Hydrogen Installation System For Transit Buses

CONFIDENTIAL PRESENTATION

August 2011

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INDEX:

1. Operating principles and basic set up in the bus2. Benefits3. Safety4. Maintenance requirements5. Bus testing - before and after6. Presenting Innovative Hydrogen Solutions7. Field experience of IHS8. Response of Engine manufacturers9. Proposed Test Plan

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Hydrogen System Presentation - Index

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Hydrogen System Operating Principles

Combustion Enhancement Principle:

• Electrolysis cell produces Hydrogen and Oxygen gases from water• Output is constant providing the engine is in operation• These gases are added to the existing air intake manifold of the engine• Both gases enhance the combustion process through

– faster flame spread leads to a more complete burn of all the fuel– cleaner combustion process results in less soot production– increased engine power due to force of hydrogen combustion

• Engine will be cleaned over time from carbon deposits• Reduction of most Carbon and NOX emissions in exhaust fumes

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Hydrogen System Operating Principles

Basic set up in the Bus:

• Electrolysis cell is located in a cavity near the engine (approx. 1.5 cuft)• The cell receives power from the bus (20 amps)• Distilled water needs to be replenished in a dedicated reservoir• Installation takes place in existing engine set up• Electronic controls are limited given the simplicity of the system

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Hydrogen System - Benefits

1. More complete burning of all the fuel that enters the combustion chamber:• Increased engine power with same amount of fuel, i.e. same engine output - less fuel• Less residual fuel in exhaust fumes and oil

2. Impact of Hydrogen on the combustion:• Cleaning of old Carbon deposits within the engine

3. Less Soot in the combustion process• Reduced contamination of engine oils• Reduced soot in the exhaust fumes• Reduced EGR Replacement • Reduced DPF Replacement and Maintenance• Regeneration Cycle moved out

4. Other aspects to be investigated:• Engine temperature impact (temperature at tailpipe about 65 degrees cooler)• Longer engine life expectancy • Maintenance requirements of the Hydrogen unit

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Hydrogen System - Safety

1. Combustion nature of Hydrogen:• Hydrogen must be 4% by volume to be explosive; Bus System only produces less than

1% Hydrogen by volume, as part of the air/fuel mixture• Fire testing completed by Wardop Engineering

2. Hydrogen:• is 14 times lighter than air and dissipates fast• burns 9 times quicker than gasoline, propane or methane• is a colorless, odorless, tasteless and non-toxic gas

3. System controls:• Electrolysis Cell will only operate if engine is running; if it shuts off, it will vent the left

over gasses• Fluid level sensor will shut down the unit, if water is low• Pressure check valve in unit will vent if 5 lbs. pressure builds up• System is independently fused to protect the bus from any possible failure• All electrical components are contained in a safety-rated box

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Hydrogen System - Maintenance Requirements

1. Replenishment of the water• Usage of water is 47 ml. per hour of operation of the unit• Storage volume for Distilled water to be sized to monthly maintenance cycles

2. Electrolytic plates• Do not require maintenance; life expectancy to be 10 years/ operating hours

3. Validation of the unit• Weekly visual inspection of all components• Validation of the operation of the unit completed by Wardrop Engineering and Clean Air

Technologies Inc.

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Hydrogen System - Bus Testing: Before and After

1. Bus is to be tested during its actual in-service operation• bench or dynamometer is not representative of the duty cycle changes• relative large variation in the field between duty cycles in different cities, results in

varying levels of benefits• engine age, model and type create other variables, as do buses within the same

delivery

2. IHS uses CARB approved mobile exhaust fumes tester [PEMS]• Proof is in the pudding I.e. exhaust• No Bus Fuel measuring required as residual fuel in exhaust is measured• Measuring takes place during a standard test at idle and takes a total of 1 hr

3. Improvements over time• As the carbon deposits in the engine are being burned off, the engine performance

increases and the exhaust fumes become cleaner• This timeframe is determined by the age and condition of the engine, and its daily

duty cycle, but the average clean up time is expected to be 4 months

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Presenting: Innovative Hydrogen Solutions (IHS)

1. Company profile IHS:• Founded in 2004 in Winnipeg, Manitoba, Canada• Full time employees with over 100 years of Combustion Enhancement Technology

experience• 2005 Independent testing and validation of technology by Wardrop Engineering• 2006 Commenced 2 year Reliability Test with Manitoba Hydro • 2008/2009 moving from Laboratory phase to Commercialization• 2010/2011 start of installations in Commercial Vehicles • 2010 Province of Ontario recognizes Hydrogen Fuel Injection as a Dedicated

Alternative Fuel Source and approves I.H.S. Technology as the only Hydrogen Fuel Injection in North America to meet its Green Commercial Vehicle Programs Criteria for Provincial Grant

• 2010 completed SAE –J1321 Type 2 Weighted Fuel Test at Auburn University

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Hydrogen System - Field Experience of IHS

1. Independent testing to date:• Wardrop Engineering• Clean Air Technology Inc• Carbon plan verification ISO-14064 Part 2 by Mech and Associates• Green Print Assessment completed by Jomini Environmental• SAE-J-1321 Type 2 Fuel Testing at Auburn University successfully completed• FP Innovations presently conducting SAE-J-1321 Type 2 Fuel Testing and EPA

Certification in Montreal

2. 2009/2011 fleet installations:

3. Test programs currently being set up with Transit Systems in Southern Ontario Calais Columbia and Manila in the Philippines

4. Stewardship Ontario is conducting Field Trials with two Ontario Municipalities on Their Blue Box Recycled Trucks. Stewardship Ontario has accepted I.H.S. as a Priority Prospect for 2012.

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Hydrogen System - Response of Engine Manufacturers

Neither approves nor disapproves

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Miles Ahead.