Nel ASA

Regulatory Filings • Aug 24, 2015

NEL ASA – Acquisition of RotoLyzer®

1. august 2015

NEL acquires RotoLyzer® - a potential game changer within electrolyser technologies

NEL ASA

• Established in 1927 by Norsk Hydro
• World leading supplier of hydrogen production systems based on water electrolyser technology and hydrogen refuelling stations.
• Decades of competence in designing hydrogen energy systems and refuelling stations
• More than 500 large scale electrolysers sold to clients in more than 50 countries
• 26 hydrogen refuelling stations delivered to 8 countries
• Significant opportunities for hydrogen as an energy carrier, serving as a 100% "clean battery" for solar and wind energy applications
• Strong financial position with a cash balance at approximately NOK 230 million after completion of the private placement launched on August 13th 2015 in conjunction with the acquisition of RotoLyzer®

NEL ASA – CORPORATE STRUCTURE

HYDROGEN PRODUCTION PLANTS HYDROGEN REFUELLING STATIONS

RATIONALE FOR ACQUIRING ROTOLYZER®

By acquiring RotoLyzer®, NEL will potentially increase market share dramatically

Hydrogen refuelling stations increases demand for compact hydrogen production technologies

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Hydrogen production from renewable energy sources increases demand for flexibility of electrolyzers

Traditional electrolyser cell stack

O² and H² bubbles forming slowly on electrode – buoyancy assisted release

AXIS OF ROTATION IS THE NEW «UP»

RotoLyzer principle:

O² and H² bubbles immediately released from electrode due to «high g» from spinning motion – gas travels to the center / in axial direction.

IT SPINS

Spinning motion creates "high g" conditions:

Optimal production and flow of hydrogen and oxygen

• Cost efficient & Compact
• Dramatically increased active area on electrodes → less material needed → more compact
• Increased gas-lye separation & less distance between electrodes → increased efficiency & more compact

Pressurized stack

• Higher pressure → more compact & no need for 1st stage compression downstream
• The cell also works as a centrifugal pump no need for lye pumps

Image credit: Spinning A Top Clip Art from Vector.me (by johnny_automatic)

Working Prototype 100x smaller*

*cell stack, compared to atmospheric alkaline

Fits on a euro pallet

Ideal for hydrogen refueling stations / containerized solutions Product capacity can be customized during product life-cycle Reduced service and maintenance costs

Immediate response

Ideal for hydrogen integration with renewable energy sources

PLANNED MARKET LAUNCH IN 2017

• Small unit (~10 Nm³/h) in 2017
• coincides with increased amount of FCEVs available
• Medium sized unit (~70 Nm³/h) in 2018

H2 LOGIC PRODUCTS & SERVICES

H2STATION® PRODUCTS H2STATION® SERVICES

H2Station® CAR-100 for cars

H2Station® MH-100 for industrial vehicles

• 1. Planning & procurement
• Station & network planning
• Hydrogen supply handling
• Site integration & planning
• 1. Delivery & installation
• Handling of permitting process
• Handling of installation and civil works
• Project management
• 1. Operation & maintenance
• Periodic maintenance
• Monitoring of operation
• Instant service response

PROJECT REFERENCES

• 26 HRS solutions delivered by NEL group since 2003.
• 20 H2Station® solutions delivered in 7 countries.
• Operational partners include Shell, Air Liquide and leading car manufacturers such as Daimler, Hyundai, Toyota, Honda, and BMW.
• Since 2008, H2 Logic stations have provided more than 12,000 refuellings and 21 tons of hydrogen

H2Station® in Köge Denmark, delivered and commissioned in July 2015 to Copenhagen Hydrogen Network A/S – a joint-venture with Air Liquide

HRS MARKET DEVELOPMENT AND STRATEGY

H2 Logic is targeting markets where major car manufacturers are launching FCEVs

Note (1) Estimates by NEDO (New Energy and Industrial Technology Development Organization) Note (2) http://www.japantimes.co.jp/news/2015/01/20/business/tokyo-to-spend-%C2%A545-billion-on-hydrogen-stations-subsidies-ahead-of-olympics/#.VV7wo_mqpBc

"It's time to introduce a hydrogen era." - Prime Minister Shinzo Abe, Jan. 15, 2015

JAPAN, AN EARLY AND STRONG MOVER

Japanese market within hydrogen and fuel cells:¹

• 2030: \$ 10 billion
• 2050: \$ 80 billion

2020: Olympic Games

• Heritage from 1964 Olympic Games was the bullet train, "Shinkansen"
• Heritage from 2020 Olympics will be hydrogen
• Hydrogen vehicles
• "Hydrogen Olympic Village" for power & heat
• Japanese government pledged \$385 million support for FCEVs and HRSs until 2020²

H2Station® CAR-100 technology

• H2 Logic collaboration with Mitsubishi Kakoki Kaisha, Ltd. announced July 2015.
• Includes a technology transfer and adaption of the H2Station® CAR-100 product for use and marketing in Japan.
• With CAR-100 Mitsubishi aims to become a major player in HRS construction in Japan.
• The aim is to achieve the first adapted CAR-100 HRS in operation during 2016.
• For H2 Logic the collaboration provides an effective market access to Japan.

HYDROGEN REFUELLING STATIONS IN CALIFORNIA

More than 51 hydrogen stations are under construction in California – target is 100 by 2021. State of California has set aside up to \$100 million to support the construction & operation.

Focus areas: San Fransisco & Los Angeles

Key testing ground for hydrogen vehicles for decades.

Hyundai and Toyota already started sales in California – more will follow in coming years.

OUTLOOK AND H2 LOGIC'S ACTIVITIES

FCEV & HRS Outlook California 2021

Source: California Air Resources Board (ARB): "2015 Annual Evaluation of Fuel Cell Electric Vehicle Deployment and Hydrogen Fuel Station Network Development"

• H2 Logic recently joined as member of the "California Fuel Cell Partnership" – a public private collaboration initiative since 1999.
• H2 Logic continues to monitor & evaluate the market perspectives in California.

Ensuring commercial introduction of hydrogen in the Oslo-region

• 2014 2018: 400 MNOK (high public funding: Oslo/Akershus/Enova/EU)
• 2019 2025: 1,000 MNOK (gradually lower public funding)
• Government proposed national strategy for hydrogen in Norway (Feb. 2015)
• Enova responsible for governmental support to make transport sector more energy efficient and environmentally friendly

NEL & Akershus County with joint hydrogen project, supporting national ambitions

• Support grant from Akershus County for 1 HRS in 2016
• High capacity station with on-site, pressurized electrolysis
• First step on the road to full coverage of HRS in Oslo/Akershus
• Supporting the national ambitions for hydrogen as a zero emission fuel

«The parliament requests the government to establish a national hydrogen strategy, and to ensure the support for hydrogen is maintained through Enova.» Proposal 147, Feb. 2015

..if the future could choose