B-Gas partnership

Magnetic Plasma Technologies –From Steam to Green Hydrogen

“Clean hydrogen is currently enjoying unprecedented political and business momentum… now is the time to scale up technologies and bring down costs to allow hydrogen to become widely used”

International Energy AgencyJune 2019

Problem 1. Green Hydrogen: The world needs more…

[1] Hydrogen Council. https://hydrogencouncil.com/en/

…but the technology

• Electrolysers have only 60-80% efficiency • They cost millions and need huge power supply• Must be operated by specialized staff• Are not suitable for decentralized operation, hence little competition

Green hydrogen is currently produced by electrolysis of water powered by renewable energy. But it costs 4 times more[1] than “grey” because

is too expensive and not very efficient

Hydrogen is the emission-free fuel of the future. Demand is growing and governments are pushing it with abundant incentives.

But only 1% of hydrogen is produced by carbon-neutral, or “green” technology. The remaining 99% is “grey”, i.e. made from fossil fuels with 9-12 tons of CO2 emitted for every ton of H2 produced

Electrolysers are bulky and ugly

Problem 2. Water pollution with hydrocarbon

• Cleaning, re-cycling and safe disposal of water contaminated with hydrocarbons are difficult and expensive

• Settling requires lots of time and space

• Phenolic waters are toxic

• The best waste-to-energy technologies and most reliable way to deal with toxic waste is plasma gasification but plasma torches are very expensive and require a lot of energy

Oil spills and fuel leaks……phenolic water…

…phenolic waters… …washing of fuel tanks

Solving Both Problems

B-Gas introduces the Magnetic Plasma Water Splitting Technology (plasma dissociation as an alternative to electrolysis)

• Higher energy efficiency

• Lower cost

• Compact and lightweight

• Powered from excess solar power in households or smaller sources of renewable energy

• Suitable for decentralized production

Larger specially adapted water splitters:

• Can use water contaminated with hydrocarbons: any organic compound including toxic is safely destroyed in plasma

• The hydrogen-rich syngas produced can be used in high-temperature burners of incinerators or boilers

B-Gas Founder Vladimir Shipilov, Head of EnergoTechResource center of the Don State Technological University, experimenting with magnetic plasma

Market

Electrolyser market and installed capacity for green hydrogen production grow fast as shown in spite of the current 4x cost handicap

Magnetic Plasma Water Splitters will successfully compete in some of the traditional electrolyser market + bring in new customers:

• Small-size producers of electricity from renewable sources, including the owners of solar panels that have excess power

• The growing plasma waste gasification sector

Technology and

State of Product Development• Magnetic plasma technology (patents RU2658658, RU184808, RU2691726) was

originally developed by B-Plasma Limited in Russia, starting in 2011, under the

auspices of the Skolkovo Foundation (government sponsored technology hub) and

the Don State Technological University.

• Magnetic plasma was first commercially applied in these steam generators

that are now manufactured and sold under license in Russia by ParRus Limited.

The new technology is compact, lightweight, simple and reliable in operation.

Water turns to steam almost instantly in a flow-through process where plasma is

excited by alternating magnetic field, showing very high energy efficiency

• The magnetic plasma water splitters are the new application of the successfully proven B-Plasma technology. They are

being developed the B-Gas, a partnership established by the principals of B-Plasma Limited, Sergey Markov and

Vladimir Shipilov (the latter is also author of the patents mentioned above). B-Gas will be incorporated in 2020 in a

country where support will be found

• A prototype of the magnetic plasma water splitter with high-temperature synthetic gas burner has been built and tested

Simple and safeHas a mass of hot water under pressure, take care!

Clients need: Current industry offer:

Quick turn on and ready to go

Long time to heat and boil the water. Better keep it on all the time and pay for the electricity even when you are not using it

Light and compactHas to have enough hot water in the tank, can’t make it any smaller or less heavy

Plug it in anywhere Requires a lot of power

B-Plasma offer:

Yes, quick turn on and ready to go

Yes, light and compact due to flow-through design

Requires 50-70% less power

Simple and safe, no mass of hot water due to flow-through design

Magnetic Plasma Steam Generators are on the Market(just the beginning…)

Team

Segrei Markov – founder, CEO

Former diplomat turned entrepreneur, lover of new technologies and music,

talent management experience, director at several tech start-ups, successful

track record in rolling out Russian technologies into international business scene

Vladimir Shipilov – founder, CTO.

13 years of scientific research work, 22 years of academic, public sector and business

management experience, 14 scientific projects, 5 inventions

Nikolai Derevtsov – Assistant (Fundraising, Marketing, PR)

Student of Political Science in a leading university in Moscow, with 3 years of

experience in start-ups, sportsman and a great guy.

Competition

A. Existing Electrolyser Technologies

Main vendors of hydrogen electrolyzers:

• Areva H2Gen• Enapter• Giner ELX• Hydrogenics• H-TEC Systems• Hoeller• ITM Power• McPhy• Nel Hydrogen• PERIC• Siemens

See Appendix for Notes and Sources

Competition

B. Existing Plasma Gasification TechnologiesPlasma torch technology has been used for many years to destroy chemical weapons and toxic wastes, like printed circuit boards (PCBs) and asbestos.

Recently these processes have been optimized for transforming environmental liabilities into renewable energy assets such as syngas - a simple fuel gas comprised of carbon monoxide and hydrogen that can be combusted directly or refined into higher-grade fuels and chemicals.

America’s Westinghouse Corporation was the first to build plasma torches for NASA in the 1960s

In the late 1990s, the first pilot-scale plasma gasification projects were built in Japan. The Japanese pilot plants have been successful, and commercial-scale projects are under development now in Canada and other countries, by companies such as Alter NRG, from Alberta, Canada.

Competition

C. Alternative Plasma TechnologiesBrilliant Light Power, Inc., (US) -- https://brilliantlightpower.com – the company is led by Dr. Randell Mills, author of many publications and patents in the areas of hydrogen energy technology and magnetic resonance. He created a "hydrino" theory to explain the extraordinary energy-saving effects achieved and documented in his technology that appear to be based on the same principle as magnetic plasma. However, his technology uses expensive materials such as molten silver. The "hydrino" theory is not mainstream.

• Cost per kW power is expected to be at least 2-3 times lower[1]

• Compact and lightweight

• Higher power efficiency

• Suitable for decentralized production

• Water polluted with hydrocarbon can be used for synthetic gas production

B-Gas Competitive Advantages:

[1] No MVP yet – price estimate is based on prototype. Magnetic plasma steam generators cost €130/kW. Magnetic Plasma Water Splitters are based on the same principle. Founders assume that adaptation should not increase the cost more than twice. Electrolysers cost €800-1,600/kW

Funding Status / Plans

• 2018-2020: Pre-Seed provided by founders, friends and family

• 2020 Goal: Raise $2 mln seed funding. Focus on Green Energy funding sources including accelerators and crowdsourcing, explore partnerships to access grants

• Develop the prototype plasma electrolyser into an MVP, test performance and do pilots with early followers

• 2021 Goal: Seek partnership with a major energy company to assist in the market entry or proceed to Series A fundraising

• 2022 Goal: Scale production and sales, become profitable

Contact: Sergey Markov, markov@artmont.com

AppendixNotes for Comparison of Existing Electrolyser Technologies (Table on Slide 8):

LHV = lower heating value; m2/kWe = square metre per kilowatt electrical. No projections made for future operating pressure and temperature or load

range characteristics. For SOEC, electrical efficiency does not include the energy for steam generation.

CAPEX represents system costs, including power electronics, gas conditioning and balance of plant; CAPEX ranges reflect different system sizes and

uncertainties in future estimates.

Sources for Comparison of Existing Electrolyser Technologies (Table on Slide 8):

Buttler and Spliethoff (2018), “Current status of water electrolysis for energy storage, grid balancing and sector coupling via power-to-gas and power-to-

liquids: a review”;

Agora Verkehrswende, Agora Energiewende and Frontier Economics (2018), The Future Cost of Electricity-Based Synthetic Fuels;

NOW (2018), Studie IndWEDe Industrialisierung der Wasserelektrolyse in Deutschland: Chancen und Herausforderungen für nachhaltigen Wasserstoff für

Verkehr, Strom und Wärme;

Schmidt et al. (2017), “Future cost and performance of water electrolysis: An expert elicitation study”;

FCH JU (2014), Development of Water Electrolysis in the European Union, Final Report; Element Energy (2018), “Hydrogen supply chain evidence base”.

Other Literature:

International Energy Agency (2019). The Future of Hydrogen. Report prepared for the G20, Japan

Glenk, G., Reichelstein, S. (2019). Economics of converting renewable power to hydrogen. Nat Energy 4, 216–222

Wood McKenzie Report (2019). Green hydrogen production: Landscape, projects and costs