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Infrastructure development - Clean energy, hydrogen, natural gas and biofuels Regional Power for Clean Transport, Oslo 31 st of October, 2013 Olof Källgren Head of Clean Energy, Merchant LNG

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Infrastructure development -

Clean energy, hydrogen, natural

gas and biofuels

Regional Power for Clean Transport,

Oslo 31st of October, 2013

Olof Källgren

Head of Clean Energy, Merchant LNG

2

Content

4 Biomethane in transport, Scandinavia

2 Clean Energy in Linde

5 Hydrogen for automotive

3 LNG for Heavy Trucks

1 Company profile

3

1. The Linde Group based on two pillars with extensive synergies

The Linde Group

Linde Gas Linde Engineering

4

The Linde Group

No presence

#1

#1

#1

#1

South

America

South Africa

South and

East Asia

Greater

China

Eastern Europe &

Middle East

#2

1. The Linde Group

Global presence >100 countries, +60,000 people and revenues >EUR 15bn

(2012)

Linde market leader in 4 out of 5 “high growth” regions

5

Content

4 Biomethane in transport, Scandinavia

2 Clean Energy in Linde

5 Hydrogen for automotive

3 LNG for Heavy Trucks

1 Company profile

6 6

2. Clean energy important growth markets for Linde

Targeted Business and Technology development areas

Liquified Natural Gas (LNG), small

scale Enhanced Oil Recovery (EOR)

Carbon Capture & Storage / Usage H2 as fuel

— Oil vs. NG

spread

— CO2 reduction

— Regulations

— Funding

— Coal reserves

— Maturing

oil fields

— High oil prices

— Zero emissions

— Drive

performance

3 Technology portfolio

CO2 Networks Photovoltaic

— Increasing need

for CO2

recycling

— Integrated

solutions

— Environmental

impact

— Efficiency-

driven

August 2013

7 7

2. Existing project portfolio with broad geographic

reach

3 Technology portfolio

Hydrogen refuelling

stations: Germany,

USA, Japan, China

LNG plant, Statoil,

Hammerfest, Norway

LNG import terminal,

StatoilHydro,

Nynäshamn, Sweden

PCC flue gas wash,

RWE, Niederaußem,

Germany

Landfill gas LNG

plant,

Waste Management,

Altamont, USA

CO2 injection for EGR,

Gaz de France,

Maxdorf, Germany

N2 EOR plant, Pemex,

Cantarell, Mexico

CO2 network, OCAP,

Rotterdam/Amsterda

m, Netherlands

CO2 injection/storage,

GFZ Potsdam, Ketzin,

Germany

N2 EOR ASU plant,

ADNOC,

Mirfa, Abu Dhabi

Oxyfuel pilot plant,

Vattenfall, Schwarze

Pumpe, Germany

Biogas refuelling

station, LNG back-up,

Sweden

Network of LNG

plants for truck fleet

fuelling, Australia

August 2013

8

Content

4 Biomethane in transport, Scandinavia

2 Clean Energy in Linde

5 Hydrogen for automotive

3 LNG for Heavy Trucks

1 Company profile

9 9

3. LNG: Lower cost primary driver but emission

regulations setting framework for viable

alternatives

Marine Sector Industry & Power Mobility

M/S Bergenfjord (2x 125 m³ tank) LNG truck fuelling station Stockholm Nynäshamn Terminal

Supply of nearby Refinery

Status

— Due to regulation and price

development huge interest by

shipping industry

— More than 20 ships equipped

with tanks from Cryo AB

— Viking Grace from 2013

fuelled by LNG

Status

— OEMs (Volvo, Westport,

MAN, …) developing

technology

— First LNG refuelling station in

Stockholm in operation, 2

more to come in 2012

Status

— In stranded areas without

connection to trans-European

grid, gas supply alternative

— Interest from various

industries to substitute other

fuels with natural gas

Price benchmark

— ECA: MGO or HFO +

scrubber

— Deep Sea: HFO

Price benchmark

— Diesel

Price benchmark

— LPG, Diesel, Naphta

10

3. LNG: Opportunity for LNG in Marine market driven

by stricter emission

Sulphur storage at Syncrude Fort McMurray representing 50% of

sulphur released to air per year by the marine industry

Dimension: 270m by 350m by 30m = 3.9 million tonnes of sulphur

11

3. LNG: Linde engaged in complete small scale value

chain

Gablingen,

Germany 21

tons per day

Kwinana,

Australia 175

tons per day

Tasmania,

Australia 50

tons per day

Bergen, Norway

120 tons per

day

Stavanger,

Norway 900

tons per day

Shan Shan, China

1,300 tons per day

Small to mid-scale liquefaction plants

Distribution & storage, refuelling equipment and components

Linde owned & operated small scale LNG operations

Altamont, CA, USA Scandinavia Australia

12

3. LNG: Why use LNG in Heavy truck operation?

— Fuel costs up to 50% of a Hauliers overall costs

— Lower fuel costs with LNG on several markets

— Favourable price spread oil/diesel vs. gas

— Fuel taxation & other incentives varies

— Less noise

— Improved air quality and reduced carbon footprint (up to 20% Well to Wheel)

— Increased use of Biomethane / LBG anticipated in specifically Europe

13

3. LNG: Key factors to establish LNG as alternative

fuel for road transport

Supply:

• Secured LNG supply from large scale, centralised

entry points (i.e. LNG import terminal) or local LNG

production direct or over small-scale LNG terminals

to customers

• No seasonality for freight haulage or marine as for

traditional gas markets

• Price formula and contracting according to needs for

heavy truck and marine operation

Infrastructure:

• Chicken-egg problem persist – funding to establish

multiple access points to LNG, e.g. public or

customer specific, land based or ship based

• Established and EU wide harmonized legislation

and standards required

• Technology need to fulfill user and environmental

requirements

Customer:

• Availability of OEM backed products/solutions

• Commercially viable business case for all parties

Producer/ LNG Supply

Customer

/ Fleet operator

“Integrator” /

Infrastructure

&

“last mile”

- Supply security & fuel cost

- Availability of infrastructure

- Attractive OEM products

All must come together to generate growth and

avoid disappointments during early market

introduction.

OEM /

Products

&

Technology

14

3. LNG: Experience from LNG Heavy Truck

infrastructure development

Australia Europe, UK & Scandinavia North America

LNG truck fuelling station Stockholm

Status

— Small scale plant capacity

exist on both East and

West coast

— Appreciation of AUD

hampers development

— Lack of suitable vehicles

OEM backed vehicles

Status

— Huge spread between diesel

and natural gas

— Oil & Gas industry early

adaptor of LNG to displace

diesel

— Several players announced

significant investments in

infrastructure

Status

— Economic drive relative

low but strong interest for

biomethane

— Good cooperation within

industry

Latest LNG truck fuelling station

installed October 2012, Victoria BioLNG plant in Altamont

California

15

3. Linde’s subsidiary BOC building and operating LNG

production and fuel station network in Australia

— Geographic focus on Eastern Australia and

Tasmania

— LNG produced from grid based small scale LNG

plants, 50 – 150 ton per day

— 2 plants in operation since 2010

— 1 plant under construction in Queensland, to be

commissioned 2014

— Intial focus on LNG to replace diesel for Heavy

Trucks

— Major challenge in lack of OEM backed vehicles

— Broadened scope from 2011 towards off-grid

power and industry

Take-out: LNG validated as attractive fuel for long-haul. Volume ramp-up requires well

designed and optimized cryogenic refuelling solutions. All parties need to work very

close to align interests.

16

3. First new generation NO loss, low cost refuelling

station installed by BOC in Australia (UK, NL, US)

Key characteristics:

— No intentional venting of methane

— Able to handle low consumption

rates without performance

implications

— Manage different on-board tank

pressures, on-the-fly conditioning

— Small foot print

— Low total cost, i.e. initial investment

/ project execution / O&M

— Modular approach, i.e. handle

variation of functionality and

capacity

— Diesel like filling performance and

driver experience

— Global design Take-out: Existing station solutions did not meet Linde internal criteria. Improved fuel

station design critical both from economical and environmental view.

17

Content

4 Biomethane in transport, Scandinavia

2 Clean Energy in Linde

5 Hydrogen for automotive

3 LNG for Heavy Trucks

1 Company profile

18

— Very limited NG grid in Sweden and Norway

— AGA supplied compressed bio-methane, CBG, since

2003 as fuel for transportation

— Biomethane a real opportunity and provide political

”bridge to NG”

— Supported by favourable taxation as well as other

incentives , e.g. free parking, separate cuing lane for taxi

at airports, etc.

— AGA commissioned the Stockholm LNG terminal 2011

with initial intent to secure reliable supply,

complementing biomethane for road transport

— Early focus on public network in cooperation with

retailers, e.g. Statoil, Shell, Q8, etc.

— Current development strongest in public transportation

— Very good cooperation between stakeholders, e.g.

joint project set-up for initial stations and trucks as well as

for the Blue Corridor application

4. Biomethane for road transport developing to

significant size in Sweden and Norway

19

Content

4 Biomethane in transport, Scandinavia

2 Clean Energy in Linde

5 Hydrogen for automotive

3 LNG for Heavy Trucks

1 Company profile

20

5. H2: De-carbonisation of energy carriers in history

CO2 ratio

Early age of

industrialisation today

tomorrow

(renewable)

Coal

C/H ratio approx. 2

Crude oil

approx. 0.45

Natural gas

0.25

Hydrogen

0

21

0

20

40

60

80

100

120

140

160

180

200

Range

in Km

CO2 emissions

gCO2 / km

800 600 400 200 1,600 1,400 1,200 1,000 0

ICE – gasoline

2050

ICE – diesel

2010

BEV

2050

Source: “The Role of Battery Electric Vehicles, Plug-in Hybrids and Fuel Cell Electric Vehicles - A portfolio of power-trains for Europe: a fact-based analysis”

FCEV

2010

2050

2010

2010

2050

PHEV

Low emissions and high range

5. H2: Fuel cell electric vehicles (FCEV)

Only powertrain to combine near-zero CO2 with high range

22

Description

— Transition to hydrogen-powered transport driven

by environmental legislation, crude oil indepen-

dency and zero-emission mobility

— Fuel cells more than twice as efficient as ICE

(from well to wheel)

— No exhaust pipe GHG emissions, minus 40 % in

buses compared to Diesel (AC Transit)

Scope

— Linde covers the entire hydrogen chain from

H2production to filling stations

— New standard for car refuelling established:

5 kg of H2 (range ~500 km) at 700 bar in 3 min

Reference projects

— Linde has built more than 200 hydrogen

production plants throughout the world

— More than 80 hydrogen fuelling stations

equipped

in 15 countries, including Linde Hydrogen Center

— The company participates in a number of

projects,

i.e. “H2Mobility” and Clean Energy Partnership

(CEP)

5. H2: Automotive fuel

A vision of zero-emission mobility becomes reality

23

5. H2: Linde covers the entire hydrogen value chain

LH2 storage

Supply/Storage Compression/Transfer Dispenser

Onsite SMR

Onsite electrolysis

350 bar Ionic compressor

Cryo-pump

Production

Conventional H2

(e.g. SMR)

Green H2

(e.g. BTH) 700 bar

CGH2 storage

24

5. H2: Linde hydrogen refuelling solutions

Reference projects prove technological maturity

Linde reference

projects

Key facts

— More than 80 hydrogen stations equipped in 15

countries

— More than 400,000 successful fuellings

— Leading supplier of hydrogen fuelling technologies

— Leading supplier of hydrogen

OMV, Stuttgart TOTAL/CEP, Berlin

Total/CEP II Berlin Linde Hydrogen Center Munich Zero Regio, Frankfurt

— Technological maturity

reached

— High level of

standardisation reached

— Standardised fuelling

protocol

— Standardised H2

quality

— User-friendly fuelling

process

— 3 min / fuelling

— Touch & feel like con-

ventional stations

— Integration into exist-

ing infrastructure

Ariake, Tokyo

AC Transit, SFO Bay

Key learnings

25

5. Reference projects:

CEP/Shell, Sachsendamm, Berlin, Germany

MUC, 350bar, Dry Runner Tokyo Ariake, 350bar, Cryo Compressor

Accessibility: Public

Start of operation: Q2/2011

Dispensing lines: 1 x 700

bar (car)

1 x 350 bar (car)

1 x 350 bar (bus)

Technology: 2 x Cryopump (each

pump 120 kg/h)

H2 source: LH2 storage tank

Customer:

7 Hydrogen August 2013

26

5. Reference projects:

Vattenfall, HafenCity, Hamburg, Germany

MUC, 350bar, Dry Runner

Barcelona, 350bar, Dry Runner

Tokyo Ariake, 350bar, Cryo Compressor

Accessibility: Public

Start of operation: Q1/2012

Dispensing lines: 1 x 700 bar (car)

1 x 350 bar (car)

1 x 350 bar (bus)

Technology: Ionic Compression

5-cylinder

H2 source: Electrolysis,

GH2 storage tank

Customer:

7 Hydrogen August 2013

27

5. Reference projects:

Swindon, United Kingdom

MUC, 350bar, Dry Runner

Barcelona, 350bar, Dry Runner

Tokyo Ariake, 350bar, Cryo Compressor

Accessibility: Public

Start of operation: Q3/2011

Dispensing lines: 1 x 700 bar (car)

1 x 350 bar (car)

Technology: MF 90, dry runner

H2 source: GH2 bundle supply

(phase 2 electrolysis)

Customer:

28

5. Reference projects:

Ariake Hydrogen Station, Tokyo, Japan

MUC, 350bar, Dry Runner

Mini Fueler Accessibility: Public

Start of operation: 2003

Dispensing lines: 1 x 350 bar

Technology: Cryo-compressor

H2 source: LH2 storage tank

Customer:

29

5. Reference projects:

AC Transit, Emeryville, CA, USA

Accessibility: Public

Start of operation: Q4/2011

Dispensing lines: 1 x 700 bar (car)

1 x 350 bar (bus)

Technology: Ionic Compression,

Dry Running

Compressor

H2 source: Liquid storage +

Onsite Electrolysis

Customer:

30

5. Reference projects:

Forklift truck stations @ BMW, Spartanburg, SC, USA

Mini Fueler Accessibility: Non-public

Start of operation: Q3/2010,

expanded Q2/2013

Dispensing lines: 14 x 200 bar (for

> 230 forklift trucks)

Technology: Ionic Compressor

H2 source: LH2 storage tank

Customer:

31

5. H2: Linde-Daimler partnership contributes to

building 50 hydrogen fuelling stations in Germany

— Daimler and Linde first announced to build 20

additional public hydrogen stations in Germany in

2011 to bridge the gap between demonstration (Clean

Energy Partnership - CEP) and commercialization (“H2

Mobility”) — Initiative picked up and sup-

ported by Federal Ministry of

Transportation, extended to

50 stations to be built until

2015 together with further

partners

— Strengthens existing

clusters and establishes

links between them

— Will allow to drive through

Germany with hydrogen-

powered vehicles

— Project goes hand in hand

with planned serial

production of fuel-cell cars,

starting in 2015

32

Green hydrogen end game as automotive fuel

Alternative feedstocks and processes

1 E.g. sewage gas, landfill gas, mine gas, etc. 2 With e.g. energy maize, liquid manure, etc. as feedstock for biogas production 3 Mainly solid biomass like woody biomass, straw, solid & lignocellulosic by-products 4 Either direct H2 production or alternatively NH3 generation as H2 carrier 5 Algae biomass can be used as feedstocks for gasification and fermentation theoretically

Renewable

Electricity

Excess

Electricity

Waste gas1

Biogas2

Steam Methane

Reformer

Lignocellulosic

biomass3

Gasification

Algae

Biological

metabolism4

Wind

power

Solar power

Excess electricity

in electrical grid

Biogenous Pathways

5

Process

Feedstock

Renewable

hydrogen

Electrolysis

Thank you for your

attention.