The Dow Chemical Company

1
The Dow Chemical Company

• DOW / GM
• FUEL CELL PROJECT
• George Kehler
• Commercial Manager

2
Dow Background

• Dow is a leading science and technology company
  that provides innovative chemical, plastic and
  agricultural products and services to many
  essential consumer markets. With annual sales of
  30 billion, Dow serves customers in more than
  170 countries and a wide range of markets that
  are vital to human progress, including food,
  transportation, health and medicine, personal and
  home care, and building and construction, among
  others. Committed to the principles of
  Sustainable Development, Dow and its
  approximately 50,000 employees seek to balance
  economic, environmental and social
  responsibilities.

3
Energy Background

• Dow is the largest industrial consumer of
  fuel/power
• Dow is the largest industrial electrical producer
  in the US
• Over 95 of Dows US energy requirements, and 85
  worldwide, supplied through gas-fired CHP
• Over 2.9 of Dows power worldwide is supplied by
  renewable energy mostly hydro-electric
• Energy costs 2 Billion/year

4
H2 PEM Fuel Cell
Membrane
Electricity to Dow
Hydrogen From Dow
Oxygen from Air
Anode
Cathode
Catalyst
Water
5
Dow/GM Project Overview

• Long term contract for up to 35 MW
• GM PEM fuel cell technology based on automotive
  application
• Dow co-produced hydrogen
• Power produced to be consumed by Dow
• Multi-phase project
• Phase 1 - Test unit
• Phase 2 - Pilot plant
• Phase 3 - Commercialization

6
Dow/GM Project Timeline
Up to 35 MW
1 - 2 MW
300 kW
75 kW
0 kW

• 5/03 10/03 1/04 7/04
  1/05
  1/06
• Project Phase 1
  Phase 2
  Phase 3
• Announced Test Unit
  Pilot Plant
  Commercialization

7
Phase 1 - Test Unit

• EHS (Environmental, Health, Safety) review
• Demonstrate GM fuel cell technology
• Investigate various hydrogen feed streams
• Identify and prove hydrogen clean-up technology
• Remote operation in an industrial setting
• Integrate unit into industrial facility
• Electrical grid, Hydrogen feed, Utilities
• Accelerate Phase 2 installation from learning's

8
Fuel Cell System Design
9
Phase 2 - Pilot Plant

• Build on Phase 1 learning's to improve system
• Demonstrate fuel cell capabilities for
  Distributed Generation
• Integrate fuel cell plant into an industrial
  facility
• Power distribution grid, Hydrogen clean-up
  distribution systems, Utilities
• Improve and optimize reliability of PEM fuel
  cells
• Investigate fuel cell waste heat recovery
  opportunity
• Multi-stage progression to large scale
  commercialization

10
Phase 3 - Commercialization

• Installation of up to 35 MW of fuel cells
• GM to operate and maintain fuel cell facilities
• Dow to deliver hydrogen to fuel cells
• Dow to take the power from the fuel cells
• Focus on Dows Freeport, TX facility
• Opportunity at Dows global plants
• Canada Europe
• South America Asia

11
Project Benefits

• Continuation of Dows commitment on our
  Sustainable Development journey
• Leading edge of emerging technology
• Beginning steps towards a hydrogen economy
• Accelerate fuel cell development for automotive
  application
• Validation of co-product hydrogen feed sources
• Development of cost effective alternative power
  generation
• Cleaner air due to zero emissions for HGA

12
Living.
Improved daily.