Mr. Frank Carnevale reports

ALKALINE FUEL CELL POWER CORP. EXECUTES LETTER OF INTENT WITH PROGRESSUS CLEAN TECHNOLOGIES INC. FOR INDUSTRY-LEADING CLEAN HYDROGEN JOINT VENTURE PILOT

Alkaline Fuel Cell Power Corp. executed a letter of intent with Progressus Clean Technologies Inc. on Sept. 12, 2022, to complete a joint venture pilot project that aims to provide a solution for natural gas utilities to directly power both residential and commercial businesses. Progressus is a venture-stage green technology company, developing solutions for hydrogen generation and separation, which are complementary to Alkaline Fuel's fuel cell technologies. The JV is intended to provide proof of concept for each company's technologies and assess the ability to combine various Progressus technologies with Alkaline Fuel fuel cells to serve residential and small building customers across North America.

"Alkaline Fuel Cell Power is pleased to be working with the talented team at Progressus to combine our respective technologies and accelerate the ability for utility companies to utilize natural gas pipelines for the distribution of hydrogen for residential and commercial customers, more immediately," said Frank Carnevale, chief executive officer of Alkaline Fuel. "This JV pilot project is a key milestone in our goal of making zero-emission fuel cells widely available, handing power to the people so that individuals can both save on energy costs while positively contributing to global emission reduction targets."

"The missions and combined vision of AFCP and Progressus are very complementary to one another. By leveraging the strengths of both organizations, we can more efficiently and effectively solve the growing need for innovative hydrogen solutions. The proposed JV pilot project with AFCP is an active step towards progressing hydrogen innovation and combining the suite of technologies that will ultimately be needed for global hydrogen solutions in the future," said Channce Fuller, chief executive officer of Progressus.

Summary of the JV

To reduce the carbon dioxide emissions around the world, gas distribution companies and municipalities are setting up projects to inject hydrogen into the local gas distribution grid. This gas mixture generally aims to contain up to 20 per cent hydrogen and its use is targeted for residential and commercial buildings.

Alkaline Fuel and Progressus will work together to execute a JV pilot project, utilizing technologies from each company to provide infield proof of concept, generate operational data that can inform continued development and market opportunities, and establish a platform to support future potential growth and additional partnerships. The exact location of the JV pilot project remains under consideration, but initially, North America will be the focus with secondary priority given to potential future pilots in Europe.

Progressus technologies enable the extraction of dilute hydrogen from gas streams, a critical component, as utility companies globally increasingly strive to inject hydrogen into natural gas streams. Progressus represents a solution that can extract the hydrogen at high efficiencies, complementing Alkaline Fuel's low-cost combined heat and power (CHP) alkaline fuel cell and generator development.

The JV pilot project is designed to use the Progressus hydrogen separation technology to efficiently extract hydrogen at high purities from the existing natural gas grid and then convert the purified hydrogen using either Alkaline Fuel's four-kilowatt micro-CHP or four-kilowatt generator to produce electricity and potentially heat. This project could be put to immediate use in a residential home or commercial building, providing truly zero-emission power. Alkaline Fuel has already identified interest from natural gas and electric utilities and municipalities to pilot the concept.

By accelerating the distribution of hydrogen through natural gas transportation networks, particularly in North America, sales of Alkaline Fuel's alkaline fuel cell CHP units and generator systems could be rapidly scaled. Combining Alkaline Fuel's and Progressus's technologies offers an ideal potential solution to support the generation of low carbon energy that contributes to the world's clean energy transition.

Background to the JV

The energy sector currently contributes approximately three-quarters of global greenhouse gas emissions and is therefore simultaneously capable of averting the worst effects of climate change. To reduce CO2 emissions, gas distribution companies and municipalities are advancing projects that facilitate the injection of hydrogen into the local gas distribution grid as a cleaner energy source.

In the last two years alone, more than two dozen hydrogen injection projects have been announced in the United States, with additional commitments outlined in early 2022. With the passing of the Inflation Reduction Act (IRA), there is massive momentum building for additional investment in clean hydrogen solutions. Beyond the U.S., the largest global gas utilities (including SoCalGas, Enbridge, Atco Gas, Snam SpA, Enagas SA and Open Grid Europe, to name a few) are all actively working on projects to inject hydrogen into their natural gas grids.

The proposed pilot project would initially cover one extraction system linked to one four-kilowatt micro-CHP or generator system, with expansion to a larger scale in future pilots designed to provide clean hydrogen and power for multiple residential users or commercial applications.

As the company disclosed on Aug. 25, 2002, Alkaline Fuel is expecting to have six prototype fuel cells to utilize within pilots, globally.

Outlook for second half of 2022

On June 20, 2022, the company provided an outlook for the balance of 2022 and over the longer term. As an example, the company indicated that it will further accelerate and ramp up efforts to bring fuel cells to market, globally. The company also indicated that it will look to secure additional strategic partnerships for the piloting and deployment of fuel cells in North America.

With this announcement, Alkaline Fuel is pleased to continue to meet its outlook objectives for the second half of 2022.

About Progressus Clean Technologies Inc.

Progressus (formerly AES-100 Inc.) is a venture-stage green technology company focused on the development of novel hydrogen generation and separation technologies. Progressus owns the exclusive rights and intellectual property pertaining to the advanced electrolyzer system for the production of hydrogen from dilute syngas.

About Alkaline Fuel Cell Power Corp.

Alkaline Fuel is a diversified investment platform, developing affordable, renewable and reliable energy assets and cleantech. It brings power to the people today, combining a stable revenue stream with a future-forward vision to commercialize its advanced hydrogen fuel cell technology to meet the massive global market need and ultimately generate compelling returns for investors.

Alkaline Fuel operates through two global entities: Fuel Cell Power NV, a wholly owned subsidiary in Belgium, and PWWR Flow Streams, an Alkaline Fuel brand in Canada.

• Fuel Cell Power is focused on the development, production and commercialization of microcombined heat and power (micro-CHP) systems and off-grid and backup power generators based on advanced alkaline fuel cell technology that generates zero CO2 emissions. Fuel Cell Power is working through milestones to deliver a commercialized alkaline fuel cell in 2024.
• PWWR Flow is focused on the development, ownership and operations of combined heat and power assets. PWWR Flow assets deliver efficiency improvements of over 20 per cent with reduced costs to customers in multiresidential and commercial applications. PWWR Flow has contracted existing CHP assets in Toronto, Canada, and has an additional pipeline of potential contracts valued at over $50-million currently in development.

Alkaline Fuel is well positioned to deliver power to the people in the global energy transition while offering a diversified cleantech growth platform for investors.

Common shares are listed for trading on the NEO Exchange under the symbol PWWR, on the OTC Venture Exchange OTCQB under the symbol ALKFF, and on the Frankfurt Exchange under symbols 77R and WKN A3CTYF.

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