H-power Plc · LSE:HPOW
H-power — AFC Energy — Shareholder Meeting (April 2018)
24 slides from H-power's shareholder meeting presentation, Apr 24, 2018
Slide 1: AFC Energy plc Annual General Meeting Presentation
AFC Energy plc Annual General Meeting Presentation 24 April 2018 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by AFC Energy plc (the “Company”). By attending this presentation and/or reviewing the slides you agree to be bound by the following conditions. The information and opinions contained in this presentation have not been independently verified, are provid
Slide 3: Hydrogen Council Vision for 2050
Hydrogen Council Vision for 2050 According to the Hydrogen Council, by 2050, the H2 economy is expected to: Meet Support Avoidance of Global Revenues of 30 million 18% 6 Gt. US$2.5 trillion jobs created across value of the chain of CO2 Emissions annually World’s Energy Demands To be a leader in this
Slide 4: AFC Energy Vision
AFC Energy Vision “To become the leading provider of clean energy solutions across the hydrogen value chain in order to deliver long term value to shareholders with minimal environmental impact” www.afcenergy.com 4
Slide 5: How We Will Achieve Our Vision
How We Will Achieve Our Vision Deep Technology Development Being Production Ready Having a Focused Business Model Global Applicability www.afcenergy.com 5
Slide 6: Deep Technology Development
Deep Technology Development 6
Slide 7: Deep Technology Development
Deep Technology Development At the heart of AFC Energy’s commercial success is its’ leading hydrogen fuel cell technology platform. Over the past 12 months, we have successfully delivered: A high powered fuel cell we believe is capable of delivering on the P.L.A.C.E metrics of commercialisation An o
Slide 8: Forecast target power price <US$0.10 / kWh
Deep Technology Development (cont.) The achievements made throughout the course of 2017 and continue to be made into 2018 now provide a basis upon which we have an evidence based forecast target power price, excluding hydrogen, of: <US$0.10 / kWh www.afcenergy.com 8
Slide 9: Deep Technology Development (cont.)
Deep Technology Development (cont.) Focus of core technology development across 2017 included: (i) Improvement of electrode longevity and reduction of failure modes within the fuel cell stack, and (ii) Material reduction of fuel cell cost and mass production readiness www.afcenergy.com 9
Slide 10: Longevity
Deep Technology Development (cont.) Longevity The importance of electrode and stack longevity to the economics of the fuel cell system (1yr, 2yr, 4yr life) www.afcenergy.com 10
Slide 11: Longevity (cont.)
Deep Technology Development (cont.) Longevity (cont.) In 2016, AFC Energy’s target was to deliver an electrode capable of operation for >1,000 hours. In 2017, AFC Energy achieved electrode longevity (extrapolated), in collaboration with De Nora, > 2 years on small scale systems At full scale, extrap
Slide 12: Longevity (cont.) – fuel cell architecture redesign
Deep Technology Development (cont.) Longevity (cont.) 2017 also saw a redesign of the fuel cell architecture and distribution plates to mitigate a number of failure modes that stemmed from system leakage and sub- optimal flow and distribution of gas and liquid Improvements in the latest design of pl
Slide 13: Previous GEN2 cell technology
Deep Technology Development (cont.) Previous GEN2 cell technology utilised large nickel sheets with the electrochemistry bonded to the surface. Multiple components are shown that are assembled into an alkaline fuel cell. 6 interfaces per cell High cost (Ni content) Higher parasitic loss Inefficient
Slide 14: Latest generation cell technology
Deep Technology Development (cont.) Latest generation cell technology mitigates a number of failure modes and complexities of the previous stack, and, now fully modelled at 100 cell stack configuration, is AFC Energy’s new commercial basis of engineering and design. 2 interfaces per cell 88% reducti
Slide 15: 2018 Fuel Cell Stack Design
Deep Technology Development (cont.) 2018 Fuel Cell Stack Design www.afcenergy.com 15
Slide 16: Cost Reduction
Deep Technology Development (cont.) Cost Reduction Electrode Cost Reduction - 2015 to 2017 Catalyst Nickel The 2 major costs in the GEN1 cartridge were: 9 8X 8X • Fuel cell electro-catalyst (chemicals) 8 7 • Nickel electrode substrate 6X 6 5 Cost 4X 4 3 2 1 0 2015 2016 2017 *Assuming fixed base meta
Slide 17: Being Production Ready
17 CRFCEneray D> x2) © i) ad Cc 2 ~ O =) x2) oe) — oO oO) & i) aa)
Slide 18: Being Production Ready
Being Production Ready Electrode AFC Energy continues to make real progress with De Nora in the development of a robust and commercial fuel cell electrode Increasingly exciting and cost reducing electrode developments which will be assessed under the De Nora JDA throughout 2018 Principles of the Mas
Slide 19: Being Production Ready (cont.)
Being Production Ready (cont.) Fuel Cell Stack and Balance of Plant New fuel cell design with fewer component parts and reduced interfaces - primary driver towards mass production and simplicity of assembly Supply chain capable of mass production of stack components and parts across Europe and Asia
Slide 20: Focused Business Model
20 CRFCEneray oO ze) fe) = ) %) oD) — 7) =) aa) ze) O 7) =) O fo) LL
Slide 21: Focused Business Model
Focused Business Model AFC Energy has long regarded the chlor alkali sector, and other large scale hydrogen emitting industries, as a cornerstone of its addressable market. Following meetings in the U.S. at the De Nora client conference in 2017, this market and the opportunity for scalable deploymen
Slide 22: Focused Business Model (cont.)
Focused Business Model (cont.) The opportunity, for example, to displace diesel in the energy mix represents a > US$20 billion per annum market The key is not so much the fuel cell technology, but identification of new and affordable hydrogen sources that allow “on site” hydrogen / power generation.
Slide 23: Next Twelve Months
Next Twelve Months The next twelve months has a number of exciting advances and announcements that will solidify and validate the technical progression we’ve achieved over the past three years: Confirmation of third party licensors for the integration of state of the art hydrogen generation and down
Slide 24: Thank you for your kind attention
Thank you for your kind attention – we are now open for questions. www.afcenergy.com