Mitochondria Energy Company Pty Ltd Fuel Cells and

Mitochondria Energy Company (Pty) Ltd Fuel Cells and the IRP 16 October 2018 Private and Confidential

Mitochondria Energy Company (Pty) Ltd ü Mitochondria Energy Company (Mito) Ltd was founded in 2012 ü IDC has an equity stake – 40% ü Terracotta Resources (Pty) Ltd controls the balance – 60% ü Terracotta is a 100% Black-owned investment vehicle, and represents the interests of several Black investors ü Mashudu Ramano is the central figure

Chamber of Mines Installation • • • 100 k. W PAFC fuel cell Platinum based Baseload (80/40 k. W) Critical back-up solution Environmental Impact • Saving 430 tons CO 2/annum • Saving 320 kg NOx/annum • Saving 1 m litres H 2 O per annum

Energy Trends ü Decarbonising and hydrogenating ü Gas is emerging ü Decentralised, distributed energy solutions will dominate ü High energy price growth ü Climate change drives focus on carbon ü Urbanisation in Africa is driving increasing demand for energy

IRP Overview

IRP Overview Balanced Electrical Grid Unbalanced Electrical Grid Renewable Energies Fuel Cells Baseload Energy P CSCSP Fuel Cells olar PV SSolar PV al Fired Co Coal Fired ower Plants PPower Plants Wind W uclear NNuclear Battery Storage Hydro

IRP Overview Coal Pulverized with FGD Rated Capacity, MW Net Total Overnight Cost, ZAR/k. W (Jan 2015 Rands) Lead-times and Project Schedule, years Phasing in capital spent (% per year) (* indicates commissioning year of 1 st unit) Fuel Energy Content, HHV, k. J/kg Coal FBC Coal Pulverized Coal IGCC with CCS Nuclear (Do. E) OCGT CCGT ICE 2 MW ICE 10 MW Fuel Cell 4500 250 4500 644 1400 132 732 1. 90 9. 40 2 32420. 0 39133. 0 62712. 0 50327. 0 55260 7472. 0 8205. 0 11657. 0 12494. 0 27140* 9. 0 4. 0 8 2. 0 3. 0 1. 0 90, 10 40, 50, 10 100. 00 100 5, 5, 15, 2, 6, 13, 17, 2, 6, 13, 17 *, 10, 25, 45, 20, 10, 16, 15, 11, 3 10, 25, 45, 20 17, 16, 15, 11, 3 20 10 17850. 0 129900000 39. 3 25. 0 12. 5 25. 0 7. 35 115. 5 Heat Rate (k. J/k. Wh) 9812. 0 10788. 0 14106. 0 9758. 0 10657 11519. 0 7395. 0 9477. 0 8780. 0 5519. 0 Fixed O&M Cost (R/KW/Year) 845. 0 568. 0 1441. 0 1301. 0 885 147. 0 151. 0 386. 0 434. 0 NA Variable O&M Cost (R/MWh) 73. 1 158. 2 134. 9 69. 0 34 2. 2 20. 0 64. 0 110. 1 NA Equivalent Availability (%) 91. 5 85. 2 92 88. 5 88. 8 96 Planned Outage Rate (%) 4. 8 4. 7 3 6. 9 3. 5 Unplanned Outage Rate (%) 3. 7 10. 1 6 4. 6 0. 5 Typical Load Factor (%) 85. 0 90 8. 0 48. 0 50. 0 90 Economic Life 30. 0 60 30. 0 20 Water Usage (l/MWh) 231. 0 33. 3 320. 0 256. 7 0 0. 0 19. 8 0. 0 Sorbent Usage (kg/MWh) 15. 8 41. 0 22. 8 0. 0 0 CO 2 Emissions (kg/MWh) 947. 3 1003. 0 136. 2 930. 0 0 574. 0 367. 0 491. 0 455. 0 225 SOx Emissions (kg/MWh) 0. 5 0. 7 0. 2 0 0 NOx Emissions (kg/MWh) 1. 9 0. 3 0. 4 0. 2 0 0. 3 0. 2 1. 3 0. 1 0 Hg (kg/MWh) 0. 1 0. 0 0 Particulates (kg/MWh) 0. 1 0. 2 0. 4 0 0. 1 0. 0 0 Fuel Cost (R/GJ) Department of Energy, “Integrated Resource Plan, ” [Online]. Available: http: //www. energy. gov. za/IRP/overview. html

IRP Overview Electrical Efficiencies Comparison of Technologies 70% Electrical Efficiency (%) 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% Coal FBC Coal IGCC Pulverized with FGD with CCS Nuclear (Do. E) OCGT CCGT Technologies Department of Energy, “Integrated Resource Plan, ” [Online]. Available: http: //www. energy. gov. za/IRP/overview. html ICE 2 MW ICE 10 MW Fuel Cell

IRP Overview Fuel Flexibility

IRP Overview Emission Rate Technology Emission rate 2 1. 8 1. 6 Emissions 1. 4 1. 2 1 0. 8 0. 6 0. 4 0. 2 0 Coal Pulverized Coal FBC Coal Pulverized Coal IGCC with FGD Pulverized with CCS CO 2 Emissions (t/MWh) Nuclear (Do. E) SOx Emissions (kg/MWh) OCGT NOx Emissions (kg/MWh) CCGT Hg (kg/MWh) Department of Energy, “Integrated Resource Plan, ” [Online]. Available: http: //www. energy. gov. za/IRP/overview. html ICE 2 MW ICE 10 MW Particulates (kg/MWh) Fuel Cell

IRP Overview Water usage per Technology 350 Water usage (l/MWh) 300 250 200 150 100 50 0 Coal FBC Coal Pulverized with FGD with CCS Coal IGCC Nuclear (Do. E) OCGT CCGT Department of Energy, “Integrated Resource Plan, ” [Online]. Available: http: //www. energy. gov. za/IRP/overview. html ICE 2 MW ICE 10 MW Fuel Cell

IRP Overview Capacity Factor Comparison 95% 85% Capacity Factor (%) 75% 65% 55% 45% 35% 25% 15% 5% Coal Nuclear OCGT CCGE Wind PV CSP Biomass Landfill Biogas Bagasse Fuel Cell Gas Department of Energy, “Integrated Resource Plan, ” [Online]. Available: http: //www. energy. gov. za/IRP/overview. html

What a localised fuel cell industry can do for South Africa

Fuel Cell Trends Sources: * E 4 tech: The Fuel Cell Industry Review 2017

The opportunity – Stationary fuel cells

Towards a South African fuel cell industry • Establish local production facility in the MW scale per year • Reduce the cost of fuel cell systems • Local mineral beneficiation • Job creation

The South African Story Silicon Valley • Silicon – Semiconductors • Computer Industries • 39 businesses in the “Fortune 1000” Fuel Cell Valley • Catalyst • Platinum Group Metals (1 st*) • Zirconia (2 nd*) • Bipolar / Interconnect plates • Chrome (1 st**) • Iron (6 th*) • Major role player in energy supply Sources: * U. S. Geological Survey, Mineral Commodity Summaries, January 2016 **International Chromium Development Association - © 2011

Fuel Cell Example 12 GW Decommissioning Coal Power Plants Fuel cell potential to offset Eskom coal decommisioning Eskom Decomissioning Fuel Cell production output 20. 2 18. 2 16. 2 Capacity (GW) 14. 2 12. 2 10. 2 8. 2 6. 2 4. 2 2. 2 0. 2 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 • Replace Eskom’s decommissioning coal fired power plants • Fuel Flexible: coal or gas • Load following capabilities - integrate with renewables • The local manufacturing facility • Significant local employer • 75% less CO 2 emissions • The fuel cells will save 145 065 600 000 litres of water per year

Fuel Cell + Solar & Wind Load following Fuel Cell + Solar PV Load profile Solar PV Fuel Cell 1600. 00 1400. 00 Technology 1000. 00 800. 00 600. 00 400. 00 200. 00 00 4: 00 5: 00 6: 00 7: 00 8: 00 9: 00 10 : 0 0 11 : 0 0 12 : 0 0 13 : 0 0 14 : 0 0 15 : 0 0 16 : 0 0 17 : 0 0 18 : 0 0 19 : 0 0 20 : 0 0 21 : 0 0 22 : 0 0 23 : 0 0 3: 00 00 2: 1: 00 0: Load (MW) 1200. 00 Time (Hours) Load following capabilities Coal Fired Power Plant NO Fuel Cells YES

Inside the Fuel Cells

Fuel Cell Overview

“The electric light did not come from the continuous improvement of candles” Oren Harari Thank you!

Back-up Slides

Various Industries

South African Energy Profile SOUTH AFRICAN PRIMARY ENERGY SUPPLY Nuclear 2. 2% Gas 2. 8% Oil 12. 6% CR, Solar & Wind 10. 2% Hydro 0. 1% Coal 72. 1% Coal supply • 75 % of South Africa’s primary energy • 90 % of South Africa's electricity

Fuel Cell Market Overview: Global and Local Material Handling • • Forklifts 6, 286 units Baseload and Back-up Power • • Data Centers Telecom Healthcare Industrial Fuel cell Vehicles • • 2020: 520 000 units Toyota, Mercedes. Benz, Honda, GM, Volkswagen and Hyundai Residential CHP • • Resi 0. 7 -1 k. W 120 000 units South Africa • • • 100 k. W Chamber of Mines Vodacom Off-grid: • Schools • Naledi trust- 34 Homes

Fuel Cell Overview PEMFC PAFC DMFC AFC MCFC SOFC PGM catalyst Efficiency (%) Temperature Fuel Range ü ü ü û û û 40 -60 40 -90 H 2 50 W – 5 MW 42 175 -205 NG – H 2 100 k. W – 10 MW 40 50 -120 Methanol 10 W – 1 k. W 60 1 -250 H 2 10 W – 5 k. W 45 -50 650 H 2 + CO 300 k. W – 3 MW 60 700 -900 H 2 + CO 1– 2 MW Stationary Applications Mobility Applications

Transport - FCEV Who is developing FCEV? • Toyota - Marai • Hyundai – i. X 35 • Honda – Clarity • Daimler - GLC • Renault – Kangoo • GM – Equinox • Audi – h-tron Quattro

Transport - Other Fuel Cell Busses Fuel Cell Trains Fuel Cell Trucks

Rural Electrification – Naledi Trust, Kroonstad

Health Care

Housing Developments

Data Centres

Refineries

Fuel Cells vs Heat Engines Turbines 0. 1 – 5 Mwe η: 33 – 45% Combined cycles 5 – 100 Mwe η: 27 – 40% Chemical Energy Heat Chemical Energy Mechanical Energy 50 – 500 Mwe η: 50 – 60% Electrical Energy FUEL CELLS ARE MORE EFFICIENT!!!