H-power Plc · LSE:HPOW
H-power — AFC Energy — Investor Day (May 2024)
83 slides from H-power's investor day presentation, May 8, 2024
Slide 1: Displacing Diesel
Displacing Diesel AFC Energy Capital Markets Day 8th May 2024
Slide 2: Disclaimer
Disclaimer These presentation slides and the accompanying verbal presentation (the “Presentation Materials”) do not constitute or form part of any offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities. While all reasonable care has been taken to ensu
Slide 3: Welcome – Gary Bullard (Chair)
Welcome – Gary Bullard (Chair) 3
Slide 4: Strategic Overview – Adam Bond (CEO)
Strategic Overview – Adam Bond (CEO) 4
Slide 5: Agenda
Agenda Welcome Gary Bullard (Chair) Strategic Overview Adam Bond (CEO) Dan Evans (CEO – Speedy Hire) Rami Elayan (CEO – TAMGO) H-Power Generator Scaling Up Dr. David Harvey (CTO – Fuel Cells) Benedikt Eska (CEO – Axiosus) Jeff Plato (President – Illuming Power) Organisational Readiness to Scale Pete
Slide 6: Greenhouse Emissions Continue to Rise
Greenhouse Emissions Continue to Rise … Data source: Global Carbon Budget (2023) CO₂ emissions - Our World in Data 6
Slide 7: UK Sectors Most Impacted by Diesel
UK Sectors Most Impacted by Diesel Source: https://assets.publishing.service.gov.uk/media/63ef4143d3bf7f62ef2b17e8/red-diesel- replacement-phase-2-competition-webinar-20230125.pdf 7
Slide 8: Central London (Barbican) Case Study: April 2024
Central London (Barbican) Case Study: April 2024 Assuming: • 1Megawatt diesel generator operates 10 hrs per day • 5 days per week / 52 weeks a year • 50% load • 0.79 Metric Tonnes of CO2 per Megawatt Hour * 1,027 tonnes of CO2 per annum Not taking into account NOx, particulate matter, noise and smel
Slide 9: Central London (Barbican) Case Study: April 2024
Central London (Barbican) Case Study: April 2024 Putting 1,027 tonnes of CO2 per annum into context: “At atmospheric pressure, 1 tonne of CO2 has the same volume as about a hot air balloon” Speech: “UK Opportunities in Carbon Capture: Spectator Energy Summit” Energy Security Secretary Grant Shapps:
Slide 10: Central London (Barbican) Case Study: April 2024
Central London (Barbican) Case Study: April 2024 Fast Forward 2 Weeks … Site operator placed explanation of fuel choice on site of generator … however, HVO isn’t without its challenges as a transitionary fuel … 10
Slide 11: Hydrotreated Vegetable Oil (HVO) – A Short Term Alternative?
Hydrotreated Vegetable Oil (HVO) – A Short Term Alternative? Environment Agency (2022) Balfour Beatty HVO Position Paper (2022) Source:https://www.theconstructionindex.co.uk/news/vi Source: https://www.balfourbeatty.com/media/3bulxfbs/hvo-positioning-paper.pdf ew/environment-agency-puts-blocks-on-hv
Slide 12: What Are the Alternatives to Diesel Generators?
What Are the Alternatives to Diesel Generators? Zero Emissions Footprint Generates Power 24/7 Power Sustainable Fuel Solar Wind Battery N/A HVO H-Power Generator 12
Slide 13: UK Construction Projects Displacing Diesel This Decade
UK Construction Projects Displacing Diesel This Decade HS2 Lower Thames Crossing Source: https://www.constructionenquirer.com/2023/07/10/lower-thames-crossing-to-lead- Source:https://assets.publishing.service.gov.uk/media/638e0da5d3bf7f3289092f73/26234_HS2_DieselFreeP lan_CS1763a_Artworked_final_web
Slide 14: Construction Market Already Moving to Net Zero
Construction Market Already Moving to Net Zero Solar Lighting Towers (1.4kW) Battery Storage (45kWh) Battery / H2 Powered Access 1kW FC 14
Slide 15: Our Purpose: Displacing Diesel
Our Purpose: Displacing Diesel Off-Grid Generation Today Off-Grid Generation Tomorrow H2 Diesel Ammonia / Methanol Zero CO2 emissions from AFC Energy H-Power generators 15
Slide 16: What We Have Achieved in Three Years
What We Have Achieved in Three Years Tech Acceleration | 2021-22 Commercial Traction | 2022-23 Scaling Up | 2023+ First S Series Air First S+ Series Speedy Hydrogen TAMGO Distribution Component Suppliers across Scale Up of Pilot Cooled Stack Liquid Cooled Stack Solutions Agreement - MENA 14,000 Part
Slide 17: H-Power Generator Platforms
H-Power Generator Platforms Two fuel cell technologies deliver full range of generators from 10kW to 500kW S Series S+ Series 10kW 50kW 100kW 500kW Air Cooled Fuel Cell Module Liquid Cooled Fuel Cell Module 17
Slide 18: Two Fuel Cell Technologies – Global Markets
Two Fuel Cell Technologies – 6 Global Markets Barriers to Entry Focus on construction today enables: Low Construction • Rapid market penetration • Reflects current industry “pain point” • International market with immediate scale EV Charging • Scale brings down cost Temporary power • Reduces technol
Slide 19: Two Key Routes to Market – H-Power Generator
Two Key Routes to Market – H-Power Generator Equipment Hire Dealership • Large equipment hire companies hold > 5,000 gensets • International distributors already in place • Supports scale – drives down price • Case Study: Caterpillar, world’s largest generator • Logistics and customer base to suppor
Slide 20: ry (XC Energy
ry (XC Energy
Slide 21: Speedy Hydrogen Solutions
Speedy Hydrogen Solutions Speedy Hydrogen Solutions a 50:50 Joint Venture between Speedy Hire and AFC Energy Exclusive hire of AFC Energy H-Power Generators across UK and Ireland for initial 3 years AFC Energy: Sells generators to the JV Facilitates Hydrogen sales Provides technical and regulatory s
Slide 22: Speedy Hydrogen Solutions – Dan Evans CEO Speedy Hire
Speedy Hydrogen Solutions – Dan Evans CEO Speedy Hire 22
Slide 23: Speedy Hire
FY coy, oy — = speedyhire.com
Slide 24: Speedy Hire at a glance FY23
Speedy Hire at a glance FY23 Speedy Hire is the UK and Ireland’s leading provider of tools, specialist equipment and services. We provide exceptional customer experience, accelerating collective success towards a sustainable future To inspire and innovate the future of hire and accelerate sustainabl
Slide 25: Velocity – Our growth strategy
Velocity – Our growth strategy
Slide 26: Launching our Velocity Strategy
Launching our Velocity Strategy Launched at our Capital Markets day 11 July 2023 at our National Innovation Centre in Milton Keynes, our A+ Energy Performance Certificate (EPC) state of the art facility which is now carbon negative Products General • Nifty product launch • Service centre and logisti
Slide 27: Transforming Speedy Hire
Transforming Speedy Hire We are building a digital and data led business to step change our efficiency and power our growth. We have mobilised a group-wide transformation programme to deliver the technical and operational changes required to establish our future platform. Digitally and data driven…
Slide 28: Industry leading ESG
Industry leading ESG The Decade to Deliver - A Hire Revolution: Inspiring People to make Hire their First Choice Accelerating Innovation Climate Solutions Including Everyone Part of the Community What we have Continued investment in eco First SBTi Net Zero by Delivering on our People Delivering soci
Slide 29: Nifty Hydrogen Boom Lift
Nifty Hydrogen Boom Lift Speedy Hire and NiftyLift Launch world-first hydrogen-electric powered access platform Ground-breaking collaboration between two British companies brings a unique and sustainable solution to UK Construction World’s first hydrogen-electric powered, zero carbon access platform
Slide 30: Cleaner Energy Solutions
Cleaner Energy Solutions Combining the latest technologies Speedy Hire can provide your site with a greener power solution, reducing fuel usage on site, reducing emissions and improving air quality. STAGE V GENERATOR OFFICE & HVO FUEL WELFARE ERICA MDU BSU Mangement (Modular Distribution (Battery St
Slide 31: Speedy Hydrogen Solutions
Speedy Hydrogen Solutions Speedy Hire and AFC Energy Joint Venture: The launch of a dedicated hydrogen-powered generator hire business to deliver scalable, modular zero emission power generators to the UK and Ireland market. “The pressure to deliver zero emission power on construction sites here in
Slide 32: Hybrid Power
HYBRID POWER WHY SHOULD YOU USE A HOW DOES A HYBRID GENERATOR WORK? HYBRID GENERATOR? • A hybrid solution consists of a generator and a Carbon and emissions - battery generator. The battery generator works in Significantly reduced CO2 and conjunction with the generator to manage site NOx emissions,
Slide 33: Customers & Projects
BA Customers & Projects Lucy Stuart = 2 + Follow 2-3 Really interesting visit yesterday to AFC Energy thank you for hosting and thank you Tom Gillespie and Speedy Hire for inviting us along. evises + Follow ‘This moming we were delighted to host Lucy Stuart and lan Dennis at AFC Energy to discuss hy
Slide 34: Market Size – UK Power
Market Size – UK Power £443M Total Market Value 9% 1% 31% 59% Diesel Generators Generator Accessories Battery Storage Units Hydrogen Solutions Data source: AMA / Internal estimates Pie chart representative to the nearest number
Slide 35: Summary
Summary
Slide 36: Outlook & Summary
Outlook & Summary • Speedy Hydrogen Solutions supports part of Speedy Hire's overall Velocity strategy and our growth plans • Excited by growth opportunities and positive customer interest • Offers choice to customers • Commercially sustainable for our customers • Delighted to be in partnership with
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Slide 38: TAMGO Dealership
TAMGO Dealership • One of Saudi Arabia’s largest dealers of “best in class” industrial equipment • Wholly owned by Zahid Group – one of the country’s largest industrialist groups • TAMGO represents FG Wilson, Doosan, Kubota and Ingersol Rand in the region • TAMGO customers include Aramco, NEOM and o
Slide 39: The MENA Opportunity – Rami Elayan GM TAMGO
The MENA Opportunity – Rami Elayan GM TAMGO 39
Slide 40: Sourcing Hydrogen
Sourcing Hydrogen Green Hydrogen • Half a trillion dollars in new hydrogen investment under development Ammonia to Hydrogen worldwide Grey Hydrogen • UK currently benefits from several strategic hydrogen supply alternatives • AFC Energy investing to initial logistics capability: • Network of known i
Slide 41: Fuel Cell Division
Fuel Cell Division
Slide 42: H-Power Overview
H-Power Overview How H-Power Generators Work Transforming into Product Company H-Power Product Lines Unlocking Scale & Value Manufacturing Strategy Cost Reduction & Volume Supply Chain & Diversification 42
Slide 43: How H-Power Generators Work
How H-Power Generators Work Fuel Fuel Cell Stack Fuel Cell Module Fuel Cell Generator Off-Grid Power Clean & Quiet Power Generation using Hydrogen Fuel 43
Slide 44: Transforming into a Product Company
Transforming into a Product Company A strong focus on engineering and production Engineering Production Quality Service Value Delivery Reliability Experience 44
Slide 45: H-Power Product Lines
H-Power Product Lines – 1 Platform, 5 Product Lines* S10 • 10 kW • 1 Power Blade S20 • 20 kW • 2 Power Blades Power Hydrogen Power Generation Management Delivery “Power Blade” S30 • 30 kW • 3 Power Blades Designed for Scaled Manufacturing 45 *S40, S50 not shown
Slide 46: Dual Path: Capital Efficient Manufacturing Strategy
Dual Path: Capital Efficient Manufacturing Strategy “Light” “Scaled” Production Outsource Manufacturing Drive Quality Control Technology Control Scaled Process Control Invested Infrastructure Supply Chain Ownership Speed to Scaled Production Outsource Manufacturing Partners Technology, Quality, Proc
Slide 47: S Series Production – “Light” Production Line
S Series Production – “Light” Production Line Hangar S Series Production Area Panel Assembly Stores Delivery Lane Supplies and Stores Blade Assembly Walkway Head Tail Assembly Assembly Generator Assembly Generator FAT 47
Slide 48: Benedikt Eska, Axiosus Energy
AFC Energy plc. Capital Markets Day May 8, 2024 Mr. Benedikt Eska Founder and Managing Director, Axiosus Energy GmbH 48
Slide 49: Background and Experience
Background and Experience • Background in Physics Consulting • Decades of experience in the H2 and fuel cell sector • Fuel Cell Production & Manufacturing • Energy Management & Strategy • Former COO of Proton Motor • New Technology Introduction • Former COO of Fuel Cell Powertrain • Feasibility Stud
Slide 50: Independent Manufacturing Analysis
Independent Manufacturing Analysis AFC Energy’s Modular Generator Design • Modularity provides more efficient scaling through commonization across 5 product lines • Enables wider choice in outsource manufacturing partners AFC Energy’s Dual Path Manufacturing Approach In-house Light Production Scale-
Slide 51: Supply Chain Strategy
Supply Chain Strategy Supplier Supplier Supplier Supplier Qualification Selection Award Management • Supplier Qualification • Supplier Award & Management • Compliance with design requirements • Supply reliability, up to 3 suppliers for key components • Qualification meet or exceed design requirement
Slide 52: International Supply Chain
Supply Chain Diversification* International Supply Chain Fuel Cell Fuel Cell H-Power Stack Module Generator Supplier Diversification • Qualified multiple suppliers of key components across major world regions • Progressing on Tiered Supply program to award volumes to up to 3 strategi
Slide 53: Jeff Plato, CEO, Illuming Power
AFC Energy plc. Capital Markets Day May 8, 2024 Jeff Plato CEO, Illuming Power 53
Slide 54: Illuming Power develops and manufactures fuel cell materials
• Illuming Power develops and Markets Heavy-Duty Vehicles Stationary Power manufactures fuel cell materials & components. • Illuming Power and its Strategic Partners supply OEM Customers Portable Intermittent Truck Train expanded graphite materials, Power Power bipolar plates, and fuel cell Bus Back
Slide 55: Illuming's experience and technology
• Illuming’s materials and manufacturing is based on Jeff Plato | CEO & Founder Directing Illuming Power’s vision and strategy our experience in the Vancouver fuel cell cluster, • 30+ years of experience in electronics, industrial and fuel trade secrets, know-how and patent filings. cell equipment b
Slide 56: Opportunity and Delivery
Opportunity and Delivery AFC Energy S-Series Generator Products: • AFC Energy is one Illuming Power’s fastest scaling customers • AFC Energy’s Hydrogen Power generator components represent a significant opportunity comparable to mobility applications Illuming Power is providing supply, quality, capa
Slide 57: H-Power - Ready for Scale
H-Power - Ready for Scale How H-Power Generators Work Transforming into Product Company H-Power Product Lines Powering off-grid using Hydrogen Driving delivery, quality, and value Moving from Technology to Products Unlocking Scale & Value Manufacturing Strategy Cost Reduction & Volume De
Slide 58: Organisational readiness: from Order to Delivery
Organisational readiness: from Order to Delivery 58
Slide 59: From Order to Delivery
From Order to Delivery Plan Hydrogen People supply H-Power generators Inventory Facilities 59
Slide 60: From Order to Delivery: The Plan
From Order to Delivery The Plan • The plan is to deliver ~200 generators in FY26 by rolling out Plan a baseline capability in FY24, i.e., now. • The baseline capability needs to: Hydrogen Establish a manual pilot line to assemble the key sub- People components supply H-Power Be based at Dunsfold
Slide 61: From Order to Delivery: The People
From Order to Delivery The People Plan Hydrogen People supply H-Power generators Inventory Facilities • Growth phase to baseline capability now complete • All the key functions are in place • Search initiated for Chief Operating Officer (Manufacturing Focus) 61
Slide 62: From Order to Delivery: The Facilities
From Order to Delivery The Facilities Plan Hydrogen People supply H-Power generators • Investment in the current facility completed last year Inventory Facilities • Big enough footprint to house entire organisation for baseline output with room to grow 62
Slide 63: From Order to Delivery: Inventory
From Order to Delivery Inventory Plan Hydrogen People supply H-Power generators Inventory Facilities • Supply chain is predominantly international with well established companies • Nature of supply chain means that ~80% of inventory costs are paid for by the start of assembly (T0) • Terms will impro
Slide 64: From Order to Delivery: Hydrogen Supply
From Order to Delivery Hydrogen Supply Plan 1 MCP = 9kg of hydrogen Hydrogen People supply = ~1 day of operation H-Power generators • Embedded knowledge around procurement, storage and delivery Inventory Facilities of hydrogen • MCPs are readily available and used for the Power Tower deployments. •
Slide 65: Summary
Summary Plan • Plan In place • People In place Hydrogen supply People • Facilities In place H-Power • Inventory Build-up started generators • Hydrogen supply In place Inventory Facilities 65
Slide 66: Ammonia Cracking: The Billion Pound Opportunity
Ammonia Cracking: The Billion Pound Opportunity 66
Slide 67: Ammonia as a Hydrogen Carrier
Ammonia as a Hydrogen Carrier Ammonia Synthesis Solar Electrolysis Electrolysis Bulk Ammonia Ammonia Wind Logistics Synthesis 67
Slide 68: Global Ammonia Terminals
Global Ammonia Terminals Source: https://futurefuels.imo.org/wp-content/uploads/2024/03/WorldAmmoniaMap2024.pdf 68
Slide 69: Global Footprint of Planned Clean Ammonia Production
Global Footprint of Planned Clean Ammonia Production Source: https://view.argusmedia.com/rs/584-BUW-606/images/FER-Argus%20Clean%20Ammonia%20Projects%20Tracker%20Map%20-%20July%202023.pdf 69
Slide 70: Ammonia Arrives at Port … but where's the Demand
Ammonia Arrives at Port … but where’s the Demand Ammonia is transported by sea to port: Ammonia Arrives at Port Ammonia cracking (petrochem scale) at port Requires pipeline to transport hydrogen to industrial hubs Pipeline will accommodate highest grade H2 – whereas large industrial demand may
Slide 71: Cracker Technologies
Cracker Technologies Ethylene Cracker Vs. AFC Energy Modular Ammonia Naptha Cracker 71
Slide 72: Ammonia Cracker Technical Progress
Ammonia Cracker Technical Progress 72
Slide 73: Cracker Technology Completed Milestones
Cracker Technology Completed Milestones September February July October 2022 2023 2023 2023 73
Slide 74: Cracker Markets – 2024 Focus
Cracker Markets – 2024 Focus Modular Purified Hydrogen Generation for Transport & Power Pilot Fuel generation for Combustion Engines AFC Energy Hydrogen Rich Combustible Fuel Core Cracker Gas for Industrial Applications Architecture 74
Slide 75: Potential Markets for an Ammonia Cracker
Potential Markets for an Ammonia Cracker Pure Hydrogen Generation Rail Truck stops Tube Trailers Construction Engine Crackers Grid Support Maritime Mining Excavation Combustion Gas Asphalt Grain Drying Steel Steam Generation 75
Slide 76: Industrial Chemicals
Industrial Chemicals Steven Swaby – Finance Director Darren Sharpe – Energy Projects Manager
Slide 77: About Industrial Chemicals
About Industrial Chemicals We are a UK Chemical Manufacturer and distributer 6 Manufacturing sites 470 Employees £200 Million turnover Operator of 75 HGV vehicles with 150 specialised chemical tankers Main supplier to all UK water utility companies
Slide 78: On-Site and Off-Site Hydrogen Production from Ammonia
On-Site Hydrogen Production Off Site Hydrogen Production from Ammonia from Ammonia We could operate our steam boilers with on With ICL having their own imported Ammonia it demand Cracked Hydrogen also creates a new business opportunity for the company by: We could produce Hydrogen for future Hyd
Slide 79: Ammonia To Cracked Hydrogen Business
Ammonia To Cracked Hydrogen Business ICL clearly see the opportunity around the Hydrogen market for both their own use and for the supply of Ammonia and Hydrogen to others: The AFC Energy Ammonia Cracker is central to utilising Hydrogen at our manufacturing sites and developing the customer market
Slide 80: Industrial Chemicals
Industrial Chemicals Thank you Steven Swaby – Finance Director Darren Sharpe – Energy Projects manager
Slide 81: Outlook
Outlook 81
Slide 82: Outlook
Outlook • 2024’s focus is on delivery! • We have put in place the foundation to facilitate: routes to market with Tier 1 partners H-Power Generator deployments to the field from this month technology validation through satisfactory factory acceptance tests links to international component an
Slide 83: Thank You
(aNze Energy THANK YOU