Nanofilm Makes Strategic Move into Hydrogen Energy Economy Through Proposed JV with Temasek

News Release Highlights

• To apply Nanofilm's advanced materials surface solutions to critical components in fuel cell and electrolyser systems

• To potentially bring about a tipping point in the proprietary technology's mass commercial adoption and fast-track the commercialisation path of a wide range of fuel cell applications

• To tap on the opportunity to play an important role in the sustainable green energy industry, in line with Nanofilm's sustainability goals

SINGAPORE, 19 April 2021 - Mainboard-listed Nanofilm Technologies International Limited ("Nanofilm" or the "Group") has today announced it has entered into a non-binding term sheet for a joint venture with Temasek. The Group intends to jointly invest in Sydrogen Energy Pte Ltd ("Sydrogen") to tap on opportunities in the hydrogen economy, using Nanofilm's unique vacuum coating technologies.

Marking Nanofilm's strategic entry into the hydrogen energy economy, all related hydrogen energy business of the Group will be carried out through the proposed joint venture. Sydrogen is expected to play an important role in the new sustainable green energy industry. Through the application of Nanofilm's advanced materials surface solutions to critical components in fuel cell and electrolyser systems, Sydrogen is poised to potentially bring about a tipping point in the mass and widespread commercial adoption of these technologies. Leveraging the strength of both stakeholders, Sydrogen aims to drive the growth and development of the hydrogen energy economy through new technologies, advanced fundamental research, continuous engineering and mass production capabilities.

Di Shi Xu (史旭), Executive Chairman of the Company, said, "As a deep tech company with a successful track record in commercializing our technologies, we are pleased to explore the opportunity to partner Temasek to further the application of Nanofilm's proprietary nanotechnology solutions in the hydrogen economy. The proposed partnership will feature heavily in our sustainability commitment, as we entrench our role as a critical supply chain player in the hydrogen economy, contribute to carbon neutrality and offer a sustainable energy source for the global economy."

As a global citizen, where Nanofilm's nanotechnology is proliferated worldwide, the Company pledges to upload a robust Environment, Social and Corporate Governance (ESG) framework, that creates stakeholder value in a sustainable and responsible manner.

Added Dr Shi, "Nanofilm's contribution to the world's sustainability is often underplayed. Our green-labelled mission critical applications adopted by global supply chains reach end consumers globally, which amplifies the impact of our solutions on society and the environment exponentially. ESG is and will continue to be a key emphasis of Nanofilm's solutions offerings as we incorporate sustainability and society impact as key considerations in our technology and applications. Our goal is to achieve betterment of our society at large through our technologies."

With the global effort to reduce carbon emissions, hydrogen is expected to play a critical role as an energy carrier and fuel source Hydrogen, the most abundant element in the world, offers a sustainable energy source at zero carbon emission output. Hydrogen can be sustainably produced by electrolysis of water with renewable energy and then converted via fuel cells to generate electricity that is cleaner and more efficient. Emitting only water, hydrogen fuel cells eliminate the emissions of carbon dioxide and other harmful pollutants to the environment. Fuel cells and electrolysers are important technologies within the hydrogen supply chain for future demand. There is much potential to further enhance the efficiency and cost efficacy of fuel cells and electrolysers for the future hydrogen economy. With the underlying characteristics and positive demand-supply balance, the hydrogen economy is expected to develop at a rapid pace.

Mr. Lee Liang Huang (李良煌), Chief Executive Officer of the Company, said, “Compared to conventional technologies, Nanofilm's coating technologies and production processes are greener solutions and are executed in an environmentally sustainable manner. Our advanced materials optimise the world's natural resources by replacing limited previous base materials, extending the useful life of materials and changing the characteristics of materials. Fuel cells and electrolysers are important technologies in developing the hydrogen economy, but they have been plagued by cost and durability issues. Leveraging on our coating capabilities in this new application, we believe that it will fast-track the commercialisation path of a wide range of fuel cell and electrolysers application,s with vast growth potential and cost reductions once scaled."

By leveraging on Nanofilm's advanced materials, Sydrogen will first focus on commercializing the adoption of these advanced materials coating process for the key components of the protonexechange membrane fuel cell ("PEMFC") stack systems. Nanofilm's advanced materials coating are enabling catalysts in pivoting towards adoption of metal Bipolar Plates ("BPP"), which are technically more superior than competing plat material and are wider in application usages. As production scales up over time, large cost components in PEMFC stack systems will gain production cost efficiency, contributing to further acceleration in PEMFC adoption.

Mr. Lars Ralf Rainer Lieberwirth, Chief Technology Officer of the Company added, "Nanofilm's advanced materials solutions are able to confer special material properties such as corrosion resistance, low resistivity, ion-leaching prevention, and high conductivity onto the substrate's surface, effectively overcoming existing scientific challenges and limitations presented by metal BPPs used in PEMFC as a result of the hard electrochemical process. Through our solutions, we will be able to utilize materials which are relatively more cost-efficient and abundant for use in the BPP of PEMFC stack systems, allowing for simpler system designs to be adopted and extending the product's useful life and performance in terms of power density and heat control. We are optimistic that the overall cost effectiveness will bring about a tipping point in the mass adoption of PEMFC technology and we are excited to be a part of this movement."

Nanofilm will make further announcements, in compliance with the requirements of the Listing Rules, as and when there are material developments in respect of the matters contemplated by the proposed joint venture.

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