Progress in the Commercialization of Hydrogen Storage Vessels Stationary/Portable Transport Vehicle Fuel Tanks Product Lines – Aerospace SCBA Alternative fuel vehicles – NGV & Hydrogen How Long in Industries Nearly 50 years inAerospace More than 30 years in SCBA Nearly 30 Years in AFV – Receiving our first DOT approval for natural gas fuel tanks in 1976

Some Critical Factors Affecting Hydrogen Storage Costs Vessel Pressure Vessel Aspect Ratio and Size Limitations Material Costs Production Quantities Design Approval and Certification Process Approval and Certification Requirements Some of recent financials Part of a large stable organization

Recent Hydrogen Transport Vessel Costs Some of recent financials Part of a large stable organization PPI Adjusted to 2007 Pricing Levels

Service Pressure and Storage Cost Stresses / material requirements become more severe as pressure increases Raw material quality can become critical and potentially lead to non-standard material purchases Storage energy increases with pressure Some of recent financials Part of a large stable organization

Aspect Ratio and Space Limitations Can Significantly Affect Storage Costs Smaller Diameter and Longer Tanks Are Generally Less Expensive AeroJet was a government owned company that made Aerospace and weapon system components SCI is the result of spinning off the composites group from Aerojet

Materials and Vessel Costs Why Carbon? Greater Tensile Strength Less elongation Reduced thickness of the composite 40% less weight compared to fiberglass composite Supply and Manufacturing Capacity of Many Carbon Fiber Grades Is Improving

Regulatory Requirements Stationary A. State Law and Local Codes / ASME Transport A. US DOT and ISO Motor Vehicle Fuel Tanks A. Japan/ KHK Approval B. Various Draft Standards EIHP, ISO15869 Some of recent financials Part of a large stable organization

Approval Processing Time And Expense Can Impede the Introduction of New and More Efficient Designs Old Designs Tend To Be Kept Active In Jurisdictions Where Approval Processing Times Are Long When approval processing time is lengthy, it may be impractical to interchange equivalent materials during times of shortages or price fluctuations AeroJet was a government owned company that made Aerospace and weapon system components SCI is the result of spinning off the composites group from Aerojet

Approval and Certification Requirements Affect Cost, However… Greater storage energies occur at higher pressures Impact and Heat Tolerance are more critical when the storage energy is higher AeroJet was a government owned company that made Aerospace and weapon system components SCI is the result of spinning off the composites group from Aerojet