1 of 22

Alternative Fuels Journey to Support Decarbonization in the Aviation Industry

Julia Arnone, Manager of Planning Services

2 of 22

PIT Microgrid

3 of 22

PIT has created a resilient energy source for nonstop operations

The first airport to generate its own power for its entire campus including the airfield, terminals and support buildings

Off-the-grid resiliency and redundancy 20 MW energy plant

- Five natural gas fired generators Using natural gas mined onsite

3 MW solar facility sits on 8 acres with 10k solar panels

Microgrid Power

3

4 of 22

The microgrid supports PIT’s sustainability goals

Investment in cleaner and greener electricity

6,800 metric tons reduction in CO2 emissions since commissioning

Solar facility is constructed on a closed landfill – repurposing assets Sustainability is enhanced by lower electricity rates

Capable of introducing hydrogen as a fuel source

4

Privileged and Confidential

5 of 22

Hydrogen

Distributed hydrogen production using ceramic membrane technology

6 of 22

PIT hydrogen Use Cases

6

PIT has a full spectrum

of hydrogen use

cases

Alternative Fuels

SAF

Fuel Cells

Energy

Microgrid

Heating/Cooling

Transport

Ground Support

Passenger Vehicles

7 of 22

Logistical Costs

7

Distributed hydrogen production overcomes transportation and storage cost challenges

Hydrogen transportation costs are 7x-8x the production costs

Scaling-down Inefficiencies

Traditional scale-down in production yields less-than-expected cost reductions

Accessibility Issues

Smaller local customers are discouraged by hydrogen accessibility and cost

Innovative ceramic membrane use allowed PIT to commission a scalable deployment system

Improves Efficiency

Reduces transportation costs

Versatile Production Range

Permits small batch production for demand-driven hydrogen supply (1,500 kg-180,000

kg of hydrogen/day)

Streamlines Operations

Cuts cost and complexity with simplified processes

and reduced storage and transport needs

8 of 22

Our partner completed phase 1: Five milestones towards commercialization of distributed hydrogen production

8

Milestone 1

Milestone 2

Milestone 3

Milestone 4

Milestone 5

May

2023

Objective: Identify a hydrogen separation process operated at a lower temperature than the traditional SMR process

Objective: Design a benchtop system to demonstrate hydrogen separation with a 1 kg/day production rate

Objective: Develop operating parameters for design and economic analysis

Objective: Refine system design and conduct economic analysis, including capital and operating cost of full-scale production

Objective: Demonstrate the operation of the benchtop system producing

1 kg-hydrogen/day

April

2022

Pre-investment due diligence

November

2023

September

2023

July

2023

December

2023

9 of 22

9

Proprietary technology allows ceramic membranes to be used in cost efficient solutions for the aviation industry

  • 3-5x cheaper than traditional production method
  • Better packing density
  • Unique palladium coating improves hydrogen extraction
  • Sole supplier in U.S.

10 of 22

Along with production efficiencies, this process will produce

Blue Hydrogen through carbon capture and reuse

10

Streamline Processes

Less complex than traditional hydrogen separation

Manage Energy Efficiency

From 900-degree Celsius

to 550-degree Celsius.

(40% reduction in operating temperature)

Blue Hydrogen: Repurpose Carbon

High-temperature Carbon Dioxide capture for Dimethyl Carbonate (DMC) production, adding revenue while reducing emissions by ~70%.

11 of 22

Sustainable Aviation Fuel Initiatives at PIT

12 of 22

12

PIT is investing in the pathway to a cleaner, greener future through on-site SAF production and distribution

Lower Cost

Reduced transportation cost

On-site production and blending

Resilient Supply

Supply chain stability

Steady weather for fewer disruptions

Low natural disaster-prone region

Access to Feedstock

Proximity to all available feedstocks including ethanol, coal mine methane, and other ingredients

Export Connectivity

Barge

Rail

Pipeline

Access

Natural gas

Fuel storage & tanks

Innovative leadership

Like-minded partners

1

2

3

4

5

13 of 22

PIT has invested into scaling SAF for distribution across the Eastern United States with three different approaches to fulfill all aviation fuel needs

13

ATJ: Alcohol-to-Jet facility

-

- Fully CORSIA and ASTM/ISTM certified Full Production at PIT by 2027

CMM: Coal mine methane recapture used in Fischer-Tropsch process

-

-

Large scalability with low cost Pending CORSIA and ASTM/ISTM certification

HTR: Hydrothermal Liquefaction Refining facility using oilseeds or waste oils feedstock

-

- Potentially funded via US Federal Grant program

CORSIA eligible, ASTM/ISTM certification pending production

14 of 22

14

In an industry trailing behind

on creating viable solutions, The

U.S. Government has the vision and resources to make CHANGE…

15 of 22

15

The federal government is accelerating domestic production through funding and incentives

White House Marquee Energy Investment will provide up to USD $3/kg tax Credit with hydrogen

-

- Under the Inflation Reduction Act, tax credits increase as GHG emissions decrease, up to USD $3/kg

The Department of Energy views hydrogen as “cross-cutting technology” expanding the scope of funding streams

Three U.S. agencies are dedicated to accelerating SAF, offering grants for research, development, demonstration and deployment.

-

- The U.S. Department of Energy, Department of Transportation and

U.S. Department of Agriculture made a government-wide commitment to scale up the production of SAF to 35 billion gallons* per year by

2050

Through the SAF Grant Challenge DOE, DOT and USDA will offer grants to help meet a goal of 3 billion gallons* per year by 2030

Billions in SAF Incentives and credits are on the table now

  • Tax credits up to USD $1.75/gallon* are available for eligible blends
  • Midstream partners and distributors are incentivized through
  • USD $90M/quarter distributions of fuel greater than 5% biodiesel

16 of 22

16

Despite the urgency, there continues to be an insufficient supply

even at modest 10% blending levels, resulting in premium prices

17 of 22

17

Economic

-High production costs

-Market viability

-Investment requirements

Regulatory

-Standardization

-Policy inconsistency

-Regulatory uncertainty

Environmental

-Lifecycle emissions

-Biodiversity & land use

-Resource competition

The global aviation industry is facing significant challenges for accelerated

SAF production

Technical

-Production efficiency

-Feedstock limitation

-Technology maturity

Logistical

-Distribution infrastructure

-Storage and handling

-Integration with existing supply chains

Market

-Awareness & acceptance

-Willingness to pay premium

-Stakeholder collaboration

18 of 22

Pittsburgh's location enables it to meet fuel needs of the Eastern US

PITTSBURGH

19 of 22

19

SAF produced at PIT can be delivered throughout the Northeast via the existing infrastructure of pipeline, barge,

and rail

20 of 22

PIT is the 8th largest

20

U.S. airport by land mass with

8,800 acres positioned atop one of the largest

natural gas deposits in the U.S.

Three parallel and one cross-wind runway

21 of 22

Conclusion

21

The challenge of decarbonizing global aviation will take collaboration from the entire ecosystem

The U.S. has stepped in to lead that challenge

PIT is well positioned to be a leading U.S. Government partner

  • PIT has significant federal support and can be the bridge to incentives and investments
  • PIT has proximity to the right assets and resources
  • PIT has a track record as a change agent for the aviation industry
  • PIT’s strategic focus has led to tangible progress on real energy solutions benefitting global aviation

22 of 22

Thank You

The future of travel is here and it’s focused on you.

Julia Arnone

Manager, Planning Services