Itm Power Plc · LSE:ITM
Itm Power — Non-Deal Roadshow (April 2011)
53 slides from Itm Power's roadshow presentation, April 2011
Slide 1: ITM Power plc Investor Roadshow, April 2011
ITM Power plc Investor Roadshow, April 2011 Dr Graham Cooley, CEO and Barry Cunliffe, CFO ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 2: Contents
ITM Power plc Investor Roadshow, April 2011 Dr Graham Cooley, CEO and Barry Cunliffe, CFO Contents Products and Commercialization The Case for Energy Storage The Case for Clean Fuel Fuel Economics The Market for HFuel Interim Results Outlook ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Pr
Slide 3: Company Positioning
Company Positioning Energy Storage | Clean Fuel Essential Technology & Systems • Harnessing Renewable Energy • Producing Green Hydrogen • Regeneration of Power • A Zero Carbon Footprint Fuel ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 4: Product and Market Strategy
Product and Market Strategy Market Entry Strategy Building New Markets Positioned for the Big Win • Small Electrolyser products • Energy Storage • Clean fuel • Existing markets • Hydrogen Energy Systems • Partner trials for HFuel • Head to head competition • Articulate new offerings • Develop home r
Slide 5: Market Entry Products
Market Entry Products ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 6: CE Marking
CE Marking Strategy and Current Status Documented evidence of compliance to the relevant directives • Prioritised HPac (>3,500 hours system operation) • HBox and HFlame in a more rapid follow-on process • Progress on HLab has been temporarily suspended to prioritise others ITM POWER | Final ITM POWE
Slide 7: Company Positioning
Company Positioning Key Component in the Hydrogen Supply Chain A low cost, high efficiency membrane • 70% efficiency • Blah • Blah ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 8: ITM POWER | Final Results Roadshow,
ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 9: ITM POWER | Final Results Roadshow,
ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 10: HPac Market Offering
HPac Market Offering HPac10 Manufacturing Partnership with Tharsus • Well respected company • Many blue chip partners • From bespoke to batch production • High volume capability • Coherent manufacturing approach ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2
Slide 11: Hannover 2011
Hannover 2011 ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 12: Hannover 2011
Hannover 2011 Market Entry Germany is the early adoption market • Phil Doran appointed as Agent • CE marked products • Pricing given to customers via written quotation on enquiry ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 13: Hannover 2011
Hannover 2011 Market Entry Germany is the early adoption market • Phil Doran appointed as Agent • CE marked products • Pricing given to customers via written quotation on enquiry ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 14: Product and Market Strategy
Product and Market Strategy Market Entry Strategy Building New Markets Positioned for the Big Win • Small Electrolyser products • Energy Storage • Clean fuel • Existing markets • Hydrogen Energy Systems • Partner trials for HFuel • Head to head competition • Articulate new offerings • Develop home r
Slide 15: The Case for Energy Storage
The Case for Energy Storage ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 16: Company Positioning
Company Positioning Energy Storage Production and Consumption are dynamically coupled • Sub second response • Energy storage today is from the inertia in bid rotating plant • Intermittent renewable power makes the situation worse • Energy storage is key ITM POWER | Final ITM POWER ResultsRoadshow, |
Slide 17: UK Electricity Demand
UK Electricity Demand Demand varies daily, weekly, seasonally: • Winter peak is 60 GW • Base load plant • Mid merit plant • Peaking plant Data from National Grid ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 18: UK Load Duration Curve
UK Load Duration Curve Plant utilisation over time: • Huge utilisation of inefficient plant • 40% fully utilised Peak Mid-merit Base load Data from National Grid ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 19: Bulk Commodity Storage
Bulk Commodity Storage Shifting the peaks to fill the troughs: • Turns mid merit in base load • Reduces the need for peaking • Increases system efficiency • Day night arbitrage! Data from National Grid ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 20: Bulk Commodity Storage
Bulk Commodity Storage Shifting the peaks to fill the troughs: • Turns mid merit in base load • Reduces the need for peaking • Increases system efficiency • Day night arbitrage! The Balancing Mechanism Reporting System (BMRS) The BMRS website provides near real time and historic data about the Balan
Slide 21: UK Electricity Demand
UK Electricity Demand Adding Intermittent Power: • Need take or break decisions • Undermines Base load • Increased need for spinning reserve • Pushes you back down merit order Data from National Grid ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 22: UK Generation
UK Generation CO2 targets to be met by power & heavy industry: • 16% reduction in GG emissions by 2020 • 31% renewable generation by 2020 • This cannot be achieved without energy storage! ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 23: Renewable Energy Management
Renewable Energy Management Wind Energy: The UK A plentiful resource? • Best Wind resources in Europe • Entering Phase Three of construction in UK • Onshore capacity factor 30%, offshore 40% ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 24: Renewable Energy Management
Renewable Energy Management Wind Energy: The Case for Denmark Study by CEPOS Sept 2009 • 20% of its generating capacity is wind • Only 5% of demand is met by wind • Negative electricity prices • 50% is exported • Sweden and Norway used as energy storage ITM POWER | Final ITM POWER ResultsRoadshow, |
Slide 25: Storing Renewable Energy
Storing Renewable Energy ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 26: Supply Chain Logistics
Supply Chain Logistics Adding energy storage to the logistics: • Five elements are dynamically balanced • Adding energy storage would lead to: • New business models • New service strategies • New pricing structures ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Ap
Slide 27: Summary
Summary: Energy storage offers: • Improve operational efficiency • Integrate intermittent renewables • Support base load nuclear • Join the dots between power & energy • Decarbonisation However: • Many technologies are unproven • Cost targets are difficult to define • Engineering scale poses a techn
Slide 28: Sector Export
Sector Export ITMITM POWER ITM POWER| Final POWER Results | Investor | From Presentation, Roadshow, intermittent Apr power 30 to2011July 2010 a transport fuel
Slide 29: Hydrogen Energy Storage
Hydrogen Energy Storage What's the Solution? Hydrogen made from renewable power • Via the grid as a demand side managed load • Direct coupling to renewables • Joined up thinking between the Power & Transport sectors ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 A
Slide 30: Power Sector Export
Power Sector Export Dumping power to high value applications Supply/Demand mismatch can be alleviated by exporting power • Power in | Power Out (Conventional Energy Storage) • Power in | Fuel Out (Sector Export Energy Storage) $)'&"" #%$ %%##(( ITM POWER | Final ITM POWER ResultsRoadshow, | Investor
Slide 31: Power Sector Export
Power Sector Export Dumping power to high value applications Supply/Demand mismatch can be alleviated by exporting power • Power in | Power Out (Conventional Energy Storage) • Power in | Fuel Out (Sector Export Energy Storage) " &+)($$ %'& '' %%*!* ITM POWER | Final ITM POWER ResultsRoadshow, | Inve
Slide 32: System Cost Analysis
System Cost Analysis HFuel System Costs A lifetime systems cost model • Both capital and energy costs influence • Units of 50kg/day or above have best economics • Currently produces Hydrogen from £3.24 to £0.79/Litre petrol equivalent • Strongly dependent on the electricity price • Electricity price
Slide 33: System Cost Analysis
System Cost Analysis HFuel System Costs A lifetime systems cost model • Both capital and energy costs influence • Units of 50kg/day or above have best economics ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 34: System Cost Analysis
System Cost Analysis HFuel System Costs Based on 50Kg/day target • Strongly dependent on the electricity price • Electricity prices may be negative, reflecting demand side services ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 35: The Market for Hydrogen
The Market for Hydrogen Hydrogen Market Existing prices vary depending on purity and quantity • High purity: Research, analytical, semiconductor & industrial • Industrial: Alternator cooling, float glass manufacture, sintering • Bulk Industrial: Methanol & ammonia synthesis High Purity Industrial Bu
Slide 36: The Market for Hydrogen
The Market for Hydrogen Global Fuel Markets Fuel demand curve is log/log • $1000/gallon for diesel by helicopter • 2.3 cents/gallon heavily subsidised fuel in Venezuela Military Fuel Remote Industrial Automotive Islands Subsidised Automotive ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Pr
Slide 37: The Market for Hydrogen
The Market for Hydrogen Global Fuel Markets Fuel demand curve is log/log • $1000/gallon for diesel by helicopter • 2.3 cents/gallon heavily subsidised fuel in Venezuela Military Fuel Remote Industrial Automotive Islands Subsidised Automotive ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Pr
Slide 38: Global Petrol Prices (Nov 2010)
Global Petrol Prices (Nov 2010) Global Fuel Markets Four major country categories • Cat 1: Highly Subsidised • Cat 2: Subsidised • Cat 3: Fuel Tax • Cat 4: High Fuel Tax • Access markets above $1.26/L ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011 Source:
Slide 39: Global Petrol Prices (Nov 2010)
Global Petrol Prices (Nov 2010) Global Fuel Markets Four major country categories • Cat 1: Highly Subsidised • Cat 2: Subsidised • Cat 3: Fuel Tax • Cat 4: High Fuel Tax • Access markets above $1.26/L Source: German Technical Corporation ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presen
Slide 40: The Market for Hydrogen Fuel
The Market for Hydrogen Fuel ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 41: Hydrogen Fuel Cell Electric Vehicles
Hydrogen Fuel Cell Electric Vehicles Hybrid EV EV and Hydrogen Cars Hydrogen vehicles are EV’s but with some significant advantages: • Refuelling time (3mins) • Range of over 400 miles • Well to wheel efficiency • Grid demand side management Hydrogen Vehicle ITM POWER | Final ITM POWER ResultsRoadsh
Slide 42: Hydrogen Fuel Cell Electric Vehicles
Hydrogen Fuel Cell Electric Vehicles Well to Wheel Emissions DoE analysis agrees with the major car companies • Hydrogen from centralised wind • On site hydrogen even better • “A triple zero fuel” ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 43: Hydrogen Refuelling | Market Developments
Hydrogen Refuelling | Market Developments Japan, US & Germany Adopt Hydrogen Toyota, Honda and Nissan join forces to promote hydrogen • Total of 100 hydrogen refuelling stations planned in Japan • 1000 refuelling stations in Germany in 4yrs ($2.6bn) • 150 planned in California (30 already built) ITM
Slide 44: Hydrogen Refuelling | Market Developments
Hydrogen Refuelling | Market Developments ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 45: Hydrogen Fuel Cell Electric Vehicles
Hydrogen Fuel Cell Electric Vehicles Hydrogen Vehicles Serious traction envisaged around 2015 • Air quality may drive early adoption • Commercial fleet early adoption • Return to base refuelling • Perfect for embedded electrolysis ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation,
Slide 46: Hydrogen Fuel Cell Electric Vehicles
Hydrogen Fuel Cell Electric Vehicles Return to Base Early adoption from commercial fleets • Scheduled routes • Sophisticated fuel procurement • Sophisticated environmental impact models • Carbon footprint targets • Air quality targets ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentat
Slide 47: Funded Product Development Projects
Funded Product Development Projects ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 48: Hydrogen Refuelling | Green Hydrogen
Hydrogen Refuelling | Green Hydrogen What's the Solution? Hydrogen made from renewable power • Replaces a revenue cost with a capital item • Reduces the need for fossil fuels • Decarbonises transport • Improves air quality • A demand side managed load ITM POWER | Final ITM POWER ResultsRoadshow, | I
Slide 49: HOST | Partners
HOST | Partners Hydrogen on Site Trials Trials to establish commercial benefits and environmental impact models ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 50: ITM Power plc Interim Results
ITM Power plc Interim Results 20th Jan 2011 ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 51: Interim Financial Results to Oct 2010
Interim Financial Results to 31 Oct 2010 Financial Highlights • Pre-tax loss down to £3.0m from £3.4m • Period end cash balance £14.7m • Cash burn in period £2.2m • Investment in fixed assets £478k, including HFuel £343k H2 2011 Focus • Maximise expenditure control • Maximise automated transactions
Slide 52: Grant Funding
Grant Funding Grants to Year End 30 April 2011 To develop commercial relationships and reduce burn rate • Target £700k • £1m achieved • Targeting larger EU & US grants ITM POWER | Final ITM POWER ResultsRoadshow, | Investor Presentation, 30 July 2010 Apr 2011
Slide 53: Summary
Summary • Renewable power needs energy storage • Sector export a great solution • Transport is a large enough sector • Green hydrogen is a zero carbon footprint fuel • Early adoption is from commercial fleet operators • HOST trials to establish economics and business models ITM POWER | Final ITM POW