© Ceres Power 2014 1

Real world Fuel Cell technology for commercialisation

A commercially viable fuel cell

Steel CellLow CostRobust

High Efficiency

Global OEMs Engineering

capabilityBalance sheet

Natural Gas infrastructure

Technology

Real world Business Model

© Ceres Power 2014 2

• World energy demand increasing• + 25% by 2023• + 56% by 2040

• Energy security increasingly important• US$80bn / year - grid outages cost in North America• Import dependency - Japan now uses 33% of world’s LNG

• Natural gas increasing as part of energy mix• ~50% of UK electricity generated from natural gas• + 46% by 2030

• Consumers want lower energy bills• Heating consumes half UK energy supply

Fuel Cells - A key part of our energy future

• World energy demand increasing• + 25% by 2023• + 56% by 2040

Fuel Cells + Distributed Generation = the most efficient way to generate power from natural gas

© Ceres Power 2014 3

What’s happening in the Fuel Cell Industry

Revolution is only possible if at the right cost point

Mission Critical

Green Agenda

Initialproof of commercialisation

Revolution

© Ceres Power 2014 4

Why leading OEMs are evaluating STEEL CELL technology

DesiresJapanese

OEMsPEM/SOFC

CeresTechnology

STEEL CELL

Consumer benefit

High system efficiency 35% to 45 % 45% Save energy costsSave 1.5 tonnes CO2 /year

Low cost 1 $20,000 $7,000 Consumer payback

Robustness to cycling and emergency stops

? Tested to 2x life

Copes with real world

Compact for global product

Floor mounted

Wall hung Good for apartments and houses

Mass adoption addresses 18m units/year domestic boiler market

1 At 20,000 volumes p.a.

© Ceres Power 2014 5

Potential license deal structure

Ceres

Cell/stack manufacturer

/ JV

Product Development License

License fee + royalties/unit

Manufacturing rights

License fee + royalties/unit

Sales o

f cell

s/sta

ck

Sales r

even

ue

Ceres’ technology - $bn market opportunities

Area Total market size (units sold p.a.)

Annual revenue

Korea 1 million To £40m

Japan 1.5 million To £60m

Europe 8 millionTo £160m

RoW 7.5 million To £150m

Residential nat gas m-CHP 1 To £0.4bn

1 Assumes 10-20% market penetration, £100-200 per kW revenue,

Larger power opportunity could be at least as large Over 1800 GW of natural gas power capacity by 2035 (EIA 2014).

The possible value from these opportunities could be similar in magnitude

OEM partners