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August 2011

Fuel Cell Power Solutions : Backing up Critical Equipment Leveraging International Experience – Energy Storage Conference June 2015

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• Asia-rooted international team / founded 12 years ago in Singapore

• The world’s largest producer of fuel cells <1kW today; moving to 5-10kW

• Supplies the most competitive and reliable fuel cells in the world today

• Commercial success substantially a result of developing various on-demand hydrogen

solutions to overcome the “hydrogen supply problem”

• Began with micro-sized systems and moved towards larger, more complex systems

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Historical challenges and tech considerations for PEM fuel cells

Hydrogen safety

Overall system competitiveness

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Power (W)

H2 flow rate

•Expected PEMFC reliability

•Lifetime of PEMFC (000’s of hours)

•R&D costs & time to market

•H2 needs / safety concerns

•Certifications challenge

•H2 logistics & cost

There is a common denominator to all those challenges…

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Materials for PEM fuel cell and h2 storage: membranes, catalysts, hydrides, GDL, more

PEM micro-fuel cell to multi-kW stacks: micro-FC, open-cathode, closed-cathode, HT/LT

H2 storage and H2 generation solutions: reformer, hydrolysis, electrolysis, etc

Peripherals: electronics, software engineering, valves / liquid-gas management devices

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Horizon initially focused on the LOW POWER end of the spectrum

• Overall platform was built over many years, driven by cost reduction, quality improvements, and the goal to sell complete solutions (not just fuel cells).

• H2 storage/generation development started within Horizon in 2007/2008

• Capabilities are becoming more sophisticated all the time; a solid foundation has been laid in system components and system design

We built almost the entire fuel cell industry value chain for 1-5kW PEMFC – within one company….

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Strictly confidential

Horizon has been solving the “H2” supply challenge for different applications

H2 Generation from PEM Electrolysis

H2 generation from Propane or Natural Gas

•Continuous reduction in fuel costs •Increased environmental benefits •Opening increasingly large markets

H2 generation from Liquid chemical hydride

H2 generation from Solid chemical hydride

Fuel cell power output (W)

$/Wh competition from battery or diesel incumbents

Where we are now

H2 generation From biogas

3L/h 50-1000 L/h

NABH4 $40/cartridge

NABH4 $10/cartridge

H2 generation From Alcohols

H2 generation NABH4 Solution

Disclaimer: The information contained in this document is intended only for use for the purposes set forth in the Non Disclosure Agreement and should not be disseminated or distributed to any other parties.

Horizon uses our deep technology platform to serve multiple markets

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Markets Being

Served

Technology

Platform &

Component Supply Chain

Disclaimer: The information contained in this document is intended only for use for the purposes set forth in the Non Disclosure Agreement and should not be disseminated or distributed to any other parties.

August 2011 Critical Infrastructure “Distributed Backup Power”

Why are fuel cells relevant?

Disclaimer: The information contained in this document is intended only for use for the purposes set forth in the Non Disclosure Agreement and should not be disseminated or distributed to any other parties.

Distributed backup power requirements only partially satisfied today

Current solutions are predominantly based on lead acid batteries

and diesel generators

Limitations of lead acid batteries

– Short life expectancy, high replacement cost

– Poor performance at low temp and high temp, air-conditioning sometimes needed

– Cost increases in linear fashion when more backup time is needed

– Environmental concerns with used batteries

Limitations of diesel generators

– Frequent maintenance required

– Polluting, very noisy, subject to numerous regulations

– Fuel theft in developing countries

– Stale fuel replacement costs

Disclaimer: The information contained in this document is intended only for use for the purposes set forth in the Non Disclosure Agreement and should not be disseminated or distributed to any other parties.

Known barriers for fuel cell back up power commercialization

Despite offering a clean solution with longer backup times

and often lower life-cycle costs than batteries,

Today’s well-known Fuel Cell systems still have some shortcomings:

– Relatively high CAPEX, requiring substantial payback period, so incentives are not sufficient for many customers to switch to Fuel Cell technology

– The use of hydrogen cylinders involves complex and costly logistics, especially for remote sites; and storing high pressure hydrogen cylinders involves significant hazmat regulations and restrictions

– Rooftop and indoor installations are difficult due to weight, footprint issues and/or fuel storage regulations

Disclaimer: The information contained in this document is intended only for use for the purposes set forth in the Non Disclosure Agreement and should not be disseminated or distributed to any other parties.

Core Technology Features attractive for many critical infrastructure backup needs

High power density, high reliability fuel cell technology

– 30% higher power density than Ballard’s air cooled stacks

– Higher material utilization, lower cost

– Unlimited start and stop cycles

– World’s fastest start-up times after storage

– Extended life-time with 5,000 hours of operation expected

Readily available, economical fuel

– Methanol is an attractive energy source – liquid, low cost, readily available

– Energy density of methanol ensures infrequent site visits

– Horizon uses dilute methanol, mixed 2:1 with water

– Methanol/Water mix is much safer and easier to handle

– Reduction in CO2 by more than 95% compared with gensets

Simple and reliable Methanol Reformer

– USA technology, used by several other fuel cell companies

– Core technology acquired by Horizon for cost-effective fuel supply

– Lowest power consumption during Hot Standby

Disclaimer: The information contained in this document is intended only for use for the purposes set forth in the Non Disclosure Agreement and should not be disseminated or distributed to any other parties.

Sample site - 5kW load with 40 hours outage a month

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Disclaimer: The information contained in this document is intended only for use for the purposes set forth in the Non Disclosure Agreement and should not be disseminated or distributed to any other parties.

Case Study: Japan

The situation

• Traditional battery based backups more than sufficient most of the time • Search for something to cover the “what if” disaster scenarios • Extending backups from hours to days introduced some serious challenges • Batteries not attractive due to cost • Highy urganised; in most cases Gensets are out of the question

No need to alter the current battery backups for short duration outage Introduce something that functions like a generator, without the shortcomings This enables very long autonomy in disaster scenarios

TELECOM UPS

Methanol Reforming FC as the Solution

Disclaimer: The information contained in this document is intended only for use for the purposes set forth in the Non Disclosure Agreement and should not be disseminated or distributed to any other parties.

Case Study: Vietnam

The situation

• Traditional battery based backups don’t cover frequent outages • Diesel gensets are the last line of defense • Infrastructure mainly roof-mounted in dense, low-rise environments • Extended outages are commonplace; disturbances a pain point in the community

Maintain battery backups for short duration outage Introduce something that functions like a generator, without the noise and air pollution, vibration, etc This enables operators to cover short and long operation backup with an over-stretched power grid

TELECOM UPS

Methanol Reforming FC as the Solution

Disclaimer: The information contained in this document is intended only for use for the purposes set forth in the Non Disclosure Agreement and should not be disseminated or distributed to any other parties.

Case Study: Singapore

The situation

• Many security / surveillance sites in the city-state of Singapore • Some sites must be independently powered • Batteries were the only viable power supply option • Daily visits by service personnel were need to change the batteries over

A single battery supplies the power for the equipment Introduce small-format methanol fuel cells as “battery maintainer” Frequency of site visits can be reduced to every 14 days or every 30 days, depending on configuration

SECURITY

Small-format Methanol Reforming FC as the Solution

Disclaimer: The information contained in this document is intended only for use for the purposes set forth in the Non Disclosure Agreement and should not be disseminated or distributed to any other parties.

Self-replenishing FC UPS Solution – many innovative components

Possible to eliminate or drastically reduce batteries.

Especially attractive for very long duration autonomy needs.

Grid Power

Water used to make H2

Solid-state H2

ESSENTIAL

EQUIPMENT

• All components internal

• Details for illustration only

Disclaimer: The information contained in this document is intended only for use for the purposes set forth in the Non Disclosure Agreement and should not be disseminated or distributed to any other parties.

CASE STUDY : Singapore

The Situation

• Traditional battery backups support elevator critical functions (lighting, ventilation, communications and alarm)

• Continuous elevated lift-shaft temperatures shortens battery life • Very high cost to continually check status of batteries • Environmentally unattractive, with thousands of batteries disposed of yearly

Combine several technologies in a single “Fuel Cell UPS” system with longer autonomy With no gaseous hydrogen stored, this is a very safe system No self-discharge or temperature degradation issues Extended autonomy provided by the high energy density

PUBLIC BUILDINGS

Regenerative Fuel Cell as the Solution

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Core Technology can be configured for off-grid power requirements

Hybridise with mature, renewable solar energy

– Solar power is mature and cost-effective

– Solar intermittency shortens battery life-time

– Fuel Cells can operate as automatic battery conditioners

– Battery life-time can be dramatically extended

– Fuel Cell also provides a secured backup in case of problems with solar system, or theft of panels, etc

Total cost of ownership can be reduced

– Many hidden and recurring costs with gensets in particular

– Over longer timelines, Fuel Cell based systems can save asset owners money

Disclaimer: The information contained in this document is intended only for use for the purposes set forth in the Non Disclosure Agreement and should not be disseminated or distributed to any other parties.

August 2011

Thank you!