new york energy highway rfi 5.29.12

NEW YORK ENERGY HIGHWAY REQUEST FOR INFORMATION

Sharalyn Savin Assistant General Counsel

Plug Power Inc. 968 Albany Shaker Road Latham, New York 12110

(518) 738-0136 [email protected]

New York Energy Highway Request for Information

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TABLE OF CONTENTS

1. Executive Summary........................................................................................................................................ 3

2. GenDrive Technology Background………………………………..................................................................…3

3. Hydrogen Fueling Technology Background ................................................................................................... 4

4. Project 1: New York State Fuel Cell Forklift Fleet Deployment...................................................................... 5

5. Project 2: Low-Cost, Onsite Hydrogen Fuel Generation and Delivery System............................................ 13

6. Project 3: New York Hydrogen Highway ...................................................................................................... 14

7. Project 4: Fuel Cell Truck Refrigerated Units ............................................................................................... 17

8. Project 5: Fuel Cell Ground Support Equipment .......................................................................................... 14

9. Project 6: Fuel Cell Remote Monitoring Equipment ..................................................................................... 14


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1. Executive Summary

The architects of modern fuel cell technology, Plug Power Inc. revolutionizes the material handling industry with cost-effective power solutions that increase productivity, lower operating costs and reduce carbon footprints.

Headquartered in Latham, New York, Plug Power employs approximately 120 individuals to support executive, sales, administrative, engineering and manufacturing functions. Plug Power’s facilities include a 50,000 square foot manufacturing plant with dedicated production and production test facilities. A photograph of Plug Power’s headquarters is pictured left. Plug Power currently offers GenDrive™, a commercial material handling fuel cell product for lift truck applications. With over 85% market share, Plug Power placed more than 660 GenDrive fuel cell systems in the field, logging over 1.5 million hours of runtime. Providing clean, reliable energy solutions, Plug Power drives sustainable practices for our customers as well. Long-standing relationships with industry leaders, such as The Raymond Corporation and Praxair, forged the path for our key commercial accounts, including Sysco, Whole Foods, and FedEx Freight.

Plug Power Inc. headquarters In a vigorous pursuit to commercialize environmentally responsible and efficient technology, Plug Power has met the material handling industry head-on as a customer and market focused organization. The product and service solutions created have lead to outstanding customer experiences, greater customer satisfaction, and robust growth.

2. GenDrive Technology

Plug Power gained extensive experience in the design and operation of proton exchange membrane (PEM) fuel cell systems since its inception in 1997. With this technology, GenDrive power units are fueled directly with hydrogen stored in an on-board cylinder as a compressed gas at pressures up to 250 or 350 bar. The output power from a GenDrive system is sufficient to operate a lift truck with a total output power of 5-20 kW. The only by-products of the power generating reaction are pure water and heat. As a commercial commodity, GenDrive systems enhance productivity, reduce overhead and downtime, and energize lift truck operators. Unlike batteries that last fewer than six hours on a single charge, a fully fuelled GenDrive produces power in excess of ten hours on a single fill. They produce electrical power on demand and react instantly to changes in load demand. A drop-in alternative to lead-acid batteries, GenDrive fuel cell technology eliminates the need to swap out and recharge batteries.


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GenDrive fuel cells provide continuous power at all times eliminating performance degradation, frequent trips to the battery room, swapping out batteries and battery recharging and cooling. Alternatively, fuel cell-powered lift trucks continuously run at full speed and never require changing. Truck operators conveniently refuel the units themselves at compact hydrogen fuelling stations set in strategic locations on the floor. Refuelling takes as little as 60 seconds, and it is simple and safe. GenDrive power units produce zero harmful emissions during operation. The by-products of hydrogen fuel cells are heat and water. Unlike batteries, GenDrive fuel cells do not leave behind any lead and sulfuric acid. A more in-depth discussion of environmental benefits will be discussed in Section 6. The pure power of GenDrive fuel cells gives lift trucks and productivity a boost. Offering a full suite of fuel cell power units, Plug Power’s GenDrive systems can supply the power requirements for an entire fleet of electric lift trucks, including pallet trucks, counterbalance rider trucks, narrow-aisle reach trucks, AGVs, and more. The picture, below, highlights Plug Power’s Class 1, Class 2 and Class 3 GenDrive products.

Plug Power Inc. Class 1, Class 2 and Class 3 GenDrive systems

As an established leader in the fuel cell industry, Plug Power continues to build its customer base with an expanding portfolio of commercial GenDrive products. Our extensive experience has taught us a great deal about our technology, our products and the markets we serve. Our success hinges on our ability to build products and services that fundamentally improve the business of our customers.

3. Hydrogen Fueling Technology

Refueling a GenDrive fuel cell takes as little as 60 seconds. There’s no waiting in line and no swapping out heavy batteries. Operators simply drive up to one of several compact refueling dispensing stations strategically located within a facility and fill up their lift truck with hydrogen gas.

The liquid hydrogen handling storage equipment is located immediately outside the service center within a fenced enclosure. Liquid hydrogen is transported to and stored on site in an approximately 28,000-L cryogenic storage tank. Hydrogen is withdrawn from the tank as a liquid and then gasified by a vaporizer using heat from the ambient air.

The cost of hydrogen is a significant part of fuel cell operating cost for material handling equipment

users. Hydrogen cost depends on a variety of production and regional considerations, but ultimately the capital and operating costs involved are amortized over the volume of hydrogen dispensed. Converting an entire service center generates significant hydrogen demand, which justifies bulk hydrogen supply. Bulk hydrogen supply, in turn, reduces hydrogen costs and helps to achieve the full economic benefit of fuel cell use. The most cost-effective and dependable method of

Liquid HydrogenTank and Vaporizer


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e Tank

obtaining bulk hydrogen is through liquid merchant supply since it provides the advantages of greater onsite volume and necessitates fewer fuel deliveries than gaseous systems.

The liquid and gaseous hydrogen handling equipment is outfitted with fail-safe, air-operated valves that shut in the case of a control system alarm, loss of power, or when actuated by a remote emergency shutdown switch. The control system manages system operations, monitors against equipment malfunction and automatically signals for hydrogen delivery when reserves run low.

Generally, two hydrogen dispensers are located inside a service center. Each dispenser transfers gas to a power unit, and communicates temperature and pressure data from the power unit in order to maximize the fueling rate and fill quantity. Fueling specifications include transferring 3.7 kg in less than 5 minutes to a maximum temperature-compensated fill pressure of 438 bar at 85 ºC.

Each dispenser draws fuel from the ground storage cylinders, after which, the compressor automatically replenishes the cylinders as required. Grounding occurs by way of a dedicated conductor and through the fueling hose itself. The nozzle geometry complies with the SAE J2600 standard and the gas hose and ground cable each include a breakaway device to ensure safe operation in the event of a “pull-away” incident during fueling. The user interface consists of lights, switches and an electronic display. The switches are used to enter fueling commands, the lights indicate fueling status, and the display provides fueling information. The dispenser’s control system performs ongoing automatic leak checks, manages fueling operation, and monitors against potentially dangerous or abnormal operating conditions. If an alarm triggers or an emergency stop button is pressed, isolation valves close, interrupting hydrogen flow into the service center and stopping the fueling process.

Each of the two dispensers operates independently, so that if one dispenser is being maintained, the other dispenser will remain in use. Each dispenser’s controls are separate from the hydrogen handling equipment controls so that maintenance on the outside equipment does not affect fueling operations inside the building.

4. Project 1: New York State Fuel Cell Forklift Fleet Deployment

Project Locations Schenectady, NY; Elmsford, NY; Conklin, NY; Latham, NY; Rochester, NY; Warners, NY; Halfmoon, NY; Johnston, NH; Sharon Springs, NY; Marcy, NY; Gansevoort, NY Project Description

Plug Power proposes to install and commission approximately 1,378 GenDrive power units in Class 1, Class 2 and Class 3 fork trucks as follows: 263 fuel cell systems at the Price Chopper distribution facility in Schenectady, New York, 50 fuel cell systems at the Coke facility in Elmsford New York, 170 fuel cell systems at the Maines Paper and Foods facility in Conklin, New York, 40 fuel cell systems at the Pepsi Co. facility in Latham, New York, 40 fuel cell systems at the Pepsi Co. facility in Latham, New York, 170 fuel cell systems at the Wegmans facility in Rochester, New York, 50 fuel cell systems at the Sysco. facility in Syracuse, New York, 35 fuel cell systems at the Syracuse facility in Halfmoon, New York, 200 fuel cell systems at the Walmart facility in Johnstown, New York, 100 fuel cell systems at the Walmart facility in Sharon Springs, New York, 200 fuel cell systems at the Walmart facility in Marcy, New York, 100 fuel cell systems at the Target facility in Gansevoort, New York.

Over the course of the demonstrate, the project will demonstrate the economic and environmental benefits of large fleet conversions from lead-acid batteries to fuel cell power units; identify regulatory and economic barriers to entry for future conversions; provide a market for affordable, reliable and renewably generated hydrogen along New York’s hydrogen highway; spur further fuel cell fleet

Gaseous HydrogenDispenser


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conversions; and establish a proving ground for hydrogen fueling technology to promote the adoption of fuel cells in other transportation applications.

As discussed below, there are significant operational, economical and environmental benefits related to converting to a GenDrive powered fork truck solution. Plug Power seeks New York State’s support to celebrate a New York demonstration project that facilitates the integration of 1,378 homegrown material handing fuel cell systems to retrofit a fork truck fleet at several thriving New York customer facilities. In return, this project 1) offers New York State an opportunity to strengthen green job growth in the fuel cell supply chain and fuel cell service sector, 2) promotes a transfer from grid-tied lead-acid battery charging to a hydrogen-fueled solution, 3) reduces greenhouse gas emissions, 4) promotes significant energy efficiency, 4) allows for significant productivity improvements at the customer facilities, and 5) will demonstrate that the economic efficiencies, energy savings, environmental benefits and operational efficiencies of this clean technology alternative. Energy Benefits GenDrive fuel cell systems not only lower a customer’s electricity bills through the elimination of battery charging, but electricity costs are reduced for the remaining operations at the customer’s distribution center. The positive impact to the electrical grid is two-fold: (1) GenDrive reduces consumption in the form of kW-hrs and (2) GenDrive reduces peak demand in the form of kW. Electricity bills are built by two main cost drivers:

1. Electricity Usage ($ = Total Usage x $ / kW-hr) a. Removing electricity from battery charging b. Reduced rate of remaining electricity (the more you use, the higher the incremental

cost)

2. Peak Demand ($ = Peak Usage x $ / kWmax ) a. Cost associated with meeting peak loads. This is typically based on the maximum

amount of power used during any 15-minute to 30-minute time window throughout the month.

The chart in Figure 1, below, shows how these two factors commonly appear in a facility’s load profile.

Battery charging represents twenty-five to thirty percent of a distribution center’s electricity usage and approximately fifty percent of the peak demand charges, due to the spike in electricity usage when batteries are charged. The chart in Figure 2 illustrates how the electricity demand line AA starts very high and decreases as batteries become charged. During the typical 8-hour charging period, the charger supplies energy to the battery at a rate that depends on the battery’s state-of-charge at any instant.

Figure 1: Load Profile with Electricity Usage and Peak Demand


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Source : http://evbatterymonitoring.com/WebHelp/Section_3.htm

Battery charging efficiency averages about fifty-five to sixty percent during charging. In other words, the customer must deliver 72.4% more electricity to the battery during charging than what can be used during operation because the battery heats up during charging and the heat is lost to the environment. The diagram in Figure 3 shows how the energy efficiency in charging a batter is discharged to various depths over an eight hour charge.

Environmental Benefits According to the EPA, the process of generating electricity is the single largest source of carbon dioxide emissions in the United States, representing forty-one percent of all carbon dioxide emissions. Fuel cells can be a major source of carbon emissions reduction by replacing grid electricity production at distribution centers with hydrogen to power fuel cells in forklift trucks. As illustrated in Figure 4, by eliminating the need to charge an average of three batteries per fork truck per day, a wells-to-wheels analysis suggests the proposal to retrofit 170 fork trucks at Price Chopper (Golub) Schenectady, New York facility is projected to reduce greenhouse gas emissions by over eighty percent.

Figure 2: A-hr Returning to a Battery During an 8-hr Charge

Figure 3: Energy Efficiency in Charging a Battery


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GHG Emissions Analysis for Golub SchenectadyElectricity (Battery Solution) vs. Hydrogen (Fuel Cell Solution)

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Electricity from Grid H2 from Clor-Alkali Waste StreamProcessing

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81.9% Reduction

883 Metric Tonnes

159 MT's

GenDrive fuel cell systems offer clean, reliable, energy generation. With a higher efficiency than conventional power generation, little or no pollution and greater flexibility in installation and operation, they already offer commercially viable alternatives to existing power sources.

As discussed above, fuel cells are a highly efficient alternative energy technology. Additionally, fuel cell powered fork trucks run on hydrogen, which is derived from largely renewable domestic supplies easily obtained in vast quantities here in the United States, creating a positive impact on both our domestic economy and our national security. There are also operational efficiencies to consider that make fuel cell powered fork trucks an attractive, commercially viable commodity. For example, traditional fork trucks powered by lead acid batteries need to be swapped mid-shift to recharge, a process taking up to forty-five minutes, whereas fuel cells refuel in less than five minutes. Also, distribution centers using battery powered fork trucks require huge storage rooms that use massive amounts of electricity for battery charging and cooling at great cost to the end user. This space and energy is unnecessary to maintain a fuel cell fork truck fleet. Fuel cell powered fork truck performance does not degrade like a battery powered truck during the shift and therefore can maximize shift efficiency. This is particularly important as many fork truck operators are compensated based on performance in a set time period. Upon experiencing fuel cell based systems, operators cite a clear preference for them over traditional battery powered models based solely on performance. Value Proposition Analysis GenDrive systems enhance productivity, reduce overhead and downtime, and energize fork truck efficiencies. Unlike lead-acid batteries that last fewer than six hours on a single charge, a fully fuelled GenDrive system produces power in excess of ten hours on a single fill. They produce electrical power on demand and react instantly to changes in load demand. A drop-in alternative to lead-acid batteries, GenDrive fuel cells provide continuous power at all times eliminating performance degradation, frequent trips to the battery room, swapping out batteries and battery recharging and cooling. Additionally, fuel cell-powered fork trucks continuously run at full speed and never require

Figure 4: GHG Emissions Analysis


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changing. Truck operators conveniently refuel the units themselves at compact hydrogen fuelling stations set in strategic locations on the floor. Refueling takes as little as 60 seconds, and it is simple and safe. Project Goals

The specific objectives of this project are to:

1. Retrofit a fleet of 1,378 Class 1, Class 2 and Class 3 fork trucks at the selected customer locations to fuel cell use. It is only through the complete conversion of a large lift truck fleet within a large commercial center that the full economic benefits of eliminating battery changes and charging can be fully realized and assessed. These centers operate multiple full shifts per day so that the time and performance benefits of fuel cell technology are significant when aggregated across an entire fleet.

2. Demonstrate the economic benefits of large fleet conversions of lift trucks from batteries to fuel cell power units by measuring, analyzing and reporting on the performance, operability and safety of the systems. Durability and lifetime are key economic factors; for this reason, long-term operations will continue well in excess of 5,000 hours. GenDrive power units are designed to operate for 10,000 hours prior to major overhaul.

3. Provide affordable and reliable hydrogen. The cost of hydrogen is a central factor when considering the economics of fuel cell use and is highly dependant on quantity throughput. Converting an entire lift truck fleet establishes sufficient demand to install a liquid hydrogen depot, which provides low-cost hydrogen for the existing fleet and is capable of fueling additional lift trucks in the future.

4. Spur further fuel cell lift truck fleet conversions. Success with a full fleet conversion such as that proposed here leads to further fleet conversions at other service centers. This allows power unit volumes to grow, which in turn lowers component costs and stimulates even more conversions and new customers to adopt the technology.

5. Establish a proving ground for hydrogen fueling technology that will promote the future adoption of fuel cells in other applications, such as cars, and help drive the use of fuel cell technology in the U.S. Large, turnkey fueling operations at industrial settings such as this one provide a basis to track, study, and analyze the commercial, operational, and environmental effects of hydrogen and fuel cell use.

In order to carry out the objectives of this project, the following tasks shall be performed during this program by Plug Power Inc. Task 1: Project Management Project Personnel: Plug Power Inc. shall subcontract with selected customers and shall serve as Project Manager, having the responsibility of the overall supervision and conduct of the project work on behalf of the Contractor. Any substantive change of the project personnel by the Contractor shall be subject to the prior written approval from the funding agency. Such approval shall not be unreasonably withheld.

Task 2: Fueling Station Installation

The objective of this task is to install hydrogen handling and dispensing equipment consistent with merchant liquid hydrogen supply. Specific activities include:

Plug Power: Specify the fueling equipment requirements


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Selected customers, with assistance from Plug Power and Praxair, as required: Obtain approvals and permits from local authorities having jurisdiction

Plug Power: Design site layout (with due consideration of area classifications and clearance distances)

Praxair: Provide liquid hydrogen handling equipment and prepare structural, piping, electrical and pneumatic design plans associated with their equipment

Plug Power: Provide the gaseous compression, storage and dispensing equipment

Selected customers: Prepare the hydrogen handling equipment area; this will involve at a minimum pouring the concrete base, providing 480 V, 3-phase electrical power within 30’ of the fuel storage area, providing a 150-psi air supply within 30’ of the fuel storage area, providing two dedicated phone lines within 30’ of the fuel storage area, fencing the enclosure, and adding site lighting

Praxair: Assemble the liquid hydrogen handling equipment on site, including civil, electrical and mechanical connections

Plug Power: Install the compression and storage equipment, dispensers and interconnecting piping

Praxair and Plug Power: Prepare fueling station operating manuals, service manuals and training materials

Task 3: Power Unit Construction

The objective of this task is to complete the construction of 263 GenDrive fuel cell power units. Specific activities include:

Plug Power: Component procurement, fabrication, assembly and commissioning of a mix of 263 Class 1, Class 2 and Class 3 GenDrive fuel cell power units

Plug Power: Prepare power unit operating manuals, planned maintenance manuals, service manuals and training materials

Milestone – 1,378 GenDrive Power Units Delivered / Fueling Station Complete

Task 4: Start-up and Training

The objective of this task is to commission and start up the fueling station and power units and train Price Chopper personnel in their use and maintenance. Specific activities include:

Praxair: Commission the liquid hydrogen handling equipment, commission the gaseous hydrogen compression, storage and dispensing equipment

Praxair and Plug Power: Provide hydrogen fueling station training, including operation, hydrogen safety and emergency response in a “train the trainer” arrangement

Plug Power: Commission the power units on site

Plug Power: Provide power unit training, including operation, planned maintenance, service, hydrogen safety and emergency response in a “train the trainer” arrangement

Milestone – Distribution Center Fully Operational

Task 5: Lift Truck Operation and Evaluation


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The objective of this task is to provide operational and maintenance support for the power units and the hydrogen handling and dispensing equipment and evaluate their performance over the duration of the project. Specific activities include:

Praxair: Supply liquid hydrogen over the course of operations

Praxair: Maintain and repair the liquid hydrogen handling equipment over the course of operations

Praxair: Maintain and repair the gaseous hydrogen compression, storage and dispensing equipment over the course of operations

Plug Power: Provide contract maintenance and repair for the power units over the course of operations. Power units include a one-year overall warranty with a two-year or 5,000 hour warranty on the fuel cell stack

Plug Power: Collect data from the power units and evaluate performance, operability and safety over the course of operations

Selected customers: Operate the lift truck fleet during normal service center operations

Selected customers: Evaluate service center performance, operability and safety over the course of operations

Project Finances The table below summarizes cost-sharing plans by task for the Price Chopper (Golub) site, used an example to represent the type of funding and planning per site. Similar project finances would be developed for the proposed demonstration project sites. The table below summarizes the cost-sharing plan by task.

As shown in the Price Chopper example above, New York State would contribute a total of $750,000, or 15% of the costs required for this particular customer site, with total site cost valued at $4,906,100. $650,000 of the requested funding for the Price Chopper site would be applied directly as a capital buy-down for to manufacture the mix of 263 Class 1, Class 2 and Class 3 GenDrive systems in Task 3. The remaining $100,000 requested will be split between Task 1 and Task 5 to fund the overall project management and operations support during the course of this two year demonstration. Plug Power will make all customer economics available for the additional 10 sites identified in this proposal upon request. Job Creation/Retention New York State has been a critical partner in the development of fuel cell technology, and now stands to be a critical partner in the commercialization of fuel cell technology. The material handling industry has been devastated by the economic recession. Green job growth in this sector is dependant on the expansion of fuel cell incentives. In the current economic climate, customers and manufacturers cannot afford to invest in clean technologies and hydrogen infrastructure installations that exceed the cost of incumbent technologies. Capital budgets are very tight or non-existent.


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As we has matured from a research and development business to a sales and market driven organization, Plug Power’s material handling fuel cell systems are reaching commercial viability. Already supporting commercial operations in distribution centers around the country, the material handling fuel cell industry embodies exactly the kind of innovation economy that should be the key ingredient to our long term economic growth. This is an existing industry that is poised for rapid growth. We believe that with New York State’s assistance much of this rapid growth can and will occur right here where the industry has an established base. The material handling market is one of the first viable commercial markets for fuel cells. The expansion and deployment of this technology will have a ripple effect on other sectors of our economy – including the automobile industry and American manufacturing – two of the hardest hit in the recession. Plug Power spends approximately $1.75 million on New York small business suppliers each year. This figure was expected to double in 2010 and is expected quadruple in 2011. Moreover, in 2008 23% of Plug Power’s supply chain dollars flowed to New York companies. This figured increased to 29% in 2009. Fork truck manufacturers, fuel cell supply chain manufacturers and hydrogen companies employ thousands of people in New York State. For instance, The Raymond Corporation, a material handling equipment manufacturer, currently employees approximately 1,110 people at their Greene, New York and East Syracuse, New York facilities. Though they recently closed international operations to consolidate clean technology growth at their Greene, New York facility, funding opportunities spurring the commercial viability of fuel cell technology increases the likelihood that their employment opportunities will grow as well. Similarly, Praxair currently employs 1,100 people at their Tonawanda, New York facility. They recently identified green hydrogen production as an area for market expansion and green job growth. Manufacturing jobs like these also have a significant multiplier effect, creating an additional 1.3 jobs for each new or existing job in the industry. Every 1000 GenDrive units Plug Power builds disperses $15 million of orders to 56 vendors in the supply chain who employ over 62 thousand people (companies that largely supported the auto industry). As we reach our target of shipping 5,000 fuel cell systems annually, Plug Power plans to add another 100 jobs at its Latham headquarters. Challenges and/or Potential Obstacles Using fuel cell power undoubtedly leads to long-term savings for companies that choose to use these fork trucks; however, a challenge remains in overcoming the start up costs associated with the transition. As discussed below, the initial costs of a fuel cell powered fork truck have not yet reached cost parity with the incumbent battery technology, particularly at brownfield sites like the Price Chopper location in Schenectady and several of the additional customer project locations. Sunk capital costs are a significant barrier to market entry on brownfield sites. Brownfield sites make up approximately 95% of the material handling market. Unfortunately, due to the tremendous sunk capital cost in batteries and battery infrastructure, many brownfield sites lack the upfront capital required to switch to a cleaner, more economically hydrogen-powered structure. As a result, this section of the market is often the last to adopt the environmentally preferred technologies that would not only spur productivity and operational savings, but also reduce independence on the grid. Customers must also consider the additional financial expense associated with installing the hydrogen refueling infrastructure that supports the device. The cost of hydrogen is also a significant part of fuel cell operating cost for material handling equipment users. Hydrogen cost depends on a variety of production and regional considerations, but ultimately the capital and operating costs involved are amortized over the volume of hydrogen dispensed. Converting an entire service center generates significant hydrogen demand, which justifies bulk hydrogen supply. Bulk hydrogen supply, in turn, reduces hydrogen costs and helps to achieve the full economic benefit of fuel cell use. The most cost-effective and dependable method of obtaining bulk hydrogen is through liquid merchant supply since it provides the advantages of greater onsite volume and necessitates fewer fuel deliveries than gaseous systems.


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Once installed, however, Plug Power customers who install hydrogen infrastructure to fuel material handling products ultimately strengthen and support the movement to develop a New York State hydrogen highway for on-road vehicles because the core technology and infrastructure that is used to fuel material handling products is also used to fuel on-road vehicles. This presents a tremendous opportunity to 1) plan ahead for smart and efficient placement of customer and residential use of a hydrogen infrastructure and 2) partner with the hydrogen industry and on-road vehicular applications to drive down hydrogen infrastructure and fueling costs. 5. Project 2: Low-Cost, Onsite Hydrogen Fuel Generation and Delivery System Hydrogen is the largest inhibitor to the adoption of fuel cells. Although the United States has the most advanced liquid infrastructure and lowest cost structure, hydrogen costs are still typically $8 to $9 / kg for most material handling customers. There are two components to the liquid hydrogen cost structure: (1) infrastructure (including cryogenic storage, vaporizer, compressor, and high pressure storage) and (2) molecule (or fuel) price. The data to the right shows that the second component, the fuel price, is relatively constant. Avoidance of infrastructure costs is the key to lower hydrogen cost. A viable alternative to liquid merchant hydrogen is onsite hydrogen production through SMR / PSA (steam methane reforming / pressure swing adsorption). Market Attractiveness Hydrogen has been enabled by the US space program and its investment in the liquid infrastructure. But the United States is vast in square footage and the distance to transport liquid hydrogen from source to customer incurs a lot of transportation cost. Simply, onsite hydrogen eliminates this transportation cost. Additionally, onsite hydrogen reforming infrastructure is similar in cost to liquid hydrogen infrastructure so the capital investment is the same. The net result is that the elimination of fuel liquefaction and transportation yields a competitive advantage for onsite hydrogen reformation over liquid distribution. Commercial Readiness There are roughly 200 plants like the one pictured here located in the United States that fall within the 100 to 400 kg/day range. The commercial readiness of this market is demonstrated by the number of competitors including Harvest Energy (Air Products), HydroPrime (Linde), Kotting (PraxAir), H2Gen (Air Liquide), Teledyne, Proton, HyGear. Mahler, and Pan American. Most of these companies use a 25-year-old design created by HydroChem in which reformer tubes are used instead of bundles. The result has been significantly greater reliability, ultra-high availability, and lower service costs. Plug Power has been working with a company offering SMR / PSA onsite hydrogen production for over one year to customize the solution specifically for the material handling range of consumption. Additionally, our partner’s experience in service and hydrogen backup logistics has made this solution commercially viable today. Value Proposition Hydrogen is the single largest inhibitor in the fuel cell value proposition, not only for material handling but for all applications. Due to the cost reduction when comparing onsite production with liquid delivery, the proliferation of onsite hydrogen production can be a breakthrough for the hydrogen economy in general. Since the interface (the dispenser) between the station and the fuel cell is the same for liquid hydrogen or SMR/PSA plants, the fuel cells operate exactly the same at the manufacturing site or distribution center.


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H2 Consumption kg / day 50 100 150 200 250 300 400

Onsite Hydrogen Production $ / kg $17.43 $9.23 $6.95 $5.81 $5.52 $5.31 $5.10

Liquid Hydrogen Delivery $ / kg $15.42 $10.79 $9.25 $8.64 $8.28 $7.98 $7.57

Reduction $ / kg -$2.01 $1.56 $2.30 $2.83 $2.76 $2.67 $2.47

Reduction % -13.1% 14.5% 24.8% 32.8% 33.3% 33.5% 32.6%

Onsite Hydrogen Production vs. Liquid Hydrogen Delivery

Typical Material Handling Consumption The chart on the left shows the price of hydrogen when used in the material handling industry. The blue line shows the capital infrastructure cost for the SMR/PSA plant. The two red lines show the cost per kg for a 6 day/week and 7 day/week operation. The chart on the right shows the comparison of onsite hydrogen production vs. liquid hydrogen delivery and its impact on the fuel cell value proposition in the material handling market. Above 80 kg/day consumption, onsite hydrogen production enables customer savings. As shown in the charts, the more hydrogen consumption, the more savings.

Further, this hydrogen expense for the first 10 years pays for the infrastructure. Hydrogen costs after 10 years drop to $3.50 to $4.00/kg, which greatly amplifies the value proposition of fuel cells in material handling applications. Present Limitations to Commercialization SMR/PSA plants are typically used in the refining, chemical process, and metal fabrication industries. The issue is that there currently no plants producing hydrogen for a material handling application. The present barrier to adoption is risk of hydrogen availability. Liquid hydrogen solutions offer 100% availability since there is fuel always on site and redundant compression, storage, and dispensing (CSD). Our qualified partner has relationships with merchant hydrogen providers such that emergency backup hydrogen can be supplied to a site within 8 hours, eliminating the risk of hydrogen availability at the site. The risk of operational downtime at a distribution center is too great for a site to take the risk. Value of the Project This project represents an economic breakthrough in hydrogen costs. One of DOE’s short-term goals for hydrogen is $6/kg all in. Onsite hydrogen from a SMR/PSA plant achieves this goal. 6. Project 3: New York State Hydrogen Highway Hydrogen fuel cell technology is a major contributor in bringing green jobs, sustainable living practices and energy independence to the United States. In order to properly deploy fleets of fuel cell-powered vehicles, a secure and reliable hydrogen infrastructure needs to be implemented. In order to do so, the


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technology needs to be deployed and tested on a smaller scale in a commercially viable and economically justifiable market. That market is the material handling industry, where over 1200 hydrogen fuel cells to date have been commissioned at customer sites across North America. These fuel cells have accumulated over 2.5 million hours of in-application operations. Distribution centers rely on fork truck fleets to meet daily product storage and shipment requirements. Depending on each distribution center’s operations, each fork truck may require up to three lead-acid batteries to keep it operational for consecutive eight-hour shifts. During operation, lead-acid batteries drain during use and must be re-charged frequently to offset battery droop and maintain power output. Battery charging represents 25% to 30% of a distribution center’s electricity usage and approximately 50% of the peak demand charges. This is due to the spike in electricity usage when batteries are charged. Each battery recharging session may take up to 20 minutes, preventing a fork truck operator from moving product during this period. Accordingly, distribution centers realize a significant loss in productivity due to wasted labor time set aside to accommodate lead-acid battery recharging. Distribution centers must dedicate precious floor space to store and charge lead-acid batteries – space that could otherwise be dedicated to stocking additional product to increase output and maximize profitable operations. Moreover, lead-acid batteries are extremely toxic to the environment. More than eighty percent of lead produced in the United States is used in lead-acid batteries. Though lead-acid battery recycling programs have been successfully introduced to prevent widespread environmental exposure to the toxic substances found in these batteries, some studies suggest that as many as 40,000 metric tons of lead-acid batteries end up in landfills every year. Though a spectrum of fuel cell technologies have been studied, researched and demonstrated in small-scale applications, material handling fuel cell technology is primed to become the first, innovative application to spur the commercialization of fuel cell technology and a commercial hydrogen economy. Designed for the demanding requirements of high-throughput warehousing, distribution and manufacturing operations, hydrogen fuel cells combine full shift operation with high speed performance to maximize the effectiveness of the customers’ business. Hydrogen fuel cell power units directly replace lead-acid batteries without modifications to the lift trucks themselves and preserve the original dimensions, weight and center of gravity of the batteries they replace. Fueled directly with the hydrogen stored in an on-board cylinder as a compressed gas at pressures up to 250 or 350 bar, the output power from a hydrogen fuel cell system is sufficient to operate a fork truck with a total output power of 5-20 kW. Hydrogen fuel cell systems enhance productivity, reduce overhead and downtime, and energize fork truck efficiencies. Unlike lead-acid batteries that last fewer than six hours on a single charge, a fully fueled hydrogen fuel cell system produces power in excess of ten hours on a single fill. They produce electrical power on demand and react instantly to changes in load demand. A drop-in alternative to lead-acid batteries, hydrogen fuel cells provide continuous power at all times eliminating performance degradation, frequent trips to the battery room, swapping out batteries and battery recharging and cooling. Additionally, fuel cell-powered fork trucks continuously run at full speed and never require changing. Truck operators conveniently refuel the units themselves at compact hydrogen fueling stations set in strategic locations on the floor. Refueling takes as little as 60 seconds, and is simple and safe. Hydrogen fuel cell power units produce zero harmful emissions during operation. The by-products of hydrogen fuel cells are heat and water. Unlike batteries, GenDrive fuel cells do not leave behind any lead or sulfuric acid.


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This technology is not something “down the road” or “in the future”. It is available in the present and major customers like Wegmans, Walmart and BMW are using this today to drive increased productivity and help them achieve a competitive advantage. Economic Benefits The material handling industry has been devastated by the economic recession. Green job growth in this sector is dependent on the expansion of fuel cell incentives. In the current economic climate, customers and manufacturers cannot afford to invest in clean technologies and hydrogen infrastructure installations that exceed the cost of incumbent technologies. Capital budgets are very tight or non-existent. Hydrogen fuel cells are reaching commercial viability. Already supporting commercial operations in distribution centers around the county, the material handling fuel cell industry embodies exactly the kind of innovation economy that would be the key ingredient to long term economic growth. The material handling market is one of the first viable commercial markets for fuel cells. The expansion and deployment of this technology will have a ripple effect on other sectors of our economy – including the automobile industry and American manufacturing – two of the hardest hit in the recession. Fuel cell manufacturers, fork truck manufacturers, fuel cell supply chain manufacturers and hydrogen companies employ thousands of people in New York State. For instance, The Raymond Corporation, a material handling equipment manufacturer, currently employees approximately 1,110 people at its Greene, New York and East Syracuse, New York facilities. Similarly, Praxair currently employs 1,100 people at its Tonawanda, New York facility. It recently identified green hydrogen production as an area for market expansion and green job growth. Finally, Plug Power, a manufacturer of hydrogen fuel cells for the material handling market, employs over 150 people at its Latham, NY headquarters. Plug Power has deployed over 2,200 fuel cells to commercial material handling customers across North America. Manufacturing jobs like these also have a significant multiplier effect, creating an additional 1.3 jobs for each new or existing job in the industry. Every 1000 fuel units Plug Power builds disperses $15 million of orders to 56 vendors in the supply chain who employ over 62 thousand people (companies that largely supported the auto industry). As the Company reaches its target of shipping 5,000 fuel cell systems annually, Plug Power plans to add another 100 jobs at its New York facility. Commercial Deployments To date, over 2,200 hydrogen fuel cell products are deployed with customers across North America. These products have accumulated over 6.5 million commercial operating hours. This industry sees 6,000-10,000 hydrogen fuelings performed by lift truck operators each week. Industrial gas companies are engaged in this commercially viable industry, today. And, fuel cell manufactures have established relationships with key suppliers to ensure a robust hydrogen infrastructure is available on-site for existing and new customers. Key customers utilizing hydrogen fuel cell systems in their operations today include Walmart Canada, Sysco, FedEx Freight, BMW, Coca-Cola, Wegmans, CVS, Kimberly-Clark, Nestle Waters, UNFI, Whole Foods and Bridgestone Firestone. Wegmans Case Study Wegmans Food Markets, Inc. is a 77-store supermarket chain headquartered in Rochester, New York. Wegmans Pottsville, Pennsylvania retail service center had plans to develop a new 420,000 square foot refrigerated and frozen distribution center. The idea of using hydrogen fuel cells instead of lead-


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acid batteries in the material handling equipment was introduced because of significant benefits offered by the alternative energy power source. Wegmans deployed 83 fuel cells in their lift truck fleet and have plans to add another 53 during a building expansion in 2012. Since the start of use, Wegmans is seeing a considerable savings over the cost of operating lead-acid batteries in its lift trucks. Hydrogen fuel cells do not have the heating cycle like lead-acid batteries, which often caused the machines to break down over time. Due to this, Wegmans was able to negotiate much better equipment and maintenance contracts. Wegmans Pottsville facility has saved over $250,000 on equipment and expects to save another $250,000 through the overall term of the service and maintenance contract. When comparing the costs of repair, preventative maintenance and electricity use during 2009 and 2010, Wegmans estimates a savings of 42 to 48 percent. Wegmans has also experienced improvements in productivity and efficiency. Operators are always in the aisle now and the equipment is constantly on the floor. The fuel cells are constantly working, not sitting in the storage room. Operators see two full shifts on one refuel of the fuel cell-powered pallet jack. To ensure safety for all workers, Wegmans Pottsville assigned specific maintenance team members to change out lead-acid batteries. Strict recharging schedules required operators to run their batteries until they were almost non-operational. With fuel cells, operators have more control over their jobs and can refuel on their own. Operators activate hydrogen fueling stations via an access card and all staff is trained on the safe use of hydrogen. Being able to refuel their own fuel cells, like with a car, allows employees to work as they want to, improving morale and job performance. Sysco Houston Case Study Sysco committed to a conversion of its fleet of 98 trucks at its newly-constructed Houston facility in 2008. The 100 percent hydrogen infrastructure was designed into the new facility, which has a sustainable design at the core. Using fuel cells to power its electric lift trucks, Sysco only sees water and heat as by products and the elimination of toxic lead-acid batteries lowers the facility’s carbon footprint and makes for a safer work environment. Important consideration was given to the life expectancy of hydrogen fuel cells. With lead-acid batteries, two units are needed for every piece of equipment, which typically last four years versus needing only one fuel cell per equipment with a projected life of eight to ten years. For Sysco Houston, this meant needing only 100 fuel cells instead of more than 200 lead-acid batteries, saving on storage space and cutting waste. The time savings realized as a result of the hydrogen systems have been impressive. Each lead-acid battery change involves two employees and takes approximately 10-15 minutes. Meanwhile, refueling of the fuel cell only takes three minutes for one employee. Sysco estimates about 1,200 hours, or approximately $24,000, is saved per fiscal quarter by using the fuel cells. Almost 1.5 fuel cells pay for themselves per quarter, or about six per year. In addition, there are energy cost savings gained by using the hydrogen to refuel the units in place of the electrical costs to recharge batteries. Since installment, Sysco has deployed another two sites in Front Royal and Philadelphia, and has made fuel cell purchases to convert an additional three fleets in Boston, Long Island and San Antonio. Sysco operates over 100 distribution centers with over 11,000 forklift trucks. 7. Project 4: Fuel Cell Truck Refrigerated Units Market Readiness Plug Power is very interested in the emerging market for fuel cell truck refrigerated units (TRU) for refrigerated truck commercialization within the food distribution industry. Combined, the food service industry comprises approximately


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40% of the entire domestic TRU fleet. TRUs are plagued by noise issues which limit their delivery schedule and have the potential to cause premature food spoilage and/or low quality product. Due to their size, they also emit significant quantities of greenhouse gases. With fleets ranging from 60-200 refrigerated trucks, current Plug Power food distribution customers are demanding a cost-effective alternative to noisy, environmentally harmful, diesel-powered refrigerated units. Initially, due to limitations imposed by limited hydrogen refueling infrastructure, fuel storage density and range, development of a fuel cell TRU would be limited to food service industry customers whose drive profiles return the equipment to the distribution center each evening (hub and spoke model). Plug Power sees the TRU market as a major piece to our product roadmap. Owners of some of the 200,000 TRUs nationally have approached Plug Power demanding a fuel cell solution. Accordingly, during the past year and a half, Plug Power has conducted numerous customer site evaluations. We’ve identified customer partners and OEM partners that are willing to collaborate on a renewable solution and have even offered resources to accelerate the integration activities. We are also partnering with the California Air Resources Board and the New York State Energy Research and Development Authority to build near-term research and demonstration program opportunities. To date, however, Plug Power has conducted only preliminary development of fuel cell based TRUs. Instead, Plug Power’s early efforts in this application are targeted at overcoming technical and financial hurdles and building a solid business case for this market. As with many fuel cell markets, the key impediment to fuel cell adoption in the refrigerated truck market is the cost of hydrogen and hydrogen refueling equipment. Current Plug Power food service industry distribution customers who have already installed hydrogen refueling infrastructures for their material handling fleets would make ideal partners in the small scale demonstration phase of this technology. Additionally, due to existing technical and environmental hurdles (described below), fuel cell TRUs will have a significantly higher capital cost then their existing diesel powered counterparts. Value Proposition Grocery distribution centers rely on diesel powered trailer refrigeration units to transport fresh and frozen goods. Companies are facing a number of problems with this approach which are inherent in diesel technology, including toxic exhaust emissions and noise. Noise from the engines is disruptive in urban areas and local governments are restricting deliveries and use at night. The ideal time for deliveries is late at night and in the early morning, but due to noise restrictions, the diesel engine powering the refrigeration system may need to be turned off. Turning the diesel engine off and allowing the trailer to warm up is highly undesirable as it leads to lower quality products and food spoilage. Ideally the customer wants the ability to run the power system without restriction due to noise or emissions. Returns due to poor quality or spoilage of the food products can cost companies significantly. The value that fuel cells bring is that the temperature of the units could be maintained throughout the delivery process. Diesel powered refrigerated trucks are plagued by high noise and toxic emissions. Emission regulations (EPA, CARB, PIEK, engine, noise, refrigerants) are in the process of being tightened for refrigerated trailer fleets. The Environmental Protection Agency (EPA) governs the order of magnitude reduction in particulate matter and NOx emission levels for engines used in reefer units. These regulations require the replacement of diesel engines with upgraded units or the addition of filtration, which both add significant cost to fleet maintenance. Fuel cell technology offers a solution to eliminate noise and emissions issues while providing equivalent cooling performance and seamless operation. Hydrogen Infrastructure In feasibility studies, the lack of hydrogen refueling infrastructure has been a common issue for this market. However, with the deployment of fuel cells in material handling equipment at select food service industry sites, this barrier has been removed for initial fuel cell material handling market adopters. The cost of hydrogen not only for the TRUs, but also the material handling fleet will decrease significantly with the added consumption. By increasing hydrogen consumption at a site, hydrogen cost is effectively decreased because the infrastructure is amortized over more molecules of fuel.


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Technical Readiness Plug Power is not in the position to deploy commercial units in the field in 2012. We expect that we will be ready for a commercial deployment by mid-2013. The reasons for this are two-fold: (1) fuel cell power output and (2) interconnection between the fuel cell and TRU. First, the power requirement of the TRUs for refrigerated trucks is roughly 25 hp (18.4 kW). Although we believe that 16 kW will be sufficient for fuel cells to maintain adequate power, this output is currently larger than our product portfolio. Plug Power is currently in the process of scaling the product to larger power output with larger components being modeled, tested, and qualified to ensure proper performance. Our product roadmap schedule plans for larger power product in 2013 as opposed to 2012. Second, the interface between the fuel cell and the TRU needs to be vetted through a demonstration. The current motor in the TRU is a 460 VAC, which would require the integration of an inverter in the solution to change the voltage from DC to AC. Alternatively, Plug Power could employ a DC motor that could drive the refrigeration unit, however a solution has not been vetted at this point. Plug Power intends to demonstrate the operation of the enhanced fuel cell solution in this application before we commit to a full scale commercialization project. Since the funding available is for market transformation as opposed to technology demonstration, our activities with preparing a fuel cell solution for TRUs is premature. Although the fuel cell will have the exact same architecture as what is represented by our installed base of 2,000 units in the material handling market, Plug Power does not currently have a fuel cell TRU that could be deployed in a refrigerated truck application. Technical / Commercial Limitations Whereas fuel cells systems for material handling typically run in indoor applications, refrigerated units are exposed to harsh outdoor environments. These environmental hurdles may include subzero temperatures, salt spray, and local airborne containments that may be damaging fuel cell membranes and components. Vibration is also a strong concern since the fuel cell is located directly over the trailer kingpin and would be exposure to significant shock. Testing is required to ensure adequate structural integrity. Another challenge is storing the same amount of energy in hydrogen form as currently stored in diesel tanks. A compressed hydrogen storage tank rated at 350 bar (5000 PSI) would be mounted under the trailer. Due to the energy storage density of hydrogen versus diesel, the size and cost of a hydrogen tank to hold the equivalent of 50 gallons of diesel would be prohibitive. Preliminary design of the hydrogen storage tank is based on a requirement of 1-2 days of runtime between fills. Based on a fuel cell efficiency of 15 kWh/kg, the onboard hydrogen storage requirement is approximately 10kg to meet the requirement of 145 kWh of energy per day. Plug Power is pursuing storage solutions for cost effectiveness and enhanced range of travel between refueling. 8. Project 5: Fuel Cell Ground Support Equipment Airport vehicles and ground support equipment are used to transport passengers as well as baggage and freight, to support maintenance and repair functions, and to provide power to various service functions. This market represents an attractive expansion opportunity. Market Attractiveness The Ground Support Equipment market for United States airlines represents about 62,000 units of various trucks. The two most attractive trucks at airport to be powered by fuel cells are tow tractors and belt loaders, which represent over 65% of the market. Tow tractors transport luggage or cargo between aircraft and terminals. Belt Loaders are a self-propelled conveyer belt that moves baggage and cargo between the ground and the airport. The power requirement for these trucks are roughly 25 to 50 hp (18.4 to 36.8 kW) and electric versions are available in most GSE OEM product lines such Tug and Toyota. With a replacement rate of roughly 8% per year, annual purchases for tow tractors and belt loaders is approximately 1,000 and 2,200 units, respectively.

US Airline GSE Market (late 2009 figures)


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Type of Equipment Units % of Market Tow Tractors 27,978 45.2% Belt Loaders 12,395 20.0% Pushback Tractor 6,068 9.8% GPU 4,591 7.4% Airstarts 2,526 4.1% Cargo (Container) Loader 2,451 4.0% Catering / Provisioning Truck 2,042 3.3% High Speed Tow Tractor 1,470 2.4% Lavatory Truck 1,244 2.0% Passenger Stairs Motorized 1,145 1.8% Total GSE Market 61,910 100.0%

The trend away from internal combustion engines (ICE) is real. On a macroscopic level, more airports are being designed for all electric GSE, such Denver International. Older airports, like Logan International Airport in Boston, are moving to convert ICE equipment to electric GSE equipment. On a microscopic level, the composition of these fleets is changing. By comparing the installed base (27.6% electric) to the new sales (32.9%), we see that airlines are choosing to buy more electric GSE over ICE.

Commercial Readiness In the US, there are already some hydrogen vehicle airport projects in various stages. There are already airports that have operational hydrogen fueling station such as Los Angeles (LAX) and Logan Airport in Boston. Plug Power has engaged commercial airline customers as well as shipping and transport companies that have clear interest and would provide letters of support upon request for inclusion in a commercial proposal. Value Proposition Diesel engines operate 10% efficiency based on the load profile. GenDrive fuel cells operate at an average efficiency of 45% and peak at over 50%. Customers who use ICE GSE are slow to change to electric because batteries cannot offer the same amount of power as diesel engines. However, fuel cells not only provide the required power for heavier applications but maintain full power between refueling whereas trucks with batteries drop in performance as the voltage drops. Constant voltage and power means more consistent performance. Compared to batteries, fuel cells offer quicker acceleration, excellent gradeability, high top speeds and extended peak operating time maintained throughout the work schedule.


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Regulations also drive value proposition. As the United States Environmental Protection Agency (U.S EPA) and ARB tighten emissions standards, more airlines will look toward fuel cells to provide products that are both clean and can provide the power required to operate their vehicles. GHG emissions reductions are clear. Fuel cells do not emit any CO2 or other greenhouse gases. In the vast majority of states in the US, the carbon dioxide emitted during the production and delivery of hydrogen is a fraction of emissions created by GSE trucks running on both diesel and electric. Onsite, fuel cells create zero NOx and particulate matter whereas ICE-powered GSE create 5.6 NOx/hp-hr and 0.6g/hp-hr. Further analysis will be provided to compare emissions for electric grid versus fuel cells specifically for GSE, however material handling GHG analysis typically shows a 30% reduction in GHG when using standard liquid hydrogen and up to a 90% reduction when using green hydrogen (hydrogen produced using hydroelectric-based electricity). Limitations The hurdle to adoption in this market is the same as typical renewable energy products. There is a premium on capital but the operational efficiencies drive a payback over 2 to 4 years. Unfortunately, in a tight economic environment, companies do not have the budget to pay a premium on capital. Accordingly, companies often decide to pay less in the short term even though the total cost of ownership for fuel cells is lower in the long term. Simply, the higher capital cost of electric equipment has prevented its widespread use to date. Project It is expected that the volume versus cost curve would drive more competitive pricing once 100 units is surpassed. This project also expands fuel cells reach into the higher power platforms in on road vehicles, larger material handling equipment, and applications requiring power comparable to large internal combustion engines. This project is intended to propel fuel cells as a real world solution in the GSE market to meet more stringent emissions regulations in airport fleet management. 9. Project 6: Fuel Cell Remote Monitoring Equipment Market Attractiveness One of the major obstacles to customer adoption of fuel cells against conventional technologies is that there is more understanding about reliability, uptime, and maintenance schedules. Even if conventional technologies such as internal combustion engines that run on diesel are expensive to operate and maintain, customers are more willing to purchase them because they are very familiar with what to expect. On the other hand, commercial fuel cells in the material handling industry have less than 5 years of experience. This is seen as a major risk. Remote monitoring softens that risk. When data is transmitted from fuel cells to the Plug Power service team, there is be constant monitoring of the fleet performance and resources can be put into action in response to issues. Increased customer satisfaction is key to increased customer adoption. Commercial Readiness Plug Power currently has 3 sites deployed with remote monitoring, which include Sysco Houston, Whole Foods Maryland, and Wegman’s Pottsville. Data is being transferred from the fuel cell systems each time the hydrogen is refueled at the dispenser and sent to Plug


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Power. The data is manipulated by existing software and data warehouse programs. System availability is displayed via a service portal on the Plug Power Intranet. While there is a task list of improvements that are planned to be implemented, the solution is ready to be deployed for both future installations and within the installed base. Value Proposition

Improve service management Enhanced data integrity and continuity Increase availability by recognizing failures immediately and

trending performance for prognostics Accelerate sales by demonstrating to customers that the

installed base will be monitored and service time will be minimized to maximize availability and fleet uptime

Improve data reporting Technical Specifications The Remote Monitoring solution is relatively simple. It includes:

o Router or MiFi Hardware o System transmitters o Small computer with data storage o Power supply o Enclosure with mounting hardware o Power leads o Ethernet or antennae hardware

Present Limitations The limitation is simply cost. Although there are 3 sites, the number of discrete Remote Monitoring solutions employed is 12 since a solution is needed for each dispenser. Although the design has been completed with a minimum cost in mind, there are several higher cost options that can accentuate the time response. With installation of the remote monitoring solution at 20 sites and the necessary investment for expansion of hardware (server) and software (data warehouse, dashboard), Plug Power expects that the cost of the solution will drop to a level that equipment can be added to the fuel cell system bill of material and be included in the total solution without further funding assistance. Project This project is not about penetrating a new market with a new commercial fuel cell solution. It’s about continuing the momentum from previous market transformation funding. Some customers have made the leap to fuel cells but it is imperative that the field service of these units is as good as or better than service of conventional technologies. This project aims to install remote monitoring at current customers and in new installations to change a possible detractor into a positive for the fuel cell value proposition.

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