SEITE 1

Power-to-Gas demonstration plant Ibbenbüren

Project description and background information

Ulrich Bohn, Florian Lindner – September 2015RWE Deutschland AG

SEITE 2

Renewable power generation grew significantly during the last years

> The „Renewable EnergyLaw“ (originated in april2000) led to intensedevelopment of power generation on renewablebasis

> Main increase in the last years in the sectors„wind power“, „photovoltaics“ and„biomass“

> Current status:

– Hydropower: Nearlycompletely utilised

– Biomass: No significantextension expected due to reduced subsidies

Source: German ministry of economics (2015)

Remark: Wind power nearly exclusively wind onshore

Development of power generation from renewable energy since 1990

Hydropower

Wind power

Biomass

PV

Gen

erat

edel

ectr

icity

[TW

h]

SEITE 3

With a renewable generation target of 80% in 2050, the key challenges are still to come

> Further increase only possibleby extension of stronglyfluctuating sources (wind power and photovoltaics)

> Planned development ofinstalled power (2014 to 2035)*

– Photovoltaics (factor 1,6)from 38 GW to 60 GW

– Wind onshore (factor 2,3)from 38 GW to 89 GW

– Both (factor 2,0)from 76 GW to 149 GW

– In comparision: Load bandwidthin entire Germany approximatelybetween 30 – 80 GW (also in the future)

Regenerative generated share (%) of electricity demand

Reached share

Targets of German government*Average values for 2025 and 2035

1727,8

42,557,5

80

0

10

20

30

40

50

60

70

80

90

2010 2014 2025* 2035* 2050

* According to the German network developmentplan 2015 scenario „B“

SEITE 4

Level and bandwidth of power generation fromrenewable sources will increase extremely

> Today:

– Demand always above generation fromrenewables (at regional level partlyalready inverted!)

– Gap between „green generation“ anddemand filled by existing power plants

> Future (2030):

– Generation from renewables nearlyalways higher or lower than demand=> necessary balance not existing

– Frequent and expensive shut-downs ofplants for renewable generation expected

– Future availabilty of conventional power plants unclear due to questionable economic situation

German demand versus generation fromrenewables – exemplary presentation over

500 hours

Regenerative generation today

Load curve today

Load curve 2030

Regenerative generation 2030

SEITE 5

Demand sidemanagement

Power-to-Gas is a long-term option for balancing supply and demand of electricity

> There is not one option that fits all scenarios

> Instead, a combination of different methods is getting more and morelikely

> Single methods do not have tocompete with each other – a reasonable amendment is probable

> Specific application and point in time depend on the achievedstatus of „green generation“ andgrid extension

> In this context usage of „Power-to-Gas“ for electricity storing onlyexpected in the long term

Time20502015 2025 2035

Influencedarea

Small

Big

Electricity market Germany Gas market Germany

Consumption ~ 550 TWh

Storage ~ 0,04 TWh

Consumption ~ 870 TWh

Storage ~ 240 TWh

SEITE 6

Power-to-Gas creates flexibility by connecting the gas and the electricity grid

Underground-storages

Pow

er g

rid

Gas

grid

Fluctuating electricity from

renewable sources

CO2

H2 CH4

Optional(not at

Ibbenbüren)

Already existing

5.000 times higher storage

capacities in the gas grid

compared to power grid

Mobility

Heating

MethanationElectrolysis

Gas powerplant / CHP

SEITE 7

In Ibbenbüren RWE is piloting a plant to produce hydrogen via electrolysis

> Electrolysis with innovative PEM (Proton Exchange Membrane)-Technology

> Standard operating point 150 kW (el. consumption)

> Production of approx. 30 m³N/h hydrogen at 14 bar(g) – Feed-in into the regional gas grid of RWE Deutschland AG

> Production of approx. 15 m³N/h oxygen – vented to surrounding

> Electrolysis operated with excl. „green“ electricity

Compartment of the electrolysis (length 6 m)

SEITE 8

Simplified process of the plant

Electricity grid

Rectifier

Water grid

Atmosphere

Gas grid

Water treatment

Hydrogen treatment

Heat exchanger

Hydrogen

Oxygen

Water (demineralized)

Electrolyser (container plant)

Sepa-rator

+

Sta

ck

Sta

ck

Sta

ckCirculation

pump

Gas station „Groner Allee“

Heat

SEITE 9

Further details of the plant

> Electrolysis built into a 20-ft-Container (length: 6 meter), weight approx. 12 to

> Max. overload: ca. 130% based on normal operating point (40 m³N/h hydrogen)

> Purity of hydrogen: 99,9% (requirement for H2-mobility met)

> Waste heat of electrolysis used in gas station at a temperature level of 55° C

> Total efficiency (electricity and heat): approx. 86% (71% power to H2)

> Flexibility:

– Cold start up within 300 seconds

– Warm start up immediately

– Response time within 2 seconds

> SIEMENS safety and automation techniques applied (SIEMENS-PLC)

> Automated operation via remote control from dispatch centre at WESTNETZ GmbH

> TÜV Nord: Certification of plant and safety concept

SEITE 10

The hydrogen is fed into the local gas station

> Hydrogen is fed-in at the outlet side of the gas station – no further compression needed

> Hydrogen together with natural gas is distributed in Ibbenbüren and surrounding

> Ideal condition for hydrogen feed in in Ibbenbüren as also in summer high gas volumes are distributed

> No differences in calorific value within the downstream-grid due to one feed in only

> Hydrogen is used in CHP in Ibbenbürenconnected to the local heating grid

– CHPs raise overall efficiency

– Swap into a mixture of natural gas and hydrogen

Regional RWE high pressure pipelines

Gas station „Groner Allee“

SEITE 11

The system solution in Ibbenbüren reduces energylosses by a high degree of cross-linking

Power grid Gas gridHeatPower

to Gas-plant

ElectricityUnder-groundstorage

CHPLocal

heatinggrid

Natural gas

Natural gas

HeatElectricity (after storage process)

Hydrogen

First step of energyconversion

Second step of energyconversion

In both steps ofconversion utilisation

of waste heat

SEITE 12

Multiple utilisation of waste heat increases total efficiency substantially up to 75%

Losses(related to beginning of process) 14% 1% 10%

15%Utilisation of heat(related to beginning of process) 31%

+ -

Electro-lysis

H2~71%

therm ~15%

Gas grids &

storages

~99%

CHP

el ~41%therm ~44%

Electri-city

100%Electricity

71%H2

70%CH4 + H2 29%

Electricity

Sum = 25%

Sum = 46%

Heat

Heat

SEITE 13

The project contributes to the development and deployment of the Power-to-Gas technology> Gain operational experience for electrolysis in the context of renewable energy

– First PtG plant in Germany with

• Waste heat concept

• Direct feed-in into a 16 bar regional gas transportation system without additional hydrogen compression

– Second electrolysis with innovative PEM-Technology in Germany; Technology advancement with regard to:

• Efficiency of stacks and power electronics

• Stack size (reduced costs) and purity of hydrogen

• Plant engineering (simplified)

> The project will contribute to further cost reduction and increase in efficiency etc.

> Commercially: Check and validation of business models in the field of power to gas

SEITE 14

Thank you for your attention