Pulsed Step Inverter. Sustainable Energy Mission to Northern Europe October 1-9, Masanobu Tsukada Director of Fuel Cell Business Development

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1 Pulsed Step Inverter Sustainable Energy Mission to Northern Europe October 1-9, 2007 Masanobu Tsukada Director of Fuel Cell Business Development

2 Introduction Formed in 1998, Publicly listed (TSX-V: STG) Headquartered in Calgary, Alberta Offices in Spain, Germany and Japan Initial focus on commercializing pulse step technology for fuel cell inverters Partnership with RWE Fuel Cells Now also selling inverters in commercial volumes for Solar Markets

3 Hybrid technology Step Wave + PWM Pulse Step Technology Platform Patented innovation outperforms PWM based products Single step conversion, bi-directional controls. High conversion efficiencies and designed for sustained operation at peak power Current products optimized for 1-10 kw range Direct Grid Tie for low voltage DC sources

4 Technology Platform Pulse step technology is inherently reliable Low component count Simplified Power Electronics Innovative use of reliable line frequency transformers Universal technology platform for multiple applications Shared Production Resources Economies of Scale Refined Commercial Product Intellectual Property Portfolio includes patent filings in the U.S., Europe, and Japan

5 Product Applications Universal platform for any low voltage DC source Fuel Cells Solar PV Small Wind Energy Storage UPS Systems

6 Solar PV Currently used in Sunergy5 PV Inverters Proven at 5kW 93% Ave. efficiency Tested at 1kW 92% Efficiency achieved Higher efficiencies expected at higher power ratings Minimized power electronics losses Excellent thermal characteristics Extended life time

7 Wind and other applications Successfully demonstrated grid-tie operation with Zephyr Airdolphin. One inverter for both grid tied and off-grid applications High speed control response optimizes turbine performance Product Launch in 2008

8 Fuel Cells Field Test Record Over 50 units been field tested around the world Europe RWE/European test sites in Germany, France, Belgium, Italy North America RWE/North American test sites in Oregon and Massachusetts Japan NEF field test at Akabane and Shinagawa ( ) NTT Research Center( ) Mie Prefecture/Yokkaichi City Joint Fuel Cell Project ( ) Approval of grid connection obtained from Tokyo Electric and Chubu Electric

9 Fuel Cells Grid Connected Integrated Solution Start up power from Grid CANBus Controls Interface Simple system design Fuel Cell BOP Loads Fuel Cell Stack Stack Contactor CANBus Bidirectional Inverter Grid Contactor Grid Integrated galvanic isolation Fuel Cell Controller Inverter Enable (24V) Auxiliary Power Fuel Cell System Sustainable Energy s Inverter

10 Rapid, low cost prototyping during development stages based on Sunergy 5 commercial platform Grid connected and off-grid applications Partner with fuel cell system developers to integrate technology into final commercial product through licensing or supply of critical components Fuel Cells Approach

11 Cost Two phases: Development and Product Supply Development costs are incurred to adapt technology platform to meet fuel cell system specifications Unit pricing for product supply depends on volume and final specification of product Further cost reduction can be achieved through total integration of the inverter with fuel cell system. Task Configure platform to meet power and voltage requirements Custom mechanical design for product integration Electrical and controls integration with fuel cell system US$ Power (kw) Unit Pricing based on Commitment Volume 1 $5,000 $7,000 $9, $1,600 $3,300 $4,500 Typical Effort (h) $960 $1,980 $2,700

12 Our Goals Partnership for manufacturing and distribution in Europe Local partner assembles, services and distributes products Sustainable Energy delivers electronics and firmware Jointly develop new product applications Collaborate to source key components globally

13 Questions? Pulsed Step Inverter Masanobu Tsukada Director of Fuel Cell Business Development Sustainable Energy Technologies