WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 1 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 1 DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT SUPPORT LOGISTICS AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT SUPPORT LOGISTICS AGENCY WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT Powering Forward with Hydrogen Fuel Cells at the Defense Logistics Agency Mr. Leo Plonsky, Mr. Stu Funk and Mr. Tom Joseph May 4 th, 2010

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 2 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 2 WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 2 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 2 DLA’s H 2 and Fuel Cell Technologies R&D Program –Four Pilot Projects New Cumberland, PA Warner Robins, GA Joint Base Lewis-McChord, WA San Joaquin, CA Program expansion to increase H2 demand or utilization –Extended Range Vehicles, Yard tractors –Future Direction Lessons learned from first two projects –Safety –Stakeholder buy-in –Program development and execution Presentation Overview

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 3 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 3 WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 3 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 3 DLA’s Hydrogen and Fuel Cell Program MHE Pilots: Goals Improve fuel cell readiness by funding R&D efforts in areas that are near commercialization 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 –Position fuel cell technology for consumer markets Highlight the business case for fuel cells Further cost reductions through both R&D and volume

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 4 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 4 WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 4 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 4 Features: First in a series of 2-year demo projects Retrofit 20 forklifts with fuel cells 20 new fuel cell forklifts Indoor dispensing system for delivered liquid H 2 Approach: Products from two fuel cell producers Operational data collection and analysis (NREL) Business case analysis vs. lead acid batteries/changing rack Performers: Air Products - infrastructure and integration Plug Power (fuel cells) East Penn/Nuvera (fuel cells) Funding: ~$6M Milestones: Contract award - Aug 2007 Operational phase - Feb 2009 to Feb 2011 Interim business case analysis - Dec 2009 Fuel Cell Pilot Project Defense Depot Susquehanna, PA Over 50,000 operating hours, 15,000 refuelings, 10,000 kg of H 2 dispensed

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 5 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 5 WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 5 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 5 Fuel Cell Pilot Project Defense Depot Warner Robins, GA Performers: CTC – integration Air Products – infrastructure Hydrogenics – fuel cells Funding: $4.8M Milestones: Contract award – Jun 2008 Construction start – Aug 2009 Ribbon Cutting – Jan 2010 Features: 2-year demo project Retrofit 20 forklifts with fuel cells H 2 reformed on site from natural gas Mobile refueling Approach: On-site reformation and mobile refueling NREL data collection and analysis Business case analysis lead acid batteries onsite steam reformation Teaming with Air Force Advanced Power Technology Office (APTO) and 502 nd ABW

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 6 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 6 WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 6 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 6 Fuel Cell Pilot Project Joint Base Lewis-McChord, WA Performers: CTE – integration Air Products – infrastructure GTI – H 2 reformation Plug Power – fuel cells Porterra – bus Funding: $8.5M Milestones: Contract awarded - Jun 2009 Construction start - Oct 2009 Operational phase - Nov 2010 to Nov 2012 Features: 2-year demo project 19 new forklifts H 2 production from waste digester gas Bus operated with Air Force Hub and spoke concept for hydrogen distribution Approach: Onsite H 2 production from wastewater digester gas Operational data analysis Business case analysis propane, onsite production

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 7 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 7 WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 7 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 7 Fuel Cell Pilot Project Defense Depot San Joaquin, CA Performers: CTE – integration Air Products – infrastructure Proton Energy – electrolyzer Plug Power – fuel cells TBD – solar array Funding: $6M Milestones: Contract award - Apr 2010 Construction start - Fall 2010 Operational phase - Spring 2011 to Spring 2013 Solar PPA online - Spring 2011 Features: Replace 20 propane forklifts Generate “green” H 2 onsite using solar energy for electrolysis DESC negotiated Power Purchase Agreement (PPA) Approach: Solar-based H 2 production photo voltaic Data collection and analysis Business case propane, onsite electrolysis

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 8 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 8 WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 8 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 8 Program Expansion Extended Range Utility Vehicles Performers (Phase II): CTE Alliant Techsystems Inc. (ATK) Funding (Phase I & II): $3.5M Milestones: Phase I complete - Summer 2009 Phase II Source Selection - Aug 2009 Phase II Contract Award - Dec 2009 First articles delivered - Fall 2010 Features: Select strongest candidates from Phase I design for implementation Utilization of H 2 capacity at DDWG Increasing H2 demand at DDSP Operate for 1+ year Approach: Investigate and implement new designs to promote extended vehicle range for H 2 fuel cell-powered vehicles Phase I: design novel H 2 storage to extend range of fuel cell utility Phase II : construct, integrate, and deliver vehicles

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 9 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 9 WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 9 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 9 Hydrogen and Fuel Cell Program: Future Direction Spiral Development at DDSP & DDWG –H 2 fuel cell stock selectors Source selection by Summer 2010 –“Yard dogs” Expand the technical requirements and/or capacity of ongoing DLA demonstration projects Low cost/green H 2 production, storage, and delivery

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 10 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 10 WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 10 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 10 Program Timeline: DDSP 2/20092/20102/20112/2012 Ford ICE H 2 Bus (1 yr)* Extended Range H 2 vehicle (1 yr)* Stock Selectors (1 yr)** Yard Tractor (1 yr)** *Contract awarded ** Proposals under review DDSP MHE and Infrastructure (2 yr)*

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 11 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 11 WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 11 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 11 Lessons Learned: Project Development Work closely with host activities to identify, define & understand project goals/objectives –Identify realistic technology/manufacturing goals/targets/expectations –Define program deliverable requirements –Generate MOA with participants to establish and document responsibilities Allow program objectives to the drive procurement strategy –BAA/RFI/RFP Track and implement improvements made along the way in future development Identify technical team as early as possible for the selection process

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 12 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 12 WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 12 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 12 Lessons Learned: Contracting Phase Clearly identify all requirements/objectives/selection criteria within solicitation material Allow ample time for proposal submittal –45-60 days minimum recommended Provide site visits and open Q&A opportunities –One or more site visits Review and award contracts to solicitation requirements –Provide step by step review instructions Be patient: the contract award process takes time!

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 13 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 13 WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 13 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 13 Lessons Learned: Permitting & Site Approval Process Again, be patient –Developing codes/regulations slows approval process for state/Federal/site permitting –Uniform Facilities Code Share lessons learned –Share permitting process with DoD activities considering hydrogen pilot programs –Share permitting process with commercial sector generating codes and standards –Harmonize IFC, NFPA and UFC

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 14 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 14 WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 14 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 14 Lessons Learned: Develop Buy-In Safety – Instill confidence! –Dispel “Hindenburg” misperceptions –Hold regular meetings to keep people in the loop as implementation progresses –Focus on system safety features –Heavily promote response procedures Socialize early –Bring the right people to listen and share experiences –Involve all the right parties early: Command, Union, Users Public affairs, legal –Fire Department: work closely, get them involved early on Especially when hydrogen is new at site

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 15 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 15 Lessons Learned: Training Content specific to those being trained: –General Awareness Training ~2500 trained –First responders –Refueling personnel –Forklift personnel Training group size –Break into small groups as needed Complicated with more than one FC type –Physical aspects of fuel cells –Getting used to refueling –Running out of fuel

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 16 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 16 WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 16 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 16 Lessons Learned: Operations Infrastructure –Limited early startup Break in equipment and the people –Two dispensers; mobile refueler as backup Indispensible! Critical for startup because break-in ran in to more issues than anticipated must maintain productivity and buy-in –Recommend getting infrastructure up as soon as possible unanticipated bugs –Indoor dispensing is key buy-in, utilization

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 17 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 17 WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 17 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 17 Lessons Learned: Operations Support Working with contractors –Response time on repairs has to be fast –One single point of contact to maintain control (particularly important working with gov’t and multiple contractors) –Use local contractors when possible –No accidents is key to maintaining confidence

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 18 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 18 Lessons Learned: Defining the Business Case Analyzing and combining the business case at 4 separate locations –Will take 2-3 years to compile DLA asked for a preliminary business case analysis at DDSP –To support transition planning –Still developing composite data products (NREL) –Unique situation – infrastructure, costs, operations, leadership role Examples of Composite Data Products

WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP 19 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 19 Points of Contact Tom Joseph Technology Consultant to DLA through LMI Bethlehem Hydrogen Inc Stu Funk Program Manager Energy and Climate Change LMI Leo Plonsky Program Manager Hydrogen and Fuel Cells DLA J-332 Website:

20 DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT SUPPORT LOGISTICS AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT SUPPORT LOGISTICS AGENCY 20 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT 20