Electrolyzer technology+– the+Siemens+view

1 Unrestricted/ siemens AG 2016. All the siemens viewManfred Waidhas, siemens AG, 91058 Erlangen, GermanyHFC Nordic, Sandviken, Sweden, Oct26, 2016 siemens AG 2015 All rights 2PD LD HYIntegration of renewable challenge the energy industrySource: TU Berlin, Prof. Erdmann, extrapolatedfortheyear2020 GWh2)The future CO2- reduced energy scenario will require smart Wind Farm, 72 units MW, MWRE power generation and load curvesThe mismatch between volatile RE power generation and local power demand may lead to notable generation[GW] siemens AG 2015 All rights 3PD LD HYEnergy storage will become essential in a Renewable Energy scenarioFlexible and efficient power generationEnergystorageDMS * and load shifting alreadypracticed, impact will not be sufficientToo slow, public acceptance low Topic of current develop- ments, but technical and economic limitationsStorage of excessGrid energy subsequent to other three options* DMS = demandsidemanagementGridextensionSmart grid2431 siemens AG 2015 All rights 4PD LD HY There is no universal solution for electrical storage large scale storage can only be addressed by Pumped Hydro, Compressed Air (CAES)

2 And chemical storage media like hydrogen and methane The potential to extend pumped hydro capacities is very limited CAES has limitations in operational flexibility and capacity Key statements/ MethaneH2via P2G is the only viable approach to store electrical energy >10 GWhElectrical Energy StorageOptions to address large scale Grid Storage are limited siemens AG 2015 All rights 5PD LD HYHydrogen is multi- functional: shifts CO2- savings in power generation to mobility and industryH2enables the coupling between energy, mobility & industry markets siemens AG 2015 All rights 6PD LD HYHydrogen production via electrolysis The enabler for large - scale energy storage/conversiontodaytomorrowFields of applicationTechnical requirements Energy storage Power to chemicals Hydrogen mobility Green generation High dynamic Intermittent operation Black start capability There is a huge industrial demand of hydrogen ( 100 billion USD) electrolyzers , splitting water into H2and O2are used in niches for hydrogen production.

3 However, they will be the enabler to store (volatile) electricity. New technical properties will be requiredElectrolyzersfor renewable integration require specific properties siemens AG 2015 All rights 7PD LD requirespecificpropertiestotal power [ % ]dayofmonth[May 2013]typicalloadprofileofan electrolyzerin a gridserviceprojectmaintechnicalrequireme nts: quality of grid connection (harmonic distortions, power factor, flicker etc.) capable to be connected to grid control systems (hardware & software) low energy consumption in stand by mode; quick cold start low degradation in intermittent operation modes safety standards for customer friendly installations (not only restricted to chemical plants) high efficiency of the overall system in intermittent operation robustness and reliability have higher priority than performance ( membrane thickness) service- friendly setupsource: siemens siemens AG 2015 All rights 8PD LD HYProject Energiepark Mainz : DeliveryofthefirstSiemens Electrolyzerin theMW- rangePartners:Objective.

4 Develop an energy storage plant for the decentralized use of grid bottlenecks in order to provide grid services (control power ) High efficiency, dynamic load changes Injection in local gas grid and multi- use trailer- filling 6 MW Electrolyzer (3 Stack 2 MW) Timeline: 03/2013 12/2016 Milestones: Groundbreaking ceremony May 2014 CommissioningJuly 2015 Project funded by BMWi9 Energiepark MainzElektrolyzerSystem 3 SILYZER 200 PEM- electrolyzerskids MW rated power / MW peak power (limited in time) High dynamic: load changes in seconds, capable for partial load in a wide range 35 bar outlet pressure siemens AG 2015 All rights 10PD LD HYSILYZER 200 / Electrolyserbasic systemSolution fortomorrowControlPowerelectronicsStackH igh pressurecircuitLow pressurecircuitsafety andsensorsSkidHigh currentrectifierTrafoBasic systemMain Technical Data - SILYZER 200* depends on operation Electrolysis type / principle PEM Rated Stack MW Dimension Skid6,3 x 3,1 x 3,0 m Start up time (from stand- by) < 10 sec Output pressure Up to 35 bar Purity - * H2 Quality Dryer option Rated H2production 225 Nm /h Overall Efficiency (system)

5 65 70 % Design Life Time> h Weight per Skid 17 t CE- Conformity yes Tap Water Requirement1,5 l / Nm H2 siemens AG 2015 All rights 11PD LD HYEnergieparkMainz SilyzerSystem - Easy to transport and to install 12 Energiepark Mainz StatusFirst results Regular operation from Sep 01 to Oct 23, 2015 purchase of electricity following price development of EEX (workdays 8:00am to 06:00pm) approx. 700 MWh electricity consumed approx. 40 trailers filled Expectations towards power, dynamic performance and efficiency fulfilled No critical failuresQuelle: eigene Darstellungpurchased electric powerpurchased electric powerelectricity priceelectricity price13 Energiepark MainzQualificationforgridservicespartici pationcontrolpower marketstartingin Q2 / 2016- 1500 MW- 1000 MW- 500 MW0 MW500 MW1000 MW1500 MW0:00h6:00h12:00h18:00h24:00hSRL- BedarfDemand in secondary control power (2ndCP) and conceivable use of a PtGplantBETR.

6 POSBETR. NEG0 MW1 MW2 MW3 MW4 MWEinsatzPtG- AnlageTagesverlauf ( )- 1000 2000 3000 4000 5000 6000 13:00:0013:15:0013:30:0013:45:0014:00:00 power [kW]Soll- LeistungIst- Leistungsource: ownmeasurementsrequired qualification power slope measuredpower profile demand in 2ndcontrol powerpositive 2ndCPnegative 2ndCPoperation of PtGplant intraday Jan 14, 2015 14 Energiepark Mainz StatusFirst results Efficiency evaluations under consideration of overall purchasedelectricity and mea- suredH2 production (outlet electrolyzers ) Data obtained by measurements in Oct 20150%20%40%60%80%100%120%- 200 400 600 800 1000 1200 - 1000 2000 3000 4000 5000 6000 7000 AC System efficiency (HHV)Hydrogen production [Nm /h]Purchased power EnergieparkMainz [kW]H2 ProduktionWirkungsgradH2productioneffici ency siemens AG 2015 All rights 15PD LD HY Power to Gas needs a common understandingThe business cases of the individual P2G approaches differ to Gas(P2G)Power to Hydrogen(P2H)Power to SNG(P2 SNG)Power to NG- grid(P2NG)use of hydrogen as a valuable material- directly as fuel- chemical syntheses - process gas injection of hydrogen into the natural gas gridreaction of hydrogen with CO2to methane and subsequent - use as fuel- injection into the NG grid siemens AG 2015 All rights 16PD LD HYGreen (CO2- free) hydrogen.

7 A broad variety of potential applicationsIndustry* Refineries Ammoniaplant Steel productionMobility Re- electrifi- cationin H2- turbines Admixingtoconventionalgas turbines Generator coolingEnergy H2asfuelforpublictransport Substitute ofbio- ethanol admixing* Besidesthese: glass, semiconductor, food&beverage siemens AG 2015 All rights 17PD LD HYOutlookSiemens - Complete solutions from one handelectrolyzersystemscontroltechnologi esgridconnectiongas andsteamturbinewind turbinestransformersheavy dutyrectifiers siemens AG 2015 All rights 18PD LD HY CO2- reduction targets are clearly linked with renewables. They will require storage capacities in the TWh- range Hydrogen via Power- to- Gas is the only viable approach to store electrical energy >10 GWh. Hydrogen is multifunctional: it can be re- electrified, but also shifted to the industry or mobility sector ( sector coupling ) Power to Gas - with electrolyzeras enabling component - is an economic option to increase the flexibility of the electric grid.

8 Sector coupling will be essential to reach CO2reduction targets. siemens is prepared to provide electrolyzersystems and related technologies in the required power range and