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Answering the Call:Hydrogen Fueling in the LA Basin

Presented to DOT July 22, 2008

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2005 2006 39630

Why We’re Here: Critical Issues Facing U.S.

High Oil Price Environment1High Oil Price Environment1

$147.00

Drive Towards Alternative Fuel2(Billions of Gallons)

Drive Towards Alternative Fuel2(Billions of Gallons)

$66.09$56.59

Note:1 Average price for period 2 2006 Vehicle fuel consumption in Gasoline Gallon Equivalents (Sources: U.S. DOE, EIA, Gas Vehicle Report, American Coalition for Ethanol)

Ethanol/Biodiesel

17B

Gap18B

Gasoline175B

Clean Air Regulation/GHGClean Air Regulation/GHG Energy SecurityEnergy Security

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Why We’re Here: GM – April 2008

Dr. Larry Burns, VP R&D & Strategic Planning, GM:• “After spending well over $1 billion on FC system R&D,

GM remains convinced FCVs have potential to be real”• “Not discovered anything to suggest mass volume can’t

ultimately be attained”• “Toyota, Daimler, Honda have echoed our sentiments”• “GM reached stage where cannot continue progress solely on

our own”• “To reach market tipping point, customers must have

safe/convenient access to affordable hydrogen”• “Means energy industry and governments must join auto

industry to sell FCVs in mass volume”

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Why We’re Here: Daimler/UNEP – July 2008

Dr. Dieter Zetsche, Chairman, Board of Management, Daimler AG, + head of Mercedes-Benz• “Have developed the technologies and are now

in position to introduce them to the market”• “By introducing electric and fuel cell vehicles on

the market in 2010, demonstrating our intention to fulfill responsibility for sustainable mobility”

• “Greatest challenge at present is to establish necessary infrastructure”

• “Now time for energy providers and petroleum companies to show proof of their commitment as well”

• “We have been approaching possible partners and taking the initiative”

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Why We’re Here: G8 – July 2008

Japanese automakers providing eco-ride for G8 leaders• Toyota FCHV-adv• Mazda gas/hydrogen hybrid RX8• Honda FCX Clarity

Reuters:• Fuel cell carmakers face reality of

only about 60* hydrogen stations in entire U.S. compared to 180,000 gas stations

• “Even at green conscious Tokyo summit, closest hydrogen is about 13 miles away because of safety concerns”

*Nearly all are private and/or restricted use

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Why We’re Here: ITS, UC Davis – May 2008

ITS Study, UC Davis, 4 scenarios 2005-2050, LD vehicles• Ca: -80% GHGs from 1990 levels

• H2 Success (major role 2025 and beyond)• Efficiency - ICEVs• Biofuels – ethanol and biodiesel• Portfolio

Conclusions• H2 FCVs break even w/in 10 years (2023)• Infrastructure to break-even year costs $8 billion; cumulative

vehicle “first cost difference” $40 billion• H2 leads to deeper cuts long-term• No single pathway meets goals; portfolio approach is attractive

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Why We’re Here: GM/Shell

GM/Shell Hydrogen Study:• 56+ billion kg/H2/yr produced globally

• 180+ million FCVs• 11 billion kg/H2/yr produced N Am

• 21+ million FCVs• Primarily from natural gas• Costs well understood• $2-3/gge producing/dispensing

• U.S. natural gas: +2% consumption supports 10 million FCVs• 50% CO2 reduction W2W

• Economic viability leveraging existing asset base• H2 production plants near almost all major US metro

markets

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Why We’re Here: GM/Shell

GM/Shell Hydrogen Study / U.S. Infrastructure:• 100 top urban areas (70% of US pop)

• 130,000 miles of highway• $10-15 billion investment enables 11,700 stations

• Supports first million FCVs• Urban station every 2 miles• Highway station every 25 miles

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40 Stations in LA Basin: GM/Shell

30 700* bar stations in LA metro area 10 in heavily traveled corridors (OC, SB, LV, SD)

• Supports 40,000+ FCEVS• Puts H2 station w/in approx. 3.6 miles of 15M consumers• 10 miles worst case

*All OEMS developing 700 bar, per GM, also need 350 bar availability for Honda etc.

CaFCP: 40 200 kg/day stations meet needs through 2014

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40 Stations in LA Basin: GM/Shell

Needed to take learning to next level Early capitalization risk managed by

concentrating initial sales in specific geographic regions • LA, NY, Shanghai

New ZEV mandate, 6 LVMs:• 2009-2011 : 250-2,500 FCVs

2012-2014 : 2,500 - 25,000 FCVs• Infrastructure will dictate

vehicle placement• 2010 around the corner! Must act

now to meet Phase 1 timeline

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40 Stations in LA Basin: GM/Shell

Gap analysis• 1 public access 700 bar station

• NFCRC/UC Irvine• Infrastructure providers/suitable land• Partnerships complex, time consuming • CA renewable requirements

complex, costly• ARB RFPs require partnerships w/state, not grants• 50% cost share a killer; load doesn’t justify expense

CaFCP: Limited number qualified design, engineering,construction firms capable of building out infrastructure

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Compressed Natural Gas (CNG)

Taxis

Airporttransit

Governmentvehicles

Leading Provider of Natural Gas As a Transportation Fuel

40 Stations in LA Basin: Why Clean Energy?

Liquefied Natural Gas (LNG)

Regionaltrucking

Refusehauling

Publictransit

Largest Alternative Transportation Fuel Provider

275+Fleet

customers

14,000+Natural gas

vehicles

170+Natural gas

fueling stations

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Clean Energy/GM LAX Hydrogen Station

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Clean Energy Management

Andrew J. Littlefair, President/CEO/Board Member• Formerly president, Pickens Fuel Corp, predecessor to Clean

Energy• Served in various management positions, Mesa, Inc.• Staff Assistant to the President, Reagan White House

T. Boone Pickens, Board Member • Author, Pickens Plan• Founder, BP Capital• Active management, BP Capital Equity Fund and Commodity

Fund• Founder, Pickens Fuel Corp., predecessor to Clean Energy• Founder, Mesa Petroleum, CEO and chairman for 40 years

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CORPORATE

HOLDING

OPERATIONAL

Eden Innovations Ltd Energy Assets

HyRadix IncChicago, USA

Hythane Company LLCDenver, USA

Coal Bed/Seam MethaneWales, UK

Natural GasSouth Australia,

AUS

Terratherma

(Geothermal)South Australia,

AUS

Greg Solomon, Executive Chairman

Robert Gray, CEO Andrew Leibovitch, NED

Eden Cryogenics LLC

Columbus, USA

David Cepla,President

Roger Marmaro, President

Steve Hensley, President

40 Stations in LA Basin: Why Eden Energy, Ltd?

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Eden Energy, Ltd. U.S. Subsidiaries

HyRadix Inc (Chicago, IL), www.hyradix.com • Hydrogen reformer manufacturer• Selected supplier to Praxair, the world’s 3rd largest

industrial gas company

Hythane Co. LLC (Denver, CO). www.hythane.com • Innovator of Hythane®• Patented blending technology to generate required

ratio of hydrogen : methane

Eden Cryogenics LLC (Columbus, OH)• Specialized cryogenic storage vessels for thermo-

pressure compaction of gases• Strategic supplier to NASA and major national

laboratories• www.edencryogenics.com

PRODUCTION

DEPLOYMENT

STORAGE

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Eden Energy Management

Greg Solomon, Executive Chairman• Solicitor, 30+ years Australian and international experience• Director, Eden Energy, since incorporation• Executive chairman, Tasman Resources NL

Robert Gray, PE, CEO Eden Innovations Ltd.• 30 years experience commercializing technology, new

businesses development• Formerly president/CEO ,HyRadix Inc. • Formerly director of corporate strategy, UOP LLC • Holds an MBA, 5 process patents , Six-Sigma Black Belt

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GM’s Hoped for LA Cluster, 30 Stations

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GM’s Hoped for LA Cluster, 30 Stations

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GM’s Hoped for Cluster & Existing H2 Stations

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GM’s Hoped for Cluster w/out Private H2 Stations

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GM’s Hoped for Cluster & Existing CNG Stations

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GM’s Hoped for Cluster – Phase One

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GM’s Hoped for Cluster – Phases One & Two

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Co-location w/NG Stations: Benefits

Central reformation lowest cost H2 production method

On-site reforming proven technology, lowest cost

30+ kg/day 50% GHG reduction compared to gasoline vehicle

W2W• Half the hydrogen comes from water

CAFCP: NG-based stations provide benefit until renewable costs decline• Consumers will only switch if

hydrogen costs less per mile than gasoline

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Co-location w/NG Stations: Benefits

India adopts policy• Natural gas accepted by gov’t as pathway to H2• Hythane® marketed as premium blend of natural gas

• Renewable Energy Ministry & Society of Indian Automobile Manufacturers establish public-private partnership for Hythane®• Modifying CNG cars, buses, three-wheelers• 1 million H2 vehicles by 2020

• World Bank helping finance; Delhi station to open 2009

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NG 90-99% methane Renewable methane becoming

available (Biomethane) Landfill gas, sewage treatment

process dairy farms, biomass, etc. Iceland powers 100% NGV bus fleet

with Biomethane CNG stations can be modified

to co-locate hydrogen/Hythane®

Natural Gas: Renewable and Sustainable

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New Model Required!

Old ones don’t work!• Infrastructure providers size station to load• Not consumer-friendly• Load doesn’t justify investment

Leverage nat’l gas infrastructure Use Hythane® as bridge OEM support required

• Agree to place cars where stations are located

• Open existing stations to other OEMs

Take or pay contracts

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Partners Required!

In absence of sufficient demand to justify $100-120 million infrastructure investment (40 stations), need:• Funders as partners

• DOT, DOE, EERE, CARB, CEC, SCAQMD• Shared risk, public rewards

• OEMs as partners• GM -100• Honda -100• Nissan – 40• Etc.

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Preliminary Budget – Phase One (10 Stations)

Add 350 bar and 700 bar hydrogen fueling to 10 existing LA area CE stations• Trucked in hydrogen when load under 30 kg/day

• Cost to install – approx $2 million• On-site reformer when load 30+ kg/day

• Cost to install – approx $3 million• Hydrogen generated on site less than half the cost of

trucked in• 100 kg/day reformer fuels approx. 20 cars per day• Hythane® additional $250,000

Total estimated Phase One budget = $25 million Timeline: Open stations 2009-2011

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DOT Leadership Key to Success

DOT assigns team to work with Clean Energy/Eden Energy

DOT forms Public Private Partnership….takes lead in answering the call

DOT calls meeting of OEMs• Presents program, budget, timeline• Obtains commitment to participate

DOT calls meeting of potential funders – federal and state• Presents program, budget, timeline• Obtains commitment to participate

DOT and Partnership set program launch date DOT holds regular accountability update meetings with

Partnership