ITM Power RHA Technology, costs and projections

1. ITM Power RHA Technology, costs and projections Stephen Jones| Managing Director sj@itm-power.com

2. PRESENTATION CONTENTS Hydrogen energy systems • Introduction • Technology • Product Standardisation • Price Trajectory • Examples Sumitomo Corporate visit to ITM Power

3. What WE do Hydrogen energy systems Unique selling points: • Rapid response: less than 1 second • Elevated Pressure: 20 -50 bar • High efficiency: 70 -86% (with heat recovery) • Small Footprint: smaller than alkaline • Low cost: approaching large scale alkaline • Reference plant: at MW scale • Experience in the field: in many applications ITM Power manufactures integrated hydrogen energy systems

4. Overview: Full year results Hydrogen energy systems

5. Markets Hydrogen energy systems Strong growth of revenue generating assets: • Currently 16 tonnes | £160k of hydrogen sales • Up 700% YoY • New fleet of 200 FCEVs are not included • 3 tonne/day capacity (40 buses and 800 cars) Potential Hydrogen sales of £9.3m when the existing portfolio is fully utilised.

6. Product Evolution Hydrogen energy systems ITM Power manufactures integrated hydrogen energy systems

7. Product Standardisation • Product Offering • Cost Structure • Production Capacity 2MW Standard Module

8. Technology Considerations Hydrogen energy systems ITM Stack Platform • PEM stack technology • Modular design philosophy • Flexible system capacity • Scalable & phased deployment options • Stack generates hydrogen at pressure • Minimise requirement for compression • High energy efficiency • Differential pressure stack • Simplified safety case | High hydrogen purity • Use low cost, light weight & non polluting pipework • High Availability • No single point of failure • Rapid stack exchange in field | No down time during maintenance ITM PEM Technology

9. Product Standardisation Hydrogen energy systems ITM Stack Platform • Proton Exchange Membrane technology • Differential pressure operation • Oxygen pressure close to ambient • No tie-rods | Rapid assembly | Rapid exchange • Process temperature of circa 55oC • Mature PEM technology • Low part count & lean principles • Cell Area: 1,000cm2 • Cells/Stack: 100 • Current density 3A/cm2 Existing Stack Platform | Modular Philosophy | Mature Technology

10. Product Standardisation Hydrogen energy systems Standardisation | Production | Market Offering • Definition of 2MW module & 10MW stack skid • Enables efficiencies in manufacture & test • Well defined cost & trajectory • Modular system provides flexibility of offering • New projects all specified using known modules • Minimises design time & cost for each project • Scalable to 100MW with balance of plant 2MW Standard Module

11. 10MW STACK SKID Hydrogen energy systems Standardisation | Production | Market Offering • Definition of 2MW module & 10MW stack skid • Enables efficiencies in manufacture & test • Well defined cost & trajectory • Modular system provides flexibility of offering • New projects all specified using known modules • Minimises design time & cost for each project • Scalable to 100MW with balance of plant Standard 10MW Stack Skid of five 2MW Standard Modules

12. Shell 10MW project | Hydrogen energy systems 10MW Stack Skid in Shell Refinery building 10MW PEM electrolyser system for refinery applications • Flagship 10MW project with Shell • Largest refinery in Germany • Benefit of Shell engineering & permitting rigor • Excellent reference plant & customer • Strong engagement from refinery hydrogen sector 10MW Electrolyser System in Shell Refinery building 10MW Electrolyser System in Shell Refinery building Building Germanys largest PEM electrolysis plant at Rhineland refinery.

13. 100MW Plant Designs Hydrogen energy systems 100MW PEM electrolyser system • Based on 10MW standard skids • Increasing industrial interest • Shell experience: • Benefit of Shell engineering & permitting rigor • Excellent reference plant • Strong engagement from refinery hydrogen sector Industrial Hydrogen | P2G | Refineries | Ammonia | Steel

14. NEW FACTORY Hydrogen energy systems Capacity | General • Grounds 30,000 m2 • Floor Space 11,610 m2 • 125 Car parking spaces • 7MW power supply • Product Assembly • External Product Testing • Stack Production • Technology Centre • Sales, Marketing & Corporate Area • Offices | Canteen

15. Production Capacity Hydrogen energy systems Production Capacity • Colocation into new production facility • Manufacturing space increased by 5x • Adoption of semi-automated stack component preparation • Increase of power on-site to allow testing of larger systems • Heads of terms agreed • Costs in-line with expectations Production capacity in the current S2 facility Production capacity based on standard 10MW stack skids and 2MW standard modules

16. Production Capacity Hydrogen energy systems ITM Electrolyser Cost Projections • Expect system sizes to grow over time • Larger scale enable cost reduction • Larger volume enable efficiencies • Continuous technology improvements • Sensitive to scope of supply <€1,000/kW today @ MW scale | <€800/kW @ 10MW | <€500/kW by mid 2020’s

17. ELECTROLYSER SYSTEM COST CONSIDERATIONS Hydrogen energy systems ITM Electrolyser Cost • OpEx more important than CapEx • Example TCO for 10MW system: • Capex is 15-25% of TCO • Total OpEx is 75-85% • Electricity price is 80-90% of OpEx • Cost of electricity is primary factor for cost of hydrogen ($/kg) • Cost reduction will come via volume manufacture BUT more important is Power density of systems to reduce capex and net price of electricity. Factors of total cost of ownership

18. ITM Power RHA Technology, costs and projections Stephen Jones| Managing Director sj@itm-power.com