1. 1 NHA Annual Hydrogen Conference 2008 April 1, 2008 Pete Devlin Manager, Market Transformation and Manufacturing R&D Hydrogen, Fuel Cells & Infrastructure Technologies Program Market Transformation U.S. Department of Energy Hydrogen Program

2. 2 Market Transformation Drivers and Applications Users and Locations Related Activities –Technology Validation –Education –Manufacturing R & D Next Steps and Funding Opportunities

3. 3 Market Transformation — From Early Markets to Fuel Cell Vehicles Early markets in stationary, portable, and niche applications will lower cost and establish a supplier base—to pave the way for the commercialization of fuel cell vehicles 2020 + 2010 19901980

4. 4 Market Transformation Demand for fuel cells to achieve manufacturing economies of scale Domestic supplier base capability * Based on DTI DFMA cost analysis. 2010 and 2015 projections assume technology meets DOE targets. Fuel Cell Cost* (based on 80-kW Automotive Fuel Cell System) Achieve market transformation by increasing:

5. 5 Drivers: The Role of Federal Government General Hydrogen forklifts and refueling infrastructure Executive Order 13423 “Strengthening Federal Environmental, Energy, and Transportation Management” provides the framework for early adoption of hydrogen and fuel cell systems. Section 2 of the E.O. directs Federal agencies to implement sustainable practices for (1) energy efficiency and reductions in greenhouse gas emissions; (2) use of renewable energy; and (3) acquisition of green products and services. EPACT 2005– Section 782 and 783, Federal Purchase Requirements Section 782 : Lease/purchase fuel cell vehicles for light or heavy duty fleets Section 783 : Lease/purchase stationary, portable, or micro fuel cells for electrical power

6. 6 Fuel cell technology is cost-competitive today … Fuel Cells … –Allow for rapid refueling – quicker than changing-out or replacing batteries –Provide constant power – without voltage drop –Eliminate need for space for battery storage and chargers Fuel Cells … –Allow for rapid refueling – quicker than changing-out or replacing batteries –Provide constant power – without voltage drop –Eliminate need for space for battery storage and chargers Source: Identification and Characterization of Near-term Direct Hydrogen Proton Exchange Membrane Fuel Cell Markets, Battelle Memorial Institute (April 2007) Photo courtesy of Hydrogenics Early Markets for Material Handling Equipment

7. 7 Fuel Cells … –Provide longer continuous run time – greater durability than batteries –Require less maintenance than generators –Offer cost savings over batteries and generators Fuel Cells … –Provide longer continuous run time – greater durability than batteries –Require less maintenance than generators –Offer cost savings over batteries and generators Fuel cell technology is cost- competitive today … Early Markets for Backup Power Source: Battelle Memorial Institute * Additional cost for PEMFCs at 176-hour run time is due primarily to the cost of hydrogen storage Source: National Weather Service

8. 8 About data centers... Large Demand: 58.7 billion kWh (U.S., 2006) = approx. 5 days of U.S. domestic electricity use.  growing 14% annually Low overall grid efficiency: From the energy source, the fuel efficiency of a data center’s computing operations is <15%. Half of the energy consumption of data centers is used for cooling: Power requirements are proportional to cooling requirements Fuel Cells for Data Centers … –Provide high-quality, reliable, grid-independent on-site critical load power –Improve the effectiveness of data center power use by 40% (CHP) –Produce no emissions –Have low O&M requirements –Can be remotely monitored Fuel Cells for Data Centers … –Provide high-quality, reliable, grid-independent on-site critical load power –Improve the effectiveness of data center power use by 40% (CHP) –Produce no emissions –Have low O&M requirements –Can be remotely monitored Early Markets for Data Centers

9. 9 Hydrogen and Fuel Cells In Vehicles and Equipment (HyFIVE) HyFIVE Market Transformation Strategy Identify early adopter applications Deploy fuel cells in Federal / State governments and select industries Document fuel cell performance Develop success stories to increase public awareness Develop a recognition program to build customer awareness and confidence in the technologies Conduct education and outreach efforts to raise awareness of the technologies

10. 10 State and Federal Fuel Cell Installations by Application

11. 11 1 43 26 2 5 47 3 2 2 6 1 21 1 3 5 5 7 2 5 4 35 7 11 2 1 41 36 3 3 1 2 1 3 DOD Fort Lewis, WA 19 Forklifts DOD-DLA Susquehanna, PA 40 Forklifts DOD-DLA Warner Robins, GA 20 Forklifts FAA National Airspace System 4 backup units FAA National Airspace System, 3 backup units Robins Air Force Base Water Treatment Plant 8 backup units State and Federal Fuel Cell Installations NASA Glenn Research Center 8 backup units DOD-DLA Tracy, CA 20 Forklifts

12. 12 Progress Meetings held in August 2007 and December 2007 Compiled information on all hydrogen and fuel cell activities at each participating agency, including: – Research and Development – Education and Outreach – Early Adoption (past, present, future) – Next Meeting to be held April 2008 Progress Meetings held in August 2007 and December 2007 Compiled information on all hydrogen and fuel cell activities at each participating agency, including: – Research and Development – Education and Outreach – Early Adoption (past, present, future) – Next Meeting to be held April 2008 Hydrogen Interagency Task Force Established by the Energy Policy Act of 2005, Section 806: Comprised of 20 key decision makers in 14 agencies and lead by DOE, the task force is working to facilitate interagency coordination of activities that will further the commercialization of hydrogen and fuel cell technologies. Participating Agencies Dept. of Commerce Dept. of Defense Dept. of Education Dept. of Energy Dept. of the Interior Dept. of Homeland Security Dept. of Transportation Environmental Protection Agency Executive Office of the President General Services Administration National Aeronautics and Space Administration National Science Foundation U.S. Dept. of Agriculture U.S. Postal Service

13. 13 Federal Agency Areas of Interest Fuel cell forklifts DLA, USPS, GSA Fuel cells for prime and back-up stationary power systems FAA, DHS, NASA, USDA, NIST, NOAA, GSA, NSF On-road vehicle demonstrations and deployments (car, truck, bus) NASA, DOT-FTA, USPS, DOI-NPS, DLA, Army, USMC, DOE A total of 720 fuels cells projected over the next two years Need more deployments

14. 14 Interagency Agreements DOE is working to increase hydrogen and fuel cell deployments across the Federal government through simple, limited scope projects.

15. 15 DOE Vehicle/Infrastructure Demonstration DOT is demonstrating fuel cell buses and providing data to DOE for analysis Technologies are validated & progress evaluated through learning demonstrations (Four teams in 50/50 cost-shared projects, operating 92 fuel cell vehicles and 14 stations) Technologies are validated & progress evaluated through learning demonstrations (Four teams in 50/50 cost-shared projects, operating 92 fuel cell vehicles and 14 stations) Eight buses in California, Massachusetts, New York, South Carolina, and Washington, DC Verified fuel cell vehicle performance : EFFICIENCY: 53 – 58% (>2x higher than internal combustion gasoline engines) RANGE: 103 – 190 miles FUEL CELL SYSTEM DURABILITY: 1600 hours (~48,000 miles) Demonstrated Fuel Cost: $3/gge, from natural gas Verified fuel cell vehicle performance : EFFICIENCY: 53 – 58% (>2x higher than internal combustion gasoline engines) RANGE: 103 – 190 miles FUEL CELL SYSTEM DURABILITY: 1600 hours (~48,000 miles) Demonstrated Fuel Cost: $3/gge, from natural gas Technology Validation Vehicles & Infrastructure

16. 16 DTE Energy (ongoing) Hydrogen production using water electrolysis with on-site solar energy (Southfield, Michigan). Xcel/NREL Wind/Hydrogen Project (ongoing) Integrates electrolyzers and wind turbines to understand the benefits and impacts of adding hydrogen production facilities to the electric power grid (NREL wind site at Golden, Colorado). Hawaii (planned) Hydrogen production using curtailed wind and geothermal energy to generate electricity and to fuel hydrogen buses at national parks. Wind Turbine 100kW AC-DC Converter Alkaline and PEM Electrolyzers Compressor 150psi-3,500psi H2 Storage (85kg) Utility Grid H2 Fuel Cell H2 Fueling Station Xcel-NREL Wind2H2 Project Three Demonstration Projects Technology Validation Integrating Renewable Power & Hydrogen Production

17. 17 Visit www.hydrogen.energy.gov or call the DOE Information Center at 877-EERE-INFO/877-337-3473 for copies of DOE hydrogen and fuel cell information resources Learn more – Introductory fact sheets Fuel cells – technology overview, fuel cells for backup power, fuel cells for material handling equipment Hydrogen production, delivery, and storage technologies Hydrogen safety Podcasts – short audio files on hydrogen and fuel cell topics Overview book – includes a chapter on each technology area Animations – how fuel cells work Education and Outreach DOE Information Resources

18. 18 Research, develop, and demonstrate technologies and processes that reduce the manufacturing cost of hydrogen production, delivery, storage, and fuel cell systems Developing innovative, low-cost manufacturing technologies for new materials and material applications Developing a domestic supplier network CHALLENGES Manufacturing R&D MANUFACTURING SOLICITATION 7 awards announced March, 2008 $38M over a period of up to 5 years 35/65 industry/government cost share MANUFACTURING SOLICITATION 7 awards announced March, 2008 $38M over a period of up to 5 years 35/65 industry/government cost share FY 2009 EMPHASIS Novel fabrication methods for MEAs Low cost GDL manufacturing MEA and stack assembly processes Reduce costs for stack conditioning and leak testing Lower costs for processed to make high pressure carbon composite tanks FY 2009 EMPHASIS Novel fabrication methods for MEAs Low cost GDL manufacturing MEA and stack assembly processes Reduce costs for stack conditioning and leak testing Lower costs for processed to make high pressure carbon composite tanks

19. 19 Next Steps Identify financial mechanisms to assist with deployment of fuel cells. Develop models, tools, and templates. –Energy Service Agreements, including third party financing –DOE Loan Guarantee Program Generate industry-supplied value proposition for fuel cell technologies.

20. 20 Next Steps, Cont ’ d Complete quantitative assessment of fuel cells addressing: –Current sales and projected growth –Effect of government intervention on commercialization and manufacturing economies of scale, i.e. moving down the cost-curve –Energy efficiency and emissions reductions Execute manufacturing R & D projects and evaluate effects on technology costs.

21. 21  Annual Solicitations on a wide variety of topics  2009 Solicitation subtopics expected in June 2008 Funding Opportunities SBIR/ STTR  H 2 Storage New Ideas: Annual small solicitation to introduce new materials and concepts into portfolio. Planned $3 – 6M over 2 – 5 years for 3 – 6 projects. Open: Pre-proposals due February 28.  H 2 Storage Engineering Center of Excellence (CoE): To address onboard systems engineering. Planned $35 – 40M over 5-6 years for one team. Open Feb. 27, closes June 4, 2008. H 2 Storage  2008 Solicitation/Lab Call:  Request for Information released in November 2007 (www.gpoaccess.gov/fr/index.html)www.gpoaccess.gov/fr/index.html  Fuel Cell Pre-Solicitation Workshop was held in January 2008.  Ideas from the RFI and workshop will be taken into consideration for the solicitation/lab call to be released in April 2008 Fuel Cells

22. 22 Thank You! Contact me: peter.devlin@ee.doe.gov 202-586-4905