Renewable Energies and the Hydrogen Economy - polytechniqueRenewable Energies and the Hydrogen Economy, Air Liquide ambitions Coriolis Institute, Ecole Polytechnique 4 25 Oct. 2018

AIR LIQUIDE, THE WORLD LEADER IN GASES, TECHNOLOGIES AND SERVICES FOR INDUSTRY AND HEALTH

∙Renewable Energies and the Hydrogen Economy, Air Liquide ambitions Coriolis Institute, Ecole Polytechnique

25 Oct. 2018

Renewable Energiesand the Hydrogen EconomyClaude HellerDirector Group R&D ProgramsHydrogen Energy, Healthcare and advanced Markets

1



25 Oct. 2018

Agenda

1 Air Liquide Group

2 Global warming … transformation of the global energy system

3 Air Liquide drives innovation in clean mobility and ambitions to maintain leadership across

the full value chain of its products

4 Hydrogen is at the heart of the Energy Transition

5 Air Liquide ambitions to lead activation of Hydrogen Energy Markets

6 Low Carbon Hydrogen pathways – Blue Hydrogen, accelerator of the Hydrogen Economy

7 Sector coupling between electricity and gas

2



25 Oct. 2018

1Air Liquide Group



25 Oct. 20184

The world leader ingases, technologies and services for…

● a wide range of industrial processes for our customers:

– energy, metals, food, chemicals, automotive, pharmaceuticals…

INDUSTRY HEALTH

● hospitals

● patients at home

● hygiene and specialty ingredients



25 Oct. 2018

2017 key figures

5

~65,000EMPLOYEES

PRESENT IN

80COUNTRIES

REVENUE

> €20bn

MORE THAN

3.5 MILLION

CUSTOMERS

& PATIENTS

NET PROFIT

> €2bn

CASH FLOW

> €4bn

2017 Figures



25 Oct. 20186

Our scientific territory:essential small molecules

O2

OXYGEN

Separating the air componentsto take advantage of their properties

Producing molecules fromnatural resources of the planet

N2

NITROGEN

Ar

ARGON

AND RARE GASES

H2

HYDROGEN

He

HELIUM

SiH4

SILANE

C2H2

ACETYLENE

CO

CARBON

MONOXIDE

Oxygen, nitrogen and hydrogen are essential small molecules for life, matter and energy. They embody Air Liquide’s scientific territory and have been at the core of the company’s activities since its creation in 1902.



25 Oct. 20187

Employee diversity

Diversity of nationalities, training, expertise Geographical diversity

ASIA-PACIFIC

16%

AMERICAS

41%

MIDDLE EAST & AFRICA

5%

EUROPE

38%

2017employees

BY REGION

2017 Figures

~65,000 employees



25 Oct. 2018

2Global warming … transformation of the global energy system

8



25 Oct. 2018

Toward a low carbon global economy: many visions, some must-have

9

Glass

Rockets

Paris agreementNot sufficient for the 2° trajectory

Key changes- Coal: has to stay underground- Efficiency: more with less- CCS: decarbonize fossil fuels- Electrification of primary sources

(RES) and of usages

Reductions primarily in advanced economies



25 Oct. 2018

3aAir Liquide drives innovation in clean mobility

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25 Oct. 2018

Air Liquide drives innovation in clean mobility

1 Bio-GNV

2 Refrigerated transport (Blueeze, CryoCity)

3 Hydrogen Mobility

11



25 Oct. 2018

LNG/CNG, a solution for clean transportation

12

Source: JEC Well to wheels analysisVersion 4a - March 2014

Running on biomethane reduces:● Noise by 50%● NOx emissions by 80%● Particulate matter by 90%● CO2 emissions by up to 90%



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25 Oct. 201814

Today : autonomous diesel refrigeration unit :

○ Paradox = much higher local pollution than trucks engines

○ High carbon footprint (diesel + HFC)

○ Noisy especially during night deliveries or driver pause

○ Limited cold chain performance for urban deliveries (several doors opening) & when ∆T increases

○ Limited performance over the years

Transportation Refrigeration Unit (TRU) today

Emissions of Euro VI truck with diesel TRU = Emissions of 17 to 20 Euro VI dry van trucks (up to 40 if frozen food) !!

Euro VI : comparable in stringency to the US 2010 standards

Trucks

Trailers



25 Oct. 2018

Straight truck equipped with blueezeTM

Liquid Nitrogen Tank capacity from 430 to 930 litersOverall length from 2 210 to 2 960 mmDiameter from 650 to 762 mm(shown here fitted on a truck fuelled with Natural Gas)



25 Oct. 2018

Cryocity innovation at a glance: a clean & cold cooling unit for LCVs

16

CO2 filling station

Vessel - Heat

exchanger for indirect

cooling

Web app:

Quantities prediction tool

LCO2 gun connector

Including an innovating

system for regulation and

defrosting

1

2

3

Paris - Alma

2015

Paris - Orly Airport

2017

“Hype”, First Hydrogen Taxi Fleet in the

world, in partnership with STEP

Versailles

2018 5

2015

600

20202017

Objectives

Launched during COP 21 in 2015

3 Hydrogen refuelling stations in Ile-de-France for fleet growth

3 new Hydrogen stations in France in Lyon, Grenoble and Saint-Lô

Initiating innovative business models : ex Taxi Fleet in Paris

75



25 Oct. 201818



25 Oct. 2018

3bAir Liquide ambitions to maintain leadership across the full value chain

19

Technology leveraged

at every step in the chainAir Liquide is mastering the whole

hydrogen value chain

Efficient

Sustainable

Safe

Reliable

Delivery

Application

Storage

2 3 41

Production



25 Oct. 201821

Presence across the whole biogas value chain

H2 EnergyAt the heart

of the energy transition

4

23McKinsey & Company

23

The Hydrogen Council

• A global CEO-level initiative, launched at the World Economic Forum 2017, in Davos, January 2017

• With the ambition to:

– Accelerate their significant investment in the development and commercialization of the hydrogen and fuel cell sectors.

– Encourage key stakeholders increase their backing of hydrogen as part of the future energy mix with appropriate policies and supporting schemes.

• Composed of leading energy, transport and industry companies with a united vision and long-term ambition for hydrogen to foster the energy transition

• Membership increased from 13 steering members to 33 Steering members and 21 supporting members

• From 11 countries, covering three main regions : Europe, Asia and North America

• Co-chaired in 2018 by Air Liquide & Hyundai

http://hydrogencouncil.com/

24

Collage of photos from 2017 to be added

World Economic Forum

Davos, January 2017



There are seven roles for hydrogen in the energy transition

Act as a buffer to

increase system

resilience

Distribute energy

across sectors and

regions

Enable large-scale

renewables integration

and power generation

2

3

Decarbonize

transportation

Help decarbonize

building heating and

power

Decarbonize industry

energy use

Serve as feedstock, using

captured carbon

SOURCE: Hydrogen Council

4

7

5

6

1

Enable the renewable energy system Decarbonize end uses




Important milestones can be reached already in 2030

SOURCE: Hydrogen Council



25 Oct. 2018

5Air Liquide ambitions to lead activation of H2 Energy Markets

30



25 Oct. 2018

Air Liquide ambitions to lead activationof H2 Energy Markets

1 Co-founder of the Hydrogen Council

2 Industry

3 Mobility

4 Multiple routes for low carbon H2

31

Hydrogen for industry

H2

Existing industrial

usages of H2

Refining Ammonia High grade heat

Objective:

Shift to low carbon H2

New

H2 markets

Objective:

Develop new usages for H2

to replace fossil fuels

Steel production Chemical products Recovered

CO2


∙

THIS DOCUMENT IS PUBLIC

June 28th 2018

40 years of development in Hydrogen for our customers

> 14 bn m3/yr

> 1,850 km H2

pipeline

> 46 large H2/CO plants

> 40 electrolysers in operation

> 2 bn € sales

Supply-chain

Production

Production & Supply chain

Distribution Networks

US Gulf Coast

Singapore

Markets Segments Key Figures

Process industries

Transportation

Northern EU

3

3

Oil & Gas

Steel, Glass

Electronics

Space

33


∙


June 28th 2018 34

Schematic carbon flow inside an integrated steel works

● Share of carbon (CO+CO2) in by-product gases will be provided by Voestalpine Stahl GmbH


∙


June 28th 2018

CO2 - Based Methanol: 1st generation plant

35

Lurgi 1995 patent scheme* including RWGS stage* H. Göhna and P. König, Patent Number: EP 0682002 A1, 1995

Single stage synthesis loop for 1st generation CO2 to Methanol

Air Liquide Engineering & Construction is able to license this technology and design plants withCOMMERCIAL GUARANTEES attached.

Based on better performance of catalysts

and appropriate design optimizations, the

single stage synthesis loop can deliver

comparable production capacity, even

without the RWGS stage!

100

1,000+10

10,000+

10

0.1

1,000

1

100

WeightTons

Average mileage per day/tripKm

Focus on Transport - FCEVs will play an essential role

Source: Toyota, Hyundai, Daimler

1 Battery-hydrogen hybrid to ensure sufficient power2 Split in A- and B-segment LDVs (small cars) and C+-segment LDVs (medium to large cars)

based on a 30% market share of A/B-segment cars and a 50% less energy demand

Bubble size representing the relative annual energy consumption of this vehicle type in 2013

Bio- and (H2-based) synthetic fuels

FCEV

BEV

Medium to large cars², fleets and taxis

Small cars/urban mobility2

1

1

Light commercial vehicles

Projected economic attractiveness

DECARBONIZE TRANSPORT



25 Oct. 2018

Hydrogen safety stakes

Accurately calculating the effects distances, the safety distancesand design adapted barriers to hydrogen mobility (users, urban environment, …)

37

Support

to Design

Support to

Permitting

Support to Regulations,

Codes and Standards

Airplanes

Applications

Ferries

1 T/day

Trains

150 kg/day

per train

Trucks

100 kg/day

per truck

Buses

20 kg/day

per bus

Bicycles

& scooters

Material

handling

vehicles

100 kg/day

per site

Drones

Individual cars

100-200 kg/day

per station

Hydrogen mobility

markets:

Ready to scale

TODAY

Cruise ships

10 T/day


∙


June 28th 2018

Air Liquide H2Energy Investments to date - Examples

39

Mobility for

Consumers

Japan

2014-2017

6 HRS

25% of 80 HRS

by 2021

Mobility for Consumers

US North-East

2015

12 HRS + Supply chainMobility for

Consumers

California

2014-2017

5 HRS

Mobility for Professionals

US+EU

2013-2017

9 sites

Mobility for

Consumers

Paris

2015-2017

3 HRS

Power to Gas

Denmark

2014-2015

5 HRS + 1 Electrolyzer

Mobility for

Consumers

Dubai HRS

2016

Mobility for

Consumers

Germany

2014

27% of 100 HRS

Americas Europe ME - Asia Key Elements

> 32 HRS for FCEV(controlled by AL)

> Member of 2 consortia

developing HRS networks,

each time with 25% of

80-100 HRS

> 9 HRS for Forklifts

> H2 Supply chainin the US and Denmark

5 Startups

39


∙


June 28th 2018

Mobility for Consumers

Japan

Kawasaki

Nagoya Atsuta

Air Liquide and 10 large Japanese

companies have agreed an action

plan for the construction

of a Hydrogen station network

in Japan

> Stated ambition of the Japanese

government

> Air Liquide will install and operate

around 20 stations by 2021.

6 HRS installed by Air Liquide in cities

of Nagoya, Toyota, Kawasaki, Kobe, Fukuoka and Saga.

Overall deployment figures

H2 stations:

40

2015

100

Q1 2018

320

900

2025 2030

H2

H2

H2

H2

200

2015 2021

40 000

2016 2017

1 500

2 300

FCEV’s:



25 Oct. 2018

6Low Carbon Hydrogen pathways

41

Low carbon hydrogen pathways

Biomethane

Electrolysis

low carbon electricity

Natural Gas +

Carbon Capture

and Storage (CCUS)



25 Oct. 201843


Renewable Energies and the Hydrogen Economy, Air Liquide ambition Coriolis Institute, Ecole Polytechnique25 Oct. 2018

44

Power to Gas

Denmark 40%renewable energy

from wind

Largest European industrial

power-to-H2 demonstrator,

project lead by Air Liquide

> Started in January 2018

> 1.25 MW PEM Electrolyser

> Demonstrate the complete value chain from hydrogen

renewable energy production to end users.

> Hydrogen delivered to local industrial customer

> Decarbonated hydrogen used for clean mobility through

the network of 5 H2 stations operated by Air Liquide

Air Liquide masters the whole value

chain from production, to storage

and distribution through its network of 5 HRS.

European Zero Emission Technology and Innovation Platform

ZEP –EC Clean Hydrogen Workshop, Brussels, 8 November 2017

Claude Heller (Chair of the ZEP Clean Hydrogen Working Group)

Clean Hydrogen

CCS Low Hanging Fruit

Accelerator of the Hydrogen Economy

8th Nov. 2017, BrusselsZEP-EC Clean Hydrogen Workshop

Clean Hydrogen

Accelerator of the Hydrogen Economy

0,06

5

9th Trondheim Conference on CO2 Capture, Transport and Storage – TCCS-9 (June 14, 2017)

Claude Heller (Air Liquide), Guido Magneschi (GCCSI), Kristin Jordal (SINTEF)

Clean Hydrogen Cost with Natural Gas price update

Air Liquide internal update (Nov. 2017)

Low High

Gas Price €/MWh 20 40

Europe Conditions

Based on 100,000 m3/h SMR

8th Nov. 2017, BrusselsZEP-EC Clean Hydrogen Workshop

How Clean H2 would benefit Green H2

Use of the extended hydrogen infrastructure (e.g. pipes or storage

caverns) thanks to synergies with Clean Hydrogen Power projects

(e.g. Magnum)

Participation to a large size Hydrogen Energy market activated by

the Clean Hydrogen route, thus going across the “death valley”,

allowing to benefit from volume effect on costs



25 Oct. 201848



25 Oct. 201849

Cryocap™ H2 on Steam Methane Reformer PSA Tail gas

MEDAL™ MembranesCryogenics

PSA

ShiftSteam Methane

ReformerNatural

GasH2

Fuel Gas

System

CO2

99+%

H2

Recycling

➢ CO2 capture rate: up to 98%

from syngas

➢ Combination of Membrane and

Cryogenics technologies

➢ Extra H2 production by 10 to

20%

➢ Cost reduction: up to 30%

compared to MDEA

➢ Low cost production of HP or

Liquid CO2

CRYOCAP™ H2



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7Sector coupling between Electricity and Gas



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25 Oct. 2018

Multi-generation Fuel CellAir Liquide Paris R&D Center

54



55

Looking beyond

Early movers prove

that it is sustainable

Need to further increase

the momentum:> Implement incentive policies

> Secure deployments

> Coordinate the players

> Set up the first large-scale projects



56

"Hydrogen is really at the heart of the energy transition. As we can produce heat and power directly from hydrogen in a clean way, we easily understand why it is important for this transition. It's the beginning of a journey, we've created

a momentum and now it's all about scaling up!"

Benoît Potier, CEO, Air Liquide

Documents

Renewable Energies and the Hydrogen Economy - polytechniqueRenewable Energies and the Hydrogen Economy, Air Liquide ambitions Coriolis Institute, Ecole Polytechnique 4 25 Oct. 2018