Using Hydrogen Energy Storage System to Enable 100

Using Hydrogen Energy Storage System to Enable 100% Renewable Energy in Communities NHA Hydrogen Conference & Expo Long Beach, California May 4, 2010

Hydrogenics in Brief § A world leading manufacturer of electrolyzers and fuel cells § Canadian-based company with offices in Toronto, Belgium and Germany: • On Site Generation Systems: Hy. STAT™ Electrolyzers for industrial hydrogen and energy applications • Power Systems: Hy. PM™ Fuel cells for backup power and mobility applications • Renewable Energy Systems: Hydrogen system applications for community energy storage and smart grid § 1, 700 + hydrogen products deployed worldwide since 1948 2

Products and Technology Hy. UPS Backup Power System Hy. PM® XR Fuel Cell Power Module extended run data centre and telecom UPS power Hy. PM® HD Fuel Cell Power Module for mobility applications Hy. PX® Fuel Cell Power Pack for material hadling Hy. STAT Electrolysers & Hy. LYZER PEM Electrolyser for On-Site hydrogen generation § Our Product Line Includes: • PEM Fuel Cells for Stationnary and Mobility Applications • Alkaline and PEM Electrolysers for Industrial, Energy and Fueling Stations 3

The Hy. STAT™ Electrolyzers § Mature product serving industrial gas and fuelling markets § On-demand, onsite high purity hydrogen production § Automated, reliable, efficient and low maintenance Hy. STAT™-15 Hy. STAT™-30 15 Nm 3/h, 1. 4 kg/h 10 or 25 bar 30 Nm 3/h, 2. 7 kg/h 10 or 25 bar Hy. STAT™-60 60 Nm 3/h, 5. 4 kg/h 10 bar 4

Hy. STAT™-360 (390 kg/day, 360 Nm 3/h) Project delivered using 390 kg/day using 6 x Hy. STAT-60 electrolysers. 5

Typical refueling station § 130 kg/day fueling station (Hy. STAT-60) Gaz de France Dunkerque, France, 2008 Shell, Santa Monica, USA, 2008 CUTE Program Barcelona, Spain, 2005 6

Containerized Fuel Cell Module § Hy. PM 150 KVA Fuel Cell System (20’ ISO container) • Hy. PM XR rack serves backup power market • Reliable and scalable power for critical systems • Zero-emission, compact and highly efficient 7

Proterra Fuel Cell Plug-in Hybrid Bus Length 35 ft (10. 7 m) Type Low floor Seats 37 Max speed 60 mph (96 km/h) Autonomy 300 mi (480 km) Drive 32 k. W PEM Fuel Cell Motor 150 k. W Fuel Hydrogen (99. 99 %) Hydrogen storage 30 kg Energy storage Li Titanate Batteries 2 x Hy. PM HD 16 s Hydrogenics Fuel Cells 8

Energy Storage 9

The Energy Storage Problem § Intermittent Renewable Energy is driving the need for energy storage § Problems occurring when RE provides >10% of the grid mix • Increased need for standby power and frequency regulation services • Fossil fuel regulation undermines value of RE Portugal: wind installed capacity (MW) 7, 500 8000 7000 6000 5000 4000 3000 2000 1000 83 522 131 194 289 1, 022 1, 716 2, 130 2, 862 3, 535 11. 4% of generated electricity in 2008 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 … 2020 10

The Energy Storage Problem § Wind and solar are intermittent § Fossil fuel power currently provide power stability § Energy storage is needed to maximize wind penetration § Hydrogen storage is a good match to long-term energy storage needs for remote communities 100% Fossil Fuel 100% RE Fossil fuel cost driver Imported energy Pollution + emissions Capital drives cost Fully self-sufficient Zero-emissions 11

Pumped Hydrogen Energy Storage Flow Batteries Zn. Br VRB PSB Metal-Air Batteries Compressed Air Energy Storage Long Duration Fly Wheels Na. S Batteries High Energy Super Capacitors Lead-Acid Batteries Ni-Cd Li-ion Other Adv. Batteries High Power Fly Wheels Seconds Minutes Small Power Storage Power Quality Discharge Time at Rated Power Renewable Energy Storage Hours Days Energy Storage Technologies Superconducting Magnetic Energy Storage High Power Supercaps 1 k. W 100 k. W 1 MW 100 MW 1 GW Source: Electricity Storage Association 12

Data Storage: Many Needs + Many Tools Energy Storage is No Different 13

Renewable Energy + Hydrogen Storage 14

Hydrogen Advantages § Long term storage • Hydrogen storage costs are a fraction of batteries and flow batteries • Can store energy for days and weeks • No power dissipation § Dissociation of charge and discharge cycles and storage capacity • Can size the components for the specific application • More effective equipment use § Flexibility for use in many applications • Fueling for vehicles or other devices § Zero emissions through entire system § Hydrogen technology continuing to develop • Technical advances and cost reductions underway • Energy efficiency will be improved 15

Renewable Energy and Transportation 16

Intermittency and with Transportation Loads Added Rebalance with H 2 Production for Transportation/Energy Storage 17

Electrolysis Characteristics § Ability to quickly cycle on and off § High availability during periods of highest value § Rapid response § Inherent redundancy § Distributed locations Commercial IMET On/Off Rapid Cycle Testing. 18

Hydrogen Energy Storage – Low Incremental Cost § Tube trailer can deliver 6 MWh from fuel cell § No leakage and no parasitic losses over time § Storage costs of less than $100/k. Wh 19

Community Hydrogen Energy Storage (HES) 20

Remote Community Power § Application • Enable continuous off-grid power from wind or solar • Remote communities, islands and resorts § Current Solution • Served by diesel gensets • Typical costs $0. 60 -$1. 00/k. Wh § Renewable Hydrogen System • Hydrogen generation, storage and fuel cell coupled to renewable energy • Fully zero-emission energy • Self-contained energy system 21

Community Hydrogen System Synchronous Condenser Hy. STAT cooling Heating from excess Wind Energy Hydrogen Water supply to Hy. STAT Electrolyzer Control System for grid stability ELECTRICAL LOAD DIESEL Back Up power Standby heating for fuel cell Condensation Recovery Thermal Dump Load – distributed to improve usability of heat energy Hy. STAT standby heating Water Treatment Excess Wind Energy diverted to Hydrogen production N 2 Generator Electricity to Auxiliary Systems Air Compressor Excess Wind Energy dissipated Generated Electricity WIND GENERATED ELECTRICITY Hydrogen HEATING LOAD Heating from Waste Heat Recovery storage Hy. PM fuel cell system 22

Case Study: Community HES 23

Model Inputs § Site Profile using Alaska Data • 175 k. W peak load • 6. 5 m/s average wind speed • Low diesel price of $1/L § Case A – Existing Diesel • Emissions based ultra low sulphur diesel § Case B – Wind/Hydrogen + Diesel • Reduced diesel consumption § Case C – Wind/Hydrogen only • Elimination of diesel 24

Model Component Sizing Diesel only Wind / Hydrogen + Diesel 175 Wind/Hydrogen Diesel k. W Wind k. W 2 x 330 3 x 330 Fuel Cell k. W 100 200 Electrolyzer Kg/day 168 330 Storage Kg 1000 25

Model Results Diesel Only Wind/Hydrogen + Diesel Wind/Hydrogen Initial Capital Cost $’ 000 3, 250 8, 300 10, 620 Net Present Cost $’ 000 8, 800 10, 980 13, 100 Operating Cost $’ 000/yr 450 215 201 Cost of Generation $/k. Wh 0. 78 0. 97 1. 16 (Diesel @ $1/L) Diesel Usage L/yr 291, 400 49, 400 0 CO 2 kg/yr 764, 000 130, 000 0 CO kg/yr 4, 050 690 0 HC kg/yr 220 37 0 PM kg/yr 230 39 0 SO 2 kg/yr 1, 500 260 0 NOx kg/yr 2, 300 400 0 26

Hydrogen Experience and Case Studies 27

Renewable Energy Projects to Date Name Year RE Source West Beacon 2003 Wind + Solar Gas Natural 2007 Hychico Country Equipment UK Hy. STAT 8 + FC Wind Spain Hy. STAT 60 + FC 2007 Wind Argentina Univ. of Glamorgan 2008 Wind + Solar Basin Electric 2008 Wind US Hy. STAT 30 + storage China Lake 2008 Solar US Hy. STAT 1 +Hy. PM BC Hydro 2009 Small Hydro Canada Hy. STAT 30 Ramea 2009 Wind Canada Hy. STAT 30 Wales Hy. STAT 60 (x 2) + H 2 ICE genset Hy. STAT 10 + FC 28

HARP – Bella Coola (Canada) § § § Remote Community now powered by 5 x 1 MW diesel gensets Hydrogen Energy System to displace Diesel use Hydrogenics electrolyser powered by run-of-river hydro Fuel Cells provide power when required In Startup 29

Hydrogen Fueling Stations North America Toyota HQ California, 2005 Chevron Tech. Venture Oakland Station, 2006 DTE, Michigan 2004 Exhibition Place Toronto, 2004 Shell, California, 2008 30

Hydrogen Fueling Stations Europe Sydkraft, Malmö, Sweden, 2003 Gas Natural SDG, Spain, 2007 CUTE Program Stockholm, Sweden, 2005 CUTE Program Gaz de France Barcelona, Spain, 2005 Dunquerke, France, 2008 31

Hydrogen Fueling Stations South America - Brazil EMTU São Paulo, Brazil, 2008 32

Upcoming Hydrogen Bus Fueling Station Hamburg – Germany (Vattenfall – with Linde) (HYGS: 260 kg/d) 33

A few bus projects

Michel Archambault Sales Manager – The Americas Hydrogenics Corporation +1 (514) 518 6448 marchambault@hydrogenics. com We are available at booth #414 35