Toward the Realizationof a Hydrogen Society- Introduction of Kawasaki Gas Turbines andGas Engines

Kawasaki Heavy Industries, Ltd.

Contents

１．Wants of the Next Society
２．Kawasaki's Solutions for Carbon Neutrality
 Establishment of a CO2-free Hydrogen Chain
 Role of the Hydrogen Gas Turbine / Gas Engine
 Global & Local Alliance© Kawasaki Heavy Industries, Ltd. All Rights Reserved

2１．Wants of the Next Society© Kawasaki Heavy Industries, Ltd. All Rights Reserved

3National Greenhouse Gas Targets
 At the 2021 Climate Change Summit and COP26, the leaders of major emittersannounced ambitious targets for the reduction of greenhouse gas emissions by2030. In addition, a target of virtually zero emissions by 2050 to 2060 wasannounced.
 The International Energy Agency reports that 50% of the world's final energy
consumption is thermal energy. Hydrogen fuel is indispensable for thedecarbonization of heat.

JapanEUU.K.

China

India

U.S.A.

46%
reductioncompared to2013

at least 55%
reductioncompared to1990

78% reduction
in 2035
compared to1990①peak of zero emission:
less than 2030
②65% reduction
compared to 2005

33-35%reductioncompared
to 2005

50-52%
reductioncompared to2005

Net Zero

Net Zero

Net Zero

2020
2030
2040
2050
2060
2070
© Kawasaki Heavy Industries, Ltd. All Rights Reserved

Net Zero bywhole country
Net Zero
Net Zero4

Hydrogen Strategies
 Each country has made progress in various areas such as the use of hydrogenin industrial fields, the introduction of hydrogen power generation, and theinvestigation of CO2-free hydrogen chain for the import of hydrogen.
YearJapan

GermanyEUFranceChina
 Apr 2020:
announcemen
t of subsidies
to theformulationof FCVindustry
supply chain〜2020

 Mar 2019: formulation of thehydrogen and fuel cell strategy
roadmap Dec 2020: formulation of thegreen growth strategy with thecarbon neutrality in 2050

 Jun 2020:
formulation ofthe nationalhydrogenstrategy

 Jul 2020:
announcementof hydrogenstrategy

 Sep 2020:
update ofhydrogenstrategy

2030

 Establishment of 3 million ton peryear commercial-scale supply
chain Hydrogen supply cost:
30 JPY/Nm3
 Commercialization of hydrogenfrom renewal energy sources
around 2032
 Commercialization of hydrogen
power generation around 2030,
target cost: 17 JPY/kWh Hydrogenproduction
capability
target: 5 GW GreenHydrogen
supply target:
14TwH Electrolytichydrogenproduction
capacitytarget: 40 GWby 2030
 GreenHydrogen
supply target:
10 mil t/year Electrolysis
equipment
installation
target: 6.5
GW by 2030,
produce 0.6
million tons ofgreenhydrogen peryear

 Increase to 10
GW

2040
2050

 Hydrogen power generation cost
target: 20 JPY/Nm3 (*less thangas-fired)© Kawasaki Heavy Industries, Ltd. All Rights Reserved

5

２ ． Kawasaki's Solutions forCarbon Neutrality© Kawasaki Heavy Industries, Ltd. All Rights Reserved

6

From Kawasaki “Group Vision 2030” (1/3)
 3 Keywords to Achieve Group Vision
Frontier

Pioneering the technology frontier withour challenger “DNA”
Since our founding, we have always identified ourselves as challengers. Throughout
a history studded with the worldʼs first and Japanʼs first achievements in many
sectors, including shipbuilding, rolling stock, and aerospace, we have been
leveraging our cutting-edge technologies and fostering a “DNA” characterized by
the spirit of pioneering the frontier that draws on our unique perspective. Based onthat unique prospective, we will continue to respond to the frontier of the neweraʼ s social challenges to create a hopeful future.

To Realize Hydrogen Society:

Establishment of a CO2-free Hydrogen Chain© Kawasaki Heavy Industries, Ltd. All Rights Reserved7

From Kawasaki “Group Vision 2030” (2/3)
 3 Keywords to Achieve Group Vision
New Values

Providing innovative solutions for theproblems faced by the world
Currently, the world is facing a variety of problems, including environmental
deterioration, energy challenges, expanding populations, graying societies, naturaldisasters, and pandemics.
We are committed to providing new and high-add value solutions to a wide range ofcustomers and communities, by focusing on the reliable technologies that we havebeen building and the knowledge that we have been assimilating in order to provide
innovative solutions and rapidly accommodate social change.

To Realize Hydrogen Society:
Development/Popularization of Hydrogen Gas Turbine & Gas Engine© Kawasaki Heavy Industries, Ltd. All Rights Reserved

8From Kawasaki “Group Vision 2030” (3/3)
 3 Keywords to Achieve Group Vision
Cross Over

Becoming a creative challenger thatcontinues to grow by breaking barriers
To provide innovative solutions focused on social challenges, we will continue to be
an open-minded, free-thinking, and creative team that goes beyond the boundaries
of internal and external organizations and of product/service categories, thereby
leveraging our rich diversity. Moreover, we will continue to grow as an organization
and as individuals by expanding our potential and boldly taking up challenges inunfamiliar domains and learning from the experience.

To Realize Hydrogen Society:

Establishment of Global/Local Alliance© Kawasaki Heavy Industries, Ltd. All Rights Reserved9Frontier

Establishment of a CO2-free Hydrogen Chain© Kawasaki Heavy Industries, Ltd. All Rights Reserved

10Concept of CO2-free Hydrogen Chain
 Kawasaki will take on the challenge of creating a CO2-free hydrogen chain
before the rest of the world does.
Resource Country(Australia)

Country of Use(Japan)Process Use

Produce low cost hydrogen from fossil
fuels combined with CCS* or abundant
renewable energy

Semiconductor, Solar battery,Oil refining, Desulfurizing etc.

Transport
Equipment

Low Cost
Renewable Energy

HySTRA

LiquefiedHydrogenCarrier

FossilFuelCCSLiquefied Hydrogen
Trailer

ElectricityPlants
JAXA

TRANSPORT/STORE
CO2 FreeHydrogenDistributed
Power Plants
Hydrogen Gas
Turbines / Gas
Engines, Fuel cells,etc.

Liquefaction/Loading

PRODUCEH2 station, Fuel cellvehicles, etc.

CCPP, etc.

USE

CO2 FreeHydrogen*CCS: Carbon Dioxide Capture and Storage© Kawasaki Heavy Industries, Ltd. All Rights Reserved11

Image of CO2 Reduction Rate andGas Turbine / Gas Engine Installation
 Contribution to CO2 reduction through fuel conversion from natural gas tohydrogen gas turbine / gas engine and introduction of hydrogen gas turbine.

Demonstrationof CO2-freehydrogen chain

CO2 reduction
rate: approx.
50% *1

Amount of gasfired GT/GE
introduced

Amount ofhydrogen
GT/GE
introduced

CO2reduction
rate: approx.
100% *22050
2050

2020
2020

Contribute to energy savings and CO2 reduction as a base-load powersourceContribute to expansion of renewable energy
as a regulated power source

Hydrogen GT
demonstration

Hydrogen power generation
introduction period

Popularization of hydrogen
power generation*1 Source: CO2 reduction rate of fuel conversion from heavy oil to city gas based on the calculation and report manual of greenhouse gas emissions (2012), enforcement
regulations of the Law Concerning the Rational Use of Energy (2012), interim report of the meeting scenario subcommittee of the Global Environment Committee of the Central
Environment Council (2001)*2 CO2 reduction rate in gas fired GT / GE with CCU/S and hydrogen power generation© Kawasaki Heavy Industries, Ltd. All Rights Reserved

12New Values

Role of the Hydrogen
Gas Turbine and Gas Engine© Kawasaki Heavy Industries, Ltd. All Rights Reserved

13Role of Thermal Power Generation in the Eraof Mass Introduction of Renewable Energy Thermal power generation can contribute to the expanded introduction of variable
renewable energy, such as solar and wind power, as they can adjust the balance
between power supply and demand.
 Thermal power plants will be replaced by CO2-free hydrogen power plants, andsurplus power from renewable energy sources will be converted to hydrogen for
power generation.
4. Surplus power will be converted tohydrogen for power generation

2. Shift to pumped
hydropower
PumpedTotalhydropower
amount ofDemand（incl. connecting line）power
generation

Solar/Wind Power
3. Rapid increasein thermal power
generation

1. Rapid
reduction ofthermal power

Thermal Power ⇒ Hydrogen Power etc.
Nuclear, Hydropower, etc
0:00

2:00

4:00

© Kawasaki Heavy Industries, Ltd. All Rights Reserved

6:00

8:00

10:00

12:00

14:00

16:00

18:00

20:00

22:00
14

Example of Transition of Electric Power Infrastructure
due to the Advancements in Renewable Energy: Denmark Denmark introduced a large amount of variable renewable energy*, anddistributed power generation is also widespread throughout the country.
 Cogeneration systems that can utilize waste heat and are excellent for energy
savings are the mainstream of distributed power generation.
*The share of renewable energy in total energy supply increased from approx. 7% in 1990 to approx. 22% in 2010

Only CHP plants
with greater than
0.5 MW capacity areshown.

© Kawasaki Heavy Industries, Ltd. All Rights Reserved

Only CHP plants
with greater than
0.5 MW capacity areshown.

15

Features of Kawasaki Gas Turbine:
Product Lineup
 Kawasaki Gas Turbine is suitable for distributed cogeneration.
DLE combustion capable ofhydrogen co-firing andexclusive firing (underdemonstration)

Hydrogen co-firing(to be commercialized)

Capable ofhydrogenco-firing

ＧＴ series

M1M5

M7GT model

M1A-17

M5A

M7A-03

L20A

L30A

outputpackage

1.7 MW
PUC17D

5 MW
PUC50D

8 MW
PUC80D18 MW
PUC180D30 MW
PUC300D

L30A
hydrogen co-firing(to be commercialized)L

structural
diagramof eachmodels© Kawasaki Heavy Industries, Ltd. All Rights Reserved

16Features of Kawasaki Green Gas Engine:Product Lineup
 Kawasaki Green Gas Engine achieves world’s highest level of performance

Hydrogen Co-firing is Planned for All Models
GE ModelKG-12

output*

5.2 MW

KG-18

KG-18-V

KG-18-T

7.8 MW

efficiency

49.0 %

49.5 %

51.0 %

supercharging
methodBypass Valve

High-EfficientSupercharging

Two StageSupercharging

外観-*50Hz, 750rpm© Kawasaki Heavy Industries, Ltd. All Rights Reserved17Advantages of Hydrogen Gas Turbines /Gas Engines Hydrogen gas turbines / gas engines have multiple environmental andeconomic benefits. Transition to hydrogen combustion is possible byremodeling the combustor.

Mixedcombustion

Reduction ofCO2 emissionHydrogen combustion can be

Mixed combustion ofachieved by :By using hydrogen ascity gas and hydrogenfuel, CO2 emissions

achieves fuel flexibility

from gas turbines canand stable operation.

be reduced throughFlexible transition fromhigh energy efficiency.

Reduction of
investment costs-replacing the combustor of
the existing natural gasturbine; and-replacing control devices ofthe existing gas engine; andlow-carbon toadding safety covers (for GE)

decarbonized society.

© Kawasaki Heavy Industries, Ltd. All Rights Reserved18Road Map of Hydrogen Gas Turbine /Gas Engine Development
Hydrogenstrategy inJapan

2020

2021

2022

2023

2024

〜

GT:DLE
CombustorGE

Hydrogen co-firing

PUC 17, world's first hydrogen cogeneration system (completion: 2018)

Hydrogen 30%
Co-Firing

PUC180D-H2
PUC300D-H2

Current DLE Combustor

KG-12
KG-18(-V)
KG-18-T

Hydrogen 30% Co-Firing
Current Gas Engine

PUC17-H2

GT: MMX
Combustor

Hydrogen 100%

GT: DLE
Combustor

PUC50-H2
PUC80-H2
PUC180-H2
PUC300-H2
PUC17MMX

Diffusion / Hydrogen 0~100%
Diffusion / Hydrogen 0~100%

Diffusion Combustor

MM Combustion /Hydrogen 100%

MM Combustion /PUC50MMX
PUC80MMX
PUC180MMX
PUC300MMX

2030"Large-Scale Hydrogen Supply Chain Construction" Project by GI Funds: Promoting
Social Implementation of Hydrogen Power Generation

PUC17D-H2
PUC50D-H2
PUC80D-H22025

Hydrogen 100%
MM Combustor(Micro Diffusion Combustor）

GE

KG-12
KG-18(-V)
KG-18-T© Kawasaki Heavy Industries, Ltd. All Rights Reserved

MM Combustion / Hydrogen 100%
New Concept of Combustion/Hydrogen 100% orHydrogen 0〜100%19

Cross Over

Global & Local Alliance© Kawasaki Heavy Industries, Ltd. All Rights Reserved20

Technology Development Issues (Examples) Challenging issues of hydrogen mass transport and hydrogen gas turbines in
the construction of a CO2-free hydrogen chain
Achieving stable combustion and low NOx
simultaneously

Liquefied hydrogen for mass transport

Challenges in transport
at cryogenic

Challenges in achieving
high efficiency
Hydrogen/City Gas

Liquefied Hydrogen
Storage Tank

Liquefied Hydrogen
Loading Arm

Hydrogen/City-Gas

HydrogenHydrogen Burning
Diffusion Burner
Diffusion Combustor..
Micromix Burner
Lean Premixing
Burner DLE CombustorReheating Micromix Combustor
BurnerLiquefied HydrogenCarrier© Kawasaki Heavy Industries, Ltd. All Rights Reserved

Development of DLE combustor:
high efficiency without water injection

DevelopedProduct21

Japan-Australia Hydrogen Supply Chain
Pilot Demonstration

Government agencies and private companies in Japan and Australia began cooperatingin 2015 to demonstrate hydrogen supply chain. Kawasaki has completed construction ofa hydrogen liquefaction/loading plant in Australia, the LH2 carrier, and a hydrogen
unloading plant in Kobe, Japan. Demonstration will continue until 2022.

Australia Portion *1

NEDO Portion *1

CoalGasification

Gas
Refining

HySTRAHySTRA

Trailer

NEDO Portion *1

Liquefaction

LH2CarrierLoading

Liquefaction & Loading
Terminal (Hastings)

Australia【 Government of Australia】
Australian Federal Government
Victorian State Government【Hydrogen Engineering Australia（HEA）】

Kawasaki Sumitomo Corp. Iwatani J-POWER
AGL

HySTRAHySTRA

Hydrogen Production Plant(Latrobe Valley)

Marubeni

Unloading

J-POWER GroupJapan【 Government of Japan】
Ministry of Economy, Trade and Industry NEDO
【CO2-free Hydrogen Energy Supply-chain Technology
Research Association (HySTRA) 】

KawasakiMarubeni

Iwatani

J-POWER

ENEOS

Shell

“K”LINE*1 From 2015 to FY 2022 NEDO Grant Program for Technological Development for Industry with Issues "Demonstration Project for Construction of Large-scaleMarine Transport of Hydrogen Derived from Unused Brown Coal and Supply Chain"© Kawasaki Heavy Industries, Ltd. All Rights Reserved22

Evaluation and Study of Next Generation Hydrogen
Combustor (DLE Combustor, Hydrogen 100%)Developed next-generation combustor by collaborating with Aachen University ofTechnology
NOx level of 40 ppm* achieved under actual gas turbine operating conditions andunder 50% to 100% rated load operating conditions
Combustor was held for 2 hours under the condition corresponding to the rating of100%; no fire damage to the combustor after the test
The operation was carried out in the hydrogen gas turbine cogeneration
demonstration facility in Port Island, Kobe, in fiscal 2020.

Hydrogen 100% DLE
Combustor test in Aachen
University of Technology)

Hydrogen Combustion

Results of this research were obtained through below:Combustor interior after
2h test*Residual oxygen 16% equivalent・FY 2014 – 15: SIP (Strategic Innovation Creation Program) "Energy Career" (Managed by JST)・Fiscal 2016 – 18: NEDO's Hydrogen R & D Initiative Business and Large-scale Hydrogen R & D "Research and development of hydrogen gas turbine combustion
technology"© Kawasaki Heavy Industries, Ltd. All Rights Reserved23

World's First 100% Hydrogen Regional Combined
Heat and Power Supply (Port Island, Kobe)






Technology development and demonstration of a system to use “Power", "Hydrogen" and“Heat" efficiently at the regional level were carried out using a 1 MW class gas turbine power
generation facility fueled by hydrogen and natural gas.
FY 2017 & 2018: Demonstration tests of hydrogen gas turbine equipped with diffusion
combustors that can handle 100% natural gas / 100% hydrogen / mixture of natural gas andhydrogen (0 ~ 100%). NOx amount conformed to meet the air pollution control law regulation
value of 70 ppm or less (16% O2 equivalent).
FY 2019 & 2020: Development and demonstration of hydrogen gas turbine using DLE
combustor, that can enable 100% hydrogen. NOx amount was 70 ppm or less (16% O2equivalent), which is the same as that of a diffusion combustor.
Business Structure: Kawasaki Heavy Industries, Obayashi Corporation, Kobe city, Kansai Electric Power,
Iwatani Corporation, Kenes, Osaka University,
Map of energy supply
Kansai University(as of Nov 2018)
Exhibition
HallPowerKobe New
TransitPowerPowerPort Island
Sports CenterPort Island
Treatment Plant

ＥPowerNEDO Grant Program for Industrial Technology Development
FY 2015 to FY 2018 "Smart Community Technology Development
Project Utilizing Hydrogen CGS"FY 2019 to FY 2020 "Dry low NOx hydrogen gas turbine technology
development and demonstration project"

Hydrogen Gas Turbine Energy Center© Kawasaki Heavy Industries, Ltd. All Rights Reserved

Bidirectional steam
interchange
power line
thermal conduit
transmission anddistribution lines

ＨHospital

2017 ZENRIN.,LTD.(Z09KA no. 039)

24

Hydrogen-to-Power Demonstration inEurope Kawasaki started discussion with RWE, a major German electric powercompany, to commence demonstration operation of 100% Hydrogen-toPower generation.

30MW Class Gas Turbine
Planned Site: Lingen, Lower Saxony(Germany)© Kawasaki Heavy Industries, Ltd. All Rights Reserved25

Toward the Realization of a Hydrogen Society
 With a target for commercial launch in 2030, technology development,commercialization system construction, and social environment improvement
has begun in an integrated manner.

TechnicalDevelopment
Establish technology to increase the size of liquid water carriers by the end of FY 2022
Commercialization of gas turbine power generation facilities by mid-2020s

Hydrogen Society
Commercialization
will start in 2030
after demonstrationin mid-2020s

Establishment ofBusiness Model

Improvement ofSocial Environment

Formation of consortium
Building trust with our partners

Supporting institutional design for hydrogensociety in cooperation with government
agencies (from commercialization
demonstration to self-reliance)© Kawasaki Heavy Industries, Ltd. All Rights Reserved26© Kawasaki Heavy Industries, Ltd. All Rights Reserved27