1. Development and Application of Geely Methanol-Fueled Vehicle Zhejiang Geely Holding Group 02/23/2016 1

2. OUTLINE 1.INTRODUCTION AND BACKGROUND 2.REVIEW OF GEELY METHANOL-FUELED VEHICLE 3.APPLICATION OF GEELY METHANOL-FUELED VEHICLE 4.PROSPECT OF METHANOL FUEL INDUSTRY IN CHINA 2

3. Energy Security and Environmental Protection Concerns for state energy security and eco-environmental protection have been put forward in 2005. Sustainable development of transportation energy was proposed by automobile industry. Automobile manufacturers over the world started to develop new energy sources for automobiles. Introduction and Background 3

4. Abundant resources available for a long-term supply; High heating value meeting requirements of internal combustion engine; Potential to reduce vehicle emissions; Technical feasibility; Reduced capital cost and lower usage charges for customers; Decreased investment on distribution system; Social acceptance; Cleaner when applying CRI technique to methanol fuel. Introduction and Background 4 Comparisons of Methanol Fuel to Regular Energies

5. Benefits of Methanol Fuel Methanol Fuel as an alternative energy is benefiting both energy security and eco-environment. 1.Benefits on energy security: Wide ranges of application: spark-ignition engine and compression ignition engine on passenger vehicles, commercial vehicles, ships, power generator sets, etc. A substitute for gasoline and diesel, diversifying energy resource supply and reliving our rely on oil resources. 2.Benefits on eco-environment, as compared to gasoline and diesel. Less damage on environment and human health; Cleaner burning either regular emission or unregulated emissions. Introduction and Background 5

6. Methanol Fuel is safer and has better combustion performances as compared to petrol and diesel. 1.Simple substance, high oxygen-containing, octane value and Latent Heat of Vaporization. Complete and perfect combustion, with better performances and less emissions; Suited to higher compression ratio engines such as spark-ignition engine and compression ignition engine. 2.High auto-ignition temperature (liquid at room temperature); wider range of explosive limit. Safer and more convenient for storing, transportation and filling; Easy reconstruction or extension on gas filling station and lower construction cost; Lower explosive risk. Only need to dilute using water if methanol leaking. Easy to control. Introduction and Background 6 Advantages of Methanol Fuel

7. Why Methanol Fuel? Geely choosing methanol is based on understanding and market research on automobile alternative energy development. Geely has been putting efforts on developing and designing methanol-fueled engines and methanol-fueled vehicles for almost 10 years. Good progress are made and rich experience are gathered. Geely is leading in Chinese methanol-fueled vehicle industry. Geely’s work on methanol-fueled vehicle is productive. Several products have been launched. It is proved that methanol is safe and reliable as an alternative energy. Introduction and Background 7

8. OUTLINE 8 1.INTRODUCTION AND BACKGROUND 2.REVIEW OF GEELY METHANOL-FUELED VEHICLE 3.APPLICATION OF GEELY METHANOL-FUELED VEHICLE 4.PROSPECT OF METHANOL FUEL INDUSTRY IN CHINA

9. Review of Geely Methanol-Fueled Vehicle Attempts have been made on development and application of Methanol-Fueled Vehicle (MFV) by Geely for the last 10 years. Geely is now leading in the MFV research in China. Time to take a review on the development of Geely MFV. 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Starting stage Development stage Promotion stage Application stage Exploration stage 2016 9

10. 2006 A concept product on MFV Generation I was successful. This started the Geely’s research on the methanol-fueled automobile; The concept vehicle of Geely is the very first MFV in China, which is a milestone in the new methanol-fueled automobile industry of China; Geely Methanol-Fueled Concept Vehicle caused a sensation in 2006 Chinese Annual Conference on methanol-ether fuel. This provided confidence in the development of Methanol Fuel in China. 10 Review of Geely Methanol-Fueled Vehicle

11. A sample of Geely MFV Generation I was produced; Geely MFV Generation I was exhibited on 2007 Beijing International Clean Automotive Exhibition; Promotion of Methanol Fuel was made to gain support from Shanghai Government.; Participating in a project supported by The National High Technology Research and Development Program of China (863 project) – the Research and Development of testing and evaluation for Methanol-Fueled Vehicle; Started to draft three national standards on methanol fuel: M100 Methanol Fuel M85 Motor Methanol Gasoline M15 Motor Methanol Gasoline 11 2007 Review of Geely Methanol-Fueled Vehicle

12. Completed assembling of Geely MFV Generation I. Won more than 20 technical patents; Applied an 863 project supported by National Ministry of Science and Technology –Research and Development of MFFV(Methanol Flex-fuel Vehicle); Further Promotion work on Methanol Fuel was made to seek supports from local and state government. 12 2008 Review of Geely Methanol-Fueled Vehicle

13. 2009 Completed Industrialization of Geely MFV Generation I. Failed the product certification on first application; Unregulated emission technique of MFV was achieved. Good qualitative and quantitative data on formaldehyde emission test were available for the first time. Results listed below show that MFV has the least formaldehyde emission; Formaldehyde emission by Geely MFV (0.339mg/km ) is slightly less than gasoline vehicle(0.492mg/km), and formaldehyde emission by diesel vehicle is 4.171mg/km, 12 times of Geely MFV formaldehyde emission. Two national standards of methanol fuel published and implemented. Fuel methanol for motor vehicles (No. GB T 23510-2009) Methanol gasoline (M85) for motor vehicles (No. GB T 23799-2009) Cooperation was made between Geely and Shanxi Province. Shanxi has excellent advantages and resources and 20 years experience on the development and application of methanol fuel. 13 Review of Geely Methanol-Fueled Vehicle

14. 2010 Failed the second time applying product certification; Set up the project on development of MFV Generation II; Applied a Shanghai high technology industrialization project after years of efforts; Ministry of Industry and Information Technology of China (MIIT) started the investigation and research on application of Methanol Fuel and Methanol-Fueled automobile; M100 Methanol Fuel filling station was built jointly by Shanghai Coking & Chemical Corporation and Shanghai Maple Automobile, Geely. 14 Review of Geely Methanol-Fueled Vehicle

15. 2011 Accomplished the assembling of MFV Generation II; Completed emission test on Geely MFV. Results met the requirements by National standard (2g, Stage 5); Assisted in a preliminary planning work on project commissioning of Methanol- Fueled Vehicle in Shanghai. 15 Review of Geely Methanol-Fueled Vehicle

16. Accomplished the industrialization of Geely MFV Generation II.; Geely MFV Generation II won product certification on third application; Started A Demonstration Run of Methanol-fueled Vehicle Project in Two Provinces and One City sponsored by China Ministry of Industry and Information. 16 2012 Review of Geely Methanol-Fueled Vehicle

17. Set up the project on development of MFV Generation III; Started the demonstration run (Geely MFV Generation II ) in Jinzhong City, Shanxi Province in Mar; Geely MFV Generation II was the first Methanol-Fueled Automobile for the national-wide demonstration run. 17 2013 Review of Geely Methanol-Fueled Vehicle

18. Geely MFV Generation II demonstration run went well in two provinces of China; Geely MFV expected to extended to other areas (Gansu and Guizhou Province); Collaboration made with Guizhou Province (a province with huge coal, methanol resources) to develop a research base for MFV; Started drafting standards and regulations on MFV emission. 18 2014 Review of Geely Methanol-Fueled Vehicle

19. Research started on MFV Generation Ⅳ ; Published two standards on methanol fuel: Standard for safety on Methanol Fuel; Standard on construction of Methanol Fuel filling station. Completed a two-year-period demonstration run in Jinzhong, Shanxi Province; Results show Geely MFV reliable, cost effective and environmentally friendly; Policies promoting development of MFV industry published by Jinzhong, Shanxi Province; Completed Geely-Shanxi new energy vehicle project. Built a base with production capacity of 100,000 Methanol-Fueled Vehicles every year; Collaboration made with Carbon Recycling International. 19 2015 Review of Geely Methanol-Fueled Vehicle

20. OUTLINE 20 1.INTRODUCTION AND BACKGROUND 2.REVIEW OF GEELY METHANOL-FUELED VEHICLE 3.APPLICATION OF GEELY METHANOL-FUELED VEHICLE 4.PROSPECT OF METHANOL FUEL INDUSTRY IN CHINA

21. Background Project survey Determined demonstration run Started Demonstration Run Ministry of Industry and Information Technology of China led the feasibility study on the application of methanol fuel and MFV from 2010-2012. MIIT determined the demonstration run for on Dec.30, 2012. Jinzhong City, Shanxi Province, first started the demonstration run on Mar.13, 2013. Application of Geely Methanol Fueled Vehicle 21

22. Application of Geely Methanol Fueled Vehicle 8 pilot run areas in 5 provinces of China; 908 Geely MFVs; 120 MF Heavy Vehicles and MF van trucks; A total mileage of 43,500,000; A maximum mileage of 186,000 for a single Geely MFV. Some no. on demonstration run Take Jinzhong (one of the demonstration run areas) as an example. Environment: low methanol in five environmental monitoring tests; Health: no negative impact found on human health examination; Vehicle: functioned smooth and well; cost-effective, environmentally friendly, safe. Satisfied the given objectives. Demonstration run results 22

23. Application of Geely Methanol Fueled Vehicle Pictures on demonstration run 23

24. Application of Geely Methanol Fueled Vehicle Future Work Improve Geely MFV; Improve technical standards, and regulations; Improve the infrastructure construction (methanol fuel filling station) for MFV; Gain support from government. 24

25. OUTLINE 25 1.INTRODUCTION AND BACKGROUND 2.REVIEW OF GEELY METHANOL-FUELED VEHICLE 3.APPLICATION OF GEELY METHANOL-FUELED VEHICLE 4.PROSPECT OF METHANOL FUEL INDUSTRY IN CHINA

26. Prospect of Methanol Fuel Industry in China Demonstration runs in five provinces of China has been going for more than three years. Great progress has been made. Demands for MFV in the demonstration run areas are expanding, especially in Shan’xi, Shanxi and Guizhou Province. MFV are expected to have more applications in these areas by 2016. Shan’xi: Regulations have been published and implemented on Jan 1st, 2016. Shan’xi is the first province in China opening and promoting application of MF. This means Shan’xi has the best environment and advantages for development of MFV. Shanxi: Shanxi People's Congress proposed to expand the application of MFV in entire province on Jan 31st, 2016. MFV have priority for future official business vehicles. Guizhou: Proposal made on Feb 2nd, 2016 agreed to increase MFV application. This is expected to improve economics and environment in Guizhou. Prospect of Methanol Fuel 26

27. Prospect of Methanol Fuel Industry in China After finished Geely MFV Generation I-IV, WE desires to launch 5 more methanol-fueled automobiles and develop technique reserves for methanol-fueled engine; Future work would combine Geely MFV technique with CRI recycle technique. This is expected to considerably benefit global energy security and eco-environment. Geely Plan 27

28. THANKS!!! ANY QUESTIONS? 28