Field Experience with Hydrogenics' Prototype Stack and System for MW PEM electrolysis

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Field Experience with Hydrogenics' Prototype Stack and System for MW PEM electrolysis Jan Vaes, February 17th, 2nd int. workshop on Durability and Degradation Issues in PEM Electrolysis Cells and their Components, Freiburg

Hydrogenics in Brief International structure Hydrogenics Corporation Headquarter Mississauga, Ontario, Canada Since 1948 +/- 70 employees Areas of expertise: Fuel cells, PEM electrolysis, Power-to-Gas Previously: The Electrolyser Company, Stuart Energy Hydrogenics Europe Oevel, Belgium Since 1987 +/- 70 employees Areas of expertise: pressurized alkaline electrolysis, hydrogen refueling stations, Power-to-Gas Previously: Vandenborre Hydrogen Systems Hydrogenics Gmbh Gladbeck, Germany Since 2002 +/- 15 employees Areas of expertise: Fuel cells, mobility projects, Power-to-Gas In total: +/- 155 employees Incorporated in 1995 [NASDAQ: HYGS; TSX: HYG] More than 2,000 products deployed in 100 countries worldwide Total revenues (2014): 45.5 Mio $ Over 70 years of electrolysis leadership 2

Hydrogen generation and Power-to-X routes POWER GRID Wind turbine Solar PV Power-to-Power SURPLUS OR LOW-COST ELECTRICITY Power-to-Hydrogen Electrolysis H 2 O O 2 H 2 H 2 storage (optional) Hybalance PEM 230 nm³/h Chemical plants Power-to-Industry Industry Ammonia Speciality chemicals Gas turbines Fuel cells CHP Heat CO 2 PEM/AWE 30 /210 nm³/h Power-to-Gas Methanation AWE 240 nm³/h Blending AWE 360 nm³/h PEM 285 nm³/h Refineries Refuelling stations AWE 10-180 nm³/h Power-to-Fuels PEM 120 nm³/h Low C02 fuels Methanol CNG Power-to-Mobility Hydrogen Vehicles (FCEV) GAS GRID Hydrogen network Power network Gas network Liquid fuels network 3

1500 E PEM PLATFORM 4

The New Benchmark in Electrolysis 1.5 MW, MODEL 1500E Electrical Power Input 1.5 MW Hydrogen Output 285 Nm3/h Max. Operating Pressure 40 bar (g) Dimensions L800xW550x1000mm Certifications PED (97/23/EC)

Don Quichote for RE integration DEMONSTRATION OF NEW QUALITATIVE CONCEPT OF HYDROGEN OUT OF WIND TURBINE ELECTRICITY FCH-JU project FP7 grant n 303411 6

Don Quichote partners Colruyt Group Eoly: RE integration and H2 applications Hydrogenics Europe: Electrolyser and fuel cell Hyet bv: electrochemical compression development Thinkstep (PE international): Life Cycle analysis Icelandic New Energy: total cost of ownership TUV Rheinland: Regulation, Codes and Standards EHA/FAST: dissemination Waterstofnet: dissemination and project management JRC: testing protocols 7

Don Quichote set-up Sun PV 800 kwp + Grid Wind 1500Wp Fuel cell 120kW AWE 30Nm³/h Compressor A 450 bar Storage A PEM 30Nm³/h Compressor B 450 bar Storage B Dispenser Existing infrastructure Don Quichote components Forklifts 8

Hydrogen generation and compression station 9

On Site 10

PEM unit characteristics Safety and reliability No caustic electrolyte Less instrumentation Low geometrical footprint 2 A/cm² Higher currents? Efficiency penalty Lifetime impact? Cooling capacity Power capacity Atmospheric O 2 degassing Towards differential P

2012 start of the project 12

Don Quichote field results 13

Battery limits considered 14 14

Cell potential average values Averaged values ([50-55] C,[9-10] barg) / 50 mhz) 15

Don Quichote 26 cell stack performance 16

Temperature effect on cell potential 17

Thermal ramping @ 3000 A=> 1 C/min @ 1000 A => 1 C /3 mins 18

Integrated power measurements E P ( t) dt U U Control Heat Cooling Pump E P ( t) dt MP MP Transformer Cell stack H 2 out 19

Integrated power measurements Control Heat Cooling Pump E MP 62689kWh Transformer U ACDC 7875kWh Cell stack E DC 54814kWh VH H 2 out 12252 Nm ³ 2 Averaged 4.47 kwh/nm³ at DC 50.2 kwh/kg 20

1 9 17 25 33 41 49 57 65 73 81 89 97 105 113 121 129 137 145 153 161 169 177 185 193 201 209 217 225 Stack and process power Utilities power Power monitoring P(t) (kw) STACK Process Part All utilities 160 140 120 100 80 60 40 20 0 5 4 3 2 1 0 Time (hrs) 21

P U (t) Control Heat Cooling Pump P ( t ) kw P ( t ) 3. kw DC x 1 DC x 4 Transformer P MP ( t x ) 133kW Cell stack P DC ( t x ) 117kW 26.15Nm³ / hr x 5.25kWh / Nm³ 22

Control Heat Cooling Pump Transformer Cell stack Including 450 barg compression: (5.25 0.3) kwh / 60.11kWh / kgh 2 Nm³ 88% 79 H2 % acdc tot 70% 23

Poor rectification transformer efficiency Diode losses Carry full current of 1000 A/phase 6kW Pdc= 26*2V*3000 Adc= 156 kw Utility power is not significant Depending on ambient temperature 24

Hours (h); Efficiency (%) Effect of compression Compressor has larger flow capacity than needed Lower current density benefit on stack level, gets lost in spill back 120 100 80 60 40 nov/15 sep/15 Efficiency Stack Efficiency /w Compression Optimal Efficiency 20 0 Current (ma/cm²) 25

2016 status 26

PEM or AWE for Power to xyz? Dynamic operation: PEM : 5-100% - nano porosity in membrane AWE: 20-100 % range Micrometer scale porosity Cold start: N2- Purging / getting hydrogen out a given purity Smaller volume for PEM Limited current because of rise to operational temperature PEM: smaller ΔT required / smaller volume Overload regime, response times Power electronics and cooling are determining Size matters => limited ΔT for AWE Capex Similar numbers > 5MW Site footprint smaller for PEM Opex Similar electricitiy consumption ( ~capex) Maintenance: known for AWE (2-10%) to be derisked for PEM (stack)

Ongoing MW PEM projects 28

Sponsors: Coordinators: WindGas Hamburg Reitbrook, Germany (2015) 1,5 MW Power to Gas OBJECTIVES Development of 1,5 MW PEM Electrolysis Stack and System Optimize operational concept (fluctuating power from wind vs. changing gas feed). Gain experience in technology and cost. Feed H 2 into the natural gas pipeline Partners: SOLUTION 1x 1,5 MW PEM Electrolyser with all peripherals in 40Ft. housings for max 285 Nm³/h H 2. Power: 1,5 MW This 1,5 MW building block will be the foundation for multi MW P2G plants More info: www.windgas-hamburg.com 29

Hybalance dual stack 230 Nm³/hr HOBRO Denmark 30

Lünen, Germany MefCO2 project (Methanol Fuel from CO2) OBJECTIVES Increase efficiency and reduce emissions of STEAG s coal fired power plant Leverage existing carbon capture pilot plant (= CO 2 source) owned by UDE Carbon capture unit Photo credit: University of Duisburg-Essen SOLUTION 600 kw 1500E PEM electrolyser for 120 Nm³/h of Hydrogen EU Horizon 2020 research and innovation programme funding (SPIRE) Flexible methanol synthesis. Power: 600kW More info: http://www.spire2030.eu/mefco2/ 31

Thank you for your attention! Denis THOMAS Business Development Manager Power-to-Gas Mobile: +32 479 909 129 Email: dthomas@hydrogenics.com Jan VAES Technology Director Mobile: +32 497 50 28 27 Email: jvaes@hydrogenics.com 32