H2 Energy

At the heart
of the energy transition

Public - September, 2020

The energy transition
creates multiple challenges
Transformations in the global energy system

Today Tomorrow
Hydrogen is unavoidable
for the energy transition:
CO2 Enable the growth of intermittent
CO2

renewable energy
Oil Gas Coal

Electricity
Oil Gas Coal

Hydrogen H2

Biomass CCS
Lower the carbon emissions
of end uses CO2
Hydrogen’s roles in the energy transition

Hydrogen has a positive effect on limiting global warming and reducing carbon emissions:

Enable the growth Lower the carbon emissions

of intermittent renewable energy of end uses

By supporting the development

of renewable energy sources, Energy Heating
and the energy storage for industry and power
and transportation
across the globe
Carbon-free
Transportation
raw material
A carbon budget enables us to minimize global warming
Billion tonnes of CO2 eq.

2°C Carbon budget emissions to 2100 Carbon budget compared to carbon reserves

3,670 1,060 3,000-5,400

Gas, unconventional
Gas, conventional
Oil, unconventional
939 Oil, conventional
Coal

790

200

2°C carbon 1750-1985 1985-2015 2016-2100 Carbon 2°C carbon 1,5°C carbon
CH4/N20/F,
budget reserves budget budget
2015-2100

Historical emissions Future emissions

Four major levers are needed to enable the energy transition

Final energy consumption 1,2, 2013 and 2050, in EJ

640 EJ
1. Increasing energy efficiency
limits the rise of energy consumption
431
2. CCS/U decarbonizes the use
373 EJ of fossil fuels3

Fossil fuels 3. Switch to low carbon energy

carriers, e.g., electricity or hydrogen

Power sector – Fossil fuels 4. Renewables replace fossil fuels

Power sector – Renewables
Biomass and waste
2013 2050

1 Final energy consumption within the 2DS of the IEA

2 Increase of energy demand is determined via the relative increase of CO2 emissions w/o energy efficiencies
3 The fossil fuels amount processed using CCS/U was determined to be 25% of the total amount of fossil fuels by relating the CO2 emission reduction compared for the 2DS and 6DS
4 The fossil fuel power sector also includes nuclear energy
The energy transition creates multiple challenges

Enable the renewable energy system Decarbonize end uses

Intermittent renewable
power generation Electrification in end
use sectors

x10 +75%
by 2050 to >50 TWh from ~70 EJ today
Renewable to ~130 EJ by 2050
per day Using or storing
energy storage
carbon

+18 EJ +5.5 Gt
From fossil-fuel based from very little today
energy storage today to to 5.5 Gt by 2050
renewable by 2050
In a 2-degree-world, hydrogen could contribute
to ~18% of demand
Potential global energy demand supplied with hydrogen, Exajoule (EJ)

78 1
Power generation,
buffering

4
Transportation
18%
of final energy
5
demand
Industrial energy

28 6
Building heat and power

14
10 7
8 New feedstock
(CCU, DRI)
10 Existing feedstock uses
2015 20 30 40 2050
SOURCE: Hydrogen Council
There are seven roles for hydrogen in the energy transition

Enable the renewable energy system Decarbonize end uses

4
Decarbonize
transportation
Enable large-scale Distribute energy
renewables integration across sectors and
and power generation regions 5
Decarbonize
industry energy use
1 2
6
Help decarbonize
building heating and power

3 Act as a buffer 7
to increase system Serve as feedstock,
resilience using captured carbon
 Hydrogen has significant potential across all applications
Bubble size indicates hydrogen potential in 2050 in EJ (1 EJ)

1
Power Power
Buffer1
generation generation
Passenger
ships
4 Small cars Trucks Vans & minibuses
Trans- Mid-sized/ Forklifts
Trains & tramways
portation large cars
Synfuel2 Coaches & buses

5 High-grade
Industrial Medium-/low
industry
energy industry heat
heat

6 Heating/co-generation
Building heat Heating/co-generation in
in countries without
and power countries with gas networks
gas networks

7 CCU for
Industry Steel Ammonia,
methanol, Refining
feedstock (DRI) methanol
olefins, BTX3

0% 10% 20% 30% 40% 60% 80% 100%

1 Percent of total annual growth in hydrogen and variable renewable power demand
2 For aviation and freight ships Relative importance by 2050
3 Percent of total methanol, olefin, BTX production using olefins and captured carbon Market share potential in segment
Source: McKinsey & Hydrogen Council 2017
The technologies exist and are ready to be deployed
1 Power In renewables-constrained countries
generation In other countries
4 Forklifts
Transportation Medium and large cars
City buses
Vans
Coaches
Trucks
Small cars Synfuel for freight
Trams and railways
ships and airplanes
Minibuses
Passenger ships
5 Industrial Medium-/low industry heat
energy High-grade industry heat
6 Building heat Blended hydrogen heating
and power Pure hydrogen heating
7 Refining Production of methanol, olefins and BTX using H2 and captured carbon2
Industry
Ammonia, methanol Steel3
feedstock
Decarbonization of feedstock4
Today 2020 25 30 35 40 2045
1 Mass market acceptability defined as sales >1% within segment in priority markets
2 Market share refers to the amount of production that uses hydrogen and captured carbon to replace feedstock Start of Mass market
3 DRI with green H2, iron reduction in blast furnaces and other low-carbon steel making processes using H2 commercialization acceptability1
4 Market share refers to the amount of feedstock that is produced from low-carbon sources
Hydrogen by 2050:
a quantified vision of its key role in the energy transition

18% 30 million
of final jobs created
energy demand

6 Gt $2 500 Bn
annual CO2 annual sales
abatement (hydrogen & equipment)

Source: McKinsey & Hydrogen Council 2017

Hydrogen potential for the French economy, by 2050

55 million
20% metric tons reduction
of carbon emissions
of France’s energy
demand

More than

150,000 jobs
18%
of vehicles
40 billion€
Source: McKinsey study 2018
of annual revenue
Hydrogen is a clean,
safe and versatile energy carrier

H2

Hydrogen is suitable
for long-term storage
Can be transported Produces clean power
over long distances, and/or heat for transport
allowing the distribution and stationary applications
of energy between countries

Can be produced without

Required as a clean
a carbon footprint through
feedstock in industry
electrolysis, biomethane
when recycling captured CO2
and SMR + CCS
H2
Hydrogen, many existing applications…

H2 Ultra pure <1 ppb

Heat Treatment
Rockets

Glass
Chemicals &
Petroleum refining

Fuel cell vehicle

Hydrogen mobility markets: Ferries Cruise ships

Ready to scale
1 T/day 10 T/day

TODAY Material
handling
vehicles
100 kg/day
per site
Trucks
100 kg/day
per truck
Buses
20 kg/day
per bus

Trains
150 kg/day
per train Individual cars
100-200 kg/day
per station Drones

Airplanes
Applications Bicycles
& scooters
The need for low-carbon hydrogen
Biomethane Existing industrial usages

Electrolysis
Low-carbon electricity
➔Shift to low-carbon hydrogen
EXISTING MARKETS
Low-carbon hydrogen
Natural Gas + ➔Develop new usages for
Carbon Capture hydrogen to replace fossil fuels
and Storage (CCUS) NEW GROWTH
OPPORTUNITIES

By-product from industrial

processes
(Chlor alkali, Steel…) New hydrogen markets
Technology leveraged at every step in the chain
Air Liquide is mastering the whole
hydrogen value chain

Delivery

Efficient
Sustainable
Production Application Safe
1 2 3 4
Reliable

Storage
Our ambitions

Lead activation of H2 Energy Markets

with strategic partners, in particular H2 Mobility
and Industry
CUSTOMER
EXPERIENCE
Maintain leadership across the full value chain
from H2 production to delivery at the point of use

TECHNOLOGY

INVESTMENT
 Everything
in place for scale up

Early markets Initiated effort Existing supporting

✓ starting up ✓ to align for deployment ✓ policies

A systemic Strong technology Early signs

need ✓ potential ✓ of societal acceptance ✓
Air Liquide’s presence and place
Oil and gas
Utilities
companies
H2
production

On-site equipment
manufacturer
Supply
Chain

Suppliers /
operators

Retail
Mobility
application
Air Liquide already started to invest
Power to Gas Mobility Mobility for Heavy-Duty Mobility
Denmark for Consumers Rotterdam for Heavy-Duty
1 Electrolyzer Paris, Brussels 25 HRS Fos-sur-Mer
and Rotterdam 1,000 trucks 1 HRS
6 HRS 8 trucks + 3 bus

Mobility Mobility
for Consumers for Consumers More than
Germany Japan 120 Hydrogen
32 HRS
Bécancour 10 HRS
Refueling Stations
(HRS) installed by
Air Liquide in the
Mobility world, in which more
for Professionals than 50 are directly
US+EUROPE
9 HRS
Hydrogenics invested and operated
by Air Liquide

Nevada ALIAD: 12 M€ invested in 5

Mobility start-ups
for Consumers Mobility
US North-East for Consumers
12 HRS China
+ Supply chain 4 HRS 14 bn m3/yr
1,850 km H2 pipelines
46 large H2/CO plants
Mobility Power to Gas Liquid Hydrogen Mobility Mobility 40 electrolyzers in operation
for Consumers Bécancour Nevada for Consumers for Consumers 2 bn € sales
California 20 MW Electrolyzer 30 tonnes/day Dubai South Korea
4 HRS PEM Technology 1 HRS 3 HRS
Mobility for
Professionals
USA+EUROPE

Hydrogen station
for forklift trucks
in Prelocentre
logistic warehouse
in Orléans, France

Hydrogen for forklifts

To date, there are 25,000 hydrogen-powered
forklift trucks deployed on the North American market.
The potential development of this market in Europe could
be around 10,000 units by 2020.

> Air Liquide designed hydrogen station for forklifts trucks

> 11 stations installed in North America and Europe
> 270 forklifts powered by Air Liquide H2 stations in Europe (HAWL
and Hylift projects), including 137 for Carrefour (France) the largest
fleet in Europe
> Providing hydrogen to Walmart (Canada) and Coca-Cola
(in California)
Mobility for Consumers
US North-East

New York

Connecticut

Air Liquide is building a network of 12 HRS

First HRS on-site electrolyzer at Braintree, MA

Massachusetts
Start-up in 2020

Dedicated H2 supply chain by

New Jersey
Project in collaboration with

Rhode Island
Mobility for Consumers
California - US First station installed in Anaheim in
2017, +63,000 fills since the opening

3 other stations at Long Beach,

Los Angeles Airport and Palo Alto
Anaheim
The Portal project in partnership with
Toyota: Air Liquide built and operates
the hydrogen station designed for the
Toyota fuel semi-truck (Long Beach
HRS).
Air Liquide will build the first world scale liquid hydrogen production
Long Beach unit dedicated to the hydrogen energy markets, located in North
Las Vegas (Nevada) and has signed a long-term agreement with
Air Liquide built
FirstElement Fuel Inc to supply their hydrogen station in California.
and operates
the hydrogen station
designed for the Toyota Overall deployment figures
fuel cell semi-truck.

FCEVs: HRSs:
94
13 000
34
6 000 13 H2
100 H2
H2

2015 2018 2020 2015 2018 2023

H2 Production
Nevada - US

Nevada Nov 26, 2018: Air Liquide is building the first world
scale liquid hydrogen production plant (in North Las Vegas)
dedicated to the supply of Hydrogen energy markets

Through the investment Air Liquide will enable the large-scale

deployment of hydrogen mobility on the west coast, providing a
reliable supply solution to fuel the 40,000 FCEVs expected to be
deployed in California by 2022.
H2 Production
Canada

Hydrogenics Jan 24, 2019: Air Liquide acquired an

18.6% stake in the capital of Hydrogenics
Corporation, a leader in electrolysis
hydrogen production equipment and fuel
cells. A strategic investment of 20.5 million
US dollars (18 million euros).

Air Liquide and Hydrogenics have also entered into a technology

and commercial agreement to jointly develop PEM (Proton
Exchange Membrane) electrolysis technologies for the rapidly
growing hydrogen energy markets around the world.

Bécancour Feb 25, 2019: Air Liquide invests in the world’s largest
membrane-based electrolyzer to develop its carbon-free hydrogen
production.

Air Liquide is installing a 20 MW electrolyzer that increases by 50%

the current capacity of its hydrogen facility located in Bécancour,
Québec (Canada). This new PEM electrolyzer, with Hydrogenics
technology, will be the world’s largest and will serve the increasing
demand for low-carbon hydrogen.
 Air Liquide and 10 large Japanese
Mobility for Consumers companies have agreed on an action
Japan plan for the construction
of a Hydrogen station network
in Japan
> Stated ambition of the Japanese
Gamagōri government
> Air Liquide will install and operate
around 20 stations by 2021.
13 stations installed by Air Liquide in Nagoya, Nagoya
Nakagawa, Toyota, Kasugai Katsugawa, Kawasaki,
Kita-Nagoya Yamanokoshi, Kobe, Fukuoka, Saga, Miyata,
Gamagōri, Ōguchi, and Tokorozawa.
March, 2020, creation of the Hydrogen Demand Study Group in
Chubu to meet the demand for mobility applications as well as
from industrial customers, for electricity production or for the
residential sector

Overall deployment figures

Ōguchi
800,000
FCEVs: HRSs: 900
200,000 320 H2
160
4,000 H2
3,000 100 H2
H2

2018 2020 2025 2030 2018 2020 2025 2030

Mobility for Consumers
Hydrogen & FCEVs are part of the "Hydrogen Economy
South Korea Roadmap of Korea" (Jan 2019), supported by the Ministry of
Environment (ME) and the Ministry of Land, Infrastructure and
Transport (MOLIT), which is being actively implemented
Objective: 310 H2 stations by 2022

Creation of the non-profit H2 Korea as a window between the

government and the private sector to accelerate the development
of the H2 economy.

HyNet
April 2018: signature of a MoU between the korean government
and private companies (industry, automotive sector) for the
creation of H2 Mobility Korea.
March 2019: Joint Venture agreement (SPC) between 13
companies from private sector, established for 100 HRS
nationwide deployment by 2022. In operation until 2028.

3 HRS are equipped with Air Liquide technology

Overall deployment figures

FCEVs: 820,000 HRSs:

700
67,050
10,000 310 H2
900 100
12 H2
150 H2
H2

2017 2018 2020 2022 2030 2017 2020 2022 2030

Mobility for Consumers An agreement between Air Liquide and
China Yankuang Group (January 11, 2019) to
develop hydrogen energy infrastructure
in east China's Shandong Province.
A partnership with the Chinese startup STNE
Jiashan (July 3, 2018) to accelerate the rollout of
hydrogen-powered electric truck fleets for
urban deliveries of goods.
A Joint Venture between Air Liquide and Houpu
(November 2, 2019) to cooperate for the development,
manufacturing and commercialization of hydrogen
stations. A MoU between Air Liquide and Sinopec (November 6, 2019) to accelerate
the deployment of hydrogen mobility solutions in China.

The first HRS in Zhejiang Province was inaugurated in Fall 2019, equipped with Air
Liquide Houpu technology and operated by Sinopec. It can supply daily more than 30
of the 100 hydrogen electric buses that the municipality has planned to roll out. Two
other stations opened in Shanghai in November, 2019, to supply 200 light duty trucks.
In total, 4 HRSs are equipped with Air Liquide technology

Overall deployment figures

FCEVs: 1 million HRSs: 1,000

50,000 300 H2
20,000 10
H2
H2

2020 2025 2030 2018 2025 2030

Mobility for Consumers
Dubai Hydrogen Station

Dubaï

Testing started in September 2016, with first Mirais deployed

1st HRS designed and installed by Air Liquide in October 2017

Scale-up of FCEV deployment in Dubai until 2020 World EXPO

Collaboration between Air Liquide, ADNOC, Al Futtaim Motors /

Toyota, Khalifa University & Masdar (green power provider) to
develop a hydrogen mobility roadmap in the UAE
Mobility for Consumers
France
Taxi Fleet Project
Paris

Alma
(Paris center) Pioneering innovative H2 mobility project
> 1st hydrogen taxi fleet in the world, with STEP
> Launch during COP21 in 2015
> Started with 5 taxis, then 100 to date
and targeting 600 by 2021
> 4 HRS to support the growth, 2 others in Grenoble and Saint-Lô
Orly airport
Nov, 2019: Signature of a cooperation agreement (Air Liquide, l’agglomération
Durance, Luberon, Verdon (DLVA) & ENGIE) to develop the « HyGreen Provence »
project which aims at producing, storing and distributing green hydrogen. will make it
possible to develop and validate the technico-economic conditions for the production
of 1,300 GWh of solar electricity, equivalent to the annual residential consumption of
about 450,000 people, together with the production of renewable hydrogen on an
industrial scale through water electrolysis. Eventually, several tens of thousands of
Les-Loges-en-Josas metric tons of renewable hydrogen could be produced in this way every year
(near Versailles)
Overall deployment figures
FCEV taxi fleet: 600
100
Roissy airport
10

2016 2018 2021

Mobility for Heavy-Duty
France

HyAMMED

Juillet 2020 : announced the installation of the first high-pressure hydrogen refueling
station in Europe :
- Capacity to serve the first fleet of long-haul hydrogen trucks
Fos-sur-Mer - High capacity station up to 20 trucks/day (700 bar, 1t/day)
- Fos-sur-Mer Air Liquide plant (Provence-Alpes-Côte d’Azur area)
- Partners: industrial actors, logistics companies, large retailers (Carrefour,
Coca-Cola European Partners, Monoprix)
- CO2 emission reduction: more than 1,500 t/year (2 M km)
- Commissioning: early 2022
- Hydrogen source: low-carbon
- Station also designed to refuel buses and other commercial vehicles
Mobility for Consumers
Germany

Ingolstadt Creation of H2 MOBILITY Deutschland

Joint Venture by Air Liquide, Daimler,
Linde, OMV, Shell and Total in 2015:
agreement on a specific action plan to extend
the existing network of hydrogen stations
in Germany to up to 400.
> 350 M€ investment
> Max. 90 km distance between each station on motorways
Düsseldorf II
> 10 hydrogen stations in each metropolitan area
> Air Liquide contributes a significant number of these stations
(As of June, 2020, 32 of the 84 public HRS were equipped with Air Liquide technology)

Overall deployment figures

HRS: up to 400
Mulheim
100 H2
20 H2
H2

2015 2019/2020 2025

Mobility for Heavy-Duty
the Netherlands

HyTruck

July, 2020 : Air Liquide and the Port of Rotterdam have announced a jointly created
initiative :
- 1,000 hydrogen trucks (including 500 at the Port of Rotterdam)
- 25 high capacity stations
- Necessary electrolysis capacity
- CO2 emission reduction: around 100,000 t/year (110 M km)
- Connecting the Netherlands, Belgium, western Germany by 2025
- Several partners: OEMs (VDL Groep, Iveco/Nikola), logistics companies (Vos
Logistics, Jongeneel Transport, HN Post), fuel cell suppliers.
- One of the largest projects in Europe for the development of hydrogen trucks
and related infrastructure
Power to Gas
Denmark
40%
renewable energy
from wind

Air Liquide masters the whole value

chain from production to storage.

Largest European industrial

power-to-H2 demonstrator,
project lead by Air Liquide

> Started in January 2018

> 1.25 MW PEM Electrolyser
> Demonstrate the complete value chain from hydrogen
renewable energy production
> Hydrogen delivered to local industrial customer
> Low carbon hydrogen used for clean mobility
Widening of sector and geographic interest at CEO level

HYDROGEN
COUNCIL
covers Europe, Japan,
South Korea, US, Middle
East & China

From 13 to now 92 members

at council level by Q3 2020, in 3 years
Important milestones can be reached as soon as 2030

1 in 12 passenger cars sold in early-adoption markets

(Germany, California, Japan and South Korea) FCEVs

20 Mt CO2 in converted to chemicals and intermediates

such as methanol using hydrogen

3.5 Mt hydrogen used for high-grade heat

in first large-scale projects

50 million households connected to a network safely blending

hydrogen and natural gas

SOURCE: Hydrogen Council

Looking beyond

Early movers prove

that it is sustainable

Need to further increase

the momentum:
> Implement incentive policies
> Secure deployments
> Coordinate the players
> Set up the first large-scale projects
 "Hydrogen is really at the heart of the energy transition.
As we can produce heat and power directly from hydrogen
in a clean way, we easily understand why it is important for
this transition. It's the beginning of a journey, we've created
a momentum and now it's all about scaling up!"
Benoît Potier, CEO, Air Liquide

40