T H E R O L E O F H Y D R O G E N I N O U R E N E R G Y E C O S Y S T E M

Z E R O E M I S S I O N E N E R G Y

Confidential

BRIEF INTRO TO HIRINGA ENERGY - WHAT DO WE DO?

Make Clean Hydrogen

Developing green hydrogen production projects using electrolysis using renewables, waste gases and biogases, and forming joint ventures with industrial partners who provide power and initial hydrogen offtake.

Develop Refuelling Infrastructure

Forming joint ventures to develop and invest in hydrogen distribution and refuelling infrastructure across New Zealand.

Facilitate Market Use of H2

Partnering with New Zealand’s largest freight and logistics companies.

Working with global fuel-cell and vehicle manufacturers to bring hydrogen fuel cell technologies to NZ - forklifts, buses, light & heavy vehicles, and ferries.

3

INTRODUCTION TO HYDROGENHYDROGEN IS THE EVERYWHERE ENERGY

• When using hydrogen for power or heat it gives off water vapour with no emissions

• Found naturally in:• Water (H2O)• Hydro-carbons (Eg. CH4)

• Used to produce chemicals:• Ammonia (NH3)• Methanol (CH3OH)

• Usually produced from natural gas (CH4)

• Green hydrogen can produced from renewable energy – electrolysis separates water into H2 and O2 using electricity

• Tried and tested - used in industry, transport and space…

Hydrogen is:

The most abundant element in universe

The lightest element

Odourless, non-toxic

4

WHY NOW?OUR WORLD NEEDS SUSTAINABLE LOW EMISSION ENERGY SOLUTIONS

Pollution, global warming, population growth, energy poverty, finite fossil fuels—these are the challenges of our time.

• The cost of renewable energy, especiallywind and solar generation has droppedremarkably over the last decade.

• However, renewables such as solar andwind are intermittent.

• Hydrogen can capture this energy whenthe wind blows and the sun shines andmake that energy available when needed.

“Hydrogen is the key to a de-carbonised future”. - Takeshi Uchiyamada, Chairman, Toyota

WHAT IS THE SIZE OF THE PRIZE FOR NZ?DRIVING SOLUTIONS WITH GLOBAL IMPACT

“Today's Moonshot is to fuel Earth with sustainable energy. Hydrogen is ready.”

World Economic Forum 2019

• Replace imported fossil fuels - $6 billion p.a.

• Provide replacement exports - $2 billion p.a.

• Development of technology and business models >$1 trillion market opportunity

• Increased energy resilience

• Improved quality of life

5

NZ – A CASE STUDY OF AN ENTIRE ENERGY ECOSYSTEM 80% RENEWABLE ELECTRICITY HOWEVER…60% OF ENERGY FROM FOSSIL FUELS AND CANNOT BE EASILY ELECTRIFIED

a

Hydrogen Export Markets

(seasonal)

(intermittent)

(baseload)

Fuel Cell transport solutions

H2 energy storage

Heat and Energy

(Variable)

Electric vehicles

Multiple Supply Pathways Multiple Uses Storage & Transport

Steam reformation

Electrolysis

Methanation H2 injection

Electricity Grid

Natural Gas Network

Hydrogen

Fuel Cell

H2 transport & distribution Industrial

Process Feedstock

Geothermal

Hydro

Wind

Solar

Natural Gas

Electrolysis

Pumped HydroEnergy Storage

Battery Energy Storage

Hiringa Energy 2019

H2 refueling & supply

Virtualpeaking

Combustion

CO2CO2

CO2CO2

CNG Transport

CO2

Methane cracking

Multiple supply = increased resilience, can change over time Multiple uses = greater impact on greenhouse gas emissions

LINKING NZ ENERGY SYSTEMS TO UNLOCK DECARBONISATION GREEN HYDROGEN IS KEY TO DECARBONISING HEAVY TRANSPORT AND INDUSTRY

Bio Gas

INDUSTRIAL OFFTAKE CREATES SCALE FOR GREEN HYDROGEN

Grid connect

Electrolysis

4.3 Mw Plant power

Excess power

Transport Market

7000t Green Urea

/ annum

H2 for zero emission transport market

H2 for green ammonia/urea

New Wind Turbines

Peak power

Existing Balance Agri-nutrients Ammonia/Urea Plant

Hiringa / Ballance JV

SCALE DRIVES COST REDUCTIONS

Hiringa Refuelling

COST REDUCTIONS ARE DRIVING BROADER USE

Confidential 9

Source: CSIRO National Hydrogen Roadmap

HYDROGEN FUEL CELL TRANSPORT SOLUTIONS

Confidential 10

TECHNOLOGY IS PROVEN AND APPLICATIONS ARE GROWING

“We are confident that hydrogen power will transcend the transportation sector and become a leading global economic success.”

- Euisun Chung, Executive Vice Chairman of Hyundai Motor Group, 2018

• Japan moving to a “Hydrogen Society”

• China and South Korea rolling out 1000’s of FCEV buses.

• Heavy fleet operators in US and EU have pre-ordered FCEV trucks.

• Hydrogen trains operational in Germany, UK converting diesel fleet.

• >25,000 forklifts operational in US warehouses including Amazon, Walmart, BMW, Proctor & Gamble.

11

ROAD TRANSPORT IS A MAJOR GHG CONTRIBUTORFOCUS ON HEAVY VEHICLES CREATES HIGH IMPACT OPPORTUNITY

Other Sector Emissions

83%

Light Passenger58%

Heavy Fleet26%

Light Commercial16% Other <1%

RoadTransportation

17%

Other Industry Emissions Light Passenger

Heavy Fleet Light Commercial

Motorcycle

0

5

10

15

20

25

Heavy fleet Lightcommercial

Lightpassenger

Othert-

CO

2/ve

hicl

e/an

num

Heavy vehicles make up 4% of the vehicle fleet, but 26% of the total GHG emissions

Source: MBIE New Zealand GHG Inventory Table 1.A (a) 2016, MoT NZ 2017 Vehicle Fleet Data Spreadsheet v 4.0 Sept 2018

VEHICLE FLEET VALUE PROPOSITION

Confidential 12

WHY OPERATORS WOULD CHOOSE A FCEV SOLUTION?

Benefits of hydrogen FC technology

• High Performance – instant torque and acceleration, no degradation.

• Increased utilisation – Refueling and range equivalent to diesel/petrol.

• Preserved payload – comparable to diesel

• Maintenance – less parts than ICE, improved lifetime over batteries.

• Reduced environmental impact -quiet, zero emission, no NOX, reduces disposal of batteries, 95% recyclable.

• Max impact on emissions / $ invested – high utilization, costs reducing.

• No change to fleet composition

• No change to fleet operations

• Zero emission without compromise

Outcomes for fleet operators

13

EFFICIENT USE OF FLEET VEHICLES – SYSTEM EFFICIENCY

Fuel Cell

Diesel

Battery Electric

800 km400 km

or

• A diesel truck can haul >20t payload, over 800km within NZ length and weight limitations

• One fuel cell trucks can haul the same load without refuelling or reduced payload

• Battery electric trucks must reduce payload and use multiple trucks or recharge to move the same load

Source: V. Viswanathan and S. Sripad, ACS Energy Letters, 2017, 2, 1669-1673, ICCT Zero Emission Freight White Paper vF 2017

20t

20t

10t

10t

BAT

BAT

20t

10 hrs

10 hrs

2 x 10 hrs20t

15 hrs+2.5 hrs +2.5 hrs

20t

20t

© Hiringa Energy Limited, 2019

20t 20t

10t BAT

10t BAT

14

EFFICIENT USE OF REFUELLING TIMELESS TIME CHARGING IS MORE TIME ON THE ROAD

0 5 10 15 20 25 30 35 40 45Km per Recharge Time (km/min)

BEV FCEV

© Hiringa Energy Limited, 2019

15

EFFICIENT USE OF OUR GRIDHYDROGEN MAXIMIZES INSTALLED CAPACITY WITHOUT GRID UPGRADES AND PEAK CHARGES

Time (hrs)

Pow

er D

eman

d (M

W)

Existing demand curve

Capacity increase for 100% charger availability

Network capacity

Capacity available for hydrogen production and storage

Capacity available for hydrogen production and storage

Required grid upgrades for 100% charger availability

© Hiringa Energy Limited, 2019

OPTIMISING THE COST OF ELECTRICITY

16Confidential

27

13

143.5

32

10.5Transmission

RetailerChargeGST & GovtLevyMetering

Generation

Distribution

-53.5%

Retail electricity price breakdown

Grid Connected

Generator Direct Connect

Data from: www.ea.govt.nz/consumers/my-electricity-bill

• Electrolysers can be connected directly to electricity generation avoiding significant transmission and distribution costs

• The falling cost of renewable generation can make electricity costs for hydrogen substantially cheaper than current market rates

$60 $70 $80 $90

$100 $110 $120 $130 $140 $150 $160

0:00

1:00

2:00

3:00

4:00

5:00

6:00

7:00

8:00

9:00

10:0

011

:00

12:0

013

:00

14:0

015

:00

16:0

017

:00

18:0

019

:00

20:0

021

:00

22:0

023

:00

2018 Intraday Wholesale Electricity Price

2018 Average WAP Off-peak (12hr) -WAP

ESTABLISHING INFRASTRUCTURE TO REMOVE UPTAKE BARRIERSCALABLE APPROACH TO ENABLE COMMERCIALLY VIABLE REFUELLING

17

Phase 1 – Preliminary pilot network

Phase 2 – Commercial roll-out

Other – Potential third party locations

Hiringa’s roll-out focuses on concentrated

areas of heavy vehicles, freight, logistics and

industry:

• Phase1: 4 stations online by 2021 covering

95% of the North Island freight routes

• Phase 2: 24+ stations rolled out 2021-2024

covering all North Island and majority South

Island heavy vehicle movements

New Zealand has potential to establish world’s

first full coverage commercial hydrogen

refueling network

MODULAR HYDROGEN SOLUTIONS ARE AVAILABLE

Hydrogen storage

Hydrogen production

Warehouse forklift fleets

Warehouse forklift fleets

Refuelling station

Local renewable electricity

generation

Warehouse forklift fleets

Piped hydrogen

Grid electricity

Light/Medium FCEVs

City/Intercity buses

Heavy FCEVs

Dispensed hydrogen 350 bar

Piped hydrogen

Small unit Swap & Go

Bio Gas

Waste Stream

PSA

SMR

Delivered hydrogen

PSA

Light/Medium FCEVs

City/Intercity buses

Heavy FCEVs

Dispensed hydrogen –350-700 bar

Swap and Go Manifold

Delivered hydrogen

Dispensed hydrogen –350-700 bar

Dispensed hydrogen 350 bar

PARTNERSHIPS THROUGH SUPPLY CHAIN CRUCIAL

Confidential 19

PARTNERS BRING MIX OF INFRASTRUCTURE, CAPABILITY, CAPITAL, OFFTAKE

Electricity Generation H2 Production Distribution Refuelling Offtake

Industrial H2 users

Heavy transport

Buses

Export

HEAVY TRUCKS AVAILABLE IN NZ FROM 2021

Confidential 20

• Ranges 500-2000KM, fill times equivalent to diesel

• Leverages European OEM parts supply chain and dealer network

THE TOTAL COST OF OWNERSHIP DROPPING RAPIDLY

Confidential 21

FCEV FLEETS WILL BE MORE COMPETITIVE THAN ICE FLEETS BY 2025

Hiringa is working with Ministry of Transport to identify effective early commercial

incentives for FC heavy trucks and buses

CASE EXAMPLE - EMISSIONS REDUCTIONS

• FC Bus range > 400km

• BEV buses range 230 km

• FCEV buses replace high fuel use buses first

• FCEV and BEV buses similar cost, but FCEVs reducing in cost

• No behavior change

• No infrastructure constraint –similar installed electricity capacity but flexibility on time of production

• Multiple supply sources –renewable electricity or biogas

Confidential 22

SMALL PORTION OF BUSES USE MOST FUEL AND CREATE MOST EMISISONS

23

CRITICAL SUCCESS FACTORS

Success Factor Drivers Strategies

Affordable procurement

Purchasing economy of

scale

Pilot fleets >10 vehicles / region +

multiple regionsLeasing models

FInancial offsets (eg RUC

exemption)

Low fuel costsProduction &

refuelling economy of

scale

Aggregate offtake from

multiple vehicles

Open access refueling

Broader network

integration

Low operations & maintenance

costs

Maintenance simplicity &

economy of scale

Standardize vehicles for streamlined supply chain

Pilot fleets >10 vehicles

Aggregate purchasing

across multiple regions

Reliable service delivery

Emulate existing service Route flexibility Optimised fleet

downtime

FOUR CRITICAL FACTORS TO DELIVERING A SUCCESSFUL FCEV ROLLOUT

WHAT DOES SUCCESS LOOK LIKE?

24

• Sustainable cities, industry & businesses

• Reduced emissions in our regions and cities

• New business and export creation

• Reduced imported fuels

• Provide a template for other countries

It requires:

• Collaboration at local, national and international level

• New business models and thinking

• Appropriate investment structures

THANK YOU

Confidential 25

Hydrogen is the energy to change our future –

let’s make it a zero-emissions one.

Andrew ClennettCo-Founder and CEO

M: +64 27 704 7007E: aclennett@hiringa.co.nz

www.hiringa.co.nz