B9 Coal Deploying Fuel Cells to Generate Cheap, Clean Electricity from Fossil Fuels

1. B9 Coal Deploying Fuel Cells to Generate Cheap, Clean Electricity from Fossil Fuels Confidential – B9 Coal

2. The next step in the CCS revolution… B9 Coal present the next step in the CCS clean energy revolution employing a unique Integrated Gasification Fuel Cell (IGFC) process Addressingboth the rising cost of energyand the need to reduce global CO2 emissions it combines the gasification of coal with the use of hydrogento generate electricity with fuel cells Confidential – B9 Coal Key advantages of IGFC power plants • Efficiency • Cost of the CCS • Captures upwards of 90% CO2 • Lower cost • Flexible output • High reliability • Lower environmental footprint • Scaleable …transforming coal from the dirtiest fossil fuel to the cleanest

3. B9 Coal A revolution in clean energy generation Surface Coal Gasification (SCG) AFC Energy’s Alkaline Fuel Cell System Confidential – B9 Coal Underground Coal Gasification (UCG) Carbon Transport and Storage Gas Separation

4. Gasification Coal can be reacted at high temperatures with a controlled amount of oxygen to produce synthesis gas (syngas) Confidential – B9 Coal

5. Underground Coal Gasification (UCG) Gasifying coal in situ carries additional commercial and environmental advantages Confidential – B9 Coal

6. Gas Separation Syngas is cleaned of impurities and split into near pure streams of hydrogen and carbon dioxide Confidential – B9 Coal

7. AFC Energy’s Alkaline Fuel Cell The most efficient way of producing electricity from hydrogen Confidential – B9 Coal

8. Large Scale Energy Generation Using the hydrogen from syngas AFC Energy’s fuel cell system is the cheapest, cleanest and most flexible way to produce electricity from fossil fuels Confidential – B9 Coal Confidential – B9 Coal

9. Carbon Transport and Storage Captured carbon dioxide is compressed, transported and stored in geological structures to prevent its escape into the atmosphere • Ship Transport • Trucks or ships are suitable for transportation of small volumes or over long distances • CO2 is liquefied for ship transport • Shipping of liquefied CO2 similar to shipping liquefied petroleum gases (LPG) • Compression • Compressed to reduce volume • Compressed to dense phase >90bar • Pipeline Transport • Compressed CO2 is transported in a dense, liquid like phase • Better economically and environmentally than shipping • Large-scale transportation of CO2in pipelines has taken place for over 30 years in the US • Case Study: Snøhvit project, North Sea • Came on stream in 2007, transports 700,000 tonnes CO2 per year for 145km from a liquid natural gas facility to the Snøhvit oil and gas field • Saline Aquifers • Aquifers are sandstone formations that hold saline water • CO2 is pumped into the sandstone, filling the pore spaces • Largest capacity storage options • Case Study: The Sleipner Project, North Sea250km off coast of Norway, around 1 million tonnes CO2 removed from the Sleipner West Gas Field per annum and injected into aquifer 800m below seabed Saline Aquifer Depleted Gas/Oil Field • Depleted gas fields • Sandstone formations that held natural gas • The shale cap which once prevented the gas from escaping now holds in the CO2 • Potential field location and geology already well known • Reduced costs - number of existing pipelines and rigs could be used • Confidence - millions of tonnes of gas and oil already stored securely • UK well suited - close to North Sea gas fields

10. B9 Coal A revolution in clean energy generation Surface Coal Gasification (SCG) AFC Energy’s Alkaline Fuel Cell System Confidential – B9 Coal Underground Coal Gasification (UCG) Carbon Transport and Storage Gas Separation

11. B9 Coal present… Clean Potential for upwards of 90% carbon capture Green Small footprint power plants: no turbines or other heavy infrastructure; AFC Energy’s fuel cells are made from lightweight recyclable materials and cartridges are refurbishable Efficient Alkaline fuel cells are the most efficient way of converting hydrogen to electricity; carbon capture as part of the process with no loss of efficiency Low cost Minimal infrastructure means low capital costs; AFC Energy’s fuel cells are cheap to manufacture; low running costs as fuel cell maintenance is simple Small footprint No turbines, minimal infrastructure Fully scalable Modular nature of the fuel cells means capacity can be increased to meet demand Load following Modular fuel cell system allows output to be increased or decreased with no loss in efficiency Reliable Alkaline Fuel Cells are 99.999% reliable as they are a solid state technology Confidential – B9 Coal …a game-changing clean energy proposition

12. B9 Projects in action… Confidential – B9 Coal • Project plan • Powerfuel is constructing a large scale IGCC power station with carbon capture capability at Hatfield site • Initial construction will involve 800 MW combined cycle gas turbine (CCGT) facility optimised for 'syngas' conversion and operation • Powerfuel to convert CCGT plant into 900 MW IGCC power station fuelled by extensive coal resources at Hatfield colliery • The syngas can be used to produce hydrogen as a feedstock for 330 MW of alkaline fuel cells power generation …300MW installation alongside IGCC plant

13. B9 Coal… B9 Coal’slow cost, flexible, clean energy proposition will revolutionise the way we produce electricity, providing an essential step in the move to a low carbonfuture and acting as a global template for clean energy generation. Confidential – B9 Coal …the future of clean energy