INVESTORSREVIEW

SOLID OXIDEFUEL CELL

SOFC

Affordable Clean Fuel Solution ……….

…….. to Replace Old World Centralized Grid System

Non-Combustion Solid Oxide Fuel Cell (SOFC) Generator

Bio-Gas. Hydrogen Syngas Natural Gas

PARTNERS

POWER Chemical to Electrical

FUELSOURCE

Low to Zero Emissions – Carbon Abatement – Sustainable Power – Twice the Efficiency of Combustion Energy Generation

After a decade of R&D, theDE SOFC has met orexceeded all theoreticalperformance parameters.The technical design / buildteam has proven expertisein commercialising solidoxide fuel cells, fromproduction to marketmatch.This project represents theNext Generation, offeringimproved benefits on alllevels.

PROVEN TRACK RECORD

DE SOFC has spent over a decade and two ARC LP GRANTS in SOFC R&D with a focus on operational feasibility of build (CAPEX) and maintenance (OPEX).

The fruits are now IP for a rapid fully automated (3D laser print) bespoke and OEM construction process at scale (Multi MWs), with the core sensitive components of the SOFC shifted from a CAPEX

consideration to an OPEX feature (as one replaces a lightbulb in a lamp)

The “DE SOFC” offers a game changer solution to clean energy generation without grid reliance AND one of the only realistic solutions for Intermittent RE Storage.

At twice the efficiencies and round trip advantages , it is difficult to consider a hydrogen roadmap electrolyser that is not a SOFC = like the jet not the propeller was

needed to break the sound barrier

The Problem

Location in 19th century sites that are no longer the location of 21st Century

Industry needs- Carbon Emissions

- &- Inefficiencies

Increasing 21st Century Demands for Grid Security& Reliability

Aging Plant & Equipment requires massive upgrade at crippling cost which will increase cost of power

THE OLD GRID WASTE HEAT

The Solution

Distributed Energy offers the “mobile phone”specific net solution of on-site power @ power need

No Grid reliance, cutting out grid costs and reducing Grid burden, also increases Grid/Supply Security

THE NEW GRID

Bio-Gas

Hydrogen

SynGas

Natural Gas

FUEL CELL

The Fuel Cell is the perfect on-site static power generatorfor Uninterruptible Power Supply (UPS) - Supports theconstant base load 24/7 needs of Industry. Completealternative to Grid Power. Not only at twice the efficiencyBUT no requirement for grid wheeling costs of delivery.

……Next Generation Fuel Cell

What is a FUEL CELL and How does the Market view them?

Fuel Cells are the first energy generation process in human history to use carbon as a fuel to produce Energy (Power & Heat) without Combustion but Chemically via electrolysis with low to zero emissions

There are two main types of Fuel Cells BEING low Temp PEM Fuel Cells (used in EVs) that are restricted to hydrogen as a fuel source and thus presently limited to a fossil fuel manufactured by the O&G industry (>95%) AND the High Temperature Solid Oxide Fuel Cell that is NOT restricted to hydrogen as a fuel source and operates at TWICE the efficiency of the PEM Fuel Cells

Due to the high temperature, SOFCs presently suffer from durability issues and currently there is no SOFC generator performing within operating profit parameters

However the potential is so transformational to global Energy concepts that the market cap values of SOFC Peers are staggering and have seen massive stock exchange values and growth

NOTE SINCE Jan20 Ballard Energy has risen 200% from $1.8bio to $3.55bio! Similar trend with the others…

Technology – Solid Oxide Fuel Cell (SOFC)

The “DE SOFC” can• ON SITE POWER GEN• Superior performance and flexibility to the low temp PEM Fuel Cell• Does not require hydrogen as a fuel source and so avoids the choke point of the

fossil fuel produced hydrogen highway that will stunt PEM expansion.• Accepts any type of gas (incl. coal gas & methane from biomass)• ALL Process of reformation within the DE SOFC unit (on a standalone basis)• Generate electricity on a clean (to zero emission) chemical non combustion

process at twice the efficiency of the nearest combustion generator.• Electrical Efficiency >60% CHP >90%• In reverse, can produce hydrogen from electricity for storage at twice the round

trip efficiencies of any other electrolyser• On basis of above, can reclassify Natural Gas from fossil to a Clean Energy

Resource

The “DE SOFC” is• state of the art tech - high temp fuel cell• self-contained within a balance of plant “battery” unit,• generating micro production of hydrogen and electricity that once required massive

industrial complexes.• Generation and in reverse, hydrogen producer for storage• Static Energy Multi MW generation REPLACER for the Commercial & Industrial Sector

Over a Decade of R & D

These “Batteries” can be grouped into Containers for Multi MW Generation at site for Commercial & Industrial users ………………… completely cutting out the need for a centralised (“old”) grid.

Current Collection System

Thermal Insulation System

SOFC Stack

Hot Balance of Plant

Gas Inlet

Gas Outlet to Hot Water

“BATTERY” & POWERGEN CONCEPT

Technology – “DE SOFC” - Next Generation Fuel Cell PILOT SYSTEMDESIGN LEADERSHIP

The design / build team has come from extensiveexperience in bringing a competitive fuel cell throughdesign, production & market. Their “DNA” in SOFC Techgoes back 3 decades as bulk of Team was involved in thefirst commercial SOFC with Aust Govt. CSIRO (now usedby Solid Energy in Germany, considered a SOFCbenchmark today), Our development enjoys thisbackground. Much was learned in order to deliver theNext Generation, offering benefits on all levels.KEY EXPERTISE• Thermal expansion – relative movement between

stack materials (ceramic & steel)• Glass sealant (the best of its class).• Optimum Manufacturing Tolerances OF Performance

to Durability to Cost balances assessed.• Design of hot balance of plant (BOP) in one unit allows

replacement of faults w/o power shut down• Coatings to overcome degradation and evaporation of

chromium, sulphur & other gas poisons.• Cycling stress directed to commercial application of

low cycling in constant base load running• Market source components for OEM build but inhouse

bespoke 3D laser printing of sensitive components• Sensitive components replaced from capex to opex

category (like replacing light bulb in a lamp)TARGET is to design and build the SOFC so that it paysitself off in cheaper PowerGen within 36 months.

Chemical to electrical generation from gas fuel sources on anon-combustion basis, as opposed to internal combustionengines (ICE), grid co-generators and auxiliary gensets inpredominant use for energy production today.

Fuel Cells are the only ‘Clean” generators available to replacethe ICE Generators and Central Grid Gas & Coal FiredGeneration. That is a classic PARADIGM SHIFT Agent.

Low Temp Fuels Cells (“PEM Fuel Cells” – used by BallardEnergy or Plug Power Inc, Market Caps US$3.5bio & US$1.5biorespectively) are relatively old tech (40yrs).

Distributed Energy Solutions offer greater economies from mass-production than the “Old Grid” can gain

through unit size.

Replacing Combustion with Chemical Reaction

There will be no meaningful Climate Change or Clean Distributable Energy Solution without replacement of

ICE.

No Grid No Land CostsNo Approvals / Consents

Capable of supplying power at more than double the efficiency and with low to zero emissions.

Countries running with reticulated gas pipelines (e.g. Singapore) wouldno longer need to provide centralised grid energy to its Commercial &Industrial sector, which could then run electricity totally on the gassupply, on an uninterrupted, clean and affordable basis.

DE SOFC – Distributed Energy Solution within the Multi MW Commercial & Industrial (C&I) Sector

10,000 m2 for 1MW of Solar

30 m2 = 1 x 40’ Containerat Site of Use

1MW

SOFC

Plus Supply Connections

Our target market is the wholesale multi MW C&I Sector as an OEM (of both SOFC and SOFC Componentry) and as an on site IPP (Power@Power NEED)

SOFC – Peer Review – Competitive Analysis

PEERS (listed Independents)

DE SOFC Solid Power www.solidpower.com

Altergy www.altergy.com

Plug Power Inc www.plugpower.com

Ceres Power Plc

www.cerespower.com

Bloom Energy www.bloomenergy.com

Fuel Cell Energy www.fuelcellenergy.com

Ballard Energy ballard.com

AFC Energy Plc www.afcenergy.com

Strategic Relationships

Abt Holding Ltd, and the privately held

business EZ-Energies GmbH”from Germany,

who develops and invests in innovative integrated energy

solutions.

Hy9 Corp (hydrogen reformer

manufacture)

Stand alone established PEM

manufacture to OEMs

JVs with South Korean Doosan &

PRC Weichai. Weichai also

significant shareholder

Stand alone established PEM manufacture to OEMs But has

announced Collaborative

agreements with Google Walmart and

Duke Energy

Acquired Molten Carbonate Fuel Cell tech from Rolls

Royce subsidiary MTU On Site Energy and has manifesting

Agreement. Agreements with US Dept of Defence. JV with

Drax Group (UK IPP) transitioning to biogen...

China's BroadOcean owns 10%. 2018 – Weichai Power

partnered & invested $161mio 20% in BallardQ2

2019. Bosch licensed fuel cell technology from

PowerCellQ2 2019. Cummins made an offer

to acquire Hydrogenics

Collaborative Agreement with

DeNora (www.denora.com)

Market Cap @Jan20 Private Private. Private. US$1.2bio GBP416mio US$1.0bio US$443mio C$1.9bio (NASDAQ) GBP86mio

Activity Pilot Plant Proof of

Concept1000 units sold supported

by large subsidiesSales established Sales established No Sales Sales established

Not established. YE18Sales US$90mio but little in unit, more in services. Cost of

Sales US$86mio...

Sales Established. Active in the FCEV / low temp

Hydrogen fueled storage & OEMs

No sales except licencings & services

Fuel Cell Type Solid Oxide Solid Oxide Polymer Electolyte

MembranePolymer Electrolyte

MembraneSteel Oxide Solic Oxide

Polymer Electrolyte Membrane

Polymer Electrolyte Membrane

Alkaline Fuel Cell

Product compare (refer KEY)

10 1,2,3,6,7,9 1,2,3,6,7,9 10 10 1,2,3,6,7,9 1,2,3,6,7,9 2,3.7,8,9

6) Low Temp system (so limited to fuels)7) Hazardous gases and smells on site8) Talk of replacement obsolete9) No direct CO2 abatement10) Tech Challenges with no immediate

solution even in concept

DE SOFC – Development Status

Like most of its Peers, DE SOFC also does not have a marketable product. However with a decade of R&D from our University of QueenslandResearch Team (Originally from the Australian Govt CSIRO who developed the first commercial SOFC in the World), our place among these Peersis justified and our ability to leap frog to a commercial product real.

DE SOFC SALIENT BUILD QUALITIESMulti Fuel friendly;Stand-alone Balance of Plant;Modular component replacement for

On-going “in the field” servicing of the box system;Small footprint NO LAND COSTs or time

consuming approvals, consents & licensesHigh Energy Capacity of each stack

(twice that of its peers is targeted);Stability of the fuel cell stack for non

stop “base load” running;Advanced materials & design to

significantly reduce Fuel Cell & Stack degradation; Balance of Plant design & available

materials OEM componentry for efficient manufacture and servicing. Bespoke assembly of OEM & sensitive

components (the Stack) with fully automated CAD 3D printing and laser fabrication

The Decade of R&D, includes significant time invested by DE Management in Technical Feasibility Assessment and proper commercial feasibility focus of our suite of IP.

We have remained well positioned with our Peers (who enjoy massive Market Caps). Core to effective research, is identifying the prime target issue which here is the fuel stack.

More important than an operating plant, is to develop a stack (the heart / engine of the SOFC) that works within acceptable “Life Cycle” parameters VIZ. affordable manufacture at scale, affordable maintenance and long life.

The intense heat and oxidation of materials are the enemies to this, and a viable stack has to date eluded our Peers and remains the holy grail.

Success in this will allow us to leapfrog others who seemingly are further advanced on the road to commercial product.

We believe our lab results augur well for repeating our findings in an operating product

DE SOFC – Direction As per UNIQUEST confirmation, DE has moved from TechnicalReadiness Level “TRL” 2-3 in 2010 to TRL 3-4 in 2016.

The relatively slow progress does not take into account IP wedeveloped for hydrogen production and tubular SOFCs fortransport and direct carbon applications

At completion of the latest LP Grant (matured June20) we areTRL5-6 for a planar SOFC stack targeted for the static C&Iwholesale power sector. Our next $5.0mio 3yr R&D phase will beto prove our Stack results and findings to TRL 7-8The surrounding balance of plant is known tech and with thestack validated to the parameters our R&D indicates to date, wecan leapfrog into production.On this we could argue we our next phase is TRL 8-9.

The Market is also communicating to us, our present readinesswould appeal to pre IPO and even IPO investment. So concurrentwith R&D, DE will being moving to accelerate market investmentwith pre-IPO alignment to a marque investment partner. Suitablepartners would be a major Clean Energy Fund or Gas DistributingCompany or gas producer looking to reclassify their fossil fuelresource “clean”.

Detail and validation of TRL is provided in our UQ IP Report for the last LP Grant which matured Jun20

Fuel Cell Peers – Features Review

Game Changing Global Advantage

Diesel Genset /

Gas Co-GenUQ SOFC

Bloom Energy Inc

Ballard Power Inc

Ceres Power Plc

ITM Power Plc Plug Power Plc

Fuel Cell Energy Inc

Multi Gas Feed(true carbon abatement) X X X X X

Independent of O&G Hydrogen Supply Chain

X X X X X

High Temp SOFC Energy Efficiencies >75%

X (<30%) X X X X X

Stand Alone Balance of Plant Design

(on-site maintenance)

NA X X X X

Product in Market NA NA X X X

Significant Carbon Reduction at Site

X X X X X

In ProfitNA NA X NA NA X NA

MARKET CAP US$1.2B US$1.9B GBP£416M GBP£476M US$1.2B US$443M

STAND OUTVALUE

NOTE SINCE Jan20 Ballard Energy has risen 200% from $1.8bio to $3.55bio! Similar trend with the others…

Sathia was the Senior Ceramicist at CeramicFuel Cells from 1996 – 2015 and developedthe present SOFC fuel cell to produce thehighest power density and lowest degradation.He also developed the anode supported fuelcell from inception –from solvent base to waterbase products and developed failure testingmethod for production, as well as the cathodeand anode current collectors by printing andtape casting and spray coating. Sathia alsodeveloped the high volume manufacture of theanode and electrolyte supported fuel cellpowder processing and is a specialist in theoptimisation of glass seals.

Prof JOHN ZHUUniversity of Qld

Dr SATHIA ARULIAHUniversity of QLD

Dr RAJ RATNARAJUniversity of QLD

Chem Eng - John Zhu’s research interests andexpertise exist in advanced catalysis, gasadsorption and separation, direct carbon fuelcells and solid oxide fuel cells with strongapplication focus on clean energy andenvironment. His current projects includeresearch into scale up of direct carbon fuelcells and next generation solid oxide fuelcells. Pr. Zhu’s group is equipped with state ofart facilities for fuel cell research. The SOFCdevelopment strongly aligns with the existingUQ research strength of Materials andNanotechnology: Materials and Productdesign.

Whilst at Ceramic Fuel Cells 1997-2015 Rajrose from Senior Materials Engineer to TeamLeader and then to Principal Engineer. Hestreamlined the project management andprocurement approach to implement projects ofthe organization which in return improved theproductivity of organization.

He designed, developed and tested fuel cells,stacks and BoP components successfullyresulting in a commercially viable - CeramicFuel Cells Ltd’s first ever successful product“Blue Gen”.

Partnership - Development Team Leaders

Dr MACIEK KUBICKIUniversity of Qld

Maciej holds 1st Class Honours B.Eng and isa Doctor of Philosophy in Mech Eng. He wasSenior Mech Eng at Ceramic Fuel Cells inthe key years betw 2008-2012.Development and implementation of amaterials testing laboratory to establishspecialised material properties and toestablish life cycle validation. He wasinstrumental in providing technical solutionsimplemented to solve product integrity,performance and manufacturing Issues inthe SOFC.

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UQ

Australian Government Grants have been awardedon the merits of this SOFC project.