Introduction to Hydrogenics Corporation

Transcription

1 Introduction to Hydrogenics Corporation

2 Hydrogenics Corporation Our mission is to be a leading global developer of clean energy solutions, advancing the Hydrogen Economy by commercializing hydrogen and fuel cell products to meet the energy needs of our customers and Society. We will provide employees with challenging and rewarding careers, and produce above average financial returns for shareholders. We will conduct our business in a progressive, transparent and ethical manner.

3 Transition to the H 2 Economy The carbon content in fuels contributes to air pollution Carbon content in fuels has decreased over time Hydrogen is the ultimate zero-carbon fuel Fuel cells are the ultimate engine for that fuel TIME The Stone Age did not end for a lack of stones

4 Making the Hydrogen Value Proposition Socio-Political and Environmental Benefits Reduced dependence on foreign oil supplies Enabling large scale adoption of renewable & clean energy sources Sunlight, wind, run-of-river hydro, geothermal, nuclear

5 Making the Fuel Cell Value Proposition Operational Benefits Increased power generating efficiency No harmful emissions (e.g. CO, CO2, NOx, SOx) Reduced operating and maintenance costs High quality power Reduced noise emissions Design freedoms around electrification More efficient electric drives can be integrated Navigation and other equipment can be powered Off-board power can be supplied

6 Hydrogenics Overview Toronto-based developer of hydrogen products for today and tomorrow PEM fuel cell systems, hydrogen generation/refueling systems, and fuel cell test systems World leader in hydrogen infrastructure solutions (through acquisition of Stuart Energy in Jan. 2005) World leader in fuel cell R&D equipment - Greenlight Power Technologies Working with top industry OEMs incl. GM, Toyota, Ford, John Deere, ChevronTexaco, Shell H2, BP, and others 325 employees worldwide Manufacturing facilities in Toronto (headquarters), Vancouver (Greenlight), Belgium (alkaline electrolyzers)

7 Hydrogenics Business Strategy Initially address premium power markets as a sustainable step to tomorrow s mass markets Reduce exposure to singular market, singular products, or singular adoption rate Expand strategic partnerships Target large, diverse markets mobility & stationary Align burn rate with market adoption rate Be first to achieve breakeven operating cash flow

8 Three Strategic Business Units H 2 Generation H 2 Generation & Refueling Alkaline electrolysis PEM electrolysis NG reforming Power Products Fuel Cell Products Stationary Motive H2 ICE Test & Diagnostics Equipment Services Diagnostics

9 First Product Phase: Test Equipment In 2003 Hydrogenics acquired Greenlight Power Technologies creating a distinct world leader in fuel cell testing and diagnostics Approximately 450 stations installed worldwide 55 customers Significant contributor to Hydrogenics 118% CAGR over 5 years with positive gross margins Test business fosters global alliances

10 Second Product Phase: Power Modules From Cells to Stacks to Power Modules The PEM Fuel Cell The Fuel Cell Stack The Fuel Cell Power Module Control system Fuel management Humidification Heat and water mgmt Power conditioning

11 Hydrogenics HyPM Product Line Broad Range of Products: 7, 10, 20, 65 kw Demonstrated Durability*: hrs Start-stop cycles demonstrated*: ~6000 Peak Efficiency*: 56 % HyPM 7 HyPM 10 HyPM 10 Rack-mountable HyPM 65 * Refers to HyPM 10 test modules

12 HyPM Power Module One module.many early adopting applications Delivery vehicles Material Handling Backup Power APU, Range Extenders Urban Buses Underground Mining Marine Airport Ground Support Off-road vehicles 12

13 Power Products Distribution Strategy OEMs: modules integrated into partners products Direct to end-users 13

14 Developing OEM Channels 5 year development agreement Supporting the electrification of John-Deere products Grounds equipment Utility vehicles Partnering with John Deere s epower Technologies group to integrate HyPM Power Modules into demonstration vehicles Focusing on customer applications undersatisfied by incumbent technologies

15 Fuel Cell/Electric Vehicle Hybrids Breakthrough technology? Advantages: Improved system performance (instantaneous power response and operation of fuel cell at optimal efficiency range) Regenerative braking for increased fuel efficiency (and reduced H2 storage requirement) Peak shaving: reduces system cost by reducing the fuel cell size Increases durability by smoothing transients Potential to significantly accelerate fuel cell product commercialization

16 Third Product Phase: On-Site H 2 Generation Removing the chicken and egg conundrum 3 options for sourcing H 2 fuel: Delivered H 2 Onsite Electrolysis (PEM and Alkaline) Onsite Reformation Hydrogenics is developing on-site H 2 generation products based on Electrolysis (PEM and alkaline) and Natural Gas Reformation Enablers to mobility fleets Electrolysis is also an enabler technology for renewable energy sources such as wind and solar HyLYZER PEM Electrolyzer hydrogen station a first for Toronto 16

17 Hydrogen Reformation Master Services Agreement with Multiple contracts to integrate and systemize ChevronTexaco s fuel processing technology into onsite H2 generators Also working with other fuel processing partners

18 Stuart Energy legacy: Leadership in Hydrogen Infrastructure

19 Targeting Large and Growing Markets Alkaline electrolyzer technology leveraged across different applications and markets Hydrogen is used in industries such as: specialty chemical manufacture, metallurgy, generator cooling, and electronics On-site alternative to trucked-in, centrally-produced hydrogen Current addressable market is over US$100 million but gaining share in the overall US$1.8 billion U.S. merchant hydrogen market 1,2 Industrial Hydrogen 1 Source: Business Communications Company 2 Global market for industrial hydrogen is approximately 50 million tons per year. Source: Reed Wasden Research, June 27, Source: U.S. Census, Euromonitor.

20 Targeting Large and Growing Markets Alkaline electrolyzer technology leveraged across different applications and markets Market leading commercial solution for fueling demonstrations worldwide Approximately 133,000 retail gas stations 3 in North America alone Transportation Fueling Multi-use platform for distributed power applications Hydrogen is ideal medium to store electricity and optimize grid and offgrid efficiency Distributed Power 1 Source: Business Communications Company 2 Global market for industrial hydrogen is approximately 50 million tons per year. Source: Reed Wasden Research, June 27, Source: U.S. Census, Euromonitor.

21 Hydrogenics Product Development and Demonstrations

22 Forklift Battery Replacement Fuel cell hybrid power solution replaces battery pack in Hyster Class lbs forklift Fits within existing battery space (48V 850Ah) HyPM 10 Ultracapacitor hybrid system Thermal Management H2 storage Refueling time of <2 minutes 8 hour shift per fill 2 forklifts deployed at GM Oshawa automotive assembly plant and FedEx ramp Partners include NACCO, Deere, GM, FedEx

23 Truck-mounted Auxiliary Power Unit Customer: Sunline Transit System Integrator: Southwest Research Institute (SWRI) Configuration: 20 KW Power module (2 HyPM-10 configured electrically in parallel) Output: 42V, 600A Application: Auxiliary Power Unit (APU) for a truck Typical load: Air conditioning Cooling system (pump and radiator fans) Reduce emissions from Diesel Engine

24 Fuel Cell NEV Purpose: Hydrogenics FCPM and Hybrid System Development Configuration: 7 kw FC with 90F UC Bank Pressurized H 2 Storage

25 Backup Power Systems Focused on modular 7 kw DC systems for Telecom and modular 10 kw AC systems for Data Centers Fuel cell solution replaces diesel genset and batteries Benefits: Improved performance and reliability Smaller physical size rack mounted systems Modular design redundancy and easy power expansion No downtime for maintenance Lower replacement cost Remote monitoring Indoor / outdoor flexibility Partners include: Bell Canada Emerson Network Power Group, and A leading three phase UPS OEM HyPM 10 Rack-mountable

26 H 2 Infrastructure Projects Demonstrated the world s first solar powered hydrogen refueling station in El Segundo for 3 hydrogen vehicles (1995) SunLine Transit s refueling station provided by SES was the first public access station in the US (2000) California Fuel Cell Partnership SES chosen to provide the first satellite refueling station in collaboration with AC Transit (2002) Toyota Headquarters SES chosen to provide H2 infrastructure for Toyota s fuel cell vehicle fleet (2002) AQMD the SES station at South Coast Air Quality Management District is positioned to be a cornerstone of California s Hydrogen Highway (2004)

27 H 2 Infrastructure Projects cont d LAX Hydrogen Generation module supplied to Praxair SES second Hydrogen Highway project ChevronTexaco both Hydrogenics and Stuart Energy were contracted by ChevronTexaco to provide engineering & assembly services for a refueling station built around CTTV s proprietary reformer technology - installed at Chino (2005) National Fuel Cell Research Centre (NFCRC) at the University of California Irvine - fueling station to support Toyota s FCHVs managed by NFCRC (under construction) Toronto Exhibition Place is the site of Hydrogenics first PEM electrolyzer installation

28 Strategic Relationships Hydrogen Systems Fuel Cell Systems

29 Expanded Global Reach Hydrogenics Headquarters: Toronto, Canada Hydrogenics Offices Hydrogenics Installed Fuelling and Power Systems Hydrogenics Installed Industrial Systems

30 SUMMARY Strategizing for Growth Commercial Sustainability Goal - Become the first hydrogen and fuel cell company to achieve breakeven operating cash flow by selling commercial hydrogen products for today and tomorrow Strategic Alliances Partner with industry leaders to access funding, technology and market opportunities Commercial Hydrogen and Fuel Cell Products Drive cost reductions Develop and demonstrate prototypes for early-adopting power markets Develop modular solutions for multiple power ranges and markets Maintain and solidify test business leadership Global Reach Expand customer base in all regions for fuel cell test products and power modules