DLA’s Hydrogen and Fuel Cell Program NHA Annual Hydrogen Conference 2008 March 31, 2008 Leo Plonsky Defense Logistics Agency leo.plonsky@dla.mil

Net Regional Oil Imports and Exports Energy Challenges The U.S. and the DoD are facing significant challenges related to energy use: Net Regional Oil Imports and Exports From National Petroleum Council, Facing the Hard Truths About Energy, July 2007 Energy security US Imports 60% of its petroleum* 44% of known oil reserves are in Saudi Arabia, Iran, Venezuela, Russia, and Nigeria* Fragile, vulnerable, and overtaxed electricity distribution grid in US** Defense Science Board, 2008 Environmental Greenhouse gas emissions resulting from energy use Other emissions impacting human health and the environment (NOx, SOx, Particulates, etc.) *Energy Information Administration (EIA) **2008 Defense Science Board Task Force on DoD Energy Strategy: “More Fight - Less Fuel”

DoD’s Share of the Challenge DoD represents ~79% of federal government energy consumption DoD is the single largest consumer of energy in the US Equal to the annual energy consumption of Denmark Total: 1067 Trillion BTU DoD: 843 Trillion BTU Energy Consumption by the US Federal Government, 2006 Source: EIA Annual Energy Review 2006

DOD’s Role in Alternative Energy Defense Science Board –“DoD Energy Strategy - 2008” “By addressing its own fuel demand, DoD can serve as a stimulus for new energy efficiency technologies, and help limit national dependence on foreign oil.” Fuel Cells recommended as part of a multifaceted solution Basic and Applied Research in the US: Department of Energy Department of Transportation Department of Commerce Department of Defense First Adopter – Department of Defense Moves H2 technologies down the learning/cost curve Fuel Cells H2 Storage Production and Distribution DoD’s size and range of operations provide excellent opportunities to exercise and strengthen the hydrogen and fuel cell industry

Why is DLA involved? DLA is the DoD’s largest combat support agency Provides logistical support for everything from food to fuel 21,000 employees 5.2 million stock items managed – 54,000 requisitions/day Operates a network of 26 distribution centers worldwide DLA is the DoD’s fuel and energy supplier Conducts R&D to improve operations and long term war fighting capabilities DLA HQ, Ft. Belvoir, VA

Benefits of Hydrogen Fuel Cells Energy Security: Fuel cells use fuel ~2x more efficiently than gasoline engines* Diverse range of feedstocks (natural gas, water, nuclear, biological…) Environmental: With renewable energy, could be zero CO2 emissions Operational (Battelle analysis, funded by DOE): Fuel cell forklifts can provide value over battery-powered forklifts in high-productivity environments Rapid refueling No battery changing or charging Constant power Fuel cell forklifts offer most value in three shift operations http://www1.eere.energy.gov/hydrogenandfuelcells/pdfs/doe_h2_fuelcell_factsheet.pdf Gasoline ICE is less than 20% efficient, while fuel cells for transportation are 40-60% efficeint * US DOE Hydrogen Program Fact Sheet

DLA’s Strategy Goals: Be an early adopter and principal demonstrator Foster competition in the marketplace and provide a market demand Support improved Technology and Manufacturing Readiness Levels Exercise the supply chain Test under real world conditions Provide feedback to manufacturers Highlight the business case for fuel cells Improve fuel cell readiness by funding R&D efforts in areas that are near commercialization

DLA Fuel Cell Demonstration Projects Defense Depot Susquehanna, PA Approach: First in our series of 2-year demonstration projects Compare products from two fuel cell producers NREL to collect and analyze operational data Business case analysis Performers: Air Products - infrastructure and integration Plug Power (20 new units) Additional contract under negotiation Funding: $5M Milestones: Contract awarded/Kick-off – August 2007 Ribbon Cutting – August 2008 Features: Add 20 new fuel cell forklifts Retrofit 20 forklifts with fuel cells Indoor dispensing system for delivered liquid H2

DLA Fuel Cell Demonstration Projects Defense Depot Warner Robins, GA Approach: Expand to include on-site reformation and mobile refueling Add to NREL data collection and analysis Add to business case analysis Teaming with Air Force Advanced Power Technology Office (APTO) Performers: TBD Funding: ~$4.9M Milestones: Contract award anticipated – May 2008 First articles anticipated – November 2008 Features: Retrofit 20+ forklifts with fuel cells H2 reformed on site from natural gas Test mobile refueling

DLA Fuel Cell Demonstration Projects Fort Lewis, WA Approach: Explore H2 production from WWTP NREL adds to operational data analysis Continue to analyze business case Performers: TBD Funding: TBD Milestones: Proposals received – November 2007 Award anticipated – July 2008 First articles anticipated – January 2009 Features: 19 new or retrofitted forklifts Tri-generation from waste digester gas: H2, heat, power Bus operated with McChord AFB Mobile refueler for dispersed activities

DLA Fuel Cell Demonstration Projects Defense Depot San Joaquin, CA Approach: Explore solar-based H2 production NREL adds to data analysis Continue to develop business case Performers: TBD Funding: TBD Milestones: BAA released – March 2008 Award anticipated – January 2009 First articles anticipated – TBD Features: Replace 20 propane forklifts Generate H2 onsite using solar energy for electrolysis

Hydrogen Fuel Cell Tactical Pilots Unmanned Aerial & Ground Vehicles Approach: Integrate current PEM Fuel Cell into Talon UGV Compare existing membrane technology with next generation Transition next generation technology into fuel cell designs for Talon UGV and Puma UAV Talon Puma Performers: ATI, Protonex, Tetramer Technologies, Palmetto Fuel Cell Technologies. Funding: $1.2M Milestones: Contract award – July 07 Goals: Improve manufacturing capabilities to meet DoD needs. Identify and solve key manufacturing issues for high volume production of man portable fuel cells. Improved MRLs for small fuel cell manufacturing.

Solid Hydrogen Storage Initiative Teaming with DOE and ONR ECD Storage Prototype Demo Develop low temperature metal hydrides with 25% increase in gravimetric density UC Berkeley Material ID Technique High throughput capabilities using software and robotic controls Synthesize promising materials Miami U (Ohio) Material ID Technique Inspired by hemoglobin’s reversible O2 binding process U of MO - Columbia Storage Prototype Demo Low pressure storage tank Meet 2010 DOE goals Uses corn waste U of Central FL Material ID Technique Rapid screening process using H2 sensing polymers

Moving Forward Solid Hydrogen Storage Extended Range Utility Vehicle Continue teaming with DOE and other military Services New BAA: sub-scale prototype of solid hydrogen storage systems for Defense applications Anticipated funding: $1.5M amongst several awardees BAA release: April 2008 Extended Range Utility Vehicle Two phases: (I) design novel H2 storage to extend range of fuel cell utility, and (II) construct and integrate the technology at DDWG Anticipated funding: $2 M amongst several awardees Spiral Development Expand the technical requirements and/or capacity of ongoing DLA demonstration projects Focus on improving value proposition and ‘green’ hydrogen production

How Industry Can Help To maximize synergies between DoD and Industry efforts, we need Industry to: Support progress of MRLs and TRLs Communicate with DoD about key technical roadblocks Identify areas that can be supported through DoD funded projects Be aware of DoD funding opportunities/BAAs Visit: http://www.crane.navy.mil/acquisition/homepage.htm http://www.fedbizopps.gov/