Welcome “Maximising Hydrogen’s value in a carbon constrained world.” Keynote Address: “Maximising Hydrogen’s value in a carbon constrained world.” Duncan Macleod, Vice President, Shell Hydrogen. NHA Annual Conference. 20th March, 2007, San Antonio, Texas.

Setting the context for Hydrogen today? IPCC ‘Climate Change 2007’ Temperature increase of between 2.4˚C and 6.4˚C by 2100

Setting the context for Hydrogen today? IPCC ‘Climate Change 2007’ Temperature increase of between 2.4˚C and 6.4˚C by 2100 Stern Review Up to 10% of global output could be lost Consumption per head…fall of 20%

Rising Global Energy Demand 100= Global primary energy demand 2000 The Shell Group – a role to play The Energy Challenge: Rising Global Energy Demand Hydrocarbons here for decades to come Global energy demand set to grow Helping to reduce CO2 emissions – a role for Shell Hydrogen? 100= Global primary energy demand 2000 600 500 High 400 Low 300 200 Rest of the World 100 OECD 2000 2025* 2050*

Shell Hydrogen - committed to mobility ‘Learning by doing’: Projects in 3 continents: Tokyo Amsterdam Washington DC Reykjavik Rotterdam Shanghai White Plains

Shell Hydrogen – mobility challenges A matter of timing: Investment decision by OEMs? Move to commercialisation? Fuelling site locations? No. of sites needed?

Shell Hydrogen – stimulating R&D Multiple approaches: Supporting academia Government The ‘Market’

Shell Hydrogen – from ‘conventional’ to ‘green’ Moving along continuum: Production - Shifting H2 manufacture Green is the goal Supported by R&D – Virent Remains expensive Capacity restrictions in light of increasing demand “Conventional” “Clean” “Green” H2 from existing SMR H2 from fossil feedstock w/ CO2 Capture Storage H2 from Renewables CO2 Emissions H2 Production (t/d) < 10 years 10-30 years >30-50 years Time from now

Shell Hydrogen – focus on additional sectors CO2 as the driver: Industry 14% Power 24% Power & Industry are also important Markets are here, now Support FCV infrastructure How to reduce related CO2 emissions? Transport 14%

Shell Hydrogen – leading the move to ‘Clean’ Manufacturing: LNG regasification Low CO2 footprint Place here image of related LNG plant

Shell Hydrogen – leading the move to ‘Clean’ Manufacturing: Gasification plant, Rockhampton LNG re-gasification Low CO2 footprint 200km CO2 pipeline Power: Clean coal gasification Carbon Capture Storage Conversion to Syngas CO2 storage in North Dennison trough

Shell Hydrogen – a framework for investment Requires a global approach: Currently fragmented California/Germany/UK taking the lead Require conformity in legislation/regulation Cap & Trade system incorporating CCS component

Shell Hydrogen – a time for strong leadership Now is the time to decide: FCV rollout Multi sector approach Partnering – synergies Let CO2 be the driver

We look forward to working with you! Thank you.