1. FEASIBILITY OF HOME HYDROGEN REFUELING (HHR) SYSTEM FOR ADVANCED PLUG-IN HYDROGEN VEHICLE APPLICATIONS Michael Pien, Steven A. Lis, and Radha Jalan ElectroChem, Inc. 400 West Cummings Park Woburn, MA 01801 Present at NHA Conference and Hydrogen Expo April 1, 2009

2. Outline Background Home Refueling System ElectroChem HHR approaches Bottoms-up Analysis Conclusions ElectroChem, Inc.

3. H 2 for Transportation - Long Term Large scale Centralized natural gas reforming is the most cost-effective hydrogen production pathway An increase in U.S. natural gas consumption of about 2% would support sufficient hydrogen production to fuel 10 million FCEVs ElectroChem, Inc.

4. H 2 for Transportation - Long Term A more significant hydrogen fueling challenge is downstream at the retail level The key issue is the early market introduction period and the transition to high volume ElectroChem, Inc.

5. H 2 for Transportation - Near Term Home Refueling System Generate hydrogen at home Hydrogen pathways Nature gas reforming Water electrolysis (alkaline) Water electrolysis (PEM) ElectroChem, Inc.

6. FactorReformerAlkaline Electrolyzer PEM Electrolyzer Toxic Chemical Hazard Potential for poisonous CO or natural gas leakage Uses Concentrated Caustic Soda None Hydrogen PurityRequires Purification No Purification Needed Green House Emissions CO 2 emitted as byproduct None Resource AvailabilityNatural Gas is Not Available Everywhere Water and Electricity is in Every Home Fundamental Technology Characteristics ElectroChem, Inc.

7. Advantages of PEM Electrolyzer High Hydrogen Purity No Green house Emission No Toxic chemical Hazard High Resources Availability ElectroChem, Inc.

8. ElectroChem’s Home H 2 Refueler (HHR) Provides 1kg of H 2 directly to vehicle storage tank Using lower cost off-peak electricity No high pressure H 2 is stored in the appliance Simple and computer control No “infrastructure” investment needed ElectroChem, Inc.

9. Benefits of ElectroChem’s HHR Sufficient for 65 mile driving range Small and compact Simplified for maximum safety and minimum cost Modest Installation Cost – similar to a conventional air conditioning system ElectroChem, Inc.

10. Challenges for PEM Electrolyzer Water separation High pressure gas crossover ElectroChem, Inc.

11. ElectroChem’s Solution for HHR Integrated Flow Field (IFF) IFF’s breakthrough is on the development of flow field material and structure that allows Major system simplification Size reduction Cost saving New membrane material Nanocomposite technology allows Electrochemical compression ElectroChem, Inc.

12. HHR’s operating Target ParameterValueUnits Hydrogen Production Capacity1kg/day Period of Operation8hrs Operating Voltage240Volts (AC) Power Use During Operation6.3kW Physical Size2 x 2 x 2feet Daily Commute35Miles Mileage Efficiency of Vehicle65.7Miles per kg Capacity Utilization50% Product Life10Years ElectroChem, Inc.

13. Schematic of the HHR Appliance ElectroChem, Inc.

14. Competitive Hydrogen Price Hydrogen is price-competitive with gasoline when a kg of hydrogen is twice the price of a gallon of gasoline ElectroChem, Inc.

15. Operating Costs Installed Appliance Cost$2221 Annual Mortgage Cost$331 Annual Maintenance$50 Power Cost$0.035/kW-hr Power Cost of H 2 $1.76/kg Annual Power Cost @ 50% Utilization$322 Total Annual Fuel Cost @ 50% Utilization$703 H 2 cost @ 50% Utilization$3.85/kg H 2 cost @ 100% Utilization $2.81/kg ElectroChem, Inc. A small appliance based on the HHR technology can efficiently refuel individual hydrogen vehicles using off-peak power @ $0.035/kW-hr for as little as $2.81/kg of H 2.

16. Cost Components of the HHR Appliance ElectroChem, Inc.

17. The Effective Cost of Hydrogen Fuel ElectroChem, Inc. The effective cost of hydrogen fuel is sensitive to several factors, but remain in the vicinity competitive to current gasoline prices

18. The Effective Cost of Hydrogen Fuel ElectroChem, Inc. Annual costs are compared with a gasoline vehicle having a mileage of 30 mpg, which the HHR makes significantly lower under most pricing scenarios

19. Conclusion I Demonstrated a unique Home H 2 Refueler (HHR) design that allows great simplifications, yet high performance, for PEM electrolyzer technology suitable for automotive home refueling systems. A home-based hydrogen electrolyzer refueling system for charging advanced plug-in hybrid vehicles is feasible using night time off-peak electricity power. A bottoms-up analysis shows that a small appliance based on this technology can efficiently refuel individual hydrogen vehicles using off-peak power for as little as $2.81/kg of H 2. ElectroChem, Inc.

20. Think about hydrogen the same way we think about electricity Installed wherever there is electricity Reduce hardware development costs Allow for rapid engineering enhancement Allow to store hydrogen from intermittent renewable resources (e.g. wind, solar) Conclusion II A paradigm shift of H 2 for Transportation – Enabler for Both Near and Long Terms ElectroChem, Inc.