Proposal Evaluation Results 2010 Third Frontier Fuel Cell

Proposal Evaluation Results 2010 Third Frontier Fuel Cell Program Third Frontier Photovoltaic Program Third Frontier Advanced Energy Program Presented to Ohio Third Frontier Commission December 17, 2009 1251 Dublin Road, Columbus, OH 43215 Tel: 614. 291. 2229 Fax: 614. 291. 2867

Overview of Proposal Review Process FIRST ROUND SECOND ROUND Focus: Meeting the requirements and intent of the RFP Focus: Quality of the Investment for Ohio • Combination of 3 internal and external reviewers • Scoring instrument that reflects criteria in RFP • Ranked on basis of average score • Customized set of questions and written responses • Face-to-face meeting (90 minutes) • Risk-benefit scoring – Technical Risk – Commercial Risk – Mission Impact • Ranked on basis of fit to ODOD targets 2 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

Second Round Scoring Methodology 3 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

Competition Metrics TFFCP TFAEP Total Letters of Intent 36 29 98 163 Proposals Submitted 22 17 41 80 Proposals Passing Administrative Review 21 17 34 72 Proposals Making the Competitive Range 10 11 16 37 Proposals Recommended for Funding 4 TFPVP 6 6 6 18 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

Funding Available TFFCP TFPVP TFAEP Total TFRDF in RFP $8 M $8 M $5 M $21 M WCF in RFP $2 M $2 M $6 M $5, 893, 022 $5, 774, 671 $5, 915, 000 $17, 582, 693 $490, 000 $257, 500 $1, 293, 544 $2, 041, 044 Recommendations: TFRDF Recommendations: WCF 5 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Fuel Cell Program

TFFCP Recommendations for Funding 2010 Third Frontier Fuel Cell Program (TFFCP) TFRDF Requested TFRDF Cumulative TFWCF Requested TFWCF Cumulative $1, 000, 000 $0 $0 $999, 770 $1, 999, 770 $0 $0 $1, 000 $2, 999, 770 $490, 000 $893, 252 $3, 893, 022 $0 $490, 000 5. Lockheed Martin MS 2 Integrated Defense $1, 000 $4, 893, 022 $0 $490, 000 6. Ultra. Cell Corporation, Ohio Manufacturing $1, 000 $5, 893, 022 $0 $490, 000 Applicant 1. Energy Technologies, Inc. 2. Rolls-Royce Fuel Cell Systems (US), Inc. 3. Nex. Tech Materials, Inc. 4. Wellman Products Group 7 Recommended Contingency 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Fuel Cell Program Energy Technologies, Inc. (TFFCP 10 -207 / Rank: 1) TFRDF Requested: WCF Requested: TOTAL Requested: Cost Share: 1 st Round Score: 2 nd Round Score: $1, 000 $0 $1, 000, 000 74. 0 87. 5 “Testing Metal Hydride Fuel Cells” ________________________________________________________________ Recommendation: Fund for $1, 000 Near-Term Product: Tactical Fuel Cell Power Plant incorporating a 1. 5 k. W metal hydride fuel cell stack for military use Project: Third-party long-term testing of FC stacks and BOP by Inno. Ventures and Hawaii Natural Energy Institute to verify product performance in response to a request from the military Projected Impacts: • Applicant renovating 24, 000 sq. ft. in Mansfield to support manufacture of this product • Strong Ohio supply chain • Supports fuel cell testing capabilities in Ohio 8 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Fuel Cell Program Rolls-Royce Fuel Cell Systems (US), Inc. (TFFCP 10 -203 / Rank: 2) TFRDF Requested: WCF Requested: TOTAL Requested: Cost Share: 1 st Round Score: 2 nd Round Score: $999, 770 $0 $999, 770 $1, 020, 918 75. 7 84. 2 “Reliability of Fuel Cells for Commercial Megawatt Scale SOFC Power Systems” ________________________________________________________________ Recommendation: Fund for $999, 770 Near-Term Product: 1 MW SOFC for utilities; AEP interested in product for Smart-Grid strategy with test in 2016 Project: Developing predictive models by ORNL for long-term material performance and operating conditions to speed product optimization and provide confidence for investors Projected Impacts: • North American headquarters at Stark State and pilot manufacturing lines being relocated there • Strong leverage through the SECA program (8 -year contract for $75 million) • Plans for intermediate production facility to be made in 2012 and decision on largerscale facility in 2015 9 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Fuel Cell Program Nex. Tech Materials, Ltd. (TFFCP 10 -211 / Rank: 3) TFRDF Requested: WCF Requested: TOTAL Requested: Cost Share: 1 st Round Score: 2 nd Round Score: $1, 000 $490, 000 $1, 490, 000 80. 3 76. 7 “Improving Manufacturing Readiness of Nex. Tech’s SOFC Stack Technology” ________________________________________________________________ Recommendation: Fund for $1, 490, 000 Near-Term Product: Fuel cells and fuel cell stacks for military OEMs Project: Setting up green electrolyte tape manufacturing at Hocking College and improving thermal and mechanical robustness of stacks using CFD and FEA at OSU Projected Impacts: • Provides a source for a critical raw material and trained workers • Pilot line expected to start in 2013 and full-scale plant in 2015 10 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Fuel Cell Program Wellman Products Group (TFFCP 10 -210 / Rank: 4) TFRDF Requested: WCF Requested: TOTAL Requested: Cost Share: 1 st Round Score: 2 nd Round Score: $893, 252 $0 $893, 252 $897, 541 69. 3 76. 0 “Phosphoric Fuel Cell Stack Material Cost Reduction” ________________________________________________________________ Recommendation: Fund for $893, 252 Near-Term Product: Plates for UTC’s Pure. Cell® 400 System (PAFC) Project: Reducing the cost for integrated separator plates through lower-cost polymers and graphite and elimination of the separator sheet Projected Impacts: • Single source plate supplier to UTC with potential to become a supplier of MEAs • UTC engaging in discussions about locating a plant expansion in Ohio 11 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Fuel Cell Program Lockheed Martin MS 2 Integrated Defense Technologies (TFFCP 10 -231 / Rank: 5) TFRDF Requested: WCF Requested: TOTAL Requested: Cost Share: 1 st Round Score: 2 nd Round Score: $1, 000 $0 $1, 000, 000 74. 7 74. 8 “Military SOFC Ruggedization” ________________________________________________________________ Recommendation: Fund for $1, 000 Near-Term Product: 1 k. W SOFC genset that can operate on JP-8 for military applications Project: Raising Technology Readiness Level (TRL) from 4 to 6 by improving shock and vibration tolerance of the fuel cell, adding a fuel-based thermal start-up, and reducing volume and weight Projected Impacts: • Working with Ohio suppliers • Pre-production activity in 2013 and start of production in 2015 • Product to be manufactured at the plant in Akron 12 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Fuel Cell Program Ultra. Cell Corporation, Ohio Manufacturing Operations (TFFCP 10 -218 / Rank: 6) TFRDF Requested: WCF Requested: TOTAL Requested: Cost Share: 1 st Round Score: 2 nd Round Score: $1, 000 $0 $1, 000, 000 77. 0 70. 1 “Transitioning the Ultra. Cell XX 55® 55 -Watt Fuel Cell from Beta Design to Commercial Product Through Manufacturing Development” ________________________________________________________________ Recommendation: Fund for $1, 000 Near-Term Product: 55 W reformed methanol fuel cell portable power pack for battery recharging in the field (current cost $12 -15, 000 each) Project: Manufacturing cost reduction by bringing laser welding in-house, scaling-up the processor acceptance tester, reducing the temperature gradient across the stack, improving the fuel pump, improving the noise testing capabilities, and optimizing the engine block components and BOP Projected Impacts: • First order received from AFRL for 50 units ($3 million) • Applicant planning to expand its manufacturing operations in Dayton • Production of XX 55® to be transferred from California to Ohio in early 2010 13 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Photovoltaic Program

TFPVP Recommendations for Funding 2010 Third Frontier Photovoltaic Program (TFPVP) TFRDF Requested TFRDF Cumulative TFWCF Requested TFWCF Cumulative $999, 271 $0 $0 2. Ferro Corp. , Electronic Material Systems $1, 000 $1, 999, 271 $0 $0 3. Glasstech, Inc. $1, 000 $2, 999, 271 $0 $0 $775, 400 $3, 774, 671 $0 $0 5. Five Star Technologies $1, 000 $4, 774, 671 $0 $0 6. Replex Plastics $1, 000 $5, 774, 671 $257, 500 Applicant 1. Xunlight Corporation 4. SCI Engineered Materials 15 Recommended Contingency Commitment to keep module manufacturing and equipment funded by this award in Ohio during the 5 -year grant period 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Photovoltaic Program Xunlight Corporation (TFPVP 10 -415 / Rank: 1) TFRDF Requested: WCF Requested: TOTAL Requested: Cost Share: 1 st Round Score: 2 nd Round Score: $999, 271 $0 $999, 271 $1, 052, 795 84. 3 90. 7 “Next Generation Solar Module Manufacturing Technology” ________________________________________________________________ Recommendation: Fund for $999, 271 with contingency Near-Term Product: Production of flexible PV modules ranging in size from 4 cells to 36 cells (3’x 18’ rated at 330 W) Project: Developing and installing equipment to automate the process for PV cell assembly and stringing and augmenting an existing 25 MW coil-cutting line into include all PV cell preparation tasks Projected Impacts: • Deposition of flexible PV cells to begin in early 2010 in Toledo (25 MW) • DOE funding sought for additional lines totaling 100 MW with start-up planned by 2012 • Location of module manufacturing unclear Contingency: Module manufacture and the automated production equipment funded by this grant to remain in Ohio during the 5 -year grant period 16 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Photovoltaic Program Ferro Corporation, Electronic Material Systems (TFPVP 10 -424 / Rank: 2) TFRDF Requested: WCF Requested: TOTAL Requested: Cost Share: 1 st Round Score: 2 nd Round Score: $1, 000 $0 $1, 000, 000 67. 0 78. 3 “Advanced Durability Sealing Systems for Solar Cells” ________________________________________________________________ Recommendation: Fund for $1, 000 Near-Term Product: An inorganic material-based edge sealing system for flat, rigid thin film cells and a hybrid organic/inorganic edge seal for flexible thin film cells Project: Developing 2 prototype sealants for performance and accelerated environmental testing at OSU and EWI followed by end-user testing Projected Impacts: • A key enabling technology for PV manufacturers to obtain 20 -year service life from PV modules • Sealant products to be manufactured at existing Ferro facilities in Ohio beginning in 2013 17 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Photovoltaic Program TFRDF Requested: WCF Requested: TOTAL Requested: Cost Share: 1 st Round Score: 2 nd Round Score: Glasstech, Inc. (TFPVP 10 -409 / Rank: 3) $1, 000 $0 $1, 000 $1, 497, 588 57. 3 70. 4 “Commercialization of a Heat Treating Process to Strengthen Large, Thinner Glass Substrates for Photovoltaic Panels” ________________________________________________________________ Recommendation: Fund for $1, 000 Near-Term Product: Equipment to produce larger, thinner glass for PV cells and also for architectural and automotive applications Project: Building a full-scale prototype of a new glass heating and tempering furnace with an improved air distribution system and heat delivery system and validating its performance through extended life cycle testing and customer demonstrations Projected Impacts: • Glasstech to design and market the glass heating and tempering systems to be produced and installed by Pioneer Industrial Systems, an Ohio contractor 18 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Photovoltaic Program SCI Engineered Materials, Inc. (TFPVP 10 -420 / Rank: 4) TFRDF Requested: WCF Requested: TOTAL Requested: Cost Share: 1 st Round Score: 2 nd Round Score: $775, 400 $0 $775, 400 $969, 000 73. 0 69. 5 “Commercialization of Advanced Attachment Technology for Rotatable Ceramic Sputtering Targets Used for Thin Film Photovoltaic Solar Cell Manufacturing” ________________________________________________________________ Recommendation: Fund for $775, 400 Near-Term Product: Rotatable sputtering targets with an attachment to the stainless steel backing that can withstand a higher power density manufacturing process for PV cell production Project: Building and evaluating a rotatable target with a solder/metal foil fin composite attachment and qualifying it for customer use Projected Impacts: • Rotatable targets with finned attachment produced in existing Columbus facility beginning in 2013 • A product line extension needed to support current PV customers that are increasing line speeds to reduce costs 19 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Photovoltaic Program Five Star Technologies, Inc. (TFPVP 10 -412 / Rank: 5) TFRDF Requested: WCF Requested: TOTAL Requested: Cost Share: 1 st Round Score: 2 nd Round Score: $1, 000 $0 $1, 000 $3, 173, 279 80. 0 67. 8 “Commercialization of Specialty Electronic Inks for Advances in Photovoltaic Technology” ________________________________________________________________ Recommendation: Fund for $1, 000 Near-Term Product: High performance inks to improve the energy efficiency of PV cells based on crystalline silicon Project: Demonstrating energy efficiency gains from fine line printing and modifying the ink formulations for high resistivity emitter applications Projected Impacts: • A key component in the crystalline silicon PV supply chain where Ohio currently does not participate • Spin-off potential to touch screens 20 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Photovoltaic Program TFRDF Requested: WCF Requested: TOTAL Requested: Cost Share: 1 st Round Score: 2 nd Round Score: Replex Plastics (TFPVP 10 -416 / Rank: 6) $1, 000 $257, 500 $1, 257, 500 62. 3 66. 0 “Low-Cost Low-Concentration Photovoltaic (LC 2 PV) Systems for Mid. Northern Latitudes” ________________________________________________________________ Recommendation: Fund for $1, 257, 500 Near-Term Product: PV module that concentrates the sunlight by a factor of 10 X using inexpensive aluminized acrylic mirrors Project: Constructing three generations of product prototypes and conducting accelerated and outdoor module testing Projected Impacts: • Cost reduction for PV systems by inserting acrylic mirrors to reduce the square footage of more expensive PV modules needed to produce a given amount of electricity 21 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Advanced Energy Program

TFAEP Recommendations for Funding 2010 Third Frontier Advanced Energy Program (TFAEP) Applicant TFRDF Requested TFRDF Cumulative TFWCF Requested TFWCF Cumulative 1. Ershigs, Inc. $1, 000, 000 $120, 000 2. R. W. Beckett Corp. $1, 000 $2, 000 $0 $120, 000 3. Avtron Industrial Automation $1, 000 $3, 000 $0 $120, 000 4. Novolyte Technologies $1, 000 $4, 000 $123, 544 $243, 544 5. Graf. Tech International Holdings, Inc. $915, 000 $4, 915, 000 $50, 000 $293, 544 $1, 000 $5, 915, 000 $1, 293, 544 6. quasar energy group 23 Recommended Contingency Commitment to manufacture panels in Ohio Commitment to move electrolyte manufacturing from Louisiana to OH if permitted under terms of DOE’s ARRA award 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Advanced Energy Program TFRDF Requested: WCF Requested: TOTAL Requested: Cost Share: 1 st Round Score: 2 nd Round Score: Ershigs (TFAEP 10 -325 / Rank: 1) $1, 000 $120, 000 $1, 160, 000 81. 3 86. 6 “Development and Commercialization of Composite Towers for Wind Turbines” (Energy Sector: Wind) ________________________________________________________________ Recommendation: Fund for $1, 120, 000 with contingency Near-Term Product: Modular towers for larger wind turbines that can be easily transported and assembled on-site Project: Designing, building, and testing a 100 -meter fiber-reinforced polymer (FRP) tower to support GE wind turbines Projected Impacts: • Engineered product with the potential to consume large quantities of polymer (Ashland) and high-performance glass fiber (Owens-Corning) with panel production in Ohio and on-site assembly Contingency: Reduce verbal commitment to manufacture FRP panels in Ohio to a written plan 24 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Advanced Energy Program R. W. Beckett Corporation (TFAEP 10 -358 / Rank: 2) TFRDF Requested: WCF Requested: TOTAL Requested: Cost Share: 1 st Round Score: 2 nd Round Score: $1, 000 $0 $1, 000, 000 74. 7 79. 9 “Develop and Commercialize Residential Energy Storage Technology to Store Power Collected From Any Source of Electricity for Use at a Later Time” (Energy Sector: Energy Storage) ________________________________________________________________ Recommendation: Fund for $1, 000 Near-Term Product: A 10 -k. Wh storage appliance utilizing lithium-ion batteries intended for military use and for use by utilities at residential and commercial locations Project: Integrating existing components into a fully functional energy storage and delivery system leading to testing of the complete system and eventually UL certification Projected Impacts: • A key component for storing energy from intermittent generating sources such as wind and solar • Boston Power indicating that it will consider building a lithium-ion battery manufacturing plant in NE Ohio if sales projections are met 25 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Advanced Energy Program Avtron Industrial Automation (TFAEP 10 -396 / Rank: 3) TFRDF Requested: WCF Requested: TOTAL Requested: Cost Share: 1 st Round Score: 2 nd Round Score: $1, 000 $0 $1, 000 $1, 477, 133 66. 3 78. 3 “Absolute Magnetic Encoder Commercialization” (Energy Sector: Wind) ________________________________________________________________ Recommendation: Fund for $1, 000 Near-Term Product: Absolute Magnetic Encoder that will track the position of the wind turbine and provide control feedback for positioning the blade and controlling its speed Project: Developing, prototyping, and testing of a new, superior communications link to control the operation of the wind turbine Projected Impacts: • Enabling technology to improve wind power reliability that will be applicable to all wind power systems 26 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Advanced Energy Program Novolyte Technologies, Inc. (TFAEP 10 -319 / Rank: 4) TFRDF Requested: WCF Requested: TOTAL Requested: Cost Share: 1 st Round Score: 2 nd Round Score: $1, 000 $123, 544 $1, 176, 444 71. 0 77. 9 “Development and Commercialization of Advanced Electrolyte Materials for Next Generation Lithium-ion Batteries” (Energy Sector: Energy Storage) ________________________________________________________________ Recommendation: Fund for $1, 123, 544 with contingency Near-Term Product: Improved electrolytes for lithium-ion batteries Project: Developing an optimized electrolyte formulation leading to independent benchscale and large-scale testing by customers after internal validation has been completed Projected Impacts: • Control of flammability issues, overcharge protection, and improvement in the energy level, power density, and cycle life of lithium-ion batteries creating opportunities in automotive and grid management Contingency: If permitted by the funding terms of DOE’s ARRA award, formalize Novolyte’s intent to move its electrolyte manufacturing operations from Louisiana to Ohio 27 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Advanced Energy Program Graf. Tech International Holdings, Inc. (TFAEP 10 -342 / Rank: 5) TFRDF Requested: WCF Requested: TOTAL Requested: Cost Share: 1 st Round Score: 2 nd Round Score: $915, 000 $50, 000 $965, 000 68. 0 75. 6 “Development of Thermal Management Solutions for Lithium-ion Batteries” (Energy Sector: Energy Storage) ________________________________________________________________ Recommendation: Fund for $965, 000 Near-Term Product: Thermal management products to improve temperature control and uniformity in lithium-ion cells and battery packs Project: Defining the state-of-the-art relative to thermal management, modeling the performance of Graf. Tech’s materials, and testing their performance in cells and battery packs Projected Impacts: • Improved thermal management of lithium-ion battery packs with the potential to create opportunities in automotive, energy storage, and grid management • Products to be produced in Lakewood • Potential customer located in Columbus 28 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results

2010 Third Frontier Advanced Energy Program quasar energy group (TFAEP 10 -375 / Rank: 6) TFRDF Requested: WCF Requested: TOTAL Requested: Cost Share: 1 st Round Score: 2 nd Round Score: $1, 000, 000 $2, 000 $1, 060, 664 62. 7 66. 6 “Accelerating Commercialization of Anaerobic Digestion for Bioenergy Production” (Energy Sector: Alternative Fuel Production) ________________________________________________________________ Recommendation: Fund for $2, 000 Near-Term Product: A commercial system to economically convert cellulosic biomass to compost and electricity Project: Scaling-up to a demonstration size, optimizing system performance, and proving the economics for an integrated anaerobic digestion system at OARDC Projected Impacts: • Systems to be sold throughout the U. S. and Europe creating construction and operating jobs on-site • Headquarters and a strong Ohio supply chain for equipment components projected to create benefit for Ohio 29 2010 TFFCP / TFPVP / TFAEP Proposal Evaluation Results