No part of this publication may be reproduced, stored in a retrieval systems, or transmitted in any form or by any means
— electronic, mechanical, photocopying, recording or otherwise — without the permission of Plug Power Inc.
COMPANY CONFIDENTIAL
Copyright 2002 by Plug Power Inc.
Forward-Looking Statements
This presentation contains forward-looking statements that are made pursuant to the
Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve risks, uncertainties and assumptions as described
from time to time in registration statements, annual reports, and other periodic reports
and filings of the Company filed with the Securities and Exchange Commission. All
statements, other than statements of historical facts, which address the Company’s
expectations of sources of capital or which express the Company’s expectation for the
future with respect to financial performance or operating strategies, can be identified as
forward-looking statements. As a result, there can be no assurance that the Company’s
future results will not be materially different from those described herein as “believed”,
“anticipated”, “estimated” or “expected”, which reflect the current views of the
Company with respect to future events. We caution viewers that these forward-looking
statements speak only as of the date hereof. The Company hereby expressly disclaims
any obligation or undertaking to release publicly any updates or revisions to any such
statements to reflect any change in the Company’s expectations or any change in the
events, conditions or circumstances on which such statement is based.
Plug Power
• Company overview
• Resources
• Progressive market engagement strategy
• GenSysTM Products
• GenCoreTM Products
Plug Power Inc.
Headquarters
135,000 Total Square Feet
35 Acres
Founded in 1997
as a joint venture between DTE Energy and
Mechanical Technology, Inc.
Offices in Washington DC and
The Netherlands
Traded on the NASDAQ under PLUG
(IPO in October of 1999)
The Company has grown from 22
to >350 employees
Manufacturer of PEM fuel cells
for electric power generation
Resources
• Intellectual property
• Manufacturing capability
• Field experience
• World class strategic partners
• Strong government relationships
Intellectual Property
53 Patents Issued, 130 Pending
• CHP - combined heat &
power
– (Nov. 99) patent issued to
–
provide electrical power,
domestic hot water and
heat to a building
(May 02) patent issued
relating to the control of a
fuel cell powered heating
system
• Anti-Islanding
– (April 01) patent issued
relating to a method of
preventing power from
going onto grid when grid is
non- functional
Plug Power's Issued U.S. Patents by Subject
Matter
Misc. Mech.
9%
Thermal
Mgmt
4%
Water Mgmt
13%
Electronics
7%
Stack
15%
Control
Algorithms
9%
Plate
28%
MEU
CHP 9%
4%
Manufacturing
On-site 50,000 sq ft production facility with
approximately 100 personnel
Organized around lean facility principles
Flexible by design
Single piece flow layout
Automated test facility
Lead-time to installation is generally less than 10 weeks
Field Experience
1999 - 2002
Our systems have operated in more than 56
different field locations
Our experience has enabled us to:
Understand interconnection issues
Reduce system installation time
Collaborate effectively with multiple utilities
Identify strategic intellectual property
Operate systems in a variety of environmental conditions
Certifications
First fuel cell company to receive certification as compliant
with California’s “Rule 21” grid interconnection standard
GE Fuel Cell Systems
• Joint venture company between GE Power
Systems and Plug Power, formed in 1999
• Exclusive global* distributor of Plug Power
PEM fuel cell products
• Offices co-located with Plug Power in
Latham, New York
• Provides Plug Power with direct customer
requirements for products
• Leveraging GE Power System’s worldwide
resources to facilitate establishment of key
distribution partners
* Except Illinois, Indiana, Michigan & Ohio
DTE Energy Technologies
 DTE Energy Technologies is an
unregulated subsidiary of DTE Energy –
a leader in the energy industry
- 28.1% of Plug Power is owned by DTE
Energy
- DTE Energy Technologies has exclusive
distribution rights for PEM fuel cells in
Illinois, Indiana, Ohio and Michigan
- Dedicated staff of marketing and
engineering specialists working with Plug
Power to develop and market fuel cells
- The fuel cells will be marketed under the
energy|now brand
Vaillant GmbH
Vaillant is Europe’s leading
heating appliance manufacturer
Vaillant’s Market Position
#1
#2
#3
• Key distributor and codeveloper of combined
heat and power (CHP)
products
• 15 production sites in 7
countries throughout
Europe
• Established distribution,
installation and service
network with more than
7,500 employees
Honda
• Recently signed an MOU with Honda Research & Development Co.,
Ltd. of Japan
• Companies’ intent is to work together on a home – based hydrogen
refueling system
– System would provide the home with electricity, hot water and heat
– Also would provide hydrogen fuel for a fuel cell vehicle
• Expect a definitive agreement to be signed by the end of the year
Natural Gas
Reformer
Subsystem
Stack
Subsystem
AC Electric Power
Power
Conditioner
HEAT
Purification
Subsystem
Compression
Subsystem
Storage
Subsystem
H2 Car
Progressive Market Engagement Strategy
• Attractive market opportunities
• Government support increasing
• Selling products now
• Pursuing opportunities to enter new markets
– Hydrogen UPS & Back-up
– CHP & Remote Stationary
Stationary PEM Fuel Cell Market >200 kW
2010 - $6 Billion Total
Segmented by Electrical Output Range
Segmented by Geography
101 to 200 kW
$0.1 Billion
26 to 100 kW
$2.1 Billion
11 to 25 kW
$0.7 Billion
1 to 10 kW
$3.1 Billion
North America
$1.9 Billion
Asia
$2.2 Billion
Europe
$1.9 Billion
…..Growing to $10 Billion by 2020
Source: Plug Power
Government support for DG is increasing
Federal government initiatives
– Conferencing on Federal Energy
Bill in progress
– Tax credits of $1,000/kW for
stationary fuel cells pending
– Demonstration funding for PEM
fuel cells from the Dept. of
Defense
– Research & development funding
from NIST/ATP & DOE
– Uniform interconnection
standards under consideration
– Net metering requirements being
considered
– Increased attention & funding for
hydrogen infrastructure &
technologies
State government initiatives
– New York
• Executive Order No. 111 requires 10%
of state facility energy supply from
“green” power sources by 2005, 20%
by 2010
• 10% is 650 MW of current
consumption
– California
• Power Authority target of 370 MW fuel
cells by 2002 - 2005
• Plug Power is on the approved bidders
list
– Texas
• Policy recommendation for
demonstration program funding and
other issues due Sept. 2002
– Other states working on initiatives
include: NJ, CT, MI, MA & OH
Market Timing / Industry Cost Curve
100,000
Innovators / Early
Adopters
System Cost ($/kW)
10,000
Backup & Standby
Remote
Stationary
1,000
Peak
Shaving
Stationary Mass
Markets
Residential
CHP
Automotive
100
10
2000
2010
2020
GenSysTM Product Offerings
Combined Heat and Power Fuel Cell Systems
Performance Characteristics
Attributes
Size (L X W X H):
Installation:
Electrical Connection:
Fuel:
841/2” X 32” X 681/4”
Outdoor
Grid Parallel
Natural Gas
Power Output:
Efficiency:
Voltage:
Power Quality:
Heating Loop Temp.:
Emissions:
2.5 - 5kWekW / 3-9kWth
28% Electrical / 70% Overall
120/240 VAC @ 60Hz
IEEE 519
65°C
NOX < 1ppm
SOX < 1ppm
< 65 dBa @ 1meter
Performance
Audible Noise:
Certifications
Power Generation:
CSA International (Ansi Z2183)
Power Conditioning:
UL - 1741
Electromagnetic Noise: FCC Class B
Field Installation Profiles
Customer
Number
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
75+20
Grid Support to address load pocket
17
Remote Installations @ LIPA Customers
3
Hydrogen Demonstration
10
PEM Demonstration
Substation DC Support
2
Residential Demonstration
3
Demonstration, Certification
1
Telecom Premium Power
1
Thermal Integration
1
Demonstration
1
50 kW Vehicle Refueling Station
1
Demonstration
2
Residential Demonstration
1
Commercial Demonstration
1
Laboratory Development
1
Residential Demonstration - (HPower knock
•
•
LIPA
LIPA (Remote Sites)
LIPA (UPS)
US Army - Watervliet Arsenal
DTE Energy Technologies
2
National Fuel Gas Corp.
Kubota Corporation
Verizon Communications
US DOE - Oak Ridge National Laboratory
Houston Advanced Research Center
US DOE - Air Products & Chemicals Inc.
Marubeni
Florida Power and Light
Flint Energy
Concurrent Technologies Corp
Public Service Co. of Colorado
out)
Logan Energy (Ft. Bragg & Barksdale AFB)
Vaillant
2
6
Mission
Military Applications - (Avista, DCH knock out)
Lab and Multi-family housing
Customers - Long Island Power Authority
•75 units currently installed at LIPA’s
West Babylon, NY
Long Island substation
•17 additional systems to be installed
in remote Long Island sites
“The world’s largest
installation of grid-connected
PEM fuel cell systems”
Richard M. Kessel, Chairman
Long Island Power Authority
Customers - Watervliet Arsenal
10 (5 kW) systems
Have exceeded 95% availability
since installation
“The installation of these units represents
the largest implementation of PEM fuel
cells at a military facility”
R&D test lab
Franklin Holcomb
CERL Principal Investigator
Base Housing
Telecommunications Room
Program funded by the
United States Army Corps of
Engineers, Construction
Engineering Research Laboratory
US Army Watervliet Arsenal - Data
www.dodfuelcell.com/index.html
Customers - Europe
North Rhine-Westphalia Program
Partners
Vaillant
Ruhrgas
E.ON Engineering
ELE
EUS
Essen - 40 People
Gelserkirchen - 63 people
CE certified Fuel Cell Heating Appliances installed to
provide heat, hot water and electricity for two German
multi-family homes.
Fuel Cell Heating Appliance
Peak Heater
Hot Water Storage Tank
Fuel Cell Unit
CHP Fuel Cell Development
Technology
Assessment
Cooperation with
suppliers and
key partners
R&D
Prototype
Pilot
Systems
Market Preparation
& Qualification
Demonstration
Systems
TODAY
Proof-of-Concept
Production
Practical Field Test
Laboratory
a-Unit
a-Test
TDU
Market Entry
Early
Customer
Acceptance
Test
Test of sales,
distribution and
support systems
Product
Serial Product
GenSysTM 5CB Characteristics
Attributes
Size (L X W X H):
Installation:
Electrical Connection:
Fuel:
841/2” X 32” X 681/4”
Outdoor
Grid Parallel (Standby/backup)
Natural Gas
Power Output:
Efficiency:
Voltage:
Power Quality:
Heating Loop Temp.:
Emissions:
2.5 - 5kWekW / 3-9kWth
28% Electrical / 70% Overall
120/240 VAC @ 60Hz
IEEE 519
65°C
NOX < 1ppm
SOX < 1ppm
< 65 dBa @ 1meter
Performance
Audible Noise:
Certifications
Power Generation:
CSA International (Ansi Z2183)
Power Conditioning:
UL - 1741
Electromagnetic Noise: FCC Class B
Smaller, Lighter, Less Expensive & Standby/Backup
The Virtual Power Plant
Load Profile
Net Control
Hot water Heat Power
Peak Demand
Gateway
FCHA
Operating
Gas
Service
Software/Controls Development – Improved Ease of Use
Market Timing / Industry Cost Curve
100,000
Innovators / Early
Adopters
System Cost ($/kW)
10,000
Backup & Standby
Remote
Stationary
1,000
Peak
Shaving
Stationary Mass
Markets
Residential
CHP
Automotive
100
10
2000
2010
2020
The Next Generation
Smaller, Lighter, Less Expensive & More Efficient
GenSysTM Targets
Attributes
Markets:
Installation:
Electrical Connection:
Fuel:
Residential
Indoor
Grid Parallel(Standby)
Natural Gas
Remote Residential
Outdoor
Grid Independent
LPG
Performance
Power Output:
Electrical Efficiency:
Overall Efficiency:
Voltage:
Power Quality:
Audible Noise:
5kWe (9kWth)
35%
80%
120/240 VAC
IEEE 519
< 55 dBa @ 1meter
5kWe (9kWth)
30%
70%
120/240VAC / TBD VDC
IEEE 519
< 55 dBa @ 1meter
Certifications
Power Generation:
CSA International
Power Conditioning:
UL – 1741
Electromagnetic Noise: FCC Class B
Field Experiences and Partnerships Drive Development
Market Timing / Industry Cost Curve
100,000
Innovators / Early
Adopters
System Cost ($/kW)
10,000
Backup & Standby
Remote
Stationary
1,000
Peak
Shaving
Stationary Mass
Markets
Residential
CHP
Automotive
100
10
2000
2010
2020
UPS Market
Medical
8%
Other
8%
IT 45%
Industrial
9%
Telecom 30%
IT + Telecom = 75%
Latin America
3% Rest of World
1%
Asia
21%
North America
49%
Europe 26%
EU + USA = 75%
Volume driven by IT & Telecom in US & EU
Prototype Back-up Power Product
• 0 to 5,000 W (net) Output
• Load following capability
• Suitable for outdoor locations
– 60db @ 1m
– Ambient conditions
• Temperature -20 C to 40 C
• Humidity 0 to 95%
• Separate Cooling Module
• Voltage Control Mode
– Regulated Voltage Output
(48 to 58Vdc)
• Power Control Mode
• RS232 or RS422 Duplex
Communications
• CSA, FCC Class A, UL
GenCoreTM Strategy
Telecom / Broadband / UPS
Multiple OEMs
Plug Power
Premium Power Systems
OEM/ channel to market
• Field Service
• Direct Sales
• Brand
• Value-add scope
• Collaboration
1. Technical
2. Marketing
Battery Replacement Fuel Cell System
GenCoreTM Value Proposition
Primary
• Reliable
o
o
•
•
•
Starting
Operation
Low cost of ownership
Quiet operation
Convenient low maintenance cycle
Secondary
• Small size
• No combustion emissions
• Easy install
•
•
Zoning / Permitting
Installation Time
Summary
• Substantial intellectual property
• Extensive real world experience
• Delivering products now – generally < 10 weeks from
order to installation
• Possess the necessary certifications
• Strong partners
• Structured Product Development Process
• Well-defined market strategy
• Diverse customer base including repeat orders
WASHINGTON, D.C.
499 South Capitol Street, SW
Suite 606
Washington, D.C. 20003
Phone: (202) 484-5300
Fax: (202) 554-2896
HEADQUARTERS
968 Albany-Shaker Road
Latham, New York 12110
Phone: (518) 782-7700
Fax: (518) 782-9060
EUROPE
7301 BC Apeldoorn
Postbus 880
The Netherlands
Phone: 31 55 53 81 000
Fax: 31 55 53 81 099
www.plugpower.com
No part of this publication may be reproduced, stored in a retrieval systems, or transmitted in any form or by any means
— electronic, mechanical, photocopying, recording or otherwise — without the permission of Plug Power Inc.
COMPANY CONFIDENTIAL
Copyright 2002 by Plug Power Inc.