Buisness Proposal

1. APPLIED HYDROGEN Conductive Hydrogen Packaging Hydrogen Storage Air Conditioning Energy Storage

9. Market Size >$10 >$2 >$1 >$2 Size [$Bln] 3-5 yrs, Price sensitive Energy Static Now, UPS Transportable St. Now, Bln, very Conservative Merchant H 2 Transportable St. 5-10 yrs Bln, very recognizable Vehicles Onboard Storage Availability Segment Product

10. Time to market 2 yrs 18 m 18 m 2 years Initial sales 4 yrs 10-30% Static 3 yrs 20-40% Transportable St. 3 yrs 20- 40% Transportable St. 5 years 20-40% Onboard Storage Major Sales Added value Product

14. Market 2-4 >>>> Home and Industrial Green Cooling 2-4 >> Beer, Computers, components Special cooling 3-5 years >10 vehicles Vehicular Air Conditioning Time to Market Size [$Bln] Market Product

17. Time to Market Investment Needed 36 months Start of large series industrial production Timeline Mile Stone 6-9 months Commercial prototype 18 months Commercially acceptable product 24 months Pilot Production and Start of sales

21. HEAT TRANSFER IS CRITICALLY INVOLVED EXOTHERMIC REACTION HEAT IS GENERATED AND NEEDS TO BE REMOVED TO ALLOW CONTINUED REACTION ENDOTHERMIC REACTION HEAT IS ABSORBED AND NEEDS TO BE SUPPLIED TO ALLOW CONTINUED REACTION

22. Hydride based Hydrogen Containment IS commercially available! Ovonics, HBank, GfE, JMC, YM, APFCT, GKSS SLOW release rate and SLOW refill due to low conductivity of powder bed (see table) preclude usable industrial acceptance Problem

24. Compact microstructure developed Al metal Hydride

25. Results show 3-10 times faster H 2 absorption 7 fold rate increase

26. Hydride Air Conditioner for Vehicles, using Exhaust Waste Heat Freon Free

27. Paradigm Shift Hydride Air Conditioner NO Freon – NO pollution SAVE Fuel - Using Waste Exhaust Heat Over 100 million Vehicle Air Conditioners using Polluting Freon, spending up to 20% shaft power AH New Paradigm Present Concept

29. Physics of Operation

30. Schematic of Operation

31. Cycle I Cycle II Functional Representation RT Heat Hydrogen HT Hydride LT Hydride HT Hydride LT Hydride Air Air + Heat Engine Exhaust Ambient Air Heat Heat Cabin Air Hydrogen

32. Model Analysis of Operation Hydride Powder bed Hydripak

41. The GM Hydrogen Car GM pledged to develop a hydrogen - fuel - cell vehicle that could compete on cost with traditional vehicles - if it were to be built in high volumes - by 2010 . Sequel Equinox

42. GM to support Hydrogen cars On-board hydrogen storage in solid; Home hydrogen refueling device ( see also Honda) Develop collaboration with Shell

44. The NY H 2 Energy Economy Vision New York State Research & Development Authority New York Power Authority Long Island Power Authority 2005

45. Commercial Opportunity Model OVONICS = $1.5 Billion Hydride Based Solutions

46. Hydrogen Storage Expectations

47. Weight & Cost Synergy with President’s Hydrogen Initiative Year Hydrogen Content Tank Weight [kg] Hydride cost [$/kgm] Matrix Cost [$/kgm] Total Cost [$] 2007 2% 364 50$ 5 $ 13,972 2010 6% 121 $ 15 5 $ 1507 2015 9% 81 5$ 5 $ 405

48. What others did: Competition Analysis Demonstrated capability and properties. Existent production concept High conductivity, high structural stability, inexpensive base metal Porous metallic hydride Al based High parasitic weight, difficult to produce, not applicable at higher temperatures High Conductivity, simpler production concept Copper coated hydrides with low MP metal binder Limited Conductivity & structural stability, limited to RT Conductivity not reported. Polymer matrix (Congdon) Produced by Ovonics & others Low conductivity, easy to produce Powder bed Status Properties Concept

50. National Hydrogen Storage Milestones [Wh/kgm] [w/%] 1400 900 300 Hydrogen Capacity / Weight Achievement Milestone Year Current ~2% Select hydrogen storage options 2007 6 % Develop and verify safe on-board storage systems 2010 9 % Develop and verify safe on-board storage systems 2015