1. Research Advances Towards Low Cost, High Efficiency PEM Electrolysis Dr. Katherine Ayers Presented by: Larry Moulthrop NHA 2010, Long Beach, CA

2. RPTXXXX Outline Proton Capabilities –Strong product history –Advanced technology and reliability Near Term Strategy –System development –Materials research Recent Advances and Future Directions 2

3. RPTXXXX Capabilities Complete product manufacturing & testing Containerization and hydrogen storage solutions Turnkey product installation for industrial and energy applications World-wide sales and service 3 Power Plants LaboratoriesSemiconductorsHeat Treating

4. RPTXXXX New laboratory line also launched at Pittcon 2010 Over 1200 commercial units currently fielded S SeriesH SeriesStableFlow ® HOGEN ® Hydrogen GeneratorsHydrogen Control Systems Commercial Industrial Products 4

5. RPTXXXX Specialty Products FuelGen line HP products (2400 psi electrolysis) Indoor and outdoor versions 5

6. RPTXXXX Proven Cell Stack Reliability 6

7. RPTXXXX Product Strategy Leverage strong history and technology base to provide reliable customer solutions Address real world technology problems for commercial and military applications –Increased H 2 generation capacity for fueling and industrial applications –Materials research towards lower cost, higher efficiency electrolyzers –High pressure, integrated solutions for small fueling applications Balance business goals with stewardship of environmental and educational responsibility 7

8. RPTXXXX $5/kg H 2 pathway: Electrolysis scale up 8 Volumes and stack advancements lead to further cost reductions

9. RPTXXXX 9 HOGEN ® C Series Maximum Capacity: 30 Nm 3 /hr H 2 Prototypes operational with full commercial availability in Q1 2011. 5 times the hydrogen output of the H-Series yet only 1.5x the foot print. Uses stack platform developed for Navy with Hamilton Sundstrand. Also allows entry in to higher capacity heat treating, food processing and glass manufacturing.

10. RPTXXXX 0.6 ft 2 Stack Development Bipolar plate design Demonstrated 200 and 425 psi operation –Single and multi cell stacks tested 10

11. RPTXXXX Hydrogen Cost Progression, product introduction 11

12. RPTXXXX 12 Materials Technology Roadmap Overall Strategy: maintain projects in varying stages of development

13. RPTXXXX 13 Collaboration Strategy Develop and strengthen relationships with key materials companies, universities, and national labs –Leverage proposal collaborations and access to new materials

14. RPTXXXX Cell Polarization Model Largest opportunities for efficiency improvements are in membrane and anode catalyst development 14

15. RPTXXXX 15 Catalyst Research Reduce overpotential through improved oxygen evolution catalysts –Improve utilization: higher surface area –Optimize composition: mixed metal oxides Surface area vs. synthesis and post treatment conditions Baseline Contour plot: oxide composition vs. voltage 3M nanostructured thin film electrode

16. RPTXXXX Catalyst Process Optimization Achieved 55% reduction in anode loading, 66% reduction in cathode loading with no performance loss 16

17. RPTXXXX Impact on MEA Costs Relative Cost 17

18. RPTXXXX 18 Membrane Research Directions Membrane support structure Reinforced membranes: e.g. WL Gore, Dupont Hydrocarbon membranes (e.g. Hickner, Penn State) Proton Focus: Alternate approach No impact of reinforcement material on membrane conductivity

19. RPTXXXX 19 Durability vs. Thickness

20. RPTXXXX 20 Efficiency Improvements

21. RPTXXXX Flow Field Improvements Prototype flowfields fabricated using production tooling and techniques Reduction in part count Improvement in cell robustness Separator H 2 Frame H 2 Flowfield O 2 Frame SeparatorO 2 Flowfield O 2 Frame H 2 Frame MEA H2OH2OH2OH2O O2O2 H2H2 H2OH2O 21

22. RPTXXXX Next Generation Materials Approach: reduced cost base material with protective coating Test wafers imbedded within modified cell parts Preliminary results: –Slight corrosion observed at defect sites –Stable operational performance 300 µm 22

23. RPTXXXX In-Cell Performance: Potential Stress Testing 23 Maintained stable performance above 2 Volts for 500 hr test Temperature (°F)

24. RPTXXXX Cell Cost Reductions Relative Cost 24

25. RPTXXXX Conclusions Proton is leveraging robust product development history in advanced designs –Enables rapid time to market and reliability on product launch Strong materials competencies and collaborations are being applied towards cost reductions and efficiency improvements Pathways have been defined for meeting DOE fueling targets and customer requirements 25

26. RPTXXXX Funding Sources 26