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March 5, 2018Japan H2 Mobility, LLC

Accelerating the Construction of Hydrogen Stations to Promote

Widespread Use of Fuel Cell Vehicles Toward the Creation of a Hydrogen-based Society

Background to Establishment of New Company

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Issue of Global Climate Change Annual greenhouse gas emissions

（1 bil. CO2 eq. ton/year）140120100

80604020

020

2000 2020 2040 2060 2080 2100

Source: Working Group III Contribution to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change (2014)

Full-scale initiatives to reduce CO2 Zero and below

Baseline (3.7–4.8°C)

Scenario when kept below 2°C

CO2 reduction is a pressing global issue

Japan’s reliance on fossil fuel energy

88.8％ (2016)

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Japan’s Energy Situation

Need for energy diversification

Japan’s self-sufficiency in energy

8.4％ (2016)Source: Generated in-house using materials from Agency for Natural Resources and Energy

Petroleum 39%

Coal 25%

Domestically produced energy

Domestically supplied energy

Natural gas, city gas 24.8%

Hydro 3%

Nuclear 1%

Renewable energy, others 7.2%

Wind power

Solar power

Cities & homes

Electricity storage Thermal power

generation

Industrial use

Electric vehicle/plug-in hybrid vehicle

Water electrolysis

Hydrogen tankH2

Biomass

Waste water treatment

Power generating unit

Vehicle fuel

Chemical plant

H2

Refinery/ chemical plant

LNG

OIL

Electrical grid

Hydrogen grid

Fossil fuelsRenewable

energy

Hydrogen－Electricity Conversion

Electricity Hydrogen Fossil fuel

Energy flow

Hybrid vehicle

High-capacity long-term

storage

Energy Use Supporting a Sustainable Transportation Society

Source: Generated in-house using various published materials

Use electricity and hydrogen to realize a society built on energy diversity

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Cities & homes

Cities & homes Fuel cell vehicles/

buses

Position of Hydrogen in National Policy

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Use

Mob

ility

FCV 800,000 40,000 2,000

(2020) (2030)

Forklift 40 500 10,000

Station 100 160 Equiv. to 900 Replace gasoline stations by improving profitability

FC bus 2 100 1,200

(Current)

FCV/ station autonomy in the late 2020s

Replace gasoline vehicles through technological progress and cost reduction in FC stack

Use of FC in large-sized vehicles

50% reduction in station cost

Supply

Cost

Current 2030 Future vision

Hydrogen obtained from fossil fuels (H2 as byproduct, processed from natural gas)

ü  Build international H2 supply chain ü  Domestically, obtain from renewable sources

Establish H2 production technology

CO2-free hydrogen (brown coal×CCS, use of renewable energy)

30 yen/Nm3

(1/3 and less) Up to 100 yen/Nm3

(station price) 20 yen/Nm3

(1/5 and less)

Scaling up Major cost reduction

Verification of supply chain, scaling up

H2 vol. 0.2 kt 4 kt 300 kt Up to 10 Mt＋α (highly dependent on use in power generation)

(2020) (Current)

(commercial supply chain scale)

Pow

er

gene

ratio

n 17 yen/kWh (commercial level)

－ (technological development stage)

12 yen/kWh Replace gas power generation

(ref) 5-10 Mt of H2 consumption is equivalent to around 15-30GW of power generation

(ref) 300 kt of H2 consumption is equivalent to around 1GW of power generation

Verification of H2 power generation, establish system to evaluate environmental value

Strategic construction of stations, regulation reform, technological development

Construction of H2 supply network through interministerial collaboration

Source: Generated in-house using materials from Agency for Natural Resources and Energy

天然ガス輸入量 8,500万ｔ/年

天然ガス輸入価格 16円/Nm3* *水素熱量等価換算

（参考比較）

ガソリンスタンド数 31,500箇所

乗用車台数 6,200万台

LNG火力発電単価 12円/kWh

火力発電設備 132GW

Roadmap targets

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National Policies and Status of Fuel Cell Vehicles (FCV)

Toyota ・Launched fuel cell vehicle Mirai (2014) ・Aim to sell well in excess of 10,000 FCVs per year around or after 2020 (2015)

Nissan ・Started joint development of a fuel cell system with Daimler and Ford (2013)・Continuing with technological development for commercialization

Honda・Launched fuel cell vehicle Clarity Fuel Cell (2016) ・Established joint venture company Fuel Cell System Manufacturing, LLC with GM, with mass

production of fuel cell systems expected to begin around 2020 (2017)

National goal

Initiatives of automakers

Hydrogen Station

ＦＣＶ

(current) (2020) (2030)

101 locations

160 locations

Approx. 900 locations

2,400 units

40,000 units 800,000 units

FCV/station autonomy

in the late 2020s

(2025)

320 locations200,000

unitsSource: Strategic Road Map for Hydrogen and Fuel Cells, Agency

for Natural Resources and Energy

(as of Jan. 31, 2018)

・現在、約100箇所の⽔素STを整備、開所予定。

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Spread of Hydrogen Stations

Greater Tokyo Area: 40 locations

Chukyo Area: 26 locations

Kinki Area: 12 locations

Chugoku & Shikoku Area: 8 locations

Kyushu Area: 11 locations

Hokkaido & Tohoku Area: 4 locations

Total: 101 locations in Japan (as of Jan. 2018, including those under

construction or being planned)

Necessity to accelerate the construction of hydrogen stations to spread the use of FCVs

Source: Generated using various published materials (taking mobile stations being operated in several locations into consideration)

Prefecture All Mobile

Aichi 17 4

Shizuoka 2 1

Mie 2 2

Gifu 5 4

Prefecture All Mobile

Shiga 1 -

Kyoto 2 1

Osaka 7 1

Hyogo 2 -

Prefecture All Mobile

Fukuoka 9 1

Saga 1 -

Oita 1 1

Prefecture All Mobile

Hokkaido 1 1

Miyagi 1 -

Fukushima 2 2

Prefecture All Mobile

Saitama 8 3

Chiba 3 -

Tokyo 14 4

Kanagawa 13 7

Yamanashi 1 -

Ibaraki 1 1

Prefecture All Mobile

Yamaguchi 1 -

Okayama 1 -

Hiroshima 3 3

Tokushima 2 2

Kagawa 1 1

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Initiatives for Hydrogen Station Construction and Spread of FCVs Worldwide

Countries are focusing efforts on construction of hydrogen stations and spread of FCVs

FCV news

Source: Generated in-house using various published materials

GM・Established joint venture with Honda, with

mass production of fuel cell systems expected to begin around 2020 (2017)

BMW ・BMW and Toyota to jointly develop FCV (2013)

Daimler ・Announced FCV “GLC F-CELL” at Tokyo Motor Show (2017)

Hyundai・Announced FCV “NEXO” at CES2018,

sales expected to commence in 2018 (2018)

Other regions ・FC bus project currently underway in China

Hydrogen station construction targets Initiatives of overseas manufacturers

100 100

160200

350320

0

50

100

150

200

250

300

350

400

⽶国 ドイツ 中国 ⽇本

Hyd

roge

n st

atio

ns (

loca

tions

)

現状2020年⽬標2025年⽬標

Current 2020 target 2025 target

U.S. Germany China Japan

Overview and Initiatives of New Company

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Hopes of the New Company

World’s first initiative for construction of hydrogen stations jointly funded by infrastructure companies, automakers, investors, etc.

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Name of New Company

Japan H2 Mobility, LLC

Abbreviation: JHyM Note: derived from Japan Hydrogen Mobility

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Overview of New Company

Company name Japan H2 Mobility, LLC (abbreviation: JHyM) Representative (President) Hideki Sugawara

Location Toyota Kudan Building, 2-3-18 Kudan Minami, Chiyoda-ku, Tokyo

Participating companies

★…Executive members

Toyota Motor★, Nissan Motor, Honda Motor★, JXTG Nippon Oil & Energy★, Idemitsu Kosan, Iwatani Corporation★, Tokyo Gas, Toho Gas, Air Liquide Japan★, Toyota Tsusho, Development Bank of Japan★

Businesses ・Strategic construction of hydrogen stations ・Contribution to efficient operation of hydrogen stations

Business period Expected to be 10 years (FY2018 to FY2027)

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About the Businesses: Strategic construction of hydrogen stations

Concept for Construction/Operation of Hydrogen Stations

Infrastructure already in place

・Construct hydrogen stations at 80 locations in the next four years ・Expand infrastructure from the four major metropolitan areas and  the areas linking them ・Aim to establish hydrogen stations in all 47 prefectures

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H2 H2 H2Current

Information aggregation

Information centralizationOverall optimization

H2 H2 H2H2

・To realize cost reduction of stations by reviewing regulations and standardizing equipment・To improve convenience for FCV users by reviewing expansion of operating times

Future

About the Business: Contribution to efficient operation of hydrogen stations

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JHyM’s Vision

Create virtuous cycle between FCVs and hydrogen stations

Improved convenience for FCV users

Increased number of

FCVs

Strategic construction of hydrogen stations

Contribution to the efficient operation of hydrogen stations

Autonomy of hydrogen

station business

Further construction of

hydrogen stations

JHyM

Subcontract station operations from JHyM to infrastructure companies

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Flow of JHyM’s Operations

Announce policy for station construction, such as areas where stations will be built

Construct stations together with JHyM

JHyM

Formulate JHyM’s station construction plan based on proposals received from infrastructure companies

Propose construction plan according to the construction policy

Infrastructure-related companies

JHyM

Infrastructure-related companies

JHyM

New infrastructure-related companies

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Map of Businesses Related to Hydrogen Station Construction (conceptual)

New station

Reduce initial investments from infrastructure companies and use investments from investors

Investments

Grants

Construction

Investments JHyM

Investors, etc.

Government

Infrastructure companies

JHyM

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Map of Businesses Related to Hydrogen Station Operation (conceptual)

Automaker

Grants

Subcontract (*)

Government

Through subcontracting, JHyM provides infrastructure companies with a stable, long-term environment for operating hydrogen stations

New station

Infrastructure company

Operate

Existing station

Operate

JHyM Subcontract

(*)

*…Subcontracting related to maximizing FCV demand

JHyM

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Expansion to New Participants

Moving ahead, widely encourage participation from other companies

Enlistment of other

companies

■ New company JHyM A Japan-wide initiative to promote construction of hydrogen Stations.

■ JHyM’s activities and features ・Aim to rapidly place stations across all of Japan to maximize FCV demand.

Construct stations at 80 locations in the next four years. ・Through information collected by JHyM, conduct activities to improve convenience for drivers

and improve the autonomy of businesses (such as through cost reduction and suggestions for deregulation).

・Reduce initial investments from infrastructure companies using funds from investors and other sources.

■ Future efforts ・In the future, look widely for participation from other companies to support the autonomy of the

hydrogen station business and the spread of FCV use, and eventually contribute to the realization of a hydrogen-based society.

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Summary

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⽇本⽔素ステーションネットワーク合同会社