1. -1- ICHS Round Table “Industrial Perspective” Les Shirvill Shell Global Solutions

2. Shell is already experienced in producing and handling H 2 Experienced at H 2 production: Shell has more experience in the safe and productive handling of H 2 & traditional fuels than any other company –Shell produces more than 7000 tons H 2 per day and has been producing H 2 for over 40 years Shell is leveraging the most cost-effective, safe and available infrastructure to address the security, supply and responsible acceleration of the H 2 industry Shell is well connected to advance a greener hydrogen economy via Wind, Solar Shell is currently producing H 2 using a range of production technologies, such as: SMR, Oil gasification, coal gasification, and platforming

3. Shell Hydrogen: Learning and investing in hydrogen as a fuel Investment funds storage solutions Joint ventures hydrogen purification Low emission power Siemens Refuelling Demonstrations & partnerships N. America Iceland Europe Japan Home refuelling Vandenborre/Hydrogenics

4. And going from Research to Reality Iceland Europe Japan North America

5. For a long time chemical conversion of fossil fuel and biomass will be key for future hydrogen production scenario’s…. Heat Electricity ElectrolysisThermolysis of water Hydrogen Biomass Chemical Conversion Biophotolysis Nuclear Energy Fossil Energy Mechanical Energy CO 2 Photo- electrolysis Fermentation Renewable Energy Adapted from John A. Turner, Science, 285, 687 (1999) Steam-methane reforming (SMR, ) Gasification (coal, oil biomass…) Platforming, Steam cracking

6. .. with Central Production economically favoured relative to On-site Production On-site electrolysis On-site reforming 250 200150100 50 Distribution (km) from production site km 100 ton/day 500 ton/day CENTRAL SMR & LH2 TRUCK CENTRAL SMR & GH2 TRUCK 50 fills (0.25 ton/day) 25 fills (0.1 ton/day) 10 ton/day 500 ton/day Total Delivered Cost [$/kg H2] Central production

7. ….. and CO 2 Capture and Storage (CCS) being an important element in the H 2 CVP in a migration pathway to renewable H2 Time from now CO 2 Emissions H 2 Production (t/d) H 2 from existing SMR H 2 from fossil feedstock w/ CO 2 Capture and Storage (CCS) H 2 from Renewables 30-50 years 100’s 1000000’s H 2 + CO 2 H 2 +CCS H 2 Ren.

8. Shell Hydrogen Vision for H 2 Market Takeoff We expect market takeoff between 2015 and 2025 Under supportive circumstances we see the potential for 5 to 10 million FCV’s in 2020, growing beyond 100 million between 2030 and 2040 Growth of H2 Market will depend on funding the transition to mass production ‑ Dependent on public policy developments – incentives Future landscape is being shaped now ‑ Players developing H2 policies and positions

9. Shell Hydrogen Vision for Market Development Stand alone projects – hydrogen-fuelled buses out of depots (e.g. Amsterdam and Luxembourg) Second generation sites, with public access, but separate from existing fuel stations (e.g. Iceland station) Fully integrated hydrogen and gasoline fuel stations (e.g. Benning Road Shell Station in Washington DC) Within next 5 years – Lighthouse projects: integrated stations within mini-networks 2010 – 2020 connecting the mini-networks with corridors and filling the white spaces

10. The Next Stretch Need for: Addressing technical/manufacturing challenges Codes & standards Political awareness and public education Lighthouse Projects and Mini-networks; Funding the transition to higher volumes

11. Hydrogen Safety Codes & Standards For the public to use hydrogen as a vehicle fuel, customers must be able to handle hydrogen with the same degree of confidence, and with comparable risk, as conventional gaseous and liquid fuels. For the safe design of retail facilities, through the development of codes and standards, it is essential to understand all the hazards that could arise following the accidental release of hydrogen. Hydrogen is simply different from conventional hydrocarbon fuels in several respects and a good quantitative understanding is required to ensure that it is handled safely.

12. www.shell.com/hydrogen