About the GHC www.ghcoalition.org Mission: Facilitate policies and practices to advance the production and use of Green Hydrogen in all sectors where it will accelerate a carbon free energy future Approach: Prioritize Green Hydrogen project deployment at scale; leverage multi- sector opportunities to simultaneously scale supply and demand *The GHC is a 501c3 Tax Exempt Non Profit Corporation What is green hydrogen? The industry is aligned. Green Hydrogen: hydrogen that is not produced from fossil fuel feedstocks Gasification & Brown Coal or lignite - 18 to 20 reformation Gasification - 10 to 12 Fossil Fuel Gray Natural gas (SMR) Feedstock Fuel to s Carbon Capture Hydrogen - 0.6 to Brown or Gray plus Sequestration 3.5 Blue CCS during gasification - 0 Gasification & Biogas or Biomass Carbon Renewabl reformation impact e Green Clean (kg CO2/kg Feedstock Electricity H ) Water Electrolysis 2 s to Hydrogen Source: GHC, 2020 – above conversion pathways commercially available pathways today – many more are under development 2 Green Hydrogen Definition Framework Focuses on the Production Pathway Each production pathway (outlined below) and application pathway has different carbon and emissions implications that should be evaluated at the program level Primary Primary Energy Primary Production Applications Feedstock Source Process Water (H2O) Electricity Electrolysis H Eligible organic Chemical Anaerobic H waste feedstocks Energy in Digestion + 1. Biomass Feedstock Reformation 2. Biogas Thermal Thermochemical Energy to conversion Power (gasification, Conversion pyrolysis) Secondary Emission Sources: Station Power Green hydrogen is commercially viable now and on trajectory for lowest cost Hydrogen production costs from solar and wind vs. fossil fuels [ [ [ Source: IRENA, 2019. Hydrogen: A Renewable Energy Perspective. International Renewable Energy Agency (IRENA). Report. 4 GHC Focus: Accelerating the green hydrogen economy Initiative 1: Intermountain Initiative 2: Western Green Initiative 3: Regional Power Project Hydrogen Initiative Demand Aggregation Demonstrate an at-scale Enable green hydrogen Achieve a comprehensive hydrogen project that demand aggregation and regulatory, policy and enables an affordable and ecosystem development for commercialization roadmap responsible transition industrial energy & chemical to advance projects at scale www.ghcoalition.org/green- buyers in strategically www.ghcoalition.org/wghi hydrogen-at-scale targeted locations 5 Green Hydrogen can repurpose existing infrastructure & jobs Source: DNV GL Source: LADWP Enabling an affordable & responsible transition Renewable Energy Storage Alternatives Intra-Day Shifting vs. Inter-Day and Seasonal Shifting Lithium Ion Suitable for “Intra-Day Shifting” H2 Storage clear solution for “Inter-Day” and longer duration 2030 LCOE ($/MWh) -42% 1,817 5,388 210 94 122 91 122 122 123 125 4 Hour Storage 8 Hour Storage 24 Hour Storage 10 day storage 30 day storage Source: E3 Consultants; MHPS Lithium Ion Green Hydrogen Battery roundtrip efficiency impacted as Gas turbine capacity factor: 40% duration need extends beyond 1-day Assumptions MHPS 2019 electrolyzer and H storage 2 LCOE includes solar cost cost with learning curve + CCGT *source: Mitsubishi Power With green H2, we can achieve 100% renewable energy affordably and reliably – at competitive costs with today’s wholesale pricing Group Variable Units Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Assumptions Hydrogen % % 100% 100% 100% 100% 100% 100% Capacity Factor1 % 65% 65% 65% 65% 65% 65% Heat Rate2 BTU/kWh 6400 6400 6400 6400 6400 6400 3 CC Units $/MWh $26 $26 $26 $26 $26 $26 a Dispatchable GH2 Greenhouse Gas (GHG) GHG Cost $/metric tons $50 $100 $50 $100 $50 $100 4 costs competitive Calculation GHG Savings $/MWh ($17) ($34) ($17) ($34) ($17) ($34) b 5 with peak spot Hydrogen Calculation Hydrogen Commodity Cost $/kg $1.00 $1.00 $1.50 $1.50 $2.00 $2.00 Hydrogen Levelized Cost6 $/MWh $58 $58 $87 $87 $116 $116 c prices Renewable Energy7 Blended Renewable Energy $/MWh $7 $7 $7 $7 $7 $7 d Blended 100% 25% x (a+b+c) renewable with BLENDED COST ($/MWh) +75% x (d) $22 $18 $29 $25 $36 $32 dispatched GH2 competitive with today’s average wholesale prices CONTACT: Janice Lin Founder and President [email protected] +1 (415) 595-8301 9 Appendix 10 Air Products Plans $5 Billion Green Fuel Plant in Saudi Arabia Air Products signed an accord with Saudi-based ACWA Power Is the hydrogen economy International and the kingdom’s planned futuristic city of Neom to develop a $5 billion hydrogen-based ammonia plant powered by finally here? renewable energy Vestas backs Toyota is pushing ahead with Coalition Aims for 25GW of world's first hydrogen-powered cars Green Hydrogen by 2026 commercial green Doubling down on its bet that ammonia plant fuel cells will help secure Seven firms join forces for GM and Honda partner to Toyota's future as the industry fiftyfold scale-up of global mass produce hydrogen fuel comes under enormous hydrogen production capacity. cells in Michigan Enel teams up on pressure to slash carbon emissions US green 2000 2020 hydrogen project New hydrogen buses hit the road Hydrogen cars join EV Initiative Seeks to Three buses powered by H2 are European nations plan Lancaster, CA Hydrogen and to be introduced on routes in models in showrooms Fuel Use of Green to use more hydrogen Becomes the First fuel cells will central London as part of a two- Hydrogen in West Hydrogen year trial for energy needs future-proof The push to develop Fuel Cells Power Up: Three Energy officials from 25 City in the US shipping green hydrogen got a Surprising Places Where countries pledged Tuesday Future Proof boost with the to increase research into Shipping is taking Hydrogen Energy Is Working announcement of a hydrogen technology and a pioneering step Hydrogen may not be fueling new program to hasten Utility of the Year accelerate its everyday by retrofitting a many cars, but it is delivering its development for NextEra Energy is use to power factories, vessel to run on clean power for warehouses, use in the Western investing in green drive cars and heat hydrogen fuel cell data centers, and Telcom towers. Interconnection hydrogen, solar energy homes. and grid resilience, propulsion 11 require multi require will penetration renewable High intermittent and variable Net Demand (GWh) -100 -200 -300 -400 500 400 300 200 100 0 1-Jan 10-Jan 19-Jan California 100%California renewable scenario 28-Jan deficit Winter 6-Feb - 15-Feb day and seasonalenergy storage 24-Feb Spring/summer 4-Mar surplus 13-Mar 22-Mar 31-Mar 9-Apr 18-Apr 27-Apr 6-May 15-May 24-May events/energy deficits Multi 2-Jun Seasonal energy 11-Jun - deficits 20-Jun weatherday 29-Jun 8-Jul 17-Jul 26-Jul 4-Aug ( 13-Aug demand)energy net Daily 22-Aug 31-Aug 9-Sep 18-Sep 27-Sep 6-Oct Autumn/winter 15-Oct 24-Oct 2-Nov Source: Strategen Consulting, 2019 Consulting, Strategen Source: 11-Nov deficit 20-Nov 29-Nov 8-Dec 17-Dec 26-Dec Excess demand Excess generation 12 Green hydrogen is the only commercially viable seasonal storage solution available today Long Duration Energy Storage Solutions Source: Green Hydrogen Coalition, 2020 13 Global hydrogen production accounts for 832 Mt CO2/year…more than the emissions of Germany 2017 CO2 emissions by country and sector (Mt CO2/year) Source: Wood Mackenzie, 2019. “CO₂ and other Greenhouse Gas Emissions 14 5% Green Hydrogen Blend in CA Natural Gas Pipeline is equivalent to removing 365,000 cars from the road each year! 2*109 MMBtu Annual natural gas use in CA 106 MMT CO2 emissions from annual CA natural gas combustion 1.77 MMT CO2 emission reduction from 5% ≈ by volume hydrogen blend 4.6 MT Average annual emissions of one car 384,826 cars Equivalent annual emissions Green electrolytic hydrogen is an excellent storage medium… and unlike batteries can address multi day and seasonal needs Energy Source Energy Storage & Conversion Energy Output Green Electrolytic Hydrogen Storage Electricity Electricity Electrolyzer H2 Storage Gas Turbine or (container, Fuel Cell pipeline, cavern) Battery Energy Storage Rectifier Battery Inverter Roadmaps and plans for green hydrogen are developing worldwideSource: 2020, Presentation: DOE Hydrogen and Fuel Cell Technologies Office and Global Perspectives, Dr. Sunita Satyapal, Director, Hydrogen and Fuel Cell technologies Office 17 Regulatory reform of existing gas and electric infrastructure is key to accelerating the green hydrogen economy Department of Energy Hydrogen Program Plan, 2020 18 Green hydrogen can achieve multi-sectoral global decarbonization Intersectoral Decarbonization Applications Source: CSIRO, 2018. National Hydrogen Roadmap 19 19 California Greenprint for Action California can lead the green hydrogen economy globally • Establish technology agnostic legal and regulatory framework 2030 • Integrate greenH2 into current gas and electric planning • Establish targets, compensation mechanisms incl. new tariffs • Think big – don’t miss out on economic development and CA export potential Establish Broad, Capitalize on Cost- Technology CAISO: local Competitive Green Agnostic area long Early At-Scale Hydrogen Definition duration Deployments: Opportunities – need, Augment CARB/CEC: Road- Convert Gas lower cost H2 fuel products for mapping, Generators to supply, target hard reliability Intersectoral 100% GH2, to abate applications CPUC: IRPs, Strategic Vision, Increase Pipeline in industry and RA, Injection Update RPS Injection and agriculture. Ready 2021 Target, New Guidebook Blending Targets CA ports for export