1. FUTURE HYDROGEN PRODUCTION SUPERGEN, BIRMINGHAM, 18 TH OCT 2011 ITM POWER DESIGNS AND MANUFACTURES HYDROGEN ENERGY SYSTEMS FOR ENERGY STORAGE AND CLEAN FUEL PRODUCTION "I want to drive to my local petrol station and fill up with 50 litres of wind...“ Peter Hoffmann

2. Contents Positioning Trials Products Technology The Proposition Outlook ITM POWER DESIGNS AND MANUFACTURES HYDROGEN ENERGY SYSTEMS FOR ENERGY STORAGE AND CLEAN FUEL PRODUCTION FUTURE HYDROGEN PRODUCTION SUPERGEN, BIRMINGHAM, 18 TH OCT 2011

3. Energy is the largest global market Market being completely overhauled Complete energy supply-chain rethink Colossal global capital investment BUSINESS PROPOSITION ENERGY STORAGE | CLEAN FUEL PROBLEM | OPPORTUNITY “Climate change is an opportunity. It isn't necessarily a burden. … This way of thinking - of focusing on the costs and not the opportunities has contributed to getting us bogged down.” Joseph Stiglitz

4. Energy storage is the missing link Essential for energy sector decarbonisation Electrifying transport Electrifying heat Power | Transport | Heat Optimising energy systems MISSING LINK ENERGY STORAGE | CLEAN FUEL ENERGY STORAGE

5. POSITIONING HYDROGEN ENERGY STORAGE HYDROGEN TRANSPORT FUEL

6. UK has the best wind resources in Europe Third best in the world Entering phase three construction in UK The problem is matching supply and demand The system needs energy storage Denmark is a case study POSITIONING ENERGY STORAGE | CLEAN FUEL WIND ENERGY: THE UK

7. Key study by CEPOS Sept 2009 20% of its capacity is wind Can only meet 5% of its demand Negative electricity prices 50% is exported to Sweden and Norway The report calls for energy storage POSITIONING ENERGY STORAGE | CLEAN FUEL WIND ENERGY: DENMARK

8. First ‘Constrained Off’ events in the UK Stranded wind Payments are 20x the electricity price Costs passed on to the UK customer POSITIONING ENERGY STORAGE | CLEAN FUEL WIND ENERGY: THE UK

9. Electricity cannot be easily stored Renewable power cannot be scheduled Balancing supply and demand The system needs energy storage Power to hydrogen is 70% efficient Hydrogen can be stored Hydrogen is an energy vector POSITIONING ENERGY STORAGE | CLEAN FUEL THE PROBLEM

10. Production of hydrogen controlled by the electricity companies Balancing supply and demand Control shifts to the demand side HFuel can be controlled remotely Switched on/off by the power company On site fuel production POSITIONING ENERGY STORAGE | CLEAN FUEL THE SOLUTION

11. On-site production of hydrogen from renewable power Zero carbon in its production Zero carbon in its transportation Zero exhaust emissions POSITIONING ENERGY STORAGE | CLEAN FUEL A TRIPLE ZERO FUEL

12. Energy storage market growth will track renewable energy deployment €10bn annually by 2020 Strong first mover advantage Oil industry is $3tn annually Fuel industry is multi trillion. POSITIONING ENERGY STORAGE | CLEAN FUEL THE OPPORTUNITY

13. Utilisation of renewables is held back by lack of energy storage solutions Early adoption markets Island energy systems Off grid energy storage €25bn to 2030 ENERGY STORAGE | CLEAN FUEL THE OPPORTUNITY THE MARKET

14. HOST THE UK’S LARGEST CROSS SECTOR HYDROGEN TRIAL

15. The UK’s largest cross sector hydrogen trial 21 commercial partners Balanced across 7 industrial sectors Launched at London Stansted Airport 9 trials completed to date Sale of trial to Carillion plc. HOST HYDROGEN ON SITE TRIALS TRIAL PARTNERS

16. The 9 trials to date have been very successful HFuel showed 100% availability 45kg of hydrogen produced At a rate of 56kWhrs/kg Efficiencies up to 69.5% (average 65%) Breakeven electricity price 6.5p/kWhr (HICE) A fuel cell vehicle would be even better! HOST HYDROGEN ON SITE TRIALS TRIAL RESULTS

17. HOST HYDROGEN ON SITE TRIALS FUEL ECONOMICS Military Fuel Remote Industrial Automotive Islands 15 kg/day (Current) Power at 15p/kWhr 50 kg/day (HFuel) Power at 5p/kWhr Subsidised Automotive

18. PRODUCTS FROM TECHNOLOGY DEVELOPER TO PRODUCT SUPPLIER

19. A mobile hydrogen production and dispensing unit 15kg/day; 3 van capability today 50kg/day; next offering for UK 100kg/day; 700bar for German market PRODUCTS FROM TECHNOLOGY TO PRODUCTS THE HFUEL PRODUCT 15kg/day50kg/day100kg/day700bar56kg/day186kg/day

20. Clean transport fuel is a very big win 350 and 700bar operation Car | Fleet | Infrastructure 100kg/day; 260kg storage Target the German market PRODUCTS FROM TECHNOLOGY TO PRODUCTS THE BIG WIN

21. Clean transport fuel is a very big win 350 and 700bar operation Car | Fleet | Infrastructure 100kg/day; 260 Kg storage Target the German market German €2.6bn commitment 2013 to 2015 vehicle rollout PRODUCTS FROM TECHNOLOGY TO PRODUCTS THE BIG WIN

22. Three CE marked early revenue products HFlame HBox HPac SMALL PRODUCT RANGE PRODUCTS FROM TECHNOLOGY TO PRODUCTS

23. Three UK Universities trialling products PRODUCT TRIALS PRODUCTS FROM TECHNOLOGY TO PRODUCTS ProductBirminghamGlamorganNottingham HFlame HBoxxx HPacx HFuelxx

24. Product compliance is now an area of considerable expertise COMPLIANCE PRODUCTS FROM TECHNOLOGY TO PRODUCTS ISO ISO 9001 ISO 14001 ISO 18001 CE Marking PED LVD MD EMC Compliance HAZOPS HSE Fire Service Planning Product Standards BSI PVE 3/8 ISO/TC 197 BSI GEL 105 ISO/TC 105

25. TECHNOLOGY HYDROGEN ENERGY SYSTEMS FOR ENERGY STORAGE AND CLEAN FUEL PRODUCTION

26. Customers buy products which are complete systems Power system Water system Gas system Control and communications system At the heart of each system is a stack HYDROGEN ENERGY SYSTEMS TECHNOLOGY HYDROGEN ENERGY SYSTEMS

27. An electrolyser stack is at the heart of every hydrogen energy system Efficiency Response time Scale Pressure Cost CORE TECHNOLOGY TECHNOLOGY HYDROGEN ENERGY SYSTEMS

28. No moving parts; instantaneous response Direct coupling to renewable at high efficiency Autonomous operation; off grid compatibility Ability to generate hydrogen at very low power levels No moving parts for high reliability PASSIVE ELECTROLYSER TECHNOLOGY HYDROGEN ENERGY SYSTEMS

29. DIRECT COUPLING TECHNOLOGY HYDROGEN ENERGY SYSTEMS

30. HOME REFUELLER A 700bar single car home refueller Using a 200bar electrolyser Funded by the US DoE An 8 OEM consortium TECHNOLOGY HYDROGEN ENERGY SYSTEMS

31. FUEL SECURITY AN END TO OUR RELIANCE ON FOSSIL FUELS A LOW CARBON ENERGY SYSTEM

32. DECC 2050 Pathways Analysis: Online access | 252 page analysis document Reference case + six major scenarios No modelling of energy storage or hydrogen production UK GENERATION FUEL SECURITY AN END TO OUR RELIANCE ON FOSSIL FUELS

33. Hydrogen cars are EV’s but with some significant advantages: Refuelling time: 3mins Range: 400 miles High efficiency Energy controlled by the grid not customers Roll out in Germany | Japan | USA HYDROGEN CARS FUEL SECURITY AN END TO OUR RELIANCE ON FOSSIL FUELS

34. Developing high power density fuel cell MEA’s for the automotive sector Highest known power density 5.5W/cm 2 on Oxygen 2.1W/cm 2 on Air Enthusiastic OEM engagement At the sample evaluation stage FUEL CELL MEA’S FUEL SECURITY AN END TO OUR RELIANCE ON FOSSIL FUELS

35. Significant government engagement has started Meetings with David MacKaye and Greg Barker HFuel visit Greg Barker, Boris Johnson and Kit Malthouse Company visit by Nick Clegg Hydrogen now in DECC’s strategic technologies list AWARENESS IN UK FUEL SECURITY AN END TO OUR RELIANCE ON FOSSIL FUELS

36. OUTLOOK UNIQUE TECHNOLOGY PRODUCT REVENUES RAPIDLY DEVELOPING GLOBAL MARKET FIRST MOVER ADVANTAGE

37. Outlook Renewable power needs energy storage Hydrogen is a ready to deploy technology Adoption of hydrogen is accelerating Good progress developing commercial relationships Early revenue streams developing A huge opportunity for the UK UNIQUE TECHNOLOGY PRODUCT REVENUES RAPIDLY DEVELOPING GLOBAL MARKET FIRST MOVER ADVANTAGE FUTURE HYDROGEN PRODUCTION SUPERGEN, BIRMINGHAM, 18 TH OCT 2011