1 Canada’s Hydrogen and Fuel Cell Industry: Global Partnering for Success Alison Grigg, on behalf of Chris Curtis Fuel Cells Canada August 27, 2005 Santa Fe, New Mexico

2 Fuel Cells Canada  National not-for-profit industry association  Founded in October 2001  Our Mission is to promote the development and commercialization of Canadian hydrogen and fuel cell technologies, products and services  Prime source of services and support to companies, educational institutions and business alliances promoting, developing and demonstrating fuel cell and related products and services in Canada  67 member companies and organizations across Canada Setting the Scene | The Canadian Industry | The Future

3 Greenhouse Gas Reduction Improved efficiency in converting energy. Zero GHG emissions when based on renewable sources. Urban Pollution Reduction Zero emissions from tail pipe of fuel cell vehicles. Energy Reliability/Security Key enabler to meet growing need for clean, distributed power Economic Development Significant export opportunities and global economic value. Drivers for Hydrogen and Fuel Cell Commercialization An energy platform that enables other technologies to achieve goals of reliability, security, efficiency and sustainability. Setting the Scene | The Canadian Industry | The Future

4 Global Market Projections Data from “Fuel Cell Industry Competitive Analysis - Assessment of Major Players, Global Markets, and Technologies” 2003 Allied Business Intelligence Inc., Courtesy Industry Canada Setting the Scene | The Canadian Industry | The Future Mobile Fuel Cells - $7.5 billion Stationary Fuel Cells - $7.5 billion Automotive Fuel Cells - $3.6 billion

5 Markets for Fuel Cell Products ,000 10, Capital cost $/kW Lift trucks, industrial equipment, residential applications, off-grid and back-up power, military applications Early niche markets Distributed power Major market increases Autos Buses Micro-applications (laptop computers, digital cameras, cell phones) Remote sites (off-grid) Source: adapted from Methanex, September 2002 Increasing: manpower + capital + production + capacity Setting the Scene | The Canadian Industry | The Future

6 Supply Chain Opportunities Setting the Scene | The Canadian Industry | The Future

7 The Canadian Hydrogen and Fuel Cell Sector: Overview  Activities began in 1982 with first contract for Ballard Power Systems  Total Canadian industry revenue has grown 40% from $134 million in 2002 to $188 million in 2003  Industry R&D expenditures over $290 million – since 2000 an average of $100,000 per employee per year  Over 80 companies across Canada are focused on fuel cell and hydrogen technology and associated services, employing over 2,600 people  Patent holdings were up 34% to 581 in Setting the Scene | The Canadian Industry | The Future

8 Geographic Profile Fuel Cell Producers & Integrators Suppliers Fuelling Infrastructure Service Providers Setting the Scene | The Canadian Industry | The Future

9 International Involvement – Industry  About 33% of Canadian industry activity is outside of North America  Active in 262 demonstration projects (2003); 70% outside of Canada  Industry Associations: California Fuel Cell Partnership, US Fuel Cell Council  Networking with industry groups and participation in trade missions  Corporate partnerships and joint development examples: –Ballard with Ford/Daimler Chrysler –General Hydrogen with General Motors –Hydrogenics with GM, John Deere, American Power Conversion, US Army Setting the Scene | The Canadian Industry | The Future

10 International Involvement – Canadian Government  International Partnership for the Hydrogen Economy (IPHE)  International Energy Agency (IEA) Implementing Agreements: –Production and Utilization of Hydrogen –Advanced Fuel Cells –Advanced Motor Fuels  International Safety Organization TC197  Asia Pacific Economic Cooperation (APEC)  Natural Resources Canada/US Department of Energy (treaty negotiation)  Natural Resources Canada/California Air Resources Board MOU  Government led trade missions Setting the Scene | The Canadian Industry | The Future

11 Commercialization Challenges for Hydrogen and Fuel Cells Micro-level:  Improved fuel cell reliability and durability  Reduced cost Macro-level:  Stimulating early market demand  Improving product quality while reducing costs  Financing for R&D, commercialization  Creating supporting infrastructure  Codes and standards Setting the Scene | The Canadian Industry | The Future

12 Technology Development: On Track for Commercialization Companies are meeting technology development timelines:  Ballard Power Systems has reduced costs of fuel cells by 80% since 1999, while achieving a ten-fold increase in lifetime  Fuel Cell Technologies has accumulated over 1500 hours of operation on its second generation 5 kW system  Hydrogenics HyPM 10 kW power module has achieved over 5000 hours of operation & over 6500 “stop-start” cycles on a single unit  Dynetek Industries has 10,000 psi (750 bar) hydrogen tanks on the market  BC Hydro/Powertech is a 10,000 psi operational fueling station  US companies attaining commercial sales contracts Setting the Scene | The Canadian Industry | The Future

13 Hydrogen Highway  Province of British Columbia – Lower Mainland and Vancouver Island  Coordinated market demonstration program designed to accelerate commercialization  Framed around the 2010 Winter Olympic and Paralympic Games  Showcase and demonstrate the environmental, economic and social benefits of this technology to the world  First phase by 2007 is focused on seven highly visible locations  Mobile, stationary and micro fuel cell applications and infrastructure  Multi-agency effort Setting the Scene | The Canadian Industry | The Future

14 Hydrogen Highway Examples of Activities:  Hydrogen Fueling Stations:  Surrey (10,000 psi)  Vancouver (5,000 psi)  Victoria (5,000 psi)  Hydrogen Technology Environmental Chamber  Photovoltaic panels, electrolyser and hydrogen storage at the NRC Institute for Fuel Cell Innovation  Integration with Vancouver Fuel Cell Vehicle Program Setting the Scene | The Canadian Industry | The Future

15 Vancouver Fuel Cell Vehicle Program  Partnership between Government and Industry  Demonstration of sustainable, zero-emission based transportation technologies  5 Ford Focus vehicles to be evaluated for three years in Vancouver’s Lower Mainland  Technology: Ballard Fuel Cell Systems, Dynetek Hydrogen storage  Opportunity to test, demonstrate, deploy and evaluate proprietary systems for H2 production Setting the Scene | The Canadian Industry | The Future

16 Hydrogen Village The Hydrogen Village is located in the Greater Toronto Area in the Province of Ontario. The intent of the H2V is to:  Create a plan and platform for the deployment of hydrogen and fuel cell technologies to the benefit of the local community.  Develop the necessary supply, service, and knowledge infrastructure needed to create a sustainable market.  Ensure technology deployments (stationary, mobile and transportation) fit within the context of existing community infrastructure and activity.  Aid in the complementary growth of other centers across Southern Ontario – thereby developing a hydrogen Corridor. Setting the Scene | The Canadian Industry | The Future

17 Hydrogen Village Examples of Activities:  Hydrogen powered delivery trucks for Purolator courier fleet  Fueling infrastructure and hydrogen powered forklifts for General Motors plant in Oshawa  Residential heating and power generation using four solid oxide fuel cells at a townhouse-style student residence at the University of Toronto at Mississauga  Back-up power for computer network servers  Fuel cell-based back-up power system at a telecommunications switching station  Hydrogen fuel cell powered utility vehicles in conjunction with hydrogen production and refueling at the Canadian National Exhibition Setting the Scene | The Canadian Industry | The Future

18 The Path Forward – Partnership Opportunities  Demonstration Projects –Hydrogen Highway – conceptually, a Hydrogen Highway from Baja, California to British Columbia, Canada (“BC to BC”) –Funding programs that encourage North America wide participation –Sharing lessons from past Olympic Games and preparing to showcase NA capabilities/expertise in the 2010 Olympic Games  Joint Development –Providing enhanced access to R&D programs in all jurisdictions – at the institutional/corporate level –Joint education and outreach programs –Identify and set objectives to support core competencies in each country to ensure complimentarity rather than duplication  Government Support –State/Provincial governments encouraging transborder activities –Involvement of US, Canada and potentially Mexico in IPHE activity Setting the Scene | The Canadian Industry | The Future

19 Fuel Cells Canada Sponsoring Members

20 Fuel Cells Canada Members Advanced Measurements Inc. Alberta Research Council Alternate Energy Corporation Angstrom Power Inc. Astris Energi Inc. Azure Dynamics Corp. Ballard Power Systems Inc. BC Hydro BC Transit BOC Gases Business Development Bank of Canada Canadian Hydrogen Association Canadian Hydrogen Energy Corporation Cellex Power Products Inc. ChevronTexaco Technology Ventures Chrysalix Energy Limited Partnership Clean Energy Canada Conduit Ventures Ltd. Deloitte & Touch LLP Dynetek Industries Ltd. Enbridge Gas Distribution Energix Research Energy QBD Inc. Ford Motor Company FTI International Inc. Fuel Cell Technologies Ltd. FuelCon Systems Inc. General Hydrogen Corporation Gowling Lafleur Henderson LLP Greater Vancouver Regional District GrowthWorks Ltd Heliocentris Energy Systems Inc. HERA, Hydrogen Storage Systems Inc. HSBC Bank of Canada H3 Energy Hydrogenics Corporation IESVic Inco Special Products Keen Engineering Kinectrics Inc. KPMG LLP Marcon-DDM Marsh Canada Ltd. McCarthy Tetrault LLP Membrane Reactor Technologies Ltd. Methanex Corporation National Bank Financial National Research Council NORAM Engineering and Constructors Ltd. Palcan Power Systems Inc. Pathway Design & Manufacturing Inc. PEM Engineers Inc. PricewaterhouseCoopers LLP Propane Gas Association of Canada Inc. Province of Ontario Quebec’s Fuel Cells and Hydrogen Network Queen’s RMC Fuel Cell Research Centre QuestAir Technologies Inc. Sacré-Davey Engineering Sarnia-Lambton Economic Partnership TD Securities Inc. Tekion Solutions Inc. Teleflex Canada Inc. University College of the Fraser Valley Westport Innovations Inc. Zongshen PEM Power Systems

21 Thank you Alison Grigg, on behalf of Chris Curtis Fuel Cells Canada August 27, 2005 Santa Fe, New Mexico