HyPM HD Fuel Cell Systems for Heavy Duty Green Mining. OnSite Generation Water Electrolyzers. Energy Storage Power Systems Power Modules

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HyPM HD Fuel Cell Systems for Heavy Duty Green Mining MDEC Conference 2014, Toronto October 08, 2014 MDEC Conference 2014 Ryan Sookhoo Director New Initiatives rsookhoo@hydrogenics.com Toronto, 905 361 4589 Business Overview OnSite Generation Water Electrolyzers Hydrogen fueling Energy Storage Power Systems Power Modules Backup power Industrial hydrogen Mobility power Load Control, Smart Grid & Remote Communities wwww.hydrogenics.com 2 S2P1-1

Green Mining Green Mining Tree Hugger Improved workplace health Lower emissions Little Noise Advancing with clean tech Reduced OpEX Reduced ventilation Greater system efficiency Enhanced design scalability Power system flexibility wwww.hydrogenics.com 3 Hydrogen Safety Fuel Leakage Simulation conducted by Dr. M. Swain, University of Miami Hydrogen Fuel Cell vehicle shown on left side, Gasoline powered vehicle shown on right side The Hydrogen powered vehicle was undamaged; the Gasoline powered vehicle had severe damage wwww.hydrogenics.com 4 S2P1-2

Hydrogen Fuel Cell Safety Standards IEC 62282-2 EU Standard for Mobility fuel cell IEC 62282-3 EU Standard for Stationary fuel cell ANSI/CSA America FC1-2004, Stationary Fuel Cell Power Systems NFPA 853 Standard for Installation of Stationary Fuel Cell Power Plants, 2003 NFPA 55 Standard for Storage, Use, and Handling of Compressed Gases and Cryogenic Fluids in Portable and Stationary Container, Cylinders, and Tanks, 2005 NFPA 496 Standard for Purged & Pressurized Enclosures for Electrical Equipment, 1998 CGA E-11 Standard for Stationary Compressed Gas Cylinder Discharging Manifolds for Working Pressures up to 3000 PSI CGA G-5.4 Standard for Hydrogen Piping Systems at Consumer Locations ASME/ANSI B31.3 Process Piping Code wwww.hydrogenics.com 5 Principal of a PEM Fuel Cell Module wwww.hydrogenics.com 6 S2P1-3

Drivers for Clean Energy - Mining Industry Workplace health New generation of diesel engines (EPA Tier 4 in effect 2015) 2012 WHO underground diesel power use health warning Alternative energy to eliminate/reduce emissions - viable operational replacement Fuel cells and batteries - significant reduction in noise generation and vehicle heat load in deep mines Rising oil prices Replacing diesel Economic opportunity for the industry through cost reductions Reducing required ventilation (savings in site electrical and energy bill) Diesel equipment, maintenance, downtime, automation vs electric motor lower maintenance costs, higher reliability Automation, tele-remote operation improved Keeping pace with surface vehicle clean energy drive Clean Energy - Changing climatic conditions Green House Gases (GHG) reduction from underground & open pit mining emissions wwww.hydrogenics.com 7 Energy Storage: Remote Communities Ramea Island (Newfoundland, Canada) Customer: Newfoundland and Labrador Hydro (NLH) OBJECTIVE OF THE PROJECT Solve the cost and storage issues associated with intermittent/ renewable energy generation. Investigating the potential to combine wind turbines and hydrogen generation as an alternative to diesel power currently installed. Provide continuous high quality power. SOLUTION HySTAT-30/10 Outdoor solution to produce 30Nm³/h H 2. Hydrogen compression and storage system to provide 24/7 power from wind. Hydrogen power provided by H 2 gensets (HEC). wwww.hydrogenics.com 8 S2P1-4

Hydrogenics systems have been deployed in the Arctic for the H 2 KT Project in Nuuk, Greenland Nukissiorfiit: Energy Utility, End Client H2Logic: System Integration and Project Management Started up March 2010 Controller DC-DC s Fuel Cells 2 x 10 kw Cooling Hydrogenics Scope: Local Inverters Hybrid energy storage Grid Connect Grid Inverters Inverters wwww.hydrogenics.com 9 Containerized Fuel Cell Power Plant Standard ISO container design offers versatility for system enclosure and transportation Features Ambient (-40 to 50 ºC) Grid Tie or UPS Scalable Benefits Fuel Cell Harsh environment operation Built in redundancy Thermal control system Environmental conditioning High durability Improved reliability kw Fuel Cell Power Plant DC/AC Inverter MW wwww.hydrogenics.com 10 S2P1-5

Mobility wwww.hydrogenics.com 11 Mining Applications Equipment: Drag line excavators Electric Cable Shovels Wheel loaders and motor graders Motorized dump trucks Locomotives Underground Mining and tunneling equipment Courtesy Altas Copco OEMs have started to recognize the value of electrification to improve cycle efficiency and lower operating costs and reduce emissions wwww.hydrogenics.com 12 S2P1-6

Challenges for Conventional Powered Equipment Fueling and associated costs, including transport to site Particulate emissions in closed area engine transients worse Workplace health Heat emissions Noise emissions Vibrations - rock overhead Ventilation costs Increasing mine depth wwww.hydrogenics.com 13 Fuel Cell Module in Vehicle High Voltage Systems Architecture HyPM Fuel Cell Module 12/24V Battery LV Bus DC/DC Boost Converter 520 VDC to 700 VDC HV Bus Aux Power Supply Traction Inverter (DC/AC) Hybrid Energy Storage (Battery) Aux Loads Traction Drive wwww.hydrogenics.com 14 S2P1-7

Hydrogen & Mines Initiatives 1. Proof of Concept Projects: Design and testing of mining surface & underground power plants, vehicles; cost-benefit, refueling, etc 2. Applicable norms and standards, expertise, mining regulations 3. Risk management & safety for project 4. Hydrogen behaviour in confined areas, ventilation, ignition 5. Evaluation of results and best practices for mining Source: CanmetMINING Partial Solutions Diesel hybrids Still have combustion Battery electric, limited by: Range Cycle life Long charge times Aggressive thermal management needed Electric vehicle with tether Stationary diesel gensets with retractable tether Tether length Line voltage sag may required energy storage (ultra-capacitors) to stabilize wwww.hydrogenics.com 16 S2P1-8

Why Fuel Cells for Mining Workplace health: Improved Fueling: Production on site Refuel in minutes Increase productivity Emissions: No PM. PM directly impacts health. Heat reduction Noise reduced fuel cells are quiet! Increased productivity Vibrations Reduced Ventilation costs Reduced wwww.hydrogenics.com 17 Hydrogen & Mines Initiatives Raglan Mine, Que Batteries Li-ion 200kW Wind Turbine Fuel Cells 200kW Flywheel + + 250 kw 3 MW 16MW 25kV Mine Raglan wwww.hydrogenics.com 18 S2P1-9

Hydrogen & Mines Initiatives Potential Next Steps Sifto Salt Project (under discussion) Task 1 definition of diesel fleet operating baseline duty cycles ventilation criteria definition of utility vehicle power plant operation protocol underground hydrogen production, storage, refueling >Go/no go Task 2 regulatory review, requirements (mining, installation code, best practices) operating protocols >Go/no go Task 3 design and construction of utility vehicle prototype underground trials Task 4 comparison diesel vs hydrogen vehicle versions, energy, ventilation costs, safety, vehicle design wwww.hydrogenics.com 19 The world will not evolve past its current state of crisis by using the same thinking that created the situation. - ALBERT EINSTEIN Ryan Sookhoo Director New Initiatives rsookhoo@hydrogenics.com Toronto, 905 361 4589 wwww.hydrogenics.com 20 S2P1-10