Slide 1: Q3 - NEL ASA Company presentation, November 2014
Q3 - NEL ASA Q3 - Company presentation, November 2014
Slide 2: Presentation Outline
PRESENTATION OUTLINE Condensed Interim Financial Statement NEL Hydrogen at a glance Our technology and current business The game changer: Hydrogen as energy carrier Our value proposition
Slide 3: Condensed Interim Financial Statement
Condensed Interim Financial Statement
Slide 4: NEL Hydrogen AS Income statement and Balance sheet
NEL Hydrogen AS Income statement Balance sheet QO NEL HYDROGEN 2014 2014 (figures NOK thousands) Q3 9M Total operating revenue 19 068 57259 Total operating costs 13 983 42 866 Operating profit (loss) 5085 14393 Net financial income (expense) -17 -17 Pre-tax profit (loss) 5048 14376 2014 (figures NOK
Slide 5: Presentation Outline
PRESENTATION OUTLINE Condensed Interim Financial Statement NEL Hydrogen at a glance Our technology and current business The game changer: Hydrogen as energy carrier Our value proposition
Slide 6: This is NEL Hydrogen
THIS IS NEL HYDROGEN • Supplier of solutions for hydrogen generation • Roots date back to 1927 (Norsk Hydro) • In-house technology with superior energy efficiency • Over 500 electrolyser units sold; over 100 in operation • Production facility in Notodden, corporate office in Oslo, Norway • Listed on
Slide 7: Local roots, global presence
LOCAL ROOTS, GLOBAL PRESENCE Notodden, Norway Manufacturing After sales Testing center > 20 employees < Main office Local sales representatives Countries with installed NEL Hydrogen electrolysers
Slide 8: Ingredients… Pure Energy & Pure Water
INGREDIENTS… PURE ENERGY & PURE WATER
Slide 9: Hydrogen - a market in transition
HYDROGEN - A MARKET IN TRANSITION: TODAY: Hydrogen used as an input to TOMORROW: Hydrogen used as an energy carrier in industrial applications the energy system Industrial input Energy carrier Traditional industry Renewable industry Energy Storage Hydrogen fuel
Slide 10: Industries we serve
INDUSTRIES WE SERVE: Hydrogen as industrial input factor Feedstock Protective atmosphere Cooling medium Function Chemicals/ refining Metals Float glass Industries Edible oils Thermal power plants Electronics Renewable industry - polysilicon
Slide 11: Market for hydrogen is growing
MARKET FOR HYDROGEN IS GROWING Million tonnes 100 • 78% reforming, 18% gasification, 90 90 4% electrolysis +7.7% 80 CAGR 70 +5.0% • ~1% is from water electrolysers today CAGR 62 60 56 59 51 53 50 • Cumulatieve growth within energy 40 segment until 2030: from ~100 MW to 30 5 GW* 20 10 0 2009 2010 201
Slide 12: Presentation Outline
PRESENTATION OUTLINE Condensed Interim Financial Statement NEL Hydrogen at a glance Our technology and current business The game changer: Hydrogen as energy carrier Our value proposition
Slide 13: Lowering the carbon footprint
LOWERING THE CARBON FOOTPRINT
Slide 14: Our 3 advantages
OUR 3 ADVANTAGES Efficient Robust Large
Slide 15: 1 Efficient
1 EFFICIENT • NEL has currently the most energy efficient water electrolyser in the market (3 – 15% better than competitors)* • High efficiency due to design & non-patented active coating *EU-report, 2014: Development of Water Electrolysis in the European Union
Slide 16: 2 Robust
2 ROBUST • Basis from 87 years of experience • Uncomplicated and reliable operation • Low need for maintenance shutdowns • Cell stack replacement after 7 years, system lifetime 30+ years
Slide 17: 3 Large - superior scalability
3 LARGE - SUPERIOR SCALABILITY • By increasing plant size from 250kW to 2,5MW, capex for production capacity reduced by >60%.
Slide 18: How we serve today's industry market
HOW WE SERVE TODAY’S INDUSTRY MARKET Procurement/ Engineering Installation Commissioning Aftermarket manufacturing • Tailor-made • Cell stacks based • Contractor • NEL assures • Replacement plant design NEL technology installation plant operates of cell stack according to with 7 year • Manufactured
Slide 19: New product for new markets
NEW PRODUCT FOR NEW MARKETS Pressurized electrolyser Pilot stage • Pressurized electrolyser – currently developed at 60 Nm3/h • Increasing market share & entering new markets • Higher operation flexibility and smaller footprint
Slide 20: Presentation Outline
PRESENTATION OUTLINE Condensed Interim Financial Statement NEL Hydrogen at a glance Our technology and current business The game changer: Hydrogen as energy carrier Our value proposition
Slide 21: Hydrogen as an energy carrier
HYDROGEN AS AN ENERGY CARRIER Water Electrolysis O2 Fuel cell Hydrogen Power-to-gas and other uses
Slide 22: Growth in renewable energy
GROWTH IN RENEWABLE ENERGY Electricity generation from wind/solar (GW) Offshore wind • 40% of renewable electricity in 2020 1 034 Onshore wind Solar 947 +12,4% 863 from wind and solar (27% in 2013; EIA) 780 701 • Cost competitive with conventional 538 621 electricity generation in many 456 locations
Slide 23: The challenge of renewables
@ NEL THE CHALLENGE OF RENEWABLES
Slide 24: Intermittancy
INTERMITTANCY 25.000 [MW] 734 GWh 20.000 Excess 15.000 10.000 Deficit 5.000 0 10 days wind power (2007) consumption estimated wind power 2030 (3 x 2007) Source: U.Bünger, NTNU/LBST, E.ON
Slide 25: How to store 734 GWh?
HOW TO STORE 734 GWh? 25.000 [MW] Hydrogen salt cavern 734 GWh Pumped Hydro (Germany total 40 GWh) 20.000 Excess 15.000 10.000 Deficit Pumped Hydro (Goldisthal 8.48 GWh) 5.000 Compressed Air Energy Storage: Huntorf 0.66 GWh 0 consumption estimated wind power 2030 (3 x 2007) Source: U.Bünger, NTNU/LB
Slide 26: 734 GWh stored in BEVs
734 GWh STORED IN BEVs 8,600,000 Tesla Model S P85 30,500,000 Nissan Leaf
Slide 27: 734 GWh stored in BEVs (50% discharge)
734 GWh STORED IN BEVs (50% DISCHARGE) 17,200,000 Tesla Model S P85 61,000,000 Nissan Leaf
Slide 28: Energy storage options
ENERGY STORAGE OPTIONS Source: www.renewableenergyworld.com
Slide 29: Power... to gas
QO NEL HYDROGEN POWER... TO GAS 29
Slide 30: Power-to-gas, main considerations
POWER-TO-GAS, MAIN CONSIDERATIONS: • ELECTRICITY PRICE • GRID BALANCING SERVICES • HYDROGEN – FOR FUEL – INJECTED INTO GAS GRID • RE-ELECTRIFICATION • METHANATION – TO VEHICLES – INJECTED INTO GAS GRID • HEAT FOR CENTRAL HEATING GRID Source: http://www.powertogas.info/power-to-gas/interaktive-projek
Slide 31: The fuel of the future, available today
THE FUEL OF THE FUTURE, AVAILABLE TODAY
Slide 32: Do we need hydrogen vehicles?
DO WE NEED HYDROGEN VEHICLES? 50% OF 50% OF VEHICLES VEHICLES 25% OF 75% OF EMISSIONS EMISSIONS Source: Toyota Motor Corporation & Report: A portfolio of Powertrains for Europe
Slide 33: They are just like the cars of today
…”THEY ARE JUST LIKE THE CARS OF TODAY” • FCEV: Fuel Cell Electric Vehicle • Range: 600+ km 1 kg H2 = 100 km • Energy content: 3 x gasoline (weight) • Conversion efficiency: 60 vs 20% for internal combustion engine • Refueling time: 3 – 4 minutes • No limitations on vehicle size • Low impact on rang
Slide 34: FCEV are being introduced now
FCEV ARE BEING INTRODUCED NOW
Slide 35: Toyota official launch: April 2015
TOYOTA OFFICIAL LAUNCH: APRIL 2015 The need for an alternative to fossil fuel is real. And in time, hydrogen will be our most sustainable option. Not only because hydrogen can be produced from renewables like solar and wind but also because the only emission from the tailpipe is water vapor. So what
Slide 36: Hydrogen refueling stations
HYDROGEN REFUELING STATIONS
Slide 37: Forecast of growth in FCEVs and HRS
FORECAST OF GROWTH IN FCEVs AND HRS 1.2 mill. FCEV = fuel cell electric vehicle HRS = hydrogen refueling station 2 600 North America 1 987 Europe Asia Pacific 1 605 43% p.a. Asia Pacific 1 223 FCEV commercialization 842 460 Western Europe 310 240 270 50 000 174 194 212 157 126 96 North America 2006
Slide 38: Business case of running a HRS
BUSINESS CASE OF RUNNING A HRS: Trucked in reformed natural gas • Use case costs include refuelling station costs, compression, storage, and distribution as appropriate – electricity price: ~50 €/MWh Source: EU-report, 2014: Development of Water Electrolysis in the European Union
Slide 39: Oslo & Akershus hydrogen strategy
OSLO & AKERSHUS HYDROGEN STRATEGY Ensuring commercial introduction of hydrogen in the Oslo-region. • 2014 – 2018: 400 MNOK (high public funding: Oslo/Akershus/Transnova/EU) • 2019 – 2025: 1000 MNOK (gradually lower public funding) • EU’s hydrogen program: 1.4 B€ until 2020 • Infrastructure going for
Slide 40: HRS-experience in NEL
HRS-EXPERIENCE IN NEL: NEL HRS DELIVERIES: • Reykjavík, Iceland • Hamburg & Berlin, Germany STATOIL & HYDRO: • Porsgrunn, Kjellstad & Økern, Norway HRS-technology from Statoil & Hydro now owned by NEL.
Slide 41: Presentation Outline
PRESENTATION OUTLINE Condensed Interim Financial Statement NEL Hydrogen at a glance Our technology and current business The game changer: Hydrogen as energy carrier Our value proposition
Slide 42: Our value proposition
OUR VALUE PROPOSITION Unique electrolyser o Non-patented active coating technology Superior energy o 3 - 15% more efficient than competitors* efficiency Design and o Flexible design & competitive systems from 500 kW – multi-MW scalability Quality and o High regularity & long lifetime reliability Gre
Slide 43: Appendix
Appendix
Slide 44: What is Electrolysis?
WHAT IS “ELECTROLYSIS”? Electrolysis is the process of splitting water into hydrogen and oxygen using an electrical current. The inputs to this process are simply feed water and electrical power. Below a schematic of a typical hydrogen generation plant is seen:
Slide 45: Our customer reference list
OUR CUSTOMER REFERENCE LIST AkzoNobel —™—™ GEENOORE ll ArcelorMittal > « eon ~“™ ALSTOM c=, “~~ GUARDIAN ncttie erate | AGA pyamucuwe] SUAREIAN Os witli ne a eee Fa Borregaard YARAPRAXAIR a Reteerre>} ISERDROLA VATTENFALL = a ]@ J MIFRMT warcer Cargill rn sis AW EHYQRA = BESLER. (ASA €> PILKINGTON t
Slide 46: Market outlook: water electrolysis
MARKET OUTLOOK: WATER ELECTROLYSIS Source: EU-report, 2014: Development of Water Electrolysis in the European Union
Slide 47: Management & contact details
MANAGEMENT & CONTACT DETAILS Management Lars Markus Solheim Erik Evju CEO Director, Finance With NEL Hydrogen since 2005 With NEL Hydrogen since 1994 Long experience from employment Education: Bank, insurance and in NEL, with previous positions as business administration from Contact details
Slide 48: Power-to-gas (more in-depth)
POWER-TO-GAS (more in-depth) EXPORT PRODUCTION INTERMITTENT IMPORT PUMPED HYDRO RENEWABLES ELECTRICITY GRID BATTERY ELECTRIC VEHICLES POWER/HEAT- HYDROGEN- FUEL CELL ELECTRIC VEHICLES PRODUCTION PRODUCTION HYDROGEN Increases biogas potential CENTRAL BIOGAS / OTHER BIOFUEL / SNG HEATING CO2 SOURCE GA
Slide 49: P2G: Efficient alternative to batteries
P2G: EFFICIENT ALTERNATIVE TO BATTERIES • For large scale energy storage, power-to-gas (P2G) is the most attractive pathway • P2G in brief: conversion of electricity to gas • Electrolysers are the key component of P2G- systems • NEL Hydrogen is well positioned to be part of this growth – Superior la
Slide 50: NEL A - Technical specifications
NEL A - TECHNICAL SPECIFICATIONS
Slide 51: Illovo Sugar SA Ltd
CASE STUDY(1): ILLOVO SUGAR SA Ltd COMPANY Illovo Sugar SA Ltd “The original electrolyser is still in COUNTRY South Africa operation today and is extremely reliable. It runs at full capacity 24 PRODUCT NEL A•485 hours a day. No significant CAPACITY 360 Nm3/hour maintenance is required” APPLICATION R
Slide 52: Guardian – Egyptian Glass Co.
CASE STUDY(2) GUARDIAN – EGYPTIAN GLASS CO. COMPANY Guardian – Egyptian Glass Company “Since the start-up of the plant COUNTRY Egypt in May 1998, we have enjoyed a stable production with high gas PRODUCT NEL A•150 purity, without any problems CAPACITY 120 Nm3/hour whatsoever” APPLICATION Float Glass
Slide 53: Industrias de Aceite Fino S.A.
CASE STUDY (3) INDUSTRIAS DE ACEITE FINO S.A. COMPANY Industria de Aceite FINO S.A. “The refurbished electrolyser works perfect for us. It is very easy and COUNTRY Bolivia safe in operation. In addition we PRODUCT NEL A•300 have made significant savings in our energy costs with this CAPACITY 300 Nm3
Slide 54: Hydrogen for polysilicon industry
CASE STUDY (4) HYDROGEN FOR POLYSILICON INDUSTRY