ITM Power Results Presentation

FINAL RESULTS PRESENTATION:

FOR THE YEAR ENDING APRIL 2014 30TH JULY 2014 | TAVISTOCK | FINSBURY PAVEMENT | LONDON

Contents:

• Introduction

• Power-to-Gas Energy Storage

• Power-to-Gas Projects

• Clean Fuel Projects

• Corporate Development

• Key Performance Indicators

• Results

• Summary



RAPID RESPONSE

HYDROGEN ENERGY SYSTEMS

RAPID RESPONSE ELECTROLYSER

ITM Electrolyser

Clean Fuel

Energy Storage Wind Power

Grid

Scalable | Rapid Response | Self pressurising

http://www.google.co.uk/url?sa=i&rct=j&q=wind+turbines&source=images&cd=&cad=rja&docid=KzXd5siJNeIKuM&tbnid=h-hYyflhIfoGuM:&ved=0CAUQjRw&url=http://strabanechronicle.com/2012/11/wind-turbines-blamed-for-aghyaran-television-disruption/wind-farms/&ei=SvMGUfDmD6Wx0AWozoHoCg&bvm=bv.41524429,d.d2k&psig=AFQjCNEDAWRGfxmJ8_6TXGstnq7lfotaSQ&ust=1359496394568348

HFUEL: REFUELLING STATIONS




HGAS: POWER-TO-GAS




REFERENCE PLANT

REFERENCE PLANT | GERMANY | UK | USA

A major barrier to entry has been overcome

• NRE has been invested

• Products have been standardised

• Compliance in UK | EU | USA

• Power-to-Gas and Refuelling Stations


REGULATIONS, CODES & STANDARDS

A leading role in shaping hydrogen deployment

• Secretary of BCGA Technical Steering Committee 9

• Secretary and UK Expert to ISO Technical Committee 197

• UK Expert to ISO working groups…

• …for electrolysers, dispensers & H2 quality

• Next Chair of BSI PVE/3/8


COMPLIANCE

Code of Practice 41: H2 Fuelling Stations Design & Construction Maintenance & Operation

ISO 19880-1: H2 Fuelling Stations ISO 22734: Electrolyser ISO 14687: H2Quality

BSI PVE/3/8: H2 Systems Standardisation Production & Storage Transport, Measurement & Use

P2G RATIONALE

P2G RATIONALE

MARKET SIZE

GROWING WIND GENERATION

ENERGY STORAGE: THE NEED


• Evidence of grid balancing problems

from Germany and Denmark

• Problems start at 20% capacity

• UK hit this threshold at the

end of 2013

• Energy Storage is a Market Pull

Source: ITM Power plc, data from BWEA

THE NEED: GRID BALANCING

BALANCING SUPPLY AND DEMAND:

• A total of £725m paid for balancing services in 2010–11

• Estimates in 2020 are: circa £1.9bn – £5.9bn pa

• Tariffs already operational in the UK: FCDM response sub 2 seconds


WHY POWER-TO-GAS?

POWER-TO-GAS RATIONALE

Electricity cannot be stored easily | Hydrogen can be stored easily in the gas grid

Source: ITM Power plc


ENERGY STORAGE TECHNOLOGIES

ENERGY STORAGE TECHNOLOGIES

Power-to-gas is efficient | long term | low energy cost



0%

5%

10%

15%

20%

25%

30%

35%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

0 2 4 6 8 10 12

Frac

tio

n w

ind

ou

tpu

t cu

rtai

led

Hyd

roge

n f

ract

ion

(vo

l%)

Excess wind (TWh pa)

725 TWh p.a. natural gas consumption, 30 GW wind capacity (2020)

Hydrogen fraction

Curtailment

HYDROGEN FRACTION VS EXCESS WIND LEVELS

ENERGY STORAGE | CLEAN FUEL

• Capturing 2.8 TWh pa of excess wind (ie 4% of 2020 output)

• Requiring 978MW of electrolysis at 30% utilisation (£1.7bn market)

• Results in average national hydrogen content of 0.5%, reducing carbon footprint by 0.2%


POWER-TO-GAS IN THE UK

P2G PROJECTS

THÜGA PROJECT

METHANATION

UREA

USA | CALIFORNIA

FIRST P2G SALE: THÜGA GROUP

Won competitive tender on performance and price

• One of the world’s largest utility groupings

• 18,200 employees

• 5.7m customers (electricity, 3.6m, gas 2.1m)

• Sales of €21.3bn

• Plant located at Mainova AG in Frankfurt

• A pipeline of potential customers

360KW POWER-TO-GAS MODULE

Source: Thüga-Gruppe


A challenging time frame

• Discussions April 2011

• Competitive tender process

• Order March 2013

• On site in September 2013

• CE marked in December 2013

• TÜV permit in December 2013

• Hydrogen injected in December 2013

THE SCHEDULE

THE SCHEDULE


A challenging time frame

• Discussions April 2011

• Competitive tender process

• Order March 2013

• On site in September 2013

• CE marked in December 2013

• TÜV permit in December 2013

• Hydrogen injected in December 2013

THE SCHEDULE

THE SCHEDULE


Build

• Procurement

• Manufacture

• Control system design

CE Mark

• PED

• EMC

• Machinery

• ATEX

Commission

• Loop checks

• Acceptance

• Performance

Permit

• Documentation

• Audit

• Certificate

P2G PLANT & VISITOR CENTRE


MIXING PLANT


Beyond the Thüga project

• Thüga II

• P2G in Germany, USA and UK

• Methanation | BioGas upgrading

• Ammonia | Urea (2% of global energy)

POWER-TO-GAS PROJECTS PIPELINE

POWER-TO-GAS PROJECTS PIPELINE


CPUC Sets the energy storage mandate for the power sector

• Energy storage target of 1,325 megawatts

• 3 major CA utilities by 2020

• Optimization of the grid, including peak reduction

• Integration of renewable energy

• Reduction of GHG emissions to 80% below 1990 levels by 2050

“This decision represents an important first step in encouraging

the storage market and supporting grid reliability,” Commissioner Carla J. Peterman, the lead Commissioner for this proceeding.

CALIFORNIA ENERGY STORAGE

1.3GW ENERGY STORAGE MANDATE IN CALIFORNIA


CLEAN FUEL

WHAT IS A FCEV

OEM ALLIANCES

THE CARS

FUEL CELL CARS

WHAT IS A FUEL CELL CAR?

An EV drive train that’s refuelled rather than recharged

• Refuel in 3 minutes

• Range 400 miles

• Managed export of

energy from the grid


FCEV ALLIANCES

2013 | FCEV ALLIANCES

Four fuel cell manufacturers have

emerged; with 8 OEM’s rolling out cars

• Hyundai

• Nissan: Ford | Daimler

• Toyota: BMW

• Honda: GM


HYUNDAI IX35 FCEV

Launched in 2013

California, Germany and UK

Lease $499/month


TOYOTA FCEV

Launch in 2015

California, Germany and UK

Sale $70k


ISLAND HYDROGEN

UKH2MOBILITY

HYFIVE

CHINO CA

RIVERSIDE CA

CLEAN FUEL

PROJECTS

Hydrogen Energy Storage Smart Grid

• £2.4m TSB consortium grant

• Installation of 80kg/day and 15kg/day refuellers at 350bar

• Fleet of 20 vehicles (HICE and FC)

• Hydrogen energy storage system

• Balancing supply and demand

ISLAND HYDROGEN


ISLAND HYDROGEN


UK REFUELLING STATIONS

UK REFUELLING STATIONS

EcoIsland (TSB)

1x80kg | 1x15kg

£1.5m

HyFive (EU)

3x80kg

€3.0m

OLEV £10m Call

6x80kg

Tender

H2Mobility

65x80kg

Tender

H2Mobility

1,000 Stations

Tender

Development of a UK Infrastructure Business

• Grant funded Capex and Opex

• Maintenance contract with each award

• OLEV £10m call in Sept | OLEV £60m call in early 2015

• OLEV have indicated £100m allocated for hydrogen (un-announced)


Selected by the LHP as the 2013 HRS partner

• LHP Funded the ITM Power 2013 JTI submission

• 100 Fuel Cell Electric Vehicles from 5 OEMs

• ITM to build 3 refuelling stations in London

• Backing from the Mayor’s office

• €18m total EU (JTI) funding

• £2.8m to ITM Power

LONDON HYDROGEN PARTNERSHIP


WWW.HYFIVE.EU


FCH JU 2: 2014

FCH JU 2: 2014


FCH budget €1.4bn, managed by the New Energy World

• Development: 100% of the total eligible cost

• Demonstrations: 70% maximum will apply for profit making entities

Pillar 1: FCH technologies for Transportation Systems

• Road transport

• FCEV

• HRS infrastructure

Pillar 2: FCH Technologies for Energy Systems

• Hydrogen as a flexible link between renewable energy both mobile and stationary systems.

• Storage of renewable electricity and grid balancing, including hydrogen blending in the natural gas grid

• Fuel cells in power

• Power systems for domestic, commercial, municipal and industrial applications

CALIFORNIA REFUELLING STATIONS

CALIFORNIA REFUELLING STATIONS

2013 PON

Hyundai Chino

Won $1.3m

2014 PON

Riverside

Won $2.1m Bid

2015 PON

10x100kg

Tender

8 More PON’s

80x100kg

Annual Tender

California Hydrogen Infrastructure Deployment

• Fund of $200m for 100 hydrogen stations with up to $20m a year for 10yrs

• 2012: ITM Power Inc. established in California

• 2013: ITM Power Inc. wins H2 station award with 2 North American partners at Hyundai, Chino

• 2014: ITM Power Inc. wins H2 station award with 2 North American partners at the City of Riverside


BOARD

AWARENESS

KPI’S

CORPORATE

THE BOARD


THE BOARD

AWARENESS

AWARENESS


Source: Thuega

National and International Coverage

• Radio 4: Costing the Earth

• Guardian: Power-to-Gas energy storage

• Royal Academy of Engineering presentation

• Platts on Power-to-Gas energy storage

KEY PERFORMANCE INDICATORS

KEY PERFORMANCE INDICATORS

Clear measures of business performance

• Technology

• Cumulative test hours KPI 1

• Technology

• Cumulative installed capacity KPI 2

• Commercial

• Product sales KPI 3

• Commercial

• Project income KPI 4

• Commercial

• Projects under contract KPI 5

• Financial

• Headcount and staff costs KPI 6


KPI 1: CUMULATIVE TEST HOURS

ENERGY STORAGE | CLEAN FUEL

KPI 1: CUMULATIVE TEST HOURS

Cumulative test hours

• Test stands fully automated & data logged

• Qualifying performance of key cell & stack components

• Developing predictive tools

KPI 2: INSTALLED CAPACITY

KPI 2: INSTALLED CAPACITY

Cumulative capacity

• Tracks the technology deployment

• Tracks available reference plant

• Installed capacity is a key metric in tender documents


KPI 3: PRODUCT SALES & PROJECT INCOME

KPI 3: PRODUCT SALES & PROJECT INCOME

Customers are often confidential; we announce when

possible. Order book needs strong balance sheet

For year ending April 30th 2012

• £1.46m total inflow

• £0.48m product sales

• £0.98m grant funding








• £1.96m project funding

£0

£500,000

£1,000,000

£1,500,000

£2,000,000

£2,500,000

£3,000,000

£3,500,000

2010 2011 2012 2013 2014

Sales Revenue

Project Income


KPI 4: PROJECT INCOME

KPI 4: PROJECT INCOME

Customers are often confidential; we announce when

possible. Order book needs strong balance sheet












• £1.96m project funding

£0

£500,000

£1,000,000

£1,500,000

£2,000,000

£2,500,000

£3,000,000

£3,500,000

£4,000,000

2010 2011 2012 2013 2014 2015 2016 2017

Collaborative Project Funding

Applied For

Negotiation

Secured

Paid


KPI 5: PROJECTS UNDER CONTRACT

KPI 5: PROJECTS UNDER CONTRACT

Contract Project To be paid Project Type User

EcoIsland 360kW £760k £1.5m Grant SSE

Chino I 360kW £621k £773k Sale Hyundai

Phaedrus 120kW £536k £731k Grant Shell/Diamler

Common E 120kW £260k £279k Grant ITM

HyFive 3x 360kW £2.75m £2.75m Grant GLA

DECC 100kW £78k £325k Grant ITM

HMGS Hpac40+ £100k £100k Sale HMGS

HMGS II Hpac40+ £74k £74k Sales HMGS

Riverside 60kW+ £1,265k £1,265k Grant CoR

Other Smaller £105k Sales -

Total £6,550k

Pipeline of projects is rapidly growing

• £9.56m of projects under contract or in the final stages of negotiation

• £6.55m of projects under contract

• £3.01m of contracts in final negotiation

• Rapidly growing pipeline


KPI 6: HEAD COUNT | STAFF COSTS

KPI 6: HEAD COUNT | STAFF COSTS

Staff and Country Reps | £4m pa

• Headcount has only increased by <10% despite a 100% increased grant take and revenue

• £1.2m of costs (labour and overhead) funded by grants

• Increase in staff in production and field engineer teams – service delivery

£0

£50,000

£100,000

£150,000

£200,000

£250,000

£300,000

£350,000

£400,000

May

13

Jun

e 1

3

July

13

Au

g 1

3

Sep

-13

Oct

-13

No

v-1

3

De

c-1

3

Jan

-14

Feb

-14

Mar

-14

Ap

r-1

4

Staff costs per month

Repsand BD

StaffCosts

-

10

20

30

40

50

60

70

80

90

May

-13

Jun

-13

Jul-

13

Au

g-1

3

Sep

-13

Oct

-13

No

v-1

3

De

c-1

3

Jan

-14

Feb

-14

Mar

-14

Ap

r-1

4

Staff Numbers per month

Repsand BD

Staff


Key Financial Results for the year ended 30 April 2014:

Total Income incorporating sales revenue and projects income £3.077m (2013: £1.44m) up 114%

Sales Revenue £1.127 (2013: £0.087m) up £1.040m

Collaborative projects income £1.370m (2013: £1.35m)

Additional capitalised project income £0.58m (2013: £nil)

Increase in fixed assets to £1.755m from £1.463m, up 20%

Loss from operations £7.978m (2013: £6.518)

Cash burn £7.568m (2013: £6.1m)

Cash balance £9.763m (2013: £5.94m)

Two placings creating proceeds of £12.0m before expenses



Commercial progress to date:

A Total of £9.56m of projects under contract or in the final stages of negotiation

£6.55m of projects under contract

£3.01m of contracts in the final stages of negotiation

Strongly developing pipeline of commercial sales and funded projects



