Slide 1: Interim Results Presentation
INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS TO 31 ST OCT 2012
Slide 2: Contents
INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS TO 31 ST OCT 2012 Contents • Introduction • Product Platform • Market Entry • Energy Storage • Clean Fuel • Materials Handling • UK Developments • Results • Summary
Slide 3: Introduction
INTRODUCTION HYDROGEN ENERGY SYSTEMS FOR ENERGY STORAGE AND CLEAN FUEL PRODUCTION
Slide 4: Energy Storage: The Need
CLEAN FUEL | ENERGY STORAGE | RENEWABLE HEAT Three massive emerging markets Clean Fuel: • Largest global market • Fuel security a key political issue Clean Fuel Energy Storage: • Follows the deployment of renewables • Adds value to RE and balances the grid Renewable Heat: • Very difficult using any
Slide 5: Energy Storage: The Need
CLEAN FUEL | ENERGY STORAGE | RENEWABLE HEAT Wind Power Clean Fuel Grid Electrolyser Energy Storage Solar Power Renewable Heat ENERGY STORAGE: THE NEED HYDROGEN ENERGY SYSTEMS
Slide 6: Technology Partnerships
TECHNOLOGY PARTNERSHIPS Unique technology | Unique product offering • EcoIsland Refueller TSB • Phaedrus Refueller EU JTI • ElectroHyPEM EU JTI • IMPACT EU JTI • Fuel Cells Carbon Trust Power Conversion Control System Intelligence Wireless Phaedrus ElectroHyPEM ElectroHyPEM TECHNOLOGY PARTNERSHIPS H
Slide 7: Energy Storage Partnerships
ENERGY STORAGE PARTNERSHIPS Unique technology | Unique product offering • Rapid response electrolysis • Self pressurising electrolysis • Scalable and modular • Grid scale MW packaging Power Conversion Deployment Deployment Deployment Deployment Methanation Deployment ENERGY STORAGE PARTNERSHIPS HYDR
Slide 8: Clean Fuel Partnerships
CLEAN FUEL PARTNERSHIPS Unique technology | Unique product offering • Grid balancing payments lead to low cost hydrogen • Hydrogen ultra high purity • Dual 350bar & 700bar dispensing • Integrated CE market offering • UK H2Mobility reports 4th Feb; Phase 2: Deployment EcoIsland EcoIsland UKH2Mob UKH2
Slide 9: Product Platform
PRODUCT PLATFORM STACKS SYSTEMS TESTING
Slide 10: Stack Scale Up
STACK SCALE UP The stack is key to reliable scale up • 2009: HCore; 0.4kg/day • 2010: LAM1; 1.3kg/day • 2011: LAM2; 5.0kg/day • 2012: HGas; 25kg/day STACK SCALE UP ENERGY STORAGE | CLEAN FUEL
Slide 11: Stack Testing
STACK TESTING Solid technology platform • Intermittent operation • Durability and warranty • Technology advantage evidence STACK TESTING ENERGY STORAGE | CLEAN FUEL
Slide 12: Product Scale Up
PRODUCT SCALE UP Modularity enabled lower risk scale up & flexible offering • 2009: HBox; 0.4kg/day • 2010: HPac; 1.3-5kg/day • 2011: HFuel; 15-100kg/day • 2012: HInject; 400kg/day (1MW) PRODUCT SCALE UP ENERGY STORAGE | CLEAN FUEL
Slide 13: Market Entry
MARKET ENTRY HOST HPAC40 NOTTINGHAM CEA BOEING
Slide 14: Product Reference Plant: HFuel
PRODUCT REFERENCE PLANT HFuel and the HOST Trials • Significant exposure • 21 commercial partners • Trials throughout the UK & Germany • Permit to operate in Germany Resulted in: • EcoIsland • UKH2Mobility membership • M&S trial • Entry to materials handling market PRODUCT REFERENCE PLANT: HFUEL ENE
Slide 15: Product Reference Plant: HPac
HPAC PRODUCT REFERENCE Versatile modular platform for small scale fuel Air Fuel Synthesis • Hydrogen supply for liquid fuel synthesis EADS: Reference plant • Hydrogen supply for Energy & Propulsion laboratory Four further confidential “blue chip” deployments • Reference plant for larger orders PRODU
Slide 16: Product Reference Plant: UoN
PRODUCT REFERENCE PLANT Energy Technologies Building; UoN • First CE marked refueller installation • Expandable to 60kg/day • 350 bar refuelling platform PRODUCT REFERENCE PLANT: UON ENERGY STORAGE | CLEAN FUEL
Slide 17: Product Reference Plant: CEA
PRODUCT REFERENCE PLANT CEA: Grenoble, Europe’s largest research institute • First refueller coupled to renewable power • Reference plant for European sales • Reference plant for EU funding PRODUCT REFERENCE PLANT: CEA ENERGY STORAGE | CLEAN FUEL
Slide 18: Product Reference Plant: Boeing
PRODUCT REFERENCE: BOEING Boeing: Remote UAV refuelling station • First customer defined product • First off-grid deployment • An on-going product relationship • Leader in rapidly growing market • Reference for engineering excellence PRODUCT REFERENCE PLANT: BOEING ENERGY STORAGE | CLEAN FUEL
Slide 19: Learning
LEARNING Rapid learning in a rapidly developing market Technical: • Rapid design process • Scheduling production • Supply chain management • CE marking Commercial: • Pricing • Sales process & tender development • Terms: particularly warranty • After sales support package • Supporting bespoke require
Slide 20: Energy Storage
ENERGY STORAGE NEED MARKET POWER TO GAS
Slide 21: UK Wind | German Wind
UK WIND | GERMAN WIND Germany's wind power chaos should be a warning to the UK • 3,500 turbines in the UK produced 4GW (8%) • 23,500 turbines in Germany produced 31GW (27%) • 25th May 2012 Germany generated 22.4GW PV (30%) On Friday, September 14, just before 10am, Britain’s 3,500 wind turbines brok
Slide 22: Growing Wind Generation
GROWING WIND GENERATION • Evidence from Germany and Denmark • Problems start at 20% capacity; UK hits threshold from 2013 • Problems start at 8% energy; UK at 10% by the end of 2013 (DECC) 20% of peak capacity (60GW) in Winter 20% of peak capacity (40GW) in Summer ENERGY STORAGE: THE NEED HYDROGEN E
Slide 23: Markets | Size; Storage Technologies
MARKETS | SIZE IRR to 30% | Many $50bn • Adoption follows RE • Agree with 20% capacity threshold • Need for long term energy storage STORAGE TECHNOLOGIES MARKETS | SIZE
Slide 24: Power to Gas: Rationale
POWER TO GAS: RATIONALE POWER TO GAS: RATIONALE ENERGY STORAGE | CLEAN FUEL
Slide 25: Energy Storage Technologies
ENERGY STORAGE TECHNOLOGIES ENERGY STORAGE TECHNOLOGIES ENERGY STORAGE | CLEAN FUEL
Slide 26: Rapid Response PEM Electrolysis
RAPID RESPONSE PEM ELECTROLYSIS 25kg/day Stack | Scales to 1MW • On|Off 0-100% in 1 Second • Self pressurising up to 80 bar • 1MW in 20ft container 0.5MW Stack Configuration POWER TO GAS ENERGY STORAGE ENERGY STORAGE | CLEAN FUEL
Slide 27: 360kW Product: AEG Partnership
360KW PRODUCT: AEG PARTNERSHIP ENERGY STORAGE | CLEAN FUEL
Slide 28: HFuel Costs Today
Diesel Equivalent EU 2015 Target £1=€1.25 HFUEL COSTS TODAY ENERGY STORAGE | CLEAN FUEL
Slide 29: Clean Fuel
CLEAN FUEL UK MOBILITY US MOBILITY
Slide 30: UK H2Mobility Infrastructure Roll Out
UK H2MOBILITY The development of a national hydrogen plan • To determine the infrastructure investment required • 4 Gas companies; 6 Automotive OEM’s • DECC | BIS | DfT • Close follower | Germany leads the way • Phase 1 reports 4th Jan 2013 National H2Mobilty Projects INFRASTRUCTURE ROLL OUT ENERGY
Slide 31: USA | Steve Chu "I Was Wrong"
USA | STEVE CHU “I WAS WRONG” Major Californian Solicitation of $150m over 5yrs • $29m available per annum for 5yrs • Up to $3m per station 65% grant • ITM Power Inc. established in California • Bid with 2 local partners • Technology platform same as EcoIsland • Ready to bid in further USA solicitat
Slide 32: Fuel Cell Cars: Race to Market
FUEL CELL CARS: RACE TO MARKET Five of the big seven rewrite the rules: Jan 2013 • Hyundai 2012 • Toyota, BMW 2015 • Honda 2015 • Daimler, Renault-Nissan, Ford 2016 24th Jan: Toyota | BMW 28th Jan: Daimler | Ford | Nissan FUEL CELL CARS VEHICLES | ROLL OUT
Slide 33: Fuel Cell Cars: Race to Market
FUEL CELL CARS: RACE TO MARKET 1,000 production Hyundai FCEV in 2012; 10,000 per year from 2013 FUEL CELL CARS VEHICLES | ROLL OUT
Slide 34: Materials Handling
MATERIALS HANDLING PROPOSITION COMPLIANCE INTEGRATION MARKET
Slide 35: Business Development
BUSINESS DEVELOPMENT M&S Materials Handling Pilot Trial • First trial of its type in the UK • ITM supplied: • 4 Fuel Cells Systems | 3 PPTs | 1 reach truck | HFuel Rapidly growing early adoption market • Walmart | Coca-Cola | FedEx Owner Operator Vehicles Fuel Cells MATERIALS HANDLING ENERGY STORAGE
Slide 36: Proposition
PROPOSITION M&S Materials Handling Pilot Trial • Substitute battery for fuel cell system • 90 second refuel • Up to 18 hours run time • 100% power for complete shift MATERIALS HANDLING ENERGY STORAGE | CLEAN FUEL
Slide 37: Infintium Fuel Cell Systems
INFINTIUM FUEL CELL SYSTEMS ITM Power | Exclusive European Distributor • Enables complete ‘one stop’ offering | vehicles & refueller • New entrant in Europe; enables deals in the US • Vehicle number to quadruple by 2016 • Led by North America; large growth predicted for Europe MATERIALS HANDLING ENE
Slide 38: UK Developments
UK DEVELOPMENTS £9M TSB FUNDING 5 MAJOR PROJECTS ECOISLAND LHP | JTI
Slide 39: UK H2Mobility
UK H2MOBILITY The Technology Strategy Board £9m investment • Air Products: London Heathrow • BOC Linde: Swindon • SSE/BOC: Aberdeen • ITM Power: EcoIsland (Isle of Wight) • Dunsford Park: Dunsford Park • Ten on the map • Five new HRS funded • UKH2Mobility next UK INFRASTRUCTURE ROLL OUT ENERGY STORA
Slide 40: EcoIsland
ECOISLAND Hydrogen Energy Storage Smart Grid • £2.4m TSB consortium grant • First installations 100kg/day & 15kg/day refuellers • Fleet of 20 vehicles (HICE and FC) • Hydrogen energy storage system • Balancing supply and demand Power & Vehicles Control System Intelligence Wireless Vehicles Vehicles
Slide 41: London Hydrogen Partnership
Selected by the LHP as the 2013 partner • Funding the ITM Power 2013 JTI submission (£20k) • 50 Fuel Cell Electric Vehicles from 3 OEMs • 3 refuelling stations • Backing from the Mayors office LONDON HYDROGEN PARTNERSHIP ENERGY STORAGE | CLEAN FUEL
Slide 42: Five Commercial Pipelines
FIVE COMMERCIAL PIPELINES UAV: Rapidly expanding civilian UAV market Pipeline: Engaged with 3 of top 5 aerospace companies MHV: Early adoption market for fuel cells and hydrogen Pipeline: Engaged with 6 of the top 10 UK retailers UKH2Mobility: Roll out of hydrogen infrastructure in UK Pipeline: Enga
Slide 43: Progress
PROGRESS UAV: First unit Factory Acceptance Tested Pipeline: Second project defined with Boeing MHV: CE mark achieved for Infintium unit Pipeline: Major Hannover demonstration UKH2Mobility: Reports on 4th Feb 2013 Pipeline: Selected by the LHP for 2013 JTI call Germany: Tenders issued Pipeline: Enga
Slide 44: Results
RESULTS GRANTS PRODUCT SALES COSTS SUMMARY
Slide 45: H1 2013 Results
H1 2013 RESULTS Financials • Product orders of £0.36m (£0.43m) • Order book since the period continues to develop • Net cash-burn of £3.9m (£3.2m) • Cash at 31 October 2012 £8.0m (£6.6m 30.04.12) • £0.26m recognised in grant income (£0.27m) • A further £3.2m in grant funding secured/in negotiation
Slide 46: Revenue: Grant Funding Snapshot
REVENUE: GRANT FUNDING SNAPSHOT Grant funded projects deliver on a number of levels For year ending April 30th 2012 • £0.98m paid or secured £3,500,000 £3,000,000 For year ending April 30th 2013 • £1.5m paid or secured £2,500,000 Applied For £2,000,000 For the period to 2015 Negotiation • £3.2m secu
Slide 47: Grant Scheme Finances
GRANT SCHEME FINANCES Grant funded project assumptions • Charge a depreciation rate on existing equipment • Overhead rate of 94% • Grants are audited Average Intervention Rate 70% 60% 50% 40% 30% Average Intervention Rate 20% 10% 0% 2010 2011 2012 2013 2014 2015 2016 REVENUE: GRANT SCHEME FINANCES E
Slide 48: Costs: Resource Allocation
COSTS: RESOURCE ALLOCATION Emphasis on sales, marketing & grant resource 80 Number of staff 70 60 Manufacturing and Engineering 50 Research and Testing Marketing & PR 40 Grants Finance 30 Directors and Administration 20 10 0 2009 2010 2011 2012 2013 RESOURCE ALLOCATION ENERGY STORAGE | CLEAN FUEL
Slide 49: Summary
INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS TO 31 ST OCT 2012 Summary • Robust technology platform • Product portfolio is complete • Grant projects are paid for business development • Outright sales include a 1 – 2 year sales cycle • Engaged in all target markets Clean Fuel | Energy Storage | Re
Slide 50: Interim Results Presentation
INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS TO 31 ST OCT 2012