2019 European Fuel Cells Enabling Technology Leadership Award

1. FROST & SULLIVAN BEST PRACTICES AWARD
Enabling Technology Leadership 2019
FUEL CELLS - EUROPE

2. BEST PRACTICES RESEARCH
© Frost & Sullivan 2019 2 “We Accelerate Growth”
Contents
Background and Company Performance ...................................................................... 3
Industry Challenges............................................................................................ 3
Technology Leverage and Customer Impact of Gencell ............................................ 4
Conclusion ........................................................................................................ 4
Significance of Enabling Technology Leadership............................................................ 7
Understanding Enabling Technology Leadership............................................................ 7
Key Benchmarking Criteria .................................................................................. 8
Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best
Practices................................................................................................................. 9
The Intersection between 360-Degree Research and Best Practices Awards.................... 10
Research Methodology ...................................................................................... 10
About Frost & Sullivan ............................................................................................ 10

3. BEST PRACTICES RESEARCH
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Background and Company Performance
Industry Challenges
The power infrastructure is divided into isolated subsystems to facilitate reliable power
supply to auxiliaries, consumers, and isolated power systems. The complications and
unpredictability of operating conditions in electrical networks are influenced by renewable
energy sources and market factors which underpin the importance of enlargement and
sophistication of the existing power infrastructure. To reduce severe blackout probability
characterized by cascade development of emergency processes establishes the need for
efficient power infrastructure.1
Mobile fuel cell powered electricity stations are an essential part of the power
infrastructure. While black-outs generally are associated with remote off-grid areas in
Africa and Asia, an estimated 36.7 million people in the United States (US) were affected
by blackouts in 2017, more than double the 16.1 million people who experienced outages
in 2016.2
Fuel cells offer an environment-friendly and cost-effective alternative to diesel-powered
generators which produce toxic fumes, contaminate the soil due to occasional leaks, and
demand a steady flow of new diesel.
Frost & Sullivan recognizes the need for technology enhancement and innovations in
power infrastructure by upgrading existing power infrastructure networks to mitigate
greenhouse gas emissions, black-outs, and to enhance the dynamic nature of the power
grid network. Furthermore, a technically improved power infrastructure will help establish
a reliable electrical supply while also reducing the dependence on alternative measures
such as diesel generators and kerosene for domestic requirements. In short, a clean and
economically viable fuel cell based solution will contribute to a country’s economic growth
and reduce greenhouse gas emissions.3
Despite the advantages of fuel cells, industry participants need to overcome many
obstacles before the technology can reach its full potential. Introducing innovative, cost-
effective materials such as environmentally friendly hydrogen fuels can reduce high capital
expenditures on substances like platinum and palladium. Thus, the introduction of new
and environmentally friendly hydrogen fuels will aid in the expansion of fuel cells as an
integral component of the national power grid.
1
Power Infrastructure Technologies of the Future (Frost & Sullivan, September 2017)
2
Eaton's USA Blackout Tracker Annual Report
3
Power Infrastructure Technologies of the Future (Frost & Sullivan, September 2017)

4. BEST PRACTICES RESEARCH
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Technology Leverage and Customer Impact of Gencell
Founded in 2011, Israel-based fuel cell producer GenCell also has a presence in Europe
and the Americas. With previous experience in the space industry, GenCell now offers
affordable fuel cell solutions for clean backup power for utilities, telecom, homeland
security, healthcare, and automated industries.
GenCell’s two back up products are the GenCell G5 Long-Duration UPS, introduced in
2015, and the GenCell G5rx.
The G5 is designed to provide long backup power for mission-critical applications where
the limited duration of uninterruptible power supply solutions is insufficient to prevent
long-term damage to the infrastructure. The G5 offers backup power to industries that
cannot tolerate outages such as automated industries, healthcare facilities, homeland
security infrastructure, telecom towers, and financial institutions.
The second solution, the GenCell G5rx, was developed to serve the specifications and
needs of the utility substations worldwide. It is designed to provide immediate power to
automatic circuit reclosers—capable of handling lightning strikes, surges, or objects
getting stuck in power lines—the time it takes for the grid to become operational after an
incident. Before the G5rx, utilities had to back up its automatic circuit reclosers with
battery rooms that can provide only 4 to 8 hours of power. However, if the grid is not
restored within this timeframe, substantial damage could occur to the affected facility’s
infrastructure and, subsequently, the business.
In addition to fuel cell power benefits, the G5rx meets the unique requirements of utilities,
including their substation energy profiles and safety standards. A specially designed
shelter protects the fuel cell power solution from high-voltage interference and
earthquakes. The G5rx is the first fuel cell solution to receive the Institute of Electrical and
Electronics Engineers (IEEE) 693 seismic compliance for using substations.
A Clean Flame of Hope
In June 2018, GenCell launched the A5 Off-Grid Power Solution to help underserved
bottom-of-the-pyramid customers in rural areas that are not connected.
One of GenCell’s key benefits is its focus on alkaline chemistry, by using alkaline
electrolyte potassium hydroxide in water and cathodes that are usually made with
platinum which was previously only used in the space industry due to its high price point.
By eliminating the use of platinum in its solution GenCell is able to provide an affordable
solution suitable for daily use on earth. Alkaline fuel cells (AFC) are among the most
efficient type of fuel cells— reaching up to 60% electrical efficiency, and up to 87%
efficiency when used as a combined heat and power system.

5. BEST PRACTICES RESEARCH
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AFCs offer virtually instant operation without pre-heating, even at sub-zero temperatures,
and are ideally suited for use in severe weather conditions. AFC is the only fuel cell
technology to utilize the hydrogen produced from cracking ammonia. Other low-
temperature fuel cells cannot achieve this without applying costly filters.
One of the most commonly produced inorganic chemicals, ammonia, is available in almost
every part of the world. Liquid ammonia is an excellent carrier of hydrogen for the GenCell
fuel cell generator, giving it a significant competitive advantage over other fuel cell
solutions.
GenCell alkaline fuel cell solutions use a liquid electrolyte, potassium hydroxide, and have
a freezing temperature of -40°C, enabling it to work in both warm and sub-freezing
conditions. In comparison, other membrane fuel cells hydrate its membranes with water
and must operate above 0°C or placed in a heated and insulated enclosure.
GenCell’s liquid electrolyte overcomes membrane humidification challenges and operates
in a greater range of temperature and humidity conditions.
Reliable and Affordable Power Availed Anywhere
GenCell developed many patented technologies to reduce the capital and operational
expenditure for its fuel-cell power solutions, including the use of a non-platinum catalyst,
mechanisms for applying ambient air as an oxidizer, and introducing lower-cost fuels such
as industrial-grade hydrogen gas or anhydrous liquid ammonia. GenCell’s technology
overcomes the obstacles that have historically prevented the mainstream adoption of fuel
cells.
Currently, most off-grid and grid towers are powered by diesel generators that are readily
available and have an established supply chain. Far from an ideal solution, the diesel
generators pollute the air, drip diesel into the soil and need regular maintenance. Besides,
the generator and its fuel face potential theft issues.
Ammonia is readily available, used in agriculture, for refrigeration, and for making
semiconductors. With ammonia being cheaper than diesel, GenCell estimates that the
running cost of low-temperature fuel cell varies between $2 to 3.5 (kilowatts per hour)
kWh. Also, GenCell A5 has an affordable operating expense of $0.5 to 0.75 kWh, which is
2 to 3 times lower than the running cost of diesel generators.

6. BEST PRACTICES RESEARCH
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Conclusion
GenCell provides affordable fuel cell solutions for clean backup power for utilities,
homeland security, healthcare, telecom, and automated industries. By using an alkaline
electrolyte such as potassium hydroxide in water and cathodes usually made with
platinum, which is not a cost effective solution, however removing the expensive platinum
enabels GenCell to offer advanced technology at a low price. Alkaline fuel cells (AFC) are
among the most efficient type of fuel cells, reaching up to 60% efficiency. Also, GenCell
A5 off-grid solution presents an affordable running cost of $0.5 to 0.75 kWh, which is 2 to
3 times lower than the running cost of diesel generators.
With its innovative technology and strong overall performance, GenCell earns Frost &
Sullivan’s 2019 Enabling Technology Leadership Award in the Europe fuel cell market.

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Significance of Enabling Technology Leadership
Ultimately, growth in any organization depends upon customers purchasing from a
company and then making the decision to return time and again. In a sense, then,
everything is truly about the customer—and making those customers happy is the
cornerstone of any long-term successful growth strategy. To achieve these goals through
enabling technology leadership, an organization must be best-in-class in three key areas:
understanding demand, nurturing the brand, and differentiating from the competition.
Understanding Enabling Technology Leadership
Product quality (driven by innovative technology) is the foundation of delivering customer
value. When complemented by an equally rigorous focus on the customer, companies can
begin to differentiate themselves from the competition. From awareness, to consideration,
to purchase, to follow-up support, best-practice organizations deliver a unique and
enjoyable experience that gives customers confidence in the company, its products, and
its integrity.

8. BEST PRACTICES RESEARCH
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Key Benchmarking Criteria
For the Enabling Technology Leadership Award, Frost & Sullivan analysts independently
evaluated two key factors—Technology Leverage and Customer Impact—according to the
criteria identified below.
Technology Leverage
Criterion 1: Commitment to Innovation
Criterion 2: Commitment to Creativity
Criterion 3: Stage Gate Efficiency
Criterion 4: Commercialization Success
Criterion 5: Application Diversity
Customer Impact
Criterion 1: Price/Performance Value
Criterion 2: Customer Purchase Experience
Criterion 3: Customer Ownership Experience
Criterion 4: Customer Service Experience
Criterion 5: Brand Equity

9. BEST PRACTICES RESEARCH
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Best Practices Recognition: 10 Steps to Researching,
Identifying, and Recognizing Best Practices
Frost & Sullivan analysts follow a 10-step process to evaluate Award candidates and
assess their fit with select best practice criteria. The reputation and integrity of the
Awards are based on close adherence to this process.
STEP OBJECTIVE KEY ACTIVITIES OUTPUT
1
Monitor,
target, and
screen
Identify Award recipient
candidates from around the
globe
 Conduct in-depth industry
research
 Identify emerging sectors
 Scan multiple geographies
Pipeline of candidates who
potentially meet all best-
practice criteria
2
Perform
360-degree
research
Perform comprehensive,
360-degree research on all
candidates in the pipeline
 Interview thought leaders
and industry practitioners
 Assess candidates’ fit with
best-practice criteria
 Rank all candidates
Matrix positioning of all
candidates’ performance
relative to one another
3
Invite
thought
leadership in
best
practices
Perform in-depth
examination of all candidates
 Confirm best-practice criteria
 Examine eligibility of all
candidates
 Identify any information gaps
Detailed profiles of all
ranked candidates
4
Initiate
research
director
review
Conduct an unbiased
evaluation of all candidate
profiles
 Brainstorm ranking options
 Invite multiple perspectives
on candidates’ performance
 Update candidate profiles
Final prioritization of all
eligible candidates and
companion best-practice
positioning paper
5
Assemble
panel of
industry
experts
Present findings to an expert
panel of industry thought
leaders
 Share findings
 Strengthen cases for
candidate eligibility
 Prioritize candidates
Refined list of prioritized
Award candidates
6
Conduct
global
industry
review
Build consensus on Award
candidates’ eligibility
 Hold global team meeting to
review all candidates
 Pressure-test fit with criteria
 Confirm inclusion of all
eligible candidates
Final list of eligible Award
candidates, representing
success stories worldwide
7
Perform
quality check
Develop official Award
consideration materials
 Perform final performance
benchmarking activities
 Write nominations
 Perform quality review
High-quality, accurate, and
creative presentation of
nominees’ successes
8
Reconnect
with panel of
industry
experts
Finalize the selection of the
best-practice Award recipient
 Review analysis with panel
 Build consensus
 Select recipient
Decision on which company
performs best against all
best-practice criteria
9
Communicate
recognition
Inform Award recipient of
Award recognition
 Present Award to the CEO
 Inspire the organization for
continued success
 Celebrate the recipient’s
performance
Announcement of Award
and plan for how recipient
can use the Award to
enhance the brand

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STEP OBJECTIVE KEY ACTIVITIES OUTPUT
10
Take
strategic
action
Upon licensing, company is
able to share Award news
with stakeholders and
customers
 Coordinate media outreach
 Design a marketing plan
 Assess Award’s role in future
strategic planning
Widespread awareness of
recipient’s Award status
among investors, media
personnel, and employees
The Intersection between 360-Degree Research and Best
Practices Awards
Research Methodology
Frost & Sullivan’s 360-degree research
methodology represents the analytical
rigor of our research process. It offers a
360-degree-view of industry challenges,
trends, and issues by integrating all 7 of
Frost & Sullivan's research methodologies.
Too often companies make important
growth decisions based on a narrow
understanding of their environment,
leading to errors of both omission and
commission. Successful growth strategies
are founded on a thorough understanding
of market, technical, economic, financial,
customer, best practices, and
demographic analyses. The integration of
these research disciplines into the 360-
degree research methodology provides an
evaluation platform for benchmarking
industry participants and for identifying those performing at best-in-class levels.
About Frost & Sullivan
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360-DEGREE RESEARCH: SEEING ORDER IN
THE CHAOS