1. 1 © Air Products and Chemicals, Inc. 2010 Options for Production and Delivery of Low-Cost Hydrogen Edward C. Heydorn Business Development Manager Hydrogen Energy Systems Air Products and Chemicals, Inc. National Hydrogen Association Conference Long Beach, CA 05 May 2010

2. 2 © Air Products and Chemicals, Inc. 2010 50+ Years of Hydrogen Experience World’s largest merchant supplier H 2 production equivalent to fueling ~8 Million cars/day Bulk, liquid and pipeline distribution More than 500 H 2 customers H 2 Energy projects since 1993 > 110 hydrogen station projects Stations in 18 countries Broad IP estate

3. 3 © Air Products and Chemicals, Inc. 2010 Dispensing Fill Count – Approaching 200,000 per Year Rapid growth in material handling projects – Fast project schedules – High reliability

4. 4 © Air Products and Chemicals, Inc. 2010  Central Production  Distributed Production Fuel Station Distribution Natural Gas, Propane, Methanol, Feedstocks Hydrogen Hydrogen Sourcing

5. 5 © Air Products and Chemicals, Inc. 2010 Usage, Kg/Day 200 2,000 20,000 200,000 Hydrogen Means of Production

6. 6 © Air Products and Chemicals, Inc. 2010 Even the small station capacities exceeded the actual demand – Upcoming station deployments need to consider underutilized assets in early years Multiple options for production and delivery were tested – Some should be eliminated due to cost and scalability, others should be given greater consideration Lessons Learned from Early Hydrogen Station Deployment Programs

7. 7 © Air Products and Chemicals, Inc. 2010  Lowest-cost production methods exist at large central facilities, and can meet targets for H 2 pricing to consumer transportation market – Minimize capital outlay by utilizing existing production infrastructure – Adopt supply chain for delivery and dispensing for this unique application  Renewable sources can be competitive when credits in a carbon-constrained environment are considered Lessons Learned (continued)

8. 8 © Air Products and Chemicals, Inc. 2010 UCI 350/700 Bar Station  25 kg/day capacity, liquid hydrogen supply  Actual demand higher, regularly approaching 50 kg/day  350 and 700 bar fueling capability  Excellent operating performance  Station usage doubled over past year  UCI recently applied for local funding to expand 700 bar fueling system The UC Irvine Fueling Station operated by the National Fuel Cell Research Center (NFCRC) photo by Lorin Humphries. Delivered Liquid Hydrogen – University of California, Irvine

9. 9 © Air Products and Chemicals, Inc. 2010 Torrance Pipeline Station  48 kg/day capacity, pipeline hydrogen supply  350 and 700 bar fueling capability  Greenfield station, retail design by Shell  Station construction began February 2010  Anticipated onstream mid-2010  Expandable with additional compression to 96 kg/day  Funding support by DOE, Air Products, Shell Hydrogen and South Coast Air Quality Management District Pipeline-Supplied Hydrogen Station – Torrance, California

10. 10 © Air Products and Chemicals, Inc. 2010 South Torrance Station  40 kg/day capacity, delivered hydrogen from pipeline supply  350 and 700 bar fueling capability  Product offering tailored to existing retail forecourt  Anticipated onstream Summer 2010  Funding support by California Air Resources Board Pipeline-Delivered Hydrogen Station – South Torrance, California

11. 11 © Air Products and Chemicals, Inc. 2010 Fountain Valley Station  100 kg/day capacity  350 and 700 bar fueling capability  Host site: Orange County Sanitation District  Co-located with existing CNG dispenser  Renewable hydrogen production using Hydrogen Energy Station New H 2 Dispenser H 2 Equipment Pad Renewable-Supplied Hydrogen Station – Fountain Valley, California  Funding support by California Air Resources Board, DOE, Air Products and South Coast Air Quality Management District

12. 12 © Air Products and Chemicals, Inc. 2010 Fountain Valley, CA –Anaerobic Digester Gas –High-Temperature Fuel Cell provided by FuelCell Energy, Inc. –Hydrogen Purification, Compression, Storage, Dispenser provided by Air Products Hydrogen from Renewable Feedstock Covered by several Air Products patents / patents pending

13. 13 © Air Products and Chemicals, Inc. 2010 I-405 South Ramp Hydrogen Fueling Station Ellis Avenue Hydrogen Energy Station  ~1,100 feet Orange County Sanitation District Site Anticipated onstream Summer 2010

14. 14 © Air Products and Chemicals, Inc. 2010  Many options to meet the demand cycle, unique to Air Products  Ability to scale with increasing fueling demand unique to Air Products: –Tube Trailers -> Mini bulk /Micro bulk / High capacity tube trailers –HYDRA Liquid Hydrogen Trailer -> High Pressure and liquid offload –Onsite Production -> May start with TT/LHY, then install small production system on very large systems –Multi-capable dispensers based on refueling pattern Long-Term Fueling Requirement May Dictate Interim Fueling Solution

15. 15 © Air Products and Chemicals, Inc. 2010 This material is based upon work supported by the Department of Energy (Energy Efficiency and Renewable Energy) under Award Number DE-FC36-05GO85026. This presentation was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof. This presentation was prepared as a result of work sponsored, paid for, in whole or in part, by the South Coast Air Quality Management District (AQMD). The opinions, findings, conclusions, and recommendations are those of the author and do not necessarily represent the views of AQMD. AQMD, its officers, employees, contractors, and subcontractors make no warranty, expressed or implied, and assume no legal liability for the information. AQMD has not approved or disapproved this presentation, nor has AQMD passed upon the accuracy or adequacy of the information contained herein. Acknowledgement and Disclaimers

16. 16 © Air Products and Chemicals, Inc. 2010 Thank You