Large-Scale On-Site Hydrogen Generation by Water ... · 5/1/2019 · electrolysis can play a major role Exchanging fossil hydrogen with renewable hydrogen (e.g. fertilizer) Exchanging

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Large-Scale On-Site Hydrogen Generation by Water Electrolysis as an Enabler for De-Carbonization

International Gangwon Hydrogen Forum | May 9th, 2019

CONFIDENTIAL

CONFIDENTIAL Page 2 © 2019 Nel Hydrogen | www.nelhydrogen.com

Total global hydrogen marketELECTROLYSERELECTROLYSER

Global hydrogen market, by end-use

Ammonia Refineries Methanol Other

Large opportunities for growth of electrolysis within

existing hydrogen market

● ~50 million ton/year market (~$150 B)

● Only 1% from water electrolysis today, rest is fossil-based

● Large potential for growth, driven by:

● Increasing focus on climate and renewable energy

● Decreasing electricity prices

● Decreasing electrolyzer capex

● Special focus on refineries and green ammonia, which account

for ~80% of the world hydrogen market


Power-to-H2 market of EUR 4 billion until 2025 in Europe

● Recent study shows that power-to-hydrogen is already

bankable in Europe at electricity prices of 40 – 50 €/MWh (NOK

0.37-0.47/kWh)

● Potential in the EU from now until 2025 of a cumulative

electrolyzer capacity of 2.8 GW, representing a market value of

EUR 4 billion

● Most bankable in short- and medium-term: hydrogen mobility

deployment, refineries, chemical industries, complemented by

gas grid injection

http://www.fch.europa.eu/sites/default/files/P2H_Full_Study_FCHJU.pdf

http://www.fch.europa.eu/sites/default/files/P2H_Full_Study_FCHJU.pdf


Hydrogen is expanding its areas of application

Chemical Industry

Food Industry

Glass Industry

Polysilicon Industry

Laboratories

CONVENTIONAL INDUSTRY MOBILITY POWER-TO-X

• Conventional industries represents “traditional” hydrogen markets

• Steady demand for hydrogen

• Key market going forward – both within hydrogen production and fueling

• Heavy duty sector developing faster than anticipated – hydrogen now relevant fuel for all forms of mobility

• Decreasing cost of renewables & electrolyzers is accelerating market

• Vast opportunities within existing & new sectors

Mobility(transportation)

Power-To-X(renewable hydrogen)

Steady growing market Markets expected to see fast growth going forward

PowerIndustry

Steel Industry

Life support

Thermal processing

Chemical vapor deposition


Hydrogen is becoming relevant in all forms of mobility

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Hydrogen as preferred future fuel alternative:

❖ True zero emission from production to use

❖ Can beat fossil fuel applications on a TCO-basis

❖ Low weight (compared to e.g. batteries), especially relevant in the heavy duty segment

❖ Fast recharging (fueling) time

❖ Long driving range

❖ Low/no need for electric grid upgrades

❖ Not dependent on rare metals (e.g. cobalt, lithium)

❖ Global standards for fueling established

❖ Same quality fuel used for small to large applications

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❖ Wide variety of existing and new markets where electrolysis can play a major role

❖ Exchanging fossil hydrogen with renewable hydrogen (e.g. fertilizer)

❖ Exchanging coal with renewable hydrogen (e.g. steel manufacturing)

❖ Oxygen & heat adds value

❖ Electrolysis “bridges the gap” between the power and industry sector, increasing the value of electrons

❖ Ability to adapt to diverse and intermittent renewable energy sources becoming increasingly important


About Nel Hydrogen

● Global pure-play OSE listed hydrogen company, w/facilities in Norway, Denmark and US

● World leading on hydrogen electrolyzersand fueling – unrivalled performance and track-record

● More than 3,500 hydrogen solutions delivered in 80+ countries worldwide since 1927

● Significant foothold in fast-growing markets with several breakthrough contracts

● Complete range of products optimally positioned for large market opportunities

● Capable of delivering solutions to produce, store and distribute hydrogen from renewable energy – serving industry, energy and gas companies

HYDROGEN FUELING

Acquired in 2015

PEM ELECTROLYSERS

Acquired in 2017

ALKALINE ELECTROLYSERS

Dates back to 1927

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Hydrogen Electrolysers Hydrogen Fueling Hydrogen Solutions


Nel – Pioneering renewable hydrogen for 90 years

1927: Building of the first small electrolyser installation at NorskHydro at Notodden, Norway. Testing for pure hydrogen for fertilizerproduction.

1929: World’s largest installation of water electrolysers at Rjukan,Norway. Increasing over time to 3 plants and 440 electrolysers,exceeding 60,000 Nm³/hour. Sourced by hydropower.

1953: Creation of a second large-scale hydro powered electrolyserplant for supplying hydrogen for ammonia production in Glomfjord,Norway.

1974: Nel’s renowned electrolyser technology made available forother companies and other industries.

1988: The world’s first electrolyser supplier to provide non-asbestos alkali electrolysers.

2003: Nel opens the world’s first publicly available hydrogen fuelingstation in Reykjavik, Iceland.

2004: The world’s first Power-to-Power demonstration project at the island of Utsira, Norway, enabling power to 10 households from stored hydrogen produced by excess wind power.

2014: Nel becomes the first 100% dedicated hydrogen company listed on the Oslo Stock Exchange.

2015: Nel acquires H2 Logic, adding world leading hydrogen fueling technology to the product portfolio.

2016: Initiates construction of the world’s largest manufacturing plant for hydrogen fueling stations, with a capacity of 300 units peryear.

2017: Nel acquires Proton OnSite, adding world leading PEM electrolysis technology to the product portfolio, becoming the world’s largest electrolyser company.

1927 1929 1953 1974 1988 2003 2004 2014 2015 2016 2017


Nel well positioned with key technologies in its portfolio

Targeting further development within all segments to maintain position


● Production and installation of water electrolysers for hydrogen production

● Global leader in hydrogen production plants – highest uptime, lowest conversion cost, robust and reliable

● >3,500 hydrogen solutions delivered in >80 countries world wide since 1927

● Scalable production capacity for industrial and energy/transport applications – small scale to large scale solutions

Solar Grid Wind

Small scale turn-key modulesUp to 600 kg/day

Large scale plant solutionsUp to any capacity size

Alkaline and PEM electrolysersScalable and modular

10

Nel Hydrogen Electrolyser business area


WORLD-CLASS ELECTROLYSER TECHNOLOGY

PRE-ASSEMBLED, TURN-KEY SOLUTION

Global leader within large-scale hydrogen production plants

● Highest uptime, lowest conversion cost, robust and reliable

● World leading supplier of technology for hydrogen production for decades

● Delivered more than 850 large-scale electrolysers in 59 countries

● Scalable production capacity for industrial and energy/transport applications

● Low-cost contract manufacturing in Hungary

Alkaline electrolyser – Key capabilities


Alkaline electrolyser – Common System Design Architecture


● Wide range of products sold to ~75 countries

● Customers range from industrial companies to laboratory institutes

● Also offers services, incl. installation training, service and maintenance

● More than 1 billion hours worth of operating experience on PEM

1 MW Process Skid

2 MW Process Skid

H-Series C-Series M Series

Net production rate: 2-6 Nm3/h

S-Series Lab Gas Generators

Net production rate: 0.53-1.05 Nm3/h Net production rate: 300-400 Nm3/h

Net production rate: 10-30 Nm3/h Net production rate: 100-200 Nm3/h

PEM electrolysers – Product range


PEM electrolyser – Common System Design Architecture

H2 Product Output

O2 VENT

Water Pump

Electrolyzer

Cell Stack

Pressure

Regulator

Oxygen/Water

Separator

High Pressure

Hydrogen/Water

Separator

Drain O

Vent

Water Input

O

DC Source


PEM electrolyser – Key capabilities

● Membrane technology enables high differential pressure

● Eliminates need for strict pressure controls and slow turndown

● Enables rapid changes in current for renewable integration: fast response time to current signal

● Enables low pressure oxygen for safety and lower cost

● Non-corrosive electrolyte

4H+

Hydrogen Oxygen

4H +4e 2H2+

2H2O+

4H + 4e+O2

Oxygen electrode (anode)Hydrogen electrode

(cathode)

4e

(-) (+)

DC Power

Solid polymer electrolyte

H2 O

Process

Water

Protonic

WaterProcess

Water, heat

50 ms response time demonstrated


Life time of PEM electrolyzers from Nel

● 20 year history in PEM – 30+ MW installed, from <W to >MW

● 10+ year life with >1 billion field cell hours demonstrated

● Large majority of cell stack returns are for water contamination

● Maintenance costs, including change of cell stack ~1.5 to 2% per year

10 years of fielded cells95% still operational

>55,000 hours continuous operation in house Industry-leading installed base of PEM-basedhydrogen generator products


The biggest H2 water electrolysis plant built ever

Green Ammonia – Glomfjord, Norway (1952 - 1991)

● 100% green electricity from hydro power

● Hydrogen used for large scale ammonia production

● Developed proprietary active layer for the electrodes, increasing efficiency - still an industry secret today

● Other significant improvements on efficiency, output and life time


Hydrogen peroxide from green electricity

Chemicals – Rjukan, Norway (2006)

● 9.2 MW electrolyzer plant (4.2 t/day)


● Hydrogen and oxygen used for hydrogen peroxide (H2O2)

● 24/7 industrial operation where reliable hydrogen supply is critical


The world’s largest electrolyser plant in operation

Polisilicon Plant – Sarawak, Malaysia (2013)

● 25 MW electrolyzer plant (12 t/day)


● Hydrogen used for polysilicon production

● 24/7 industrial operation where reliable hydrogen supply is critical


Constructing world’s largest electrolyzer manufacturing plant

Name plate capacity of 360 MW per year, more than 10x current annual production

● Detailed planning and pre-engineering done, currently in the Highly automated and designed according to lean manufacturing principles

● Industrial scale production, the most efficient electrolyzers in the market at a game changing cost

● Accommodating the multi-billion NOK order from Nikola

● Manufacturing plant will be constructed as an extension of the current facility at Notodden, Norway

● Operational in 2020 with ramp-up aligned to customer requirements

● 30-40 new employees, includes all organizational functions

● Plans ready for scaling up to GW-capacity

New facility located right next to existing plant

Plant layout


Hydrogen Production and Fueling for SunLine

● Largest electrolyser based fueling station ever built

● 2 MW PEM electrolyser (900+ kg/day)

● Will ultimately support a fleet of up to 26 FC-buses

● Planned future upgrade to add 70MPa dispensing

● Financial support from CARB and FTA

Electrolyser and H2Station® for world’s largest onsite hydrogen fueling station in California

2x Hydrogen Storage 2x Dispenser35MPa

M400 PEM Electrolyser 2x Station Module

Number one by nature

End of presentation

Thank you for your attention

www.nelhydrogen.com

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Large-Scale On-Site Hydrogen Generation by Water ... · 5/1/2019 · electrolysis can play a major role Exchanging fossil hydrogen with renewable hydrogen (e.g. fertilizer) Exchanging