Power to Gas: Hydrogen Enabled Storage & Grid Stabilization

Power to Gas: Hydrogen Enabled Storage & Grid Stabilization

Some fair questions Why would you want to do this? Does this work? What about efficiency? What about safety and embrittlement? Does this pay? Is this real? 2

Confidential - Do not duplicate or distribute without written permission from Hydrogenics Corporation 3 Business Confidential The Smart Energy Grid Energy System Heat (BTU) Travel (Litres) Light (kwhr) Sensible Heat (BTU) Current Tool Gas Gasoline / Diesel Electrons BTU / Temperature Advantage Storage Portability Speed Secondary Recovery Hydrogen Link Hydrogen Interchanga bility Hydrogen Range over Batteries Hydrogen Clean Conversion Heat & Oxygen Available for H2 System

The Walls are falling on three solitudes 930 PJ 953 PJ Power to Gas - A new flow path with potential 486 PJ 88 PJ 4

A New Bridge Between Electricity & Gas Challenge Accommodate more Renewables Electrical Transmission & Distribution Grid H2 Electrolysis + Gas Storage Creates Bridge between established infrastructure Electrical Market Secure & Balanced Operation Generation When & Where Needed Most Ontario s Gas Storage & Distribution Grid Gas Transmission & Distribution Grid Natural Gas Market Secure & Balanced Operation Confidential Confidential - Do not duplicate or distribute without written permission from Hydrogenics Corporation

Gas Storage offers the greatest Capacity Time in Hours Synthetic NG Pumped Hydro Hydrogen Energy storage capacity in kwhrs Source: Technical Association of the EU Gas Industry 6

Simple Process Flow Source: Technical Association of the EU Gas Industry 7

Gas and Electricity Convergence Electricity Grid Grid Stabilization Function Excess Renewable & Surplus Baseload Electrolysis to Hydrogen Dynamic Load Natural Gas Network Natural Gas Generation Assets Large Gas Storage Pools Existing Natural Gas Structure Ch4/H2 Mixture Large Scale Hydrogen or Syngas Storage Industrial Uses Transportation Hydrogen systems 8 Business Confidential

Two Constraints both ok <15% Steel pipeline embrittlement Metallurgical Study indicates that this condition is a concern at elevated pressure, above 100 bar, and concentration Gas combustion appliance performance Up to 15% concentration not a concern Flame speed acceleration, dilution of BTU value, slight efficiency improvement Confidential - Do not duplicate or distribute without written permission from Hydrogenics Corporation 9

Power to Gas may be the pathway we need to allow more renewable energy absorption

Hour of Day Production (kg/d) System Modelling 2MW Community Electrolyzer Variable Value Units Electrolyzer Capacity 786 Kg/day Electrolyzer Utilization 28 % Annual H2 Production 80,705 kg 300 Monthly Average Hydrogen Production Electroly zer 250 200 150 100 50 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 24 18 12 6 0 Electrolyzer Input Pow er Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec kw 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0

Power (kw) Power (kw) Why the Difference? Battery systems Power and Energy scale together More energy storage = more batteries Marginal cost of storage capacity is $1400kWhr Energy (kwhr) 10X Energy (kwhr) Hydrogen systems Power and energy scale separately More energy storage = more tanks only $140 kwhr 12

Calculating the Value of Storage value = V commodity differential + V ancillary services including rate of response value + V energy storage time arbitrage + V energy storage spatial arbitrage + V Renewable Generation mix flexibility + V offset to new transmission + V carbon credits + V green substitutes + V energy independence value Business Confidential 13

Capacity, Not Efficiency, a Larger Driver for Renewable Storage 8000 Source: KBB underground 6000 This much could be fed into an underground hydrogen reservoir (2 M m3salt cavern): 600,000 MWh (MW) 4000 2000 Pumped Hydro Storage Potential Source: GM presentation, Freese, May 13, 09 0 Oct 1 CAES Potential Oct 3 for 2 Mm3 Oct 5 Oct 7 Oct 9 Oct 11 Oct 13 Salt Cavern Only hydrogen offers storage capacity for several days or weeks 14

For Hydrogen, it s all about Scale. Pumped Hydro Facility CAES Facility Hydrogen Facility Geesthacht Pumped-storage Power Plant EON Huntorf CAES Plant EON Huntorf converted to hydrogen storage V = 3.3 million m 3 H = 83 m E = 534 MWh (3 x 40 MW Turbines) Vgeo. = 0.3 million m 3 P = 50 70 bar E < 580 MWh Output: 290 MW < 3h Input: 60 MW <12h Vgeo. = 0.3 million m 3 P = 60 bar Ethermal = 41,832 MWh E 40% = 16,733 MWh 15

Scale What Are you Trying to do? Cost Efficiency 16

Efficiency [HHV%] Technology advancements result in 85-90% efficiency of conversion electrical Hydrogen to gaseous Production Rate, energy HHV [MMBTU/h] on HHV basis 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 100% 90% 2010 (PEMWE) DOE 2017 Target 80% 70% 60% Our commercial HySTAT 2001 (PEMWE) 2007 (PEMWE) 50% 2000 (PEMWE) 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 Current Density [A/cm 2 ]

The largest Hydrogen Fueling Station in Europe is owned by a utility Vattenfal, Linde Project Manager; Hydrogenics Technology

System Power (kw) Hydrogenics is has completed work with the local IESO Study of Distributed Loads for Regulation 300 250 200 150 100 50 0 Power Measured Power SET 16:36 16:22 16:07 15:53 15:38 15:24 15:10 14:55 19

A New Energy Currency Hydrogen End Use Flexibility Supply & Demand Leveling Grid Stabilization Transportation Fuel Regeneration of Electricity Supply Natural Gas / Hythane Energy Storage Long Duration (monthly or seasonal) Just in Time Energy Short cycle fluctuation Very large capacitor Soak up voltage spikes from peak-wind Electrolyzer to Gas Conversion Can Drive 3 Revenue Streams Confidential - Do not duplicate or distribute without written permission from Hydrogenics Corporation

Project Announcements Germany Performing Energy Alliance Berlin area 2MW Germany EON 2 MW Falkenhagen Germany Audi e-gas methanization Canada Remote mining community Canada Gas & Electric Utility France National Research Agency ANR Japan Tokyo Gas & community reconstruction vision Brazil Investigation associated with Hydro Hydrogenics History 12 remote community projects(<1mw) Confidential - Do not duplicate or distribute without written permission from Hydrogenics Corporation 21

This is not a new idea What has changed? Renewable energy penetration Grid operability issues Economic crisis surplus base load Fukushima future energy mix Germany - leadership Remaining Challenges for a Smart Energy Grid Policy impediments to monetize the value Gas interchangeability standards Scaling and cost of technology Local grid mix and operability Culture of utility innovation 22

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