Dr. Sukbae Cha, CEO of ACAL Energy Company, presented on the company's development of a new low-cost PEM fuel cell technology to replace internal combustion engines. ACAL has raised a total of £7M from public and private funds. The company's experienced management team is working to commercialize a fuel cell that can deliver over 1W/cm2 power density to enable applications in stationary power, automotive, and micro-CHP markets. ACAL believes its technology can reduce fuel cell costs by 40% and overcome key barriers to mass commercialization such as catalyst costs and operating conditions.

1. ACAL Energy Company Presentation
Dr. Sukbae Cha, CEO
Stanford Program on European Entrepreneurship & Innovation
April 13, 2009
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2. ACAL Energy
 Developing a new low cost, reliable ‘big’ PEM Fuel Cell
architecture thru better chemistry
 Will enable Fuel Cells to replace IC engines in stationary, auto and
micro-CHP applications
 Experienced Management Team and Board
 AIM, NASDAQ listing successes, over $.7B generated for investors
 Total investment into the company about £7M, combination
of pubic and private funds
 £4M raised December 2008 from UK VCs, European and
Japanese Corporations
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3. Company Founded in 2004 by Former
Unilever and ICI Employees
Dr. Andrew Creeth,
Ms Amanda Lyne
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4. ACAL Team – Many Years of Business
Creation Experience
 SB Cha – Chief Executive Officer
 CDT, Philips, BCG, Texaco
 Bob Longman – VP Engineering
 Co-founder Plasmon, Cambridge Consultants
 Bob Pettigrew – Non Exec Chairman
 Co–founded Generics, 20 business creation experience.
 David Fyfe – Non Exec Director
 Chair and CEO of CDT Ltd, CEO of Harris Speciality Chemicals
 James Wilkie–Npn Exec Director
 Birmingham Univ., Technical Director JM Fuel Cell
 Strong technical, commercial support from corporate investors
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5. Financing History
 ERDF Loan £10k
 Carbon Trust Incubator Fund £40k
 One North East Cluster support £5k
₤1.6M Investment by 4 UK VCs
One North East Cluster support £5k
KTP with Univ. of Manchester £70k
₤4M Investment by UK VCs, European &
Japanese Corporations
TSB Collaborative research project £313k
Carbon Trust Investment Grant for R&D
£250k
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6. Fund Raising Timeline
 August - October 2007: Rebuild business strategy, move away from
small portable applications to larger applications
 October – December 2007: Build detailed business plan, begin
adding more technical resource
 January- February 2008: Select corporate finance advisor, legal
advisor, prepare supporting documents
 February 2008: Kick-off process, start meeting potential investors
 March 2008: First potential lead investor emerges, begin preparing
for due diligence
 April - July 2008: Corporate investors emerge, existing investors
make commitments, it looks like we have a deal
 August 2008: Lead investor pulls out, CTI step in
 September – December 2008: Finish DD, legal documents, final
close
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7. ACAL Energy Today
 Located at the Heath
Technical Park, Runcorn, UK
 Occupy about 4,000 sq. ft lab
and office space
 Have grown in 18 months
from 5 people to 23 total
employees, mostly engineers
and chemists
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8. Fuel Cells Offer Potential for Clean,
Renewable Power
The Opportunity:
Clean
Quiet
Efficient
The Challenge:
x Too expensive
x Poor performance
x Not yet commercial
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9. ACAL PEM Cell
Conventional Pt Cathode Reduced
e- Catholyte
PEM Cell
Solution, Heat
Air, Water
Vapour &
Excess Heat Air,
H+
Fuel Out
Water
Aerator
Vapor,
Membrane H+ ACAL Cathode, Heat
No Platinum
Catalyst Air
H+
Oxidized
Fuel In Catholyte
Solution
Humidification Air
system
Pt Anode
Confidential
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10. 10 Cell Stack 50W System
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11. ACAL Core Technology
Catalyst/Mediator Chemistry
Current Generation System Next Generation System
Polyoxometallate Transition metal-ligand
Inorganic association complex complex
Very stable and robust
Power density approaching Pt Higher potential catalyst
Power density to beat Pt
X
X X
T
M
X X
Y
Can deliver 0.6-0.8+W/cm2, ready
today for back-up power and remote Will deliver up to 1W/cm2, ready
power applications. end of 2009 for larger remote
power, transport applications
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12. Peak Power Increasing Rapidly
1000
900
Power Density, mW/cm2
800 2009
700 Target
600
500
400
Actual
300
200
100
0
Sep-05 Mar-06 Oct-06 Apr-07 Nov-07 Jun-08 Dec-08 Jul-09 Jan-10
Jan, 05 Jan, 06 Jan, 07 Jan, 08 Jan, 09
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13. Substantial Cost Reduction Possible
 Very low cost stack
 Eliminates Pt from Cathode, simple graphite
cathode
 Simple bi-polar plate design, will enable low
cost, high volume manufacture
 Hydrocarbon membrane work well, lower cost
than nafion
 Large net balance of plant cost reduction
 Eliminates air and fuel hydration equipment,
 Eliminates high pressure compression
 Liquid cathode system replaces liquid cooling
system – more efficient heat removal
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14. ACAL System Could 40% Less
Expensive
Cost Estimate of 5kW Fuel Cell System
12,000
Total = $10,238
10,000
8,000
Total = $6,282
Cost, $
6,000 Assembly
4,000
Other Mechanical
Balance of Plant
2,000
Stack
0
Conventional System
1 ACAL System
2
System Cost ($) for 5kW Back-up Power Application – Conventional System is non-pressurized liquid
cooled system
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15. ACAL Technology More Reliable and
More Robust
 Eliminates membrane dehydration
 Eliminates cathode oxidation
 Eliminates peroxide formation
 Eliminates cathode catalyst agglomeration
 1-100kW+ units possible
 0-100% operating range, rapid response
 Flexible thermal management
 0-100% air humidity air
 More resistant to air contaminants
 Simpler water management
 Catholyte replaceable, system repairable
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16. ACAL Technology Removes Most
Barriers toMass Commercialisation
Market Need ACAL’s Technology Delivers
Reduction of the amount of √
expensive catalyst
Less severe operating conditions √
Catalysts that last longer √
No need to pressurise √
Lower maintenance costs √
Simple mechanism to control √
temperature
Simple method to manage water √
Improved security of supply √
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17. ACAL Business Strategy Summary
 Simpler business model: Sell fuel cell modules and chemicals
 IP based competitive advantage – 15+ filings to date
 Core capabilities: chemistry, module engineering.
 Aggressive drive to cost down – less than $500/kw module in 5 years
 Market targets
 Pre 2012: H2 fueled 1-5kW stationary power module, followed by
reformate fueled module for stationary power and CHP.
 Post 2012 products: Larger stationary power (20kW+), expand to
automotive with an auto partner
 Build partnerships with key supply chain companies and OEMs
 Module production JV, chemical supply, lead system OEM, automotive
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18. Development Pipeline
2007 2008 2009 2010
Proof of Concept Engineering System Product Demo Application Testing
demonstrated Proven Delivered Complete
50 W 50 W 1 kW System
Stack Unit Demonstrator Modules
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19. Partnership Strategy
Electrode Mediator Catalyst Air/O2
e- Medox Cat O2,H+,
a ahd
tc t oe
Med Catox H2O
Chemistry
and Cell, System Design
Chemicals
Production
Engineering Key Components, inc
Design and non-PT anode
Build
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20. Market Applications
Short Term
Diesel Genset replacement for back up, UPS
and auxiliary power (Up to $10billion market)
Fuel Cells are:
Quieter: 70db at 1m
(typical FC) vs. 70 db
at 7m (diesel)
 Cleaner: No NOx,
SOx, PM10, unburned
HCs
 Cooler operation
 Smaller & lighter
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21. Market Applications
Longer Term
Reduction of CO2 emissions and moving away from
fossil fuels
Replacement of ICE in transport
applications
Micro CHP for small scale industrial and
domestic distributed energy
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22. Cost Barrier is Challenging
Diesel Generator Cost Vs. Size
700
$/kW Cost: Diesel Generator
600
500
400
300
200
100
0
0 50 100 150 200 250
Generator Size, kW
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23. Key Milestones Over Next 18 Months
 Chemistry ready for first products
 First commercial products available
 Alfa, beta 1kW demos
 Evaluation Kit for sale
 Production Partnerships
 POM commercial capacity mid 2010
 First production capacity for evaluation kits by end 2009
 Commercial engagement
 Evaluation kit sales 2010
 Lead module customer by end 2010
 Fund raising to start again in early 2010
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24. ACAL Energy Profitable 2013
Revenue Cash Flow
160,000 70,000
140,000 60,000
120,000 50,000
100,000 40,000
GBP, 000s
GBP, 000s
80,000 30,000
60,000 20,000
40,000 10,000
20,000 0
0 -10,000
2008 2010 2012 2014 2016 2018 2008 2010 2012 2014 2016 2018
Year Year
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25. Some Takeaways from ACAL
Experience
 There some great ideas and very talented people in UK and the rest
of Europe
 Seed funding available but development funding more difficult, gap
in the ‘middle’
 Smaller VCs don’t have the resources, larger VCs looking for revenues
 Grants help but public sector funding also lacking at this stage
 New environment and energy technologies are expensive and take
longer to become self sustaining business
 Government policy often most important driver
 International opportunity, some regions have invested in certain
sectors for many years
 Partnerships, linkages can make a significant difference
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26. Thank you for your time!
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