Power Up The demonstration of large scale alkaline fuel cells R S Kelly December 2014

Agenda AFC new structure AFC where it’s technology is today – Where it’s heading by the end of 2015 European demonstration project Power Up Foster Wheeler’s commitment Allied’ expectations Next Steps December 2014

Vision To develop and produce a reliable alkaline fuel cell system at commercially acceptable prices primarily for use in waste hydrogen streams. How By using modern materials, design tools and manufacturing processes at scale History Formed in 2006 (listed on AIM) Well financed following 4 successful funding rounds Located close to Guildford, Surrey, UK Partners include: AkzoNobel, Air Products, Linc Energy, John Lewis AFC Energy PLC company overview December 2014

Introduction: Joined AFC April Year Hydrogen Energy Global Business Lead Career – BP Chemicals – SOHIO – Air Products – Thermal Ceramics International Speaker December 2014

1% of the world’s electricity consumption Produces the equivalent of >£300m of electricity as surplus hydrogen a year Global industry could support more than 3000 MW of generating capacity AFC Energy has entered into an agreement with AkzoNobel and industrial testing has already proved successful Chloro-Alkali – surplus H2 December 2014

Valorisation of hydrogen The 2012 situation unfortunately shows a further decrease compared to the previous two years with about 88% of the produced hydrogen valorised. Some companies still have difficulties to find a way to use the hydrogen by-product even though new technologies, like fuel cells or electrolysers with depolarised cathodes appear on the market EuroChlor Industry Review 2013 Hydrogen produced at rate 3% of Chlorine volume. December 2014

The Challenge Petrochemical plants generate excess hydrogen These molecules have potential Sale to Industrial Gas Companies Conversion to saleable products Vent (waste) Turn to steam (efficiency) Generate power via electrochemistry Fuel Cell December 2014

The Fuel Cell Dilemma Fuel cells are considered Expensive to produce Pt catalyst Bespoke specialty manufacturing Expensive to own and operate Sensitive to carryover such as OH - Some require ppb purity Irrespective of feedstock all rely on hydrogen Complex syngas prep in some cases December 2014

Fuel cell technologies… Type Operating Temp.* Electrical Efficiency* Capital CostsEstimated Costs Alkaline AFC Energy non-platinum 70 o C55 – 60%Less than $3.0 millionLow Alkaline Traditional platinum 70 o C60% Greater than $3.0 million NA Molten Carbonate o C %$4-5 millionHigh Phosphoric Acid o C40 – 50%$4-5 millionMedium *Sources: USDoE December 2014 AFC’ Alkaline Fuel Cell is a high efficiency low cost alternative to PAFC and MCFC

Power Up Programme Joint effort FCHJU 6.0€ million EU Matching AFC Start April Months (est) 10December

Power Up Programme Joint effort FCHJU 6.0€ million EU Matching AFC Start April Months (est) 11December

Power Up Programme The world’s largest hydrogen supply company Internationally credible & safe EAME, Asia, Americas, India Roll out of fuel cell compatible EfW plants Member of the EU funding programme 12December 2014

Power Up Programme Impact Start date for the programme is maintained as April 13 Installation due middle of 2015 Located in Germany at Stade, north of Hamburg AP/Dow facility Full scale commercial reference for AFC Long term business potential Internationally credible partners Status H2 Agreement signed by AFC EU agreement signed by AFC Kick off meeting complete 13December 2014

Power Up Data Collection Power output On stream time Conversion rate Electrode life TCO December 2014

Loss in Weight (Gravimetric) Feeders and Extrusion Extrusion – The future of electrodes Consistency Raw materials individually and accurately fed by mass to an mixing barrel Highly reproducible Capacity One machine can output up to 400kW/hr. Control The human factor and materials exposure have been significantly reduced December 2014

Automated Assembly December 2014

Manufacturing tools Automated electrode stacking 17 December 2014

Manufacturing tools Automated extrusion of electrode layers 18 December 2014

System development Alpha - 5kW Beta - 50kW KORE - 250kW December 2014

KORE – in build December 2014

AFC Advantages Stack production process AFC uses simple and energy efficient production process Hence manufacturing costs are low  Lower capital costs MCFC: Expensive stack conditioning:  Higher capital costs PAFC: Highly complex stack components:  Higher capital costs December 2014

Kore assembly 22December

AFC Advantages – Life Cycle December 2014 Illustration only DO NOT SCALE

Installed Test Systems 24 Two test systems installed and operational in AkzoNobel, Germany December 2014

Robust Design DFSS Using multi component assemblies common to each unit Process critical components are manufactured in a repetitive environment This facilitates tighter control vs low volume bespoke options Material selection e.g Low halogen Polymers Fluid dynamics/modelling Minimizing gravity and PT effects at three phase boundary December 2014

Summary AFC’s Power Up project will effectively illustrate Low cost repeatable manufacturing of alkaline fuel cells Using common multi component assemblies Demonstrate the economics of preventative maintenance of cartridge assemblies vs large outages Conversion rate of Hydrogen to power Uptime Deliver the concept of economically viable fuel cells for power generation Gaining value of waste hydrogen Green low cost power December 2014

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