Hong Kong’s Hydrogen-Based Energy FutureOctober 22, 2003

Back-up Power

Industrial Applications

Fleet Fueling

Community Fueling

Home Fueling

Energy Is Key Economic Driver

Energy has always been the key driver of sustained economic growth and improved quality of life• The “industrial age” and “information age” were

powered by a global dependence on fossil fuels• Fossil fuel power and transportation systems have

created tremendous prosperity, but at great risk to energy security and the world’s environment

• Our world has begun the shift from fossil fuels to a renewable, sustainable and secure energy future

Convergence of Drivers

Energy Security

Technology

Consensus: Hydrogen is energy “end game”

Climate Change

Air Quality

Stuart Energy Introduction

Stuart Energy Overview

Pioneered water electrolysis hydrogen generation technology and infrastructure concept in 1905

Founded Company in Toronto in 1948

Created world’s first solar-powered hydrogen fuel station in California in 1995

Built world’s first commercial hydrogen fuel station in 1998 forVancouver’s Ballard fuel cell bus project

Raised $150M in IPO on TSX in 2000 – ticker symbol HHO

Completed $28M acquisition of Belgian Vandenborre Technologies in 2003

Stuart Energy’s MissionWho we are:• Pioneer and world leader in design, marketing and

delivery of on-site hydrogen infrastructure solutions based on water electrolysis

What we do:• We design, build, integrate, sell and service

Hydrogen Energy Stations – revolutionary products that use water and electricity (renewable or off-peak) to produce, store and deliver hydrogen on-site for high-value, emission-free fuel and power applications

Asia-Pacific Joint Venture Cheung Kong Infrastructure Holdings (CKI)• Stuart Energy CKI Joint Venture

established in 2000• CKI owns 10% of Stuart Energy• CKI Letter of Intent in 2001 to

develop APAC H2 infrastructure

Stuart Energy’s Hydrogen Infrastructure Approach

Hydrogen from Electrolysis

Addresses triple threat of energy security, climate change and air pollution• Uses local electricity and water• Zero on-site emissions • Links to renewable sources of electricity• Enables zero emission energy cycle

Hydrogen Energy Station (HES)

Water electrolysis based multi purpose hydrogen infrastructure product portfolio• Vehicle fueling• Power generation• Industrial applications

Hydrogen Energy Station (HES)

Comprises five modules• Hydrogen generation• Compression• Storage• Dispensing• Power generation

Commercially proven technologyFully integrated turn-key solutions

HES IndustrialIntegrated solutions delivered to industrial gas customers worldwideApplications include:• Generator cooling• Glass manufacturing• Semi-conductor

manufacturing• Fiber optic cable

manufacturing• Food processing• Heat treating

HESf (Fueling)Intelligent vehicle fuel stations are network connected• Remote monitoring• Command and

control capabilityStarting with fleets:• CUTE• Ford• Toyota

Community public access fuel stations are coming next

HESfp (Fueling and Power)Distributed power generationConverts low-cost off-peak electricity to stored hydrogen gas for on-demand use as high value energy for:• Vehicle fuel• Back-up power• Peak shaving

Multi-use platform leverages capital costs

Personal Energy Station (PES)Potential to redefine how energy is produced, distributed and used on a personal basis• Vehicle fueling• Back-up and peak

power• Designed for home,

cottage or office useDemonstrations and field trials beginning this year

Stuart Energy HES Network

Installed Hydrogen Energy Stations (Industrial)

Installed Hydrogen EnergyStations (Fueling and Power)

Ordered Hydrogen EnergyStations (Fueling and Power)

Mobile HESfSydkraft – City of Malmo, Sweden (2003 - present)

Mobile HESfCity of Chula Vista (2003 - present)

HESfpStuart Energy Headquarters (2003 - present)

HESfToyota Headquarters (2002 - present)

HESfCaFCP Satellite Hydrogen Station (2002 - present)

Mobile HESfFord’s Arizona Proving Grounds (2002 - present)

HESfB.C. Hydro – Powertech Labs (2001 - present)

HESfSunLine Transit Agency (2001 - present)

Enabling Hong Kong’s Clean Energy Transition

Objective - Clean City

Align Hong Kong’s interest groups to drive policies and economic commitment for aggressive development of renewable and sustainable energy infrastructure• Secure support from WTO, WHO, WB, UN, etc

Focus on clean hydrogen infrastructure• Start with urban transit programs• Follow with distributed urban power generation and rural

electrification

Hong Kong uses Hydrogen TodayTowngas contains mostly hydrogen2,828 km, covering 85 per cent of Hong Kong's households and serving over 1.3 million customers

Chemical Composition

49.0 %Hydrogen28.5 %Methane3.5 %Carbon Monoxide19 %% Carbon Dioxide

•http://www.hkcg.com/en/abouttg/abouttg_04.html

Hydrogen Energy Station at TSK

Power ModulesDispenser Module Hydrogen Generation Module

Tap Shek Kok Facility

Provide an operating hydrogen system that demonstrates typical installation and operation of an emergency power system

• Supply emergency and back-up electrical power of up to 200 kW at the Tap Shek Kok facility

To provide early hydrogen vehicle fueling infrastructure.

Clean Transportation

Bus programs• UNDP fuel cell hybrid bus and H2

fueling infrastructure program• CUTE Program

Hythane fuel for CNG bus fleets• Installations at Malmo, Sweden,

Thousand Palms, CA

Deploy H2ICE vehicles• Bridge to future FC vehicles• Affordable and available today

Hydrogen ICE Hybrid Bus

41 Seats single deck busFord 2.3 Liter H2ICESerial Hybrid 3-phase AC Motor8 Dynetek W205 Type 3 composite cylindersEstimated range per fill : 350 km

Efficiency Comparison

0

1

2

3

4

5

6

7

Fuel

Con

sum

ptio

n (m

pgde

)

Typical CleanDiesel

Typical CNG Hybrid Electric(MTG)

HydrogenHybrid Electric

(H2ICE)

Relative Fuel Efficiency of Transit Vehicles

*mpgde – miles per gallon of diesel or equivalent

Emissions Comparison

0

0.5

1

1.5

2

gram

s pe

r kilo

-wat

t ho

ur (g

/kW

hr)

CO HC NOx PM

Emissions: Hydrogen Hybrid vs Euro V

Euro V2.3 L H2ICE

Hydrogen ICE today in lean burn configurationDemonstrated technology for < 1ppm NOx (.01 g/kWhr)

Rural Electrification

Address labor and material requirements to sustain Asia’s rapid economic growth• Decentralized renewable energy networks will provide human

and capital resources needed to sustain national momentum while limiting growth of large urban centers

• China has already begun installation of renewable sources of electricity in rural areas

Renewable H2 infrastructure enables decentralized economic growth, rural education and modernization

Hydrogen SafetyHydrogen is 14.5 times lighter than air Disperses rapidlyHydrogen is explosive only in high concentrations• Explosive energy of

hydrogen is very low relative to other fuels

Except in high concentrations, hydrogen has equivalent ignition energy to methaneHydrogen has a high auto-ignition temperature

Stuart Energy Safety RecordUnmatched safety record with fifty years experience Installed Hydrogen Stations in over 100 countriesOn staff experts for hydrogen safetyParticipate in Canadian, US and International codes and standards committees

Conclusion

Consensus that Hydrogen is “energy end game”Stuart Energy is a market leader in on-site electrolytic hydrogen infrastructure• Best in class technology and IP portfolio• Innovative HES/PES turn-key solution approach

Strong partnership with CKI to execute in Hong Kong and Asia Pacific50 years of experience• Products in the field today