunft Gas-Mobilität https://zukunft-gas-mobilitaet.de/

20-24 April 2020 P2X4A at Hannover Trade Fair

14 May 2020 General Assembly in conjunction with VDMA Event ‘Klimaneutral produzieren’

17-19 June 2020 P2X4A at Intersolar Europe in Munich

27 October 2020 P2X4A Conference in Heidelberg Source (picture):https://www.shutterstock.com/de/image-photo/businesswoman-planning-agenda-schedule-using-calendar-767529004

VDMA Power-to-X for Applications | Annual Report 2019 VDMA Power-to-X for Applications Lyoner Str. 18 60528 Frankfurt a. Main Germany

VDMA European Office Power-to-X for Applications Boulevard A. Reyers 80 1030 Brussels Belgium

p2x4a.vdma.org

VDMA Power-to-X for Applications | Annual Report 2019