December 2017 Hydrogen Just another fuel Martin Borum Pedersen Financial Director
Three business segments Nel ASA Global pure-play hydrogen company facilities in Norway, Denmark and the U.S. >3500 hydrogen solutions delivered in ~80 countries world wide since 1927 200+ employees (Hydrogen Pioneers) Hydrogen Electrolysers Hydrogen Fueling Hydrogen Solutions 2
Nel Hydrogen Electrolysers small to large scale Solar Grid Wind TURNKEY ELECTROLYSER SOLUTION TAILORED ELECTROLYSER SOLUTION Small scale turn-key modules Up to 600kg/day Large scale plant solutions Up to any capacity size CONFIDENTIAL Page 3 2017 Nel Hydrogen www.nelhydrogen.com
Fueling station modules Compact, flexible and reliable Designed for volume manufacturing for EU & USA 35MPa 35MPa 70MPa Hydrogen supply storage Station Module Hydrogen Fueling storage Dispenser H2Station 4
Have started production of H2Stations in our new plant Production moved into the new facility over the summer Started production of first US stations mid-august 5
Why now? Renewable electricity is becoming competitive = cheap Hydrogen Hyundai, Toyota and Honda have already started FCEV sales & lease in California. Hydrogen cars are available and affordable High global focus on zero-emission transportation $499/month lease (incl. hydrogen) $349/month lease (incl. hydrogen) $369/month lease (incl. hydrogen) From 2017 Learn more at: www.toyota.com/fuelcell or www.hyundaiusa.com/tucsonfuelcell or http://automobiles.honda.com/clarity 6
Record range and low cost achieved Hyundai 2018 model FCEV: >800 km range (NEDC) Initial production capacity of 3,000 vehicles annually Range of >800 km Improvements from last generation: ~20% lighter fuel cell, ~10 % more efficient ~30% higher effect density >60% total (tank-to-wheel) efficiency Commercial launch in 2018 Toyota fuel cell concept vehicle Fine-Comfort Ride with targeted >1000 km range Toyota targets 1,000 km range Includes artificial intelligence and automated driving features Japan plans to increase the number of fuelcell vehicles to 40,000 by 2020, up from today s 2,200 7
Showcase Denmark: First countrywide network Aalborg Holstebro Vejle Kolding Esbjerg Aarhus Korsør Renewable power: 2015: 42% 2035: 100% First country wide network in daily operation H2Station Nel Electrolyser Copenhagen 10 stations in operation 50% of population within 15 km to nearest station. Having a network increases interest to introduce new FCEV s Collaboration with leading oil, energy and gas companies 6 stations with onsite electrolysis production. 4 stations with central production from Nel electrolyser. Danish Hydrogen Fuel A/S 50% Copenhagen Hydrogen Network A/S 1% CONFIDENTIAL Page 8 2017 Nel Hydrogen www.nelhydrogen.com
H2Station Network roll-outs DENMARK 2011-2016 NORWAY 2016-2020 ICELAND 2018-2020 CALIFORNIA 2018-2019 10 H2Station and Hydrogen production Up to 20 H2Station and Hydrogen production 3 H2Station and Hydrogen production Multiple H2Station in San Francisco and Los Angeles CONFIDENTIAL Page 9 2017 Nel Hydrogen www.nelhydrogen.com
H2Station installed Just as another fuel Oslo, Norway opened Nov. 2016 Rostock, Germany installed Dec. 2016 CONFIDENTIAL Page 10 2017 Nel Hydrogen www.nelhydrogen.com
Shell agreement Initiatives from Shell in California Shell hydrogen stations in Northern CA Nel has contract with Shell for supply, construction and maintenance of hydrogen stations San Francisco CA 14 H2Station modules for 7 sites expected to be installed in 2018 and into 2019 Shell has issued a request for information for additional 100 hydrogen stations to California 11
Targets & strategy for competitiveness 2020+ Fueling CAR Targets: Electrolyser and H2Station turnkey price to be reduced to enable fossil parity. Strategy: Forward pricing on Electrolyser and H2Station for customers committing to high volume. Renewables Electrolysis Distribution Dispensing Margin Fossil parity $30/MWh 53% electrolyser utilization (off-grid). 80% hose utilization. 10 year depreciation. 10% profit at pump. $3,6/kg + $1,2/kg + $1,5/kg + $0,7/kg = <$7/kg $2,95/gallon gasoline 40/MWh 70% electrolyser and hose utilization. 10 year depreciation. 10% profit at pump. 4,4/kg + 1,4/kg + 3,2/kg + 1,0/kg = < 10/kg 1,17/liter gasoline excl. VAT CONFIDENTIAL Page 12 2017 Nel Hydrogen www.nelhydrogen.com
Pollution Public health Fuel Cell busses Hydrogen Fuel Cell buses are environmentally-friendly vehicles for public transport: they generate no emissions and have a reduced noise level. 1 FC bus will remove particles from 2 diesel trucks. Refueling in 5-10 minutes. Range >400km 13
H2Station for bus fueling in Latvia High capacity station for 20 busses includes dispenser for car fueling Bus depo facility in Riga, Latvia Onsite reforming of natural gas. H2Station for busses and cars. 70MPa: 200kg in 12 hours 35MPa: 300kg in 5 hours 10 busses and 10 trams Delivery: 2017 Reforming Hydrogen storage Station module Dispensers 35MPa 70MPa CONFIDENTIAL Page 14 2017 Nel Hydrogen www.nelhydrogen.com
H2Station installation in Riga CONFIDENTIAL Page 15 2017 Nel Hydrogen www.nelhydrogen.com
H2Station for bus fueling in Palm Springs (CA) High capacity station for +25 busses Sunline facility in Palm Springs, California First integration Nel/Proton product offering 2MW PEM Electrolyser Two H2Station for bus refueling Delivery: 2018 PEM Electrolyser Hydrogen storage Station module Dispensers 35MPa 35MPa CONFIDENTIAL Page 16 2017 Nel Hydrogen www.nelhydrogen.com
A 12m hydrogen city bus is competitive with diesel, when it reaches: 350.000 sales price 0,35c /km in O&M 5 /kg Hydrogen Number one by nature
Bus Price in 1000 EUR Price of Fuel Cell bus - Learning curve From the first projects the price has come down with every new demonstration project ~15% cost reduction from every doubling of accumulated shipment (learning curve) Volume will drive down cost further. 1.000 busses needed to make last step to make Fuel Cell busses commercial. At 20.000 busses FCV will compete with 1.200 1.000 800 600 400 200 - Experience Curve Fuel Cell Transit Bus CHIC 3EMotion JIVE JIVE2 H2BUS 1000 busses CHINA 20.000 busses 1 10 100 1000 10000 100000 Cumulative Bus Shipments current diesel bus cost. Room for tax on H2 fuel. *CHIC: http://chic-project.eu/ *3Emotion: http://www.3emotion.eu/ *JIVE: http://www.fch.europa.eu/project/joint-initiative-hydrogen-vehicles-across-europe *JIVE2: Upcomming CONFIDENTIAL Page 18 2017 Nel Hydrogen www.nelhydrogen.com
Potential large scale energy storage project in Fredericia, Denmark Multi-value stream project in Denmark = cheap H2 Potential project of ~20 MW electrolysis Renewable hydrogen for multiple purposes: Replace fossil hydrogen used in refinery process Energy storage and power generation Hydrogen used directly for transportation purposes, fuel cell electric busses and cars (FCEV s) Other value streams: Oxygen used locally within refinery Heat used for city district heating Developed solution relevant in many other oil refineries across the globe Shell oil refinery in Fredericia, Denmark 19
H2Bus Europe partnership 1000 Fuel cell busses can be made TCO competitive with Diesel! 100 busses in 10 European cities. Who want s to join? Number one by nature
Think big - Project development: 400MW renewable H2 plant GIGA factory concept for renewable hydrogen production Largest electrolyser plant ever designed Tied to renewable power Hydrogen possible in steel production Competitive with natural gas reforming 98-99% of today s hydrogen is based on fossil fuels.
Hyon Joint Venture One stop hydrogen shop 22
NIKOLA NEL agreement H2Station for Nikola Motor changing the trucking industry in the United States Green Hydrogen for US trucking industry: NEL provide Engineering, Electrolysis, Fueling equipment, and Services. Station design: First: 2 demo stations by 2018 Hereafter: 14 stations with 8 Ton/day capacity, scalable to 32 Ton/day Leasing of Nikola truck incl. fuel, cheaper than diesel truck. CONFIDENTIAL Page 23 2017 Nel Hydrogen www.nelhydrogen.com
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