Ram Mohan09/11/2014

“First they ignore you, then they laugh at you, then they fight you, then you win”

– Mahatma Gandhi

We have a plan to eliminate all fuel imports and use of fossil fuels in India and provide efficient, reliable access to clean, renewable energy for every Indian home, business and transport vehicle to support our growing needs today and in the future.

Do we want our nation to…..

1. Become independent of foreign oil imports and strengthen our global financial position (est. annual $200B) and currency (1M tonnes crude import strengthens US$ Vs rupee by 27%)

2. Create new industries/jobs ($8.6B+, 1M+ jobs), companies and establish global energy leadership with business, technology and government innovations

3. Generate all the power needed without use of fossil fuels4. Eliminate use of gasoline or diesel for road transportation5. Dramatically reduce national green house gas emissions, reduce climate change

impacts, improve public health, save lives (1.5M lives) and reduce health care burdens ($1.5B+)

6. Ensure every Indian (300M+ additional), independent of location, has reliable access to adequate clean, renewable, affordable power

7. Eliminate loss and waste of power (est. 35% loss) transferred over the grid or power used in transportation vehicles

8. Double the efficiency of converting fuel to energy in cars, buses and 2/3 wheelers

Rural MarketNeeds

Urban MarketNeeds

Reliable access to clean, affordable power

Governmentchallenges

• Energy sources • Costs• Emissions• Scalability• Delivery• Governance

• Stationary power and transportation based predominantly on use of fossil fuels

• Imports and use of fossil fuels limits our future, hurts our economy, threatens foreign investments

• Significant effort being made to implement solar power

• National power grid based on a few, large central power generation sources – access, reliability issues

• Power losses are a significant issue• Emissions from use of fossil fuels are taking a toll

on health and related costs

Issue Impacts Cause

National security risks

Critical dependency on energy imports to bridge supply shortages and support growth

Oil for transportationGas for power

Adverse economic impact

Growing massive fuel import bill ($143B) last year, $42B subsidies in 2013

Oil for transportationGas for power

Current account deficits, trade deficits hurting rupee value and growth

Cost of emissions

#3 in world, 4% annual increase, $1.6B mortality/morbidity costs in a 6-city model, 50% agriculture crop yield reduction

Use of fossil fuels for power and transportation

Rural biomass burning results in 300,00-400,00 deaths annually, 3X more black carbon pollution than other sources, monsoon delays, #1 death rate in the world (1.5 M/year)

Use of biomass for power in rural homes

Poor service quality,expensive losses

Country-wide blackouts common, grid transmission losses (24%), theft /billing losses(10-15%), emissions/costs of backup diesel gensets

Fuel shortage, central power grid, poor governance

IC engine inefficiencies (40%-60%), traffic congestion losses (80%)

Use of IC engines for motive power

Limited Access 25% (300 million) nation lack power, 33% rural households lack power

Central power grid lacks reach, energy

• Transition to use of renewable, clean fuels for stationary power and use of fuel-cell based electric vehicles supported by a hydrogen economy on a committed, aggressive schedule

• Transition to a grid of smart microgrids with central power generation acting primarily as a backup to distributed power generation and storage

• Energy efficiency policy used to ensure effective use of resources

Issue Cause Solution approaches

National security risks

• Oil for transportation• Gas for power

• Transition to hydrogen economy, fuel cells transport• Transition to clean renewable fuels, smart microgrids

Adverse economic impact

• Oil for transportation• Gas for power

• Transition to hydrogen economy, fuel cells transport• Transition to clean renewable fuels, smart microgrids

Cost of emissions

• Use of fossil fuels for power and transportation

• Transition to clean, renewable fuels, smart microgrids for power, interim focus on carbon sequestration

• Transition to hydrogen economy, fuel cells for transport

• Use of biomass for power in rural homes

• Transition to clean, renewable fuels, smart microgrids for power, provide incentives, penalties for violations

Poor service quality,expensive losses

• Fuel shortage, central power grid, poor governance

• Transition to clean renewable fuels, smart microgrids• Improved detection of leaks, distributed governance• Energy efficiency as policy

• Use of IC engines for motive power

• Transition to hydrogen economy, fuel cells for transport• Energy efficiency as policy

Limited Access • Central power grid lacks reach, energy

• Transition to clean, renewable fuels, smart microgrids for power

Smart Grid

National Grid

Legend:

Power gridH2 sourceH2 conversion/supportH2 storage/distribution

Nuclear

Coal

Biomass

Natural GasBiogas

Anaerobic digester

Syngas

SteamReformer

Carbon sequestration

Hydrogen Storage

H2 PipelineH2 Gas Station

Natural gas grid

Thermochemical Electrolytic

Hybrid

Electrolyzer

(Power to gas)

Wind Farm

Solar Farm

Hydro

Fuel Cell

(CHP)

In 2006 a steering group setup by the National Hydrogen Energy Board of the Ministry for NRE issued a report titled ‘National Hydrogen Energy Roadmap’

It stated “large-scale use of hydrogen in transport sector can help India in achieving energy security through reduction in import of fossil fuels and also reduction in the urban air pollution. Therefore, it is necessary to develop hydrogen energy technologies for large-scale use especially for the transport sector. In the Indian context, apart from substitution of liquid fossil fuels by hydrogen produced from locally available resources, development of hydrogen based decentralized energy systems is relevant for meeting energy needs, in the remote, far-flung and un-electrified regions.”

Further, “Hydrogen is seen as a potential alternative to fossil fuels, which can produce clean electricity and heat, efficiently. However, the transition ….will require solutions to many challenges in the areas of production, storage, delivery and applications and spanning infrastructure, technology, economics and large scale public awareness”

Phase out use of fossil fuels based transportation (cars, buses and motorcycles, autorickshaws) with hydrogen fuel-cell electric vehicles

Enhance current power grid with a ubiquitous intergrid (grid of grids) of smart microgrids driven by green, renewable power sources – hydro, wind, solar, fuel cells, nuclear, natural gas and biogas (with carbon sequestration), biomass

Hydrogen production, transport and storage becomes the fuel foundation for the new energy architecture

Energy efficiency is a key element of energy policy

Greater national security Total energy independence free of dependency on foreign and limited non-renewable

energy sources

Economic transformation With reliable energy to meet national needs now and in the future, reduced imports and

trade deficits, a stronger currency, create an industry estimated to be $8.6B and 1m new jobs in 2030 and $70B with 7m jobs* by 2050 with and universal access to power.

More efficient use of energy Reduced dependency on single supply of power, reduce grid losses, elimination of

transport-related fuel losses/waste with an increased fuel-to-motive power efficiencies

Improved environment Reduced use of fossil fuels and better use of biomass will drive a dramatic reduction in

India’s carbon footprint and positively impact climate change and crop yields

Improved health, lower health spend Fewer emissions-caused deaths, improved quality of life for all and a reduced health

care burden on the state and individuals

* - Japan government projections

Fuel Renewable Availability Emissions Fuel2PowerPower2Fuel

StoreTransfer

Use3 Costs

Petroleum N Import1 High+ F2P S,T C,D,T High

Coal N Local High+ F2P S C,D High

Nuclear Y Local Low F2P T C High*

Natural Gas N Local2 High- F2P S,T C,D,T High-

Hydro Y Local Low F2P T C High*

Wind Y Local Low F2P T C Med

Solar Y Local Low F2P T C,D Med

Hydrogen Y Local Low F2PP2F

S,T C,D,T Med-Low

Notes: 1 – most imported, some locally sourced2 – most locally sourced, additional imported3 - Central power gen only (C), distributed power gen (D), used in cars, buses, other (T)* - very high cost of initial setup

Verizon, Google, American Honda, JP Morgan Chase, Kaiser, Macys, AC Transit are using fuel cell power for their data centers and operations with products from Bloom Energy, ClearEdgePower, FuelCell Energy

Delmarva Power now provides 30 MW of fuel cell power generation – the largest fuel cell deployment in the US

Installation of the world’s largest fuel cell power plant (59 MW) began in Korea

Modern, small-scale local versions of the centralized electricity system with several operational in the US and Japan. Key capabilities include Generation, distribution, and regulation of the flow of electricity sourced from hydrogen fuel cells, solar,

wind and primary grid Offer energy storage options by generating and storing hydrogen from excess electricity, biomass and

biogas Dispense hydrogen for cars, buses and other transport Heating and cooling using adsorption chillers

They achieve specific local goals - quality of service, carbon emission reduction, diversification of energy sources, and cost reduction, established by the community being served.

Appears to the main distribution grid as a single controlled system, both as a customer and as a small embedded generation source. Its electrical impact on the distribution grid adds benefits to the distribution system by buffering demand/supply mismatches

Benefits to primary grid Simplification enables better service management, growth Evolution to role of backup power supply Reduced demand on primary grid Improved overall grid quality of service with generation and buffering capabilities Better focus on reducing costs, improving efficiencies, reducing emissions

ThermalNuclear

Hydro Renewable

National Grid

Community smart microgrids with trigen power and buffering capabilities

Toyota, in December 2014, launched Mirai, a four-door, passenger sedan new 100-kW fuel cell stack, range of 400+ miles per tank of hydrogen. Has received 4X annual planned orders in first month. Prime Minister Abe provides enthusiastic backing. Toyota announces royalty free licensing of all fuel cell patents

Hyundai unveiled its next-generation Tucson Fuel Cell vehicle, and announced plans to begin leasing the vehicle in Southern California in Spring 2014

Honda announced a 2015 launch of its FCX Clarity vehicle that can seat five people comfortably and a range of more than 300 miles

Audi announced that it was developing a fuel cell version of its A7 vehicle and began trials at the end of August

Commercial fuel cell systems for buses are available from Ballard Systems, SymbioFC and US Fuel Systems. HFC buses are in service in many cities in the US with funding, support from Federal and State governments, seeing a 2:1 improvement in fuel consumption over diesel buses

Fuel cell systems are also being commonly used in material handling vehicles (forklift trucks) and in 2-wheel vehicles (France, Japan, Taiwan)

In September, the governor of California signed Assembly Bill 8 (AB8) into law providing annual funding until 2024 for at least 100 hydrogen stations with a commitment of $20 million a year.

The H2 Mobility initiative partners (Air Liquide, Daimler, Linde, OMV, Shell and Total) announced in September that they plan to expand Germany’s public hydrogen infrastructure to about 400 stations by 2023, with the first 100 stations planned over the next four years with an initial investment of €350 million

In December, Japan’s government said that it will propose ¥7.2 billion (US$71 million) in funding for hydrogen fueling station development in the next fiscal year. Plans for 19 stations were approved in June.

Many companies across the globe offer commercial H2 production systems using PEM electrolysis, alkaline electrolysis and steam reformers

Power to gas projects have proliferated in Germany, UK and Canada as viable power storage solutions for wind, solar power stations

Nuclear power provides a real alternative for unlimited, efficient generation of H2 via electrochemical and high temperature thermochemical processes

H2USA, UKH2Mobility launched to enable research and development of hydrogen infrastructure in the USA and UK with state and industry teamwork

The EC proposed €1.4 billion (US$1 8 billion) to fund its fuel cell program, FCH JU, until 2024–a 27% increase over the last phase. Germany, UK, France, Norway, Denmark are major players

Japan’s 2013 RD&D budget for fuel cells and hydrogen was almost double the 2012 budget, at ¥36.83 billion (US$363 million). South Korea is another major player in this space

California has committed funding for the development of 100 hydrogen fueling stations to help the state meet its goal of 1.5 million zero-emission vehicles (ZEVs) by 2025. Japan’s government proposed ¥7.2 billion (US$71 million) to build hydrogen fueling stations starting in Fiscal Year (FY) 2014.

Energy efficiency has emerged as the largest and cheapest alternative to burning fossil fuels to generate electricity. Without energy productivity improvements, America’s energy needs would have tripled since 1970. Actual growth was only one-fifth of that.

▪ Global fuel cell industry at $1.3B sales in 2013, 35% over 2012, $1.6B invested globally by PE/VC firms, expected 26% growth through 2023

▪ About 150 MW of stationary fuel cells were shipped worldwide in 2013, an increase of 24% over 2012 and 244% over 2008.

▪ Est 35,000 fuel cell systems shipped in 2013, 26% over 2012, 4X over 2008

▪ 150 MW stationary fuel cells shipped worldwide in 2013, 24% over 2012 and 244% over 2008

PEM fuel cell cost reduction of more than 50% since 2006, and more than 35% since 2008

Multiple studies confirm that fuel cell systems can be cost-competitive with the incumbent technologies

Toyota estimates that, since 2002, it has attained a 95% cost reduction in the powertrain and fuel tanks

A greater than 80% reduction in electrolyzer stack cost over the past 10 years.

Reduction in the amount of platinum (Pt) used by a factor of five since 2005.

A more than doubling of fuel cell durability since 2006

Start small - validate direction in a specific town with an urban and rural populations e.g., fuel-cell powered buses, community microgrids

Establish centers for research at IITs and other institutions for key parts of the technology – hydrogen generation, transport, storage, dispensation, fuel cell design and production, smart microgrids

Form tie-ups with countries and companies with related expertise to share technologies and expertise

Industry involvement with grants to set business goals, develop related products and drive down costs

Policy changes (taxes, subsidies) to incentivize transition to a new clean, renewable energy based economy

Work with ministry and experts to build detailed roadmap

Rural MarketNeeds

Urban MarketNeeds

Reliable access to clean, affordable power

GovernmentChallenges

• Energy Security• Economy• Energy Efficiency• Air quality• Health• Standard of living

Leadership

Leadership by India - Design in India, Make in India, Serviced by India

Improve

Energyalternative

Costs Economic Impacts

NationalSecurity

Scalability Healthimpact

Env.Impact

EnergyLosses

H2, wind, solar, smart micro-grids

• R&D costs (M)• Subsidies,

penalties (H)

New industry(H)

Full energysecurity

Long term support for nation’s future needs

None Zeroemissions

• 80% conversion efficiency

• Reduced network losses

Petroleum-based, natural gas, wood mass, central power grid

• Imports (VH)• Subsidies

(VH)• Exploration

(VH)

• Currency (i)• Cost of living

(h)• Budget (VH)• Growth (i)

Major issue Will not support growth plans and needs of entire nation

• Healthcare costs (VH)

• Deaths (106)

• Major crop impacts

• Climate change

• <30%conversion efficiency

• Major network losses

Reduced the cost of producing hydrogen from natural gas. Projected costs of hydrogen (assuming high-volume production and widespread deployment) have been reduced to ~$2.00/gallon of gasoline equivalent (gge) produced (<$4.50/ggeproduced, delivered and dispensed for 700 bar fueling), for a wide range of natural gas prices—a cost that is competitive with gasoline

Reduced the cost of producing hydrogen from renewable resources. The modeled, high-volume cost of producing hydrogen from near-term renewable pathways has been reduced to approximately $5.50–$11.00/gge dispensed and untaxed for 350 bar fueling and $6.00–$11.50/gge dispensed and untaxed for 700 bar fueling, including projected economies of scale. Key examples of advances include reducing the cost of electrolyzer stacks by more than 80% since 2002

Reduced the cost of delivering hydrogen to the end-user. Since 2011, DOE has developed and demonstrated composite tube trailers that can carry 30% more hydrogen (~810kg) at a high volume cost of ~$3.00/kg

Do we want our nation to…..

1. Become independent of foreign oil imports and strengthen our global financial position

2. Create new industries, companies, jobs and establish global power leadership with business, technology and government innovations

3. Generate all the power needed without use of fossil fuels4. Eliminate use of fossil fuels for road transportation5. Ensure every Indian, independent of location, has access to adequate clean,

renewable, affordable power6. Eliminate loss and waste of power transferred over the grid or power used in

transportation vehicles 7. Dramatically reduce national green house gas emissions, reduce climate change

impacts, improve public health, save lives and reduce health care burdens

Who What How

Planet • Health• Environmental

• Reduce GHG and climate change impacts• Reduced mining and oil spills risk

Nation • Economy

• Health• National security• Environmental

• Jobs, new business opportunities, reduceimports, reduce medical costs, reduced losses, reliable power for industry

• Improved health, life expectancy• Energy independence• Reduced mining, reduced use of fossil fuels

Individual • Standard of living• Health, related costs

• Clean, reliable power for all• Quality of life from improved air quality