Hydrogen and the Fuel Cell-Electric Vehicle Industry The German Perspective

Joseph Cargnelli Hydrogenics Corporation

Overview

•! Hydrogenics Introduction

•! Technology Update

•! The German Hydrogen Plan

•! Relationship Between Hydrogen and Renewables in Germany

Hydrogenics’ Profile

!! Headquartered in Toronto, Canada with facilities in Belgium and Germany (NASDAQ: HYGS; TSX: HYG)

!! A leading global provider of clean energy solutions based on hydrogen

•! Power generating systems based on Fuel Cells

•! Hydrogen Generation from electrolysis for industrial needs globally

•! Renewable Energy Storage

!! Growth Momentum:

•! First to market with hydrogen renewable energy storage solution

•! Significant pipeline of projects

•! Commercial fuel cell markets poised to scale volume for the first time

!! Business Strategy:

!! Commercial solutions + unique technology positions + strong OEM partners

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Challenges faced by Fuel Cell-Electric Vehicles

•! Power Density

•! Durability

•! H2 Storage

•! Packaging

•! Cooling System

•! Infrastructure

•! Hydrogen Cost

•! Fuel Cell

•! System

•! H2 Storage

Technology Costs Infrastructure

•! Reliability

•! Availability

•! Scale up Plan

•! Chicken and Egg

•! Focused net-work

FC Manufacturers and their Current Fuel Cell Passenger Car Models

All important automobile manufacturers are committed to developing and commercializing fuel cell vehicles.

Company Honda Motor Co. Ltd.

Vehicle FCX Clarity

Year released 2007

Range 620 km (Driving 10-15 mode)

Curb mass 1,630 kg

Max. power 100kW (136PS)

MercedesBenz Citaro FuelCell Hybrid Van Hool A330 FC

Tecnobus FC Hybrid Rampini Ale FC Hybrid

•! Fuel cell technology good fit with public bus transit •! 250 km range requirement not an issue •! Several active deployments in Germany with more planned •! Canadian fuel cell providers dominate

European Fuel Cell Buses

Current Fuel Cell Bus Models

FCHV Hybrid

Why Fuel Cell Vehicles are Relevant

2009 Toyota Highlander Gasoline Hybrid

Full Tank Range: 710 km

Avg. Fuel Economy: 9.0 L /100km (11.1km/L)

Cost to fill up @ $ 0.95/litre: $ 63.90

2009 Toyota Highlander H2 Fuel Cell Hybrid Vehicle

Full Tank Range: 690 km

Avg. Fuel Economy1: 3.4 L /100km (29.4km/L)

Cost to fill up @ $ 8/kgH2: $ 50.48

1.! Converted from (kg) of hydrogen to litres of gasoline equivalent

Predictable performance and range. Capable of being your primary

vehicle.

August 6th, 2009: DOE, NREL and SNRL Complete “Real World” Driving Evaluation

On September 8th 2009, seven OEMs signed a Letter of Understanding on the development and market introduction of fuel cell vehicles. The OEMs anticipate a few hundred thousand vehicles deployed in Germany on or before 2015. The signing OEMs strongly support the idea of building-up a hydrogen infrastructure in Europe, with Germany as the starting point.

Market Introduction of Fuel Cell Vehicles by 2015 Germany the Starting Point

September 2009, Major Companies sign up to Hydrogen Infrastructure build-up plan in Germany

Source: Mercedes, GermanHy

Large

Medium

Small

2010 2015 2020

ca.10 Tankstellen 142 – 218 Tankstellen 1.296 – 2.666 Tankstellen

Die GermanHy Roadmap

Largest European Hydrogen Filling Station Award Operator: Vattenfall (Hamburg), 3 x HySTATTM60 (1.2 MW) Opening Summer 2011

Relationship between H2 and Renewables Case Study – Wind Energy in Germany 2008

!!Renewable energy sources fluctuate dramatically

!!Placing significant wind energy on grids necessitates an energy storage strategy – otherwise electricity generation costs will increase

Case Study: Wind Energy, the Electric Grid and H2

•! 2008 German Wind Energy Example •! Over 19,868 turbines installed •! Capacity: 23,044 MW •! Electricity production 2007: 39.6 TWh (7.2% of Germany’s annual net electricity consumption)

Source: Bundesverband Windenergie e.V., 20.11.2008

Case Study Renewables & Fluctuating Energy Availability

Source: Bundesverband Windenergie e.V., 20.11.2008

Fluctuating Wind Energy Compared to Conventional Pump Storage Capacity

Source: General Motors Note: Chevy Volt battery stores 8kWh of available energy

Store Fluctuating Wind Energy CAES Storage of Compressed Air in Salt Caverns

Source: General Motors

Hydrogen The Energy Storage Solution for Renewable Energy

Source: General Motors

Electrolyzer Fueling Stations will be the Salt Cavern German utilities will use electrolyzer fueling stations as a “Load as a Resource”

Source: Mercedes

Summary: Why H2 and Fuel Cell Electric Vehicles in Germany?

H2 Fuel Cell Electric Vehicles are Relevant:

!! Predictable Performance, Long driving range

!! Family Size Vehicle capable of being Primary Vehicle

!! Zero Emission Mobility

!! Fast Refueling (decoupled from parking)

Hydrogen and the future energy system:

!! H2 Practical Storage Medium for Renewable Energy

!! Opportunity for German utilities to use Electrolysis as a “Load as a Resource”

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