U.S. MERCHANT HYDROGEN MARKET TO REACH $3.87 BILLION IN 2016 Wellesley, Mass.

In a recent release, MERCHANT HYDROGEN GENERATION AND ON-SITE DISTRIBUTED GENERATION (CHM042B) from BCC Research (www.bccresearch.com), the U.S. merchant hydrogen market rose from $3.36 billion in 2010 to $3.44 billion in 2011. By 2016, the market should reach $3.87 billion, yielding a compound annual growth rate (CAGR) of 2.4% for the period. In terms of volume, the market totaled 2.69 billion pounds in 2010. In 2011, the U.S. merchant hydrogen market totaled 2.74 billion pounds, and by 2016, the net amount should reach 2.77 billion pounds, yielding a CAGR of 0.2%. Hydrogen is a colorless and odorless gas and is almost insoluble in water. In the laboratory, hydrogen is produced by electrolysis of water or by action of diluted acids on zinc or iron. Commercially, it is typically produced in a two-step process, wherein in the first step, carbon monoxide and hydrogen are produced by combustion of natural gas with steam, and in the second step, carbon monoxide is converted to carbon dioxide by the water-gas reaction and then the carbon dioxide is removed by washing. Among the key trends in the merchant hydrogen business is the drive to develop small-scale distributed production facilities and to perfect end-use devices and technologies such as hydrogen-powered fuel cells. In many cases, these efforts are more strenuous in overseas markets in comparison to the U.S. Hydrogen has been considered to be the fuel of the future for quite literally decades due to its abundance as an element and its nonpolluting combustion products. Although 75% of the elemental matter of the entire universe is hydrogen, most hydrogen is bound up in compounds such as methane or water or more complex sources such as coal; thus, energy is required to break the hydrogen free from these compounds. Additional energy is required to purify, compress, and/or liquefy the hydrogen for storage and transportation to usage points. These factors, coupled with technical issues related to storage and transport, are what prevent widespread utilization of hydrogen as a common fuel source. Currently, there are 1,200 miles of pipelines carrying hydrogen in the United States where pipeline modernization, upgrades, and expansions are a significant area of investment. Other than the space shuttle program, uses of hydrogen for transportation are still limited. There are currently only 150 fuel cell vehicles, 15 active fuel cell buses, and about 50 hydrogen fueling stations in the United States. This report will be useful and informational to a widespread audience, including those involved with or interested in hydrogen production and utilization, researchers and laboratory and government personnel working in research or company settings, as well as business professionals

such as marketing managers, strategic planners, forecasters, and new product and business developers who are involved with most aspects of the hydrogen industry. It also will be of value to potential investors and members of the general public who are interested in acquiring a business-oriented view of the use of hydrogen in practical applications. SUMMARY FIGURE THE U.S. MERCHANT HYDROGEN MARKET, 2010-2016 ($ BILLIONS)

Source: BCC Research Merchant Hydrogen Generation and On-site Distributed Generation( CHM042B ) Data and analysis extracted from this press release must be accompanied by a statement identifying BCC Research LLC, 49 Walnut Park, Building 2, Wellesley, MA 02481, Telephone: 866-285-7215; Email: editor@bccresearch.com as the source and publisher, along with report number, which can be found in the first paragraph of this release. Thank you.