Key Infrastructure Requirements in Early Hydrogen Markets Eden Energy Ltd Key Infrastructure Requirements in Early Hydrogen Markets Presentation to National Hydrogen Association Greg Solomon, LLB Executive Chairman April 2008

INTEGRATED HYDROGEN TECHNOLOGY Eden Group Companies INTEGRATED HYDROGEN TECHNOLOGY HyRadix Inc (Chicago, Illinois) - On site hydrogen production systems Hythane Company LLC (Denver, Colorado) - Hythane® production and use of H2 blended CNG Eden Cryogenics LLC ( Columbus, Ohio) - Cryogenic storage technology and production

Prerequisites for Early Markets Adequate supply of hydrogen and necessary infrastructure Fully developed uses Adequate hydrogen storage capacity for mobile uses Safety codes and standards Public and political acceptance Adequate drivers - environmental, health, economic Ease of integration into existing infrastructure Long term economic viability Commercially viable transitional strategy

Key Infrastructure Requirements Hydrogen Supply Centralised production of hydrogen requires: distribution (liquid or gaseous) infrastructure pipeline or transported ( truck/ tube trailer) on-site storage ( liquid or gaseous) determined by frequency of re-supply and required rate of dispensing Distributed, onsite production of hydrogen requires: no distribution requirements if pipeline Natural Gas onsite on-site storage requirements determined by rate of production and required rate of dispensing

Applications for Early Hydrogen Markets Hydrogen engines/ power source ( FC and IC) requires affordable, distributed hydrogen supply and infrastructure ( e.g. Iceland) Hythane® ( HCNG) engines - a transitional strategy can be used as ideal transitional strategy on path to hydrogen where Natural Gas is used or available as a vehicle fuel ( e.g. Argentina, Pakistan, India, China, Italy etc)

Hythane® - the Ideal Transitional Fuel Uses existing Natural Gas infrastructure Low-cost premium blend of Natural Gas (5-7% H2) ultra-low emissions (50% NOx) high efficiency Uses existing Natural Gas infrastructure Leveraged use of hydrogen Achieves new low emission standards Suitable for CNG / LNG / Dual fuel Provides immediate market for Hydrogen infrastructure Hythane offers ready-to-use technology that bridges the divide between today's engines and a future hydrogen economy.

Hythane® Operating System Methane source Dispenser Reformer/ Blender Compressor Cascade Hythane Storage Flow diagram showing Hythane® operating system Modifications to standard Natural Gas system – hydrogen source, blender & engine controller – are highlighted in yellow & green Engine Controller Recalibration Hythane® Additions / Modifications to a standard Natural Gas system

Potential Hythane® Applications CNG/ LNG/ Dual Fuel Buses Taxis, automobiles Trucks Locomotives Generators/ gas turbines

Hythane® Bus Projects Montreal 1993-1995 California 2002-2004 Two extensive bus trials of Hythane were completed in Canada (1993-95) and California (2002-2004).

Denver Hythane® Project Results . Denver Hythane® Project Results THC CO NOx 0.5 1 1.5 2 2.5 3 NG HY5 HOT 505 EMISSIONS, GRAMS/MI. Courtesy of Colorado Department of Health, March 1993 Pollution results from the Denver project Natural Gas results in orange on the LHS and Hythane® (5% H2) on RHS 50% Reductions in CO and NOx, 5% H2: Leverage Factor = 10!

Centralised Hydrogen Production Suitable for early markets where low cost centralised production is available Usually requires either pipeline or liquid delivery to be commercially viable ( ie developed countries) Needs greater initial infrastructure investment in: - pipeline / liquefaction - trucks / tubetrailers - onsite storage, compression and dispensing Unlikely to be suitable for developing countries because of higher up-front costs with no existing market to support it India promises huge markets for Hythane® with strong government support and a major rollout of Natural Gas infrastructure throughout the country.

Distributed on-site Hydrogen Reforming Preferred primary supply source of hydrogen for Hydrogen and Hythane® in New Markets in Developing Countries - Lower initial capital costs - Integrates into Natural Gas network - Demountable - Cost effective - No H2 transportation - Reduced H2 storage - Reliable and proven - Scaleable

US Transport Customer Case Study SunLine Transit Agency –California Primary H2 Supply H2 vehicles in daily operation Also used for Hythane® supply Demonstration Unit 2004-2006 10,000+ hours of operation 120,000 miles driven since 2004 50% hydrogen cost savings 50% NOx reduction Commercial Unit Installed August 2006 First large-scale commercial H2 filling station in USA

India - an early Market Potential Markets for Hydrogen and Hythane® buses cars/ taxis trucks autorickshaws locomotives generators / power generation India promises huge markets for Hythane® with strong government support and a major rollout of Natural Gas infrastructure throughout the country.

Factors Driving Hydrogen in India Indian Hydrogen roadmap adopts Hythane® as future Natural Gas fuel standard as a transitional fuel on path to hydrogen Supreme Court identifies over 20 cities for Natural Gas Significant domestic and imported Natural Gas - 40% cheaper than diesel Increasing supply of Natural Gas- 5Mtpa to 25Mtpa in 5 years Rollout of Natural Gas pipelines - over 230 cities in longer term City Gas distribution networks in 8 cities increasing to 28 Extreme urban air pollution caused by huge increase in vehicle numbers

INDIAN GAS SUPPLY AUGMENTATION TURKMENISTAN Domestic Gas Eastern Cost Upcoming LNG Terminals Dhabol (5 MMTPA) Kochi (2.5 MMTPA) Existing LNG Terminals Dahej (5 to 10 MMTPA) Hazira (2.5 MMTPA) Cross Border Pipelines Iran-Pakistan-India Turkmenistan-Afghanistan-Pakistan-India DAHEJ HAZIRA DAHEJ I & II 10 MMTPA 2.5MMTPA LNG TERM’s- Existing IRAN NEW GAS DISCOVERIES DABHOL KOCHI 5 MMTPA LNG TERM’s- Upcoming TRANS – NATIONAL P/L Courtesy of Gas Authority of India

INDIAN GAS SECTOR INFRASTRUCTURE : CURRENT & FUTURE CCo Turk-Afg-Pak-India Pipeline NANGAL BHATINDA Iran-Pak-India Pipeline DELHI BAREILLY GURGAUN AURAIYA MATHANIA AGRA LUCKNOW DISPUR DAHEJ I & II 10 mmtpa* JAGDISHPUR BARMER KANPUR GWALIOR PATNA PHOOLPUR KOTA JHANSI VARANASI GAYA AGARTALA LNG UJJAIN VIJAYPUR RAJKOT BOKARO BHOPAL Existing AHMEDABAD DAMRA HAZIRA 2.5 mmtpa KOLKATA PUNE BHARUCH CUTTACK Upcoming BARODA SURAT Transmission Pipelines BHUBANESHWAR MUMBAI DELHI BAHTINDA DUPL JAGDISHPUR TO HALDIA PUNE TO RAJAMUNDRI HYDRABAD VIJAYAPUR KOCHI MANGLORE COIM TO MANGLORE DABHOL TO MANG Existing KRISHNAPATNAM DABHOL 5 mmtpa SOLAPUR RAJAMUNDRY GAIL’s Planned Pipeline RIL’s East West Pipeline RIL’s Planned Pipeline GSPC’s Planned Pipeline KAKINADA KOLHAPUR HYDERABAD VIJAYAWADA GOA NELLORE ENNORE 2.5 mmtpa HASAN BANGLORE City Gas/ CNG Existing CHENNAI TUTICORIN TIRUCHCHIRAPALLI MANGALORE 2.5 mmtpa MANGLORE Planned LNG Terminal Courtesy of Gas Authority of India KANJIKKOD COIMBTORE KOCHI 5 mmtpa c INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET

Progress in Indian Market Strong National and State government support First public H2 / Hythane® station - Delhi Oct 2008 Accepted Hydrogen codes and standards in place Hythane® codes and standards being developed Agreements with Natural Gas suppliers Indian manufacturing of reformers commenced Hythane® engine conversions in progress Hythane® pilot projects for 2008/ 2009 India promises huge markets for Hythane® with strong government support and a major rollout of Natural Gas infrastructure throughout the country.

Chinese Hydrogen and Hythane® Market Similar potential to India - unlikely to be suited to centralised hydrogen production Extreme air pollution Large potential market for transport and generators Hydrogen standards in place 16 City Clean Air Program Expanding Natural Gas supply Strong EPA support - more government support needed

Key Infrastructure Requirements in early Hydrogen Markets Conclusions Key Infrastructure Requirements in early Hydrogen Markets Centralised production and distribution cheapest long term option where pipeline or liquid hydrogen is available the challenge is to fund the rollout ahead of the market Distributed on-site production cheapest short - medium term option in markets where pipeline or liquid hydrogen is not available requires a Natural Gas supply network Transitional Strategy Hythane® develops Hydrogen infrastructure based on existing Natural Gas Markets