LB-Shell Plc (fka INGYY)

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"Bringing it all together"

Intelligent Energy ("IE") welcomes the latest industry announcements, but what do they mean to IE, its own recent announcements and the Motive business in general?

Earlier this month, Shell announced plans to install a network of hydrogen fuelling pumps at retail sites in Germany from 2016 in collaboration with H2 Mobility Germany and Germany's federal transport department. Intelligent Energy is a formal Associated Partner of H2 Mobility Germany and has been an active participant since 2009 helping to shape its activities[1]. Intelligent Energy is also co-founder of the UK H2Mobility programme and active member of other similar programmes across other geographies. Intelligent Energy has a long-standing commitment to help shape the hydrogen refuelling infrastructure agenda as it is important for its Motive Division.

What this means for IE

Start of hydrogen refuelling infrastructures - the announcement from Shell and Germany's H2 Mobility consortium is an important step on the route to hydrogen becoming a wide-spread alternative to the internal combustion engine, and therefore important for Intelligent Energy's application and licensing of its hydrogen fuel cells in its Motive division. Having refuelling infrastructure supporting this is an important step to full-scale adoption. Germany's H2Mobility consortium is unique in that it is a formal structure backed by industrial majors through which the deployment of hydrogen refuelling stations is being synchronised with the launch of several fuel cell electric vehicles (FCEVs) products by global OEMs.


Business insights and relationships - being so closely involved with global blue chip businesses has helped IE build long standing relationships with key people in car OEMs, oil and gas companies, industrial gas companies, technology providers and infrastructure operators thereby developing valuable cross industry insights into developments in this area which not many other companies have. This, in turn, has really given an edge to best position IE's Motive division and to work alongside some very large global companies (for instance, see page 4 of the below link with IE's old logo http://www.now-gmbh.de/fileadmin/user_upload/RE_Inhalte_Mediathek_NEU_2013/Praesentationen_Verkehr_und_Infrastruktur/Bystry_H2Mobility.pdf and more recently on the new German H2Mobility site, IE's new logo at the bottom of the page - http://h2-mobility.de).


Embedding IE technology in motive applications - in addition, IE is now serving four volume OEMs that each produce more than a 1million cars a year (three are Asian OEMs and one European so there is good exposure to the car markets where fuel cells are already being produced as products). These car OEMs represent around 25% of the largest car OEMs in the world. In addition, two weeks ago, IE signed a new $10m (£6.5m) JDA with one of their existing Asian car OEMs so momentum is certainly building in the FCEV space. IE is also leading a Euro 5m blue chip motive industry collaborative programme (including Johnson Matthey Fuel Cells, Solvay Speciality Polymers, ElringKlinger, Pretext, BMW and Daimler) focused on the commercial readiness of IE's high powered motive fuel stacks for mass manufacturing.


Wide range of possible motive customers - global OEMs may already have their own fuel cell technology. Even if that is the case, it is more likely they are high powered fuel cell engines as that is what car OEMs have historically focused on. Intelligent Energy has both low power (Air-Cooled) and high power (Evaporatively-Cooled) technology, so they can develop fuel cell technology to meet specific high and low power needs alongside any technology the OEMs may already have. That means that IE is capable of working with car OEMs who already have their own fuel cell technology because of the wide power range technologies the Company has.


Cross divisional core technology sharing enables the Company to go down cost curves faster - the recent GTL transaction in IE's Distributed Power and Generation division announced a few weeks ago is also important for the Motive division. Mainly, the technology used to power telecom tower sites, is also used in low powered compact vehicles such as fuel cell scooters and small other vehicles. Hence, volumes will now increase bringing their cost of production down. The Indian operations will create steady demand for the technology, develop supply lines, reduce costs rapidly and this can be passed onto the other divisions through IE's "design once, deploy many times" approach.