Integration of Hydrogen Technologies in Transportation Sector in Czech Republic

1. WHTC - Integration of hydrogen technologies in transportation sector in Czech Republic date: 10/07/2017 name: Jiří Hájek

2. Unipetrol Group at glance The Unipetrol refinery and petrochemical group constitutes an important part of the Czech industry. It is the only crude oil processor in the Czech Republic, one of the most important producers of plastics and the owner of the largest network of filling stations. In the field of refinery and petrochemical production, it is also a major player in Central and Eastern Europe. Business segments: refining, petrochemicals, retail distribution of fuels Part of the largest refining and petrochemical group in Central Europe – PKN ORLEN – since 2005 2 refineries – Litvínov and Kralupy – with total conversion capacity of 8.7 million tons of crude oil per year (mt/y) Petrochemical units fully integrated with Litvínov refinery • Steam cracker – heart of petrochemical complex processing feedstock from refineries, with an annual capacity of 544,000 tons • 3 polymer unitswith an annual capacity of 595,000 tons Leader in retail distribution of fuels • 363 fuel filling stations under Benzina brand Revenues in2016 88 billion CZK (ca EUR 3,2 billion) 4,500 employees 2

3. Unipetrol: large, diversified company with a good base for growth Multinational petrochemical Group 6 production facilities, integrated petrochamical complex Wide and diversified group of employees 4477 employees out of which 1166 women Litvinov Kralupy Neratovice Pardubice Kolin Brno 14 nationalities Fuel retail market leader in Czech Republic Strong Research & Development potential 2 research institutes 18.1% market share 100+ R&D employees 400+ stations in 2017 University center on site Start of PE3investment 3

4. „Why UNIPETROL producing mainly fossil fuels decided to promote hydrogen as alternative fuel in Czech Republic?“

5. Hydrogen sources & production processes 5

6. EU Reference Scenario - Trends to 2050 Final energy demand in transport by fuel type European Commission; DG Energy, DG Clima, DG Move; 06/2016 6

7. „Does UNIPETROL understand the safety concerns associated with hydrogen handling?“

8. Hydrogen – not any new commodity Production: 85,000 tons/year (Partial Oxidation, Naphtha Reformer and Steam Cracker) Purification:Pressure Swing Absorption (PSA) in Litvínov (98.5 %vol.), Membrane Process in Kralupy (99.0 %vol.) Safe handling: Hydrotreating, Hydrocracking, Hydrogenation, Ammonia Production (temp. < 435°C, pressure < 220 barg) 8

9. „Is there a market for Hydrogen as an alternative fuel in Czech Republic?“

10. Hydrogen Refuelling Stations (HRS) vs Electric Charging Stations 10

11. Hydrogen Refuelling Station in Ústí region 11

12. Hydrogen Refuelling Station in Ústí region Project of clean mobility in Ústí region Purchase of FC buses for low emission public transportation Deployment of HRS for public transportation Project initiator and coordinator: HYTEP Project leader: DOPRAVNÍ PODNIK měst Mostu a Litvínova Project leader : UNIPETROL Partner: UNIPETROL – H2 supply, HRS operation Partner: DOPRAVNÍ PODNIK měst Mostu a Litvínova Partner: ÚJV – projection (preparation), maintenance (sustainability) Partner: ÚJV – colaboration on Feasibility Study 12

13. Hydrogen Refuelling Station in Ústí region 13

14. Hydrogen Refuelling Station in Ústí region Status: Project terminated Reason: Insufficient benefit for public traffic operator Lessons learned:Need to search for healthy partner willing to share CAPEX arising from purchase of FCV and with strong environmental care 14

15. „Which other location within Czech Republic UNIPETROL should consider for a purpose of HRS installation?“

16. Hydrogen Refuelling Station in Prague The location of the pilot hydrogen filling station deployment in the Czech Republic is within the area of an existing petrol station located in Prague 5, K Barrandovu 1136/ 6, Czech Republic. It is located on the TEN-T core network corridor Orient/East – Med and Rhine – Danube, sections Nurnberg – Prague, which is directly connected through Prague onto other sections Dresden – Prague and Prague – Brno. Prague, due to its significance and location, is the most significant urban node in the Czech Republic and it will leverage from the location at the European core network road infrastructure being an intersection of both east-west and north-south core network corridors. Daily traffic at the road where the hydrogen filling station shall be located is 44.100 vehicles based on applicant’s data. The location therefore benefits from both transiting vehicles and local vehicles based in Prague in the future and therefore optimize the demand for hydrogen as a fuel for cars, before the number of hydrogen fuelled cars within the Czech Republic is sufficient to return the investment (significantly higher than zero). 16

17. Hydrogen Refuelling Station in Prague Partners in projects: EUFC CZ – counsel for Czech and European grants; Grant Thorton– EU grant administrator; Artelia – an engineering company with large experience in planning and supervising the deployment of petrol and hydrogen fuelling stations in Europe; Linde Technoplyn – as the producer of hydrogen filling stations world-wide and the potential supplier of hydrogen before we launches hydrogen production suitable for car fuelling; Toyota as the partner producing hydrogen fuelled car 17

18. Hydrogen Refuelling Station in Prague until 2020 • 2 passenger cars of UNIPETROL or, if necessary, other testing vehicles • we do not expect the location of the fuel stations to be suitable for city buses and, therefore, only passenger cars are expected for this station until 2025 • 20 privately owned passenger cars in the wider surroundings including the UNIPETROL cars until 2030 • 120 passenger cars – continuing trend of slow development of personal hydrogen-fuelled transport 18

19. Hydrogen Refuelling Station in Prague Status: Project not supported Reason: Insufficient risk assessment Lessons learned:Limited opportunity for healthy industrial company to acquire subsidy from public funds 19

20. „ If UNIPETROL decides to bear all cost associated with hydrogen supply (new purification technology required), HRS installation and operation, will YOU join?“