-Former Ballard Technical Directors Launch PEM Engineers Inc. To Provide Fuel Cell Consulting Services
-Titania nanotubes make supersensitive hydrogen sensors
-World Demand for Platinum To Increase by 8% to 12% Due To Fuel Cell Commercialization, According to ABI Research
-SAE Detroit Section to Introduce Honda FCX at October 14 Meeting
-California to Establish "Hydrogen Freeway"
-Medis Technologies Ltd Files(8-K) Disclosing Regulation FD Disclosure
-Millennium Cell and Icelandic New Energy Announce Hydrogen Fuel Project
-AEC Acquires Licence To Produce Low Cost Hydrogen
-Plug Power Expects To Receive $12 Million In Funding From Recently Awarded Programs
-Danish breakthrough for the next generation of PEM fuel cells
-Suffolk University begins hydrogen generation / fuel cell demonstration
-Fuel Cell Market Survey: Small Stationary Applications
-ADVISORY/Governor Pawlenty To Help Local Company Make the ``Switch''to Fuel Cell Power
-FuelCell Energy's Megawatt Power Plant Certified Under American National Standards Institute Z21.83 Products Safety Standard
-Energy Conversion Devices Implements Major Initiatives to Reduce Cost and Increase Revenue
-Japan Idemitsu Hastens Fuel Cell Devt 
-Fuel Cells to Power Johnson & Johnson's New Brunswick, N.J., Headquarters
-Fuel cell powers UAF energy research
-Palcan Fuel Cells Appoints New Director

David Watkins and Clarence Chow, former long-term directors of Ballard's Advanced Systems and Transportation Programs, have joined forces to form the consulting company, PEM Engineers Inc.. Their combined experience totals more than 31 years in PEM fuel cell stacks and systems for transportation and stationary applications. David, who joined Ballard in 1983 and Clarence in 1990, were two of the key technical leaders
who helped propel Ballard to the top of the fuel cell industry.
 

PEM Engineers Inc. has been formed to provide consulting services, including conducting studies for government and industry; proposal review for
government and industry; due diligence for investors and developers; assisting start-ups in planning and initiating development programs; and prototype trouble-shooting for developers.

Titania nanotubes are 1500 times better than the next best material for sensing hydrogen and may be one of the first examples of materials properties changing dramatically when crossing the border between real world sizes and nanoscopic dimensions, according to a Penn State materials scientist. 

"Historically, we have viewed sensor technology and enhancements from the point of view of surface area," says Dr. Craig A. Grimes, associate professor of electrical engineering and materials science and engineering. "The principle in play in titania nanotubes is not surface area, but connectivity of the tiny tubes and we see an incredible change in electric resistance." 

Hydrogen entering an array of titania nanotubes flows around all the surfaces, but it also splits into individually charged atoms and permeates the surface of the nanotubes. These hydrogen ions provide electrons for conductivity. The change in conductance signals that hydrogen, above the background level, is present. 

"Many researchers have tried to use carbon nanotubes as gas sensors, but they do not work very well," says Grimes. "Titania has really great sensitivity and a nice response." 

The Penn State researcher notes that the material can be made by the mile and is very cheap as well as very sensitive. The material is also not used up when sensing hydrogen, but once the gas clears from the tubes, can be used again. 

Sensors for hydrogen are used in industrial quality control in food plants and as weapons against terrorism. In a bakery, for example, sensors sniff hydrogen and measure temperature to determine when goods are done. Hydrogen sensors are also used in combustion systems of automobiles to monitor pollution and may be used as diagnostic tools to monitor certain types of bacterial infections in infants. 

Grimes, working with Oomman K. Varghese, Dawai Gong, Maggie Paulose and Keat G. Ong, postdoctoral fellows, and Dr. Elizabeth C. Dickey, associate professor of materials science and engineering, looked at nanotubes of 22 and 76 nanometer diameters. They reported their findings in the Aug. 1 issue of Sensors and Actuators B: Chemical and in a recent issue of Advanced Materials. 

The 22 nanometer and 76 nanometer tubes differ in surface area by a factor of two, but the response to hydrogen of the smaller tubes is 200 times more sensitive than the 76 nanometer tubes. 

"The sensitivity comes from the nanoarchitecture, not the surface area," says Grimes. 

The researchers suggest that "the hydrogen molecules get dissociated at the titania surface, diffusing into the titania lattice, and act as electron donors." The researchers believe that this mechanism makes the nanotubes sensitive to hydrogen. 

One problem often found in sensors is that they become poisoned, either by the gas they test, or by other gases in the atmosphere, and no longer operate. The researchers tested the titania nanotubes with carbon dioxide, carbon monoxide, ammonia and oxygen finding little interference. 

"Our results show that titania nanotube sensors can monitor hydrogen levels from 1 part per million to 4 percent," says Grimes. "Titania nanotubes can be used successfully as hydrogen sensors."

While mass market commercial fuel cell shipments remain elusive, the year 2004 may prove to be the moment of truth. Both Toshiba and NEC reiterated their goals to ship laptops powered by micro fuel cells in 2004, and Japanese wireless giant NTT DoCoMo also surprised the market with its announcement to ship 3G handsets powered by micro fuel cells. The market for micro fuel cells is expected to reach about 200 million units in 2011, according to research firm ABI.

Not limited to micro fuel cells, other public statements include announcements by the California Fuel Cell Partnership for an infrastructure deployment in North America last year, and Royal Dutch Shell Group's recent opening of a fuel cell station in Iceland. Recent strong interest on the part of the U.S. military has also been driving demand. This growing list of market indicators is helping to overcome skepticism about the commercialization of fuel cells.

As such deployments approach reality, fuel cell manufacturers and users alike have started to examine the supply chain in more detail. One material that stands to see increased demand as a result of fuel cell commercialization is platinum. Platinum increases electrical conductivity in PEM (proton exchange membrane) fuel cells. It is critical to fuel cell commercialization and can alone command 10% to 20% of a fuel cell system's cost. Accepting the U.S. Department of Energy's target for platinum use in fuel cell vehicles - 0.2 grams per kilowatt - total platinum use by fuel cell systems could bring an 8% to 12% increase to the world demand for platinum by 2013, according to ABI projections in a recently released study, "The Fuel Cell Supply Chain."

With South Africa and Russia dominating world production of platinum, industrialized nations who may seek to replace part of their fossil fuel infrastructure with alternative energy sources may have to address issues of dependence on platinum over the long term.

Fuel cell market segmentation, competitive analysis, assessment of regulatory issues, and technology forecasts are available through a series of fuel cell research reports published by ABI.

The leaders of Honda's efforts to develop and launch the FCX, Honda's first fuel cell vehicle, will be on hand at the SAE Detroit Section dinner meeting August 27 to discuss the development and strategy for the FCX and fuel cell technology in general. Yozo Kami, Executive Chief Engineer for Honda R&D Co., Ltd. and engineering team leader, will discuss the car's concept and key aspects of its development. Ben Knight, Vice President of Automotive Engineering with Honda R&D Americas Inc., will explain the strategy for introducing fuel cell vehicles in America.

The meeting will be held at the San Marino Club, 1685 E. Big Beaver, Troy, MI. The evening's social hour, sponsored by WACKER CERAMICS, Wacker Chemical Corporation, will being at 5:30 p.m., followed by dinner at 6:30 and the presentation at 7:30. Reservations are required for this event. Tickets can be purchased for $37 each for members, $42 for non-members and $15 for student members, by calling the SAE Detroit Section Office at 248-324-4445 or online at www.sae-detroit.org.

Major corporations and government agencies meet to promote healthy air with clean hydrogen energy technologies

The California Hydrogen Business Council held a day-long seminar on Friday July 25th, 2003 at the headquarters of the South Coast Air Quality Management District in Diamond Bar, California. The five-year-old organization hosted nearly 70 attendees. Over 50 different organizations were represented including Air Products, BOC Gases, Boeing, Chevron-Texaco, GE Global Research, Praxair, leading companies in the emerging fuel cell and hydrogen economy industries, as well as government agencies at the local, state and national levels. Nine presentations were delivered by eight speakers representing government agencies and stakeholders from the industrial and financial communities.

Leonard Paulitz, SCAQMD Governing Board Member, opened the meeting by stating that despite a three-decade decline in hazardous pollution levels in the South Coast Basin, the past year has been marred by an increase in ground-level ozone concentrations. In a subsequent presentation the recently confirmed Governor’s Appointee to the SCAQMD Board, Cynthia Verdugo-Peralta, illustrated graphically that the SCAQMD is finding it more difficult to further reduce pollution in the South Coast Basin because the major sources of pollution today are increasingly sources that fall outside the regulatory authority of the SCAQMD. Summarizing her talk Ms. Verdugo-Peralta called for continued and increased cooperation and coordination between the SCAQMD and both State and Federal environmental regulators.

Dr. Woody Clark, Senior Policy Advisor in the California Governor’s Office of Planning and Research, surprised the assembled group by announcing an upcoming state-wide initiative to establish a “Hydrogen Freeway”. The Hydrogen Freeway concept will expand the Hydrogen Corridor in Southern California so that current and future hydrogen-powered vehicles will be able to travel between Southern and Northern California and find conveniently-located, publicly-accessible refuelling stations along the way.

The meeting concluded with a speech by S. David Freeman, Chairman of the California Consumer Power and Conservation Financing Authority and Senior Energy Advisor to Governor Gray Davis. In a comment that recalled earlier statements from SCAQMD Board Members, Mr. Freeman said that there are really no more tools left to deal with local air pollution, despite the fact that the SCAQMD has done perhaps more to solve air pollution than any other agency. Mr. Freeman finally stated that we need to better educate the public and ourselves and recognize that hydrogen and fuel cells are not one and the same thing, and that while many developments of fuel cell technology will be a long time in coming, hydrogen as an energy carrier is here and the internal combustion engine technology needed to take advantage of it is available today.

The California Hydrogen Business Council was founded in 1998 to provide a forum for upper management and executives from hydrogen-related businesses and policy-making government representatives to come together in an informal and informative setting. Meetings of the business council are held approximately quarterly and are cantered in the Southern California Area. The membership of the business council reflects a cross section of industry and government, including small businesses, major corporations, regulatory agencies, national laboratories and private individuals.

100 corporate and government executives are expected at the next meeting of the CHBC on October 24th, 2003 to be held at the Toyota Headquarters in Torrance, California. Toyota will show their new hydrogen fuel cell SUV which is so clean that it emits only water vapour.

A major chemical company, performing laboratory tests using small quantities of electrically conductive polymers developed by Medis Technologies Ltd.'s ("Medis") polymer division, has informed Medis that such polymers were capable of increasing the capacity of the electrodes of the supercapacitors used by such chemical company by up to five hundred percent. Medis has commenced negotiations with such chemical company for the use or license of Medis' polymers by the chemical company, of which Medis can give no assurance of success; nor can Medis give any assurance that the results of such tests can be duplicated in commercial quantities.

Millennium Cell Inc. (NASDAQ: MCEL), a leading technology company that has created a patented process to safely store, generate and deliver pure hydrogen, and Icelandic New Energy Ltd. today announced a project which will evaluate the potential to use sodium borohydride to export energy from Iceland. Sodium borohydride is an integral part of Millennium Cell's Hydrogen on Demand(TM) technology. Funding for this project will come from the Icelandic Research Council.

"Millennium Cell is pleased to partner with Icelandic New Energy on a project that could have far-reaching consequences," said Dr. Stephen S. Tang, Millennium Cell President and CEO. "Iceland has vast resources of natural geothermal and hydro power to produce hydrogen, which is widely recognized as the future's most promising energy carrier. Our technology, which safely stores, transport and delivers hydrogen, is well-suited for Iceland's vision to export renewable energy. The purpose of this project is to characterize the feasibility and economics of that vision."

"The mission of Icelandic New Energy is to investigate the potential for eventually replacing the use of fossil fuels in Iceland with hydrogen and create the world's first hydrogen economy," said Jon Bjorn Skulason, General Manager, Icelandic New Energy. "We are very enthusiastic about Millennium Cell's knowledge and expertise in this arena and believe together we can creatively find solutions for promoting the use of Icelandic energy."

The Millennium Cell Hydrogen on Demand(TM) system safely generates high-purity hydrogen from environmentally friendly raw materials. The produced hydrogen can be used to power a fuel cell or a hydrogen-burning engine. The "hydrogen" is stored at ambient conditions in a non-flammable liquid "fuel" solution of sodium borohydride. The process supplies pure hydrogen for energy applications without the need (and associated energy penalties) for compression or liquefaction. Hydrogen produced by this system can be used for numerous applications, addressing a wide range of power requirements from mobile phones to transportation.

Mr. Blaine Froats, Chairman of Alternate Energy Corporation (OTCBB:ARGY) today announced that the Company has entered into an agreement to license a new and revolutionary method of producing hydrogen. He stated "This method of producing hydrogen appears to have the lowest cost of existing systems today and does not create any pollution whatsoever."

Mr. Froats went on to say "The fuel cell industry requires inexpensive hydrogen and reliable fuel cells if the emerging hydrogen economy is to begin making penetration into this vast market. With this system penetration can begin as it provides the low cost base to do so."

Mr. Froats added "The license is for a period of twenty years with an option to renew for another twenty years. There are no royalties involved. The License provides to the exclusive use of the process for the production of hydrogen and fuel cells for domestic home and commercial use. A joint venture with a fuel cell manufacturer is under discussion at this time. Further announcements are contemplated once a joint venture is in place."

Plug Power Inc. (Nasdaq: PLUG) expects to receive approximately $12 million in net funding upon finalization of contracts with the U.S. Department of Energy (DOE) and the New York State Energy Research and Development Authority (NYSERDA) under several recently awarded programs.

The DOE awarded two Plug Power proposals addressing back-up/premium power and high temperature fuel cell membrane research and development in support of President Bush's FreedomCAR and Hydrogen Fuel Initiatives.  Plug Power also will develop and field test back-up systems for near-term applications in the telecommunication industry.  Additionally, the DOE selected a research and development program for stack durability under which Plug Power will provide services to 3M Company.

In addition, NYSERDA awarded two separate proposals submitted by Agway Energy Products and National Fuel Gas Distribution Corporation for Plug Power combined heat and power technology development and demonstration projects.

Agway Energy Products will install and operate a total of five Plug Power fuel cell systems -- two GenSysTM5P propane powered fuel cell systems at the Agway Energy Products Training Center in Syracuse and the New Baltimore Service Area on the New York State Thruway, and three GenSysTM5CS natural gas fuel cell systems at the Dormitory Authority of the State of New York headquarters in Albany.

"Agway Energy Products is focused on providing a wide range of energy services to our customers, and we are excited about the future opportunities associated with fuel cells and how they can enhance our current energy solutions portfolio," said Michael Meath, Vice President of Agway Energy Products.   "Agway Energy Products is excited to be working with Plug Power on this project and sees it as a key step towards the commercialization of fuel cells for small commercial and residential users."

National Fuel Gas Distribution Corporation will install and operate one GenSysTM5CS natural gas fuel cell system at a residence in Buffalo in a follow-on to a program that operated a Plug Power fuel cell in 2002 and 2003.

"I am extremely pleased with the amount of support that Plug Power is receiving at the federal and state level for the ongoing development and demonstration of our fuel cell products," said Mark Sperry, Plug Power's Chief Marketing Officer.  "These awards from our DOE and NYSERDA partners will help to offset some of our research and development expenses as we transition from
a development stage to commercial stage enterprise."
 

Danish Power Systems has invented a promising new technology for the next generation of PEM fuel cells. The research company has developed a PEM fuel cell stack system for automotive applications and stationary power, which increases operating temperature by a factor two. Based on a new material for the membrane, high temperature and a simple design increase overall efficiency and reduce system costs. 

The PEM fuel cell stack meets the auto companies’ requirements for high operating temperature, which is easier to cool than low operating ones. The PEM fuel cell stack from Danish Power Systems runs at up to 200°C compared to traditional PEM fuel cell stacks, which run at below 100°C. It is a major improvement, which also makes the new stack system very suitable for household stationary power, as the heat surplus can be used for domestic heating. 

The membrane of each fuel cell is made of PBI instead of Nafion. PBI is a thermally high resistant material, which posses unique properties and is less expensive than Nafion. Due to PBI the chemical process and design is simplified. The result is increased efficiency and reduced costs, which remain key marketing features. 

Sophisticated, yet simple, this highly advanced technology is a distinguished landmark in Danish Power Systems’ history of energy technology research and development. At present Danish Power Systems aims for a commercial breakthrough. Hence, the next step is the establisment of a test production site in Denmark. Danish Power Systems plans to invite national and international companies with different interests to take part in the test production, which will be scheduled within the next two to three years. 

’’Our new technology holds great potentials. We need to explore future production perspectives further in close co-operation with companies from relevant industries”, says Niels J. Bjerrum, CEO, Danish Power Systems. 

If test production proceeds according to plan, Danish Power Systems expects to establish a production site for PEM component parts or integrated PEM fuel cell systems for export shortly thereafter. 

Linde Gas and Proton Energy Systems provide system engineering support and on-site hydrogen generation. 

Boston, July 29, 2003 -- What do you get when you combine a hydrogen generator, storage tanks, a fuel cell stack, an electric model truck, scientific expertise and a large dose of student enthusiasm? A program, launched by Suffolk University, to discover ways to improve how fuel cells perform and what they cost to operate. 

Students and faculty in Suffolk's physics department are completing the first setup and test phase of a project to gauge how well all the pieces of their customized fuel cell system work together. The knowledge gained will provide a springboard to the school's large-scale plan -- a wind and photovoltaics-powered hydrogen generator to fuel hydrogen-based power systems -- at the university's Friedman Field Stattion in Edmunds, Maine. 

With the support of Linde Gas (www.linde-gas.com), the world's largest cylinder gas supplier and Proton Energy Systems (www.protonenergy.com), a leading manufacturer of on-site hydrogen generators, Suffolk's Frank Sagan Energy Research Laboratory now has an integrated system for on-site production and safe storage of hydrogen for a 60-watt fuel cell. 

Linde Gas Senior Project Specialist Ernest Glynn engineered a complete system for Suffolk based on a compact 600 cc/minute electrolysis laboratory hydrogen generator manufactured by Proton Energy Systems. Ultra-pure hydrogen gas from the generator feeds into a low pressure (150 psi) metal hydride tank that safely stores large volumes of hydrogen. Hydrogen stored in the metal hydride tanks (from 70-liter to 1,500-liter) provides input to the fuel cell. To complete Phase One, faculty and students are documenting average run times for the generator to fill the metal hydride tanks. 

"Because we have frequent, small- volume needs, designing a system for on-site hydrogen generation made sense," said Suffolk Physics Department Chairman Walter Johnson, Ph.D. "We also wanted to become acquainted with the mechanics, costs, and issues involved in making hydrogen via electrolysis. The Proton generator has a small footprint that fits into our compact laboratory, and produces hydrogen at a rate that is sufficient." 

Suffolk's demonstration project has garnered national recognition. Physics, Environmental Engineering, and Electrical Engineering students Demetra Barlas, Juliana Martinez, Sebastian Ganly and German Useros were selected from many applicants to present a poster paper, Hydrogen Fuel Cell: Energy Alternative for Transportation, at a conference sponsored by the Air and Waste Management Association in San Diego, CA. 

Phase Two of Suffolk's project will involve cycling the stored hydrogen through the 60-watt fuel cell stack. Students will gauge how fast hydrogen is used, and the power-generating capabilities of the fuel cell. In the final phase, the fuel cell will be connected to and power the electric motor in a small radio controlled truck. 

"This project will help us determine the lifetime of fuel cell components, measure the advantages of using a metal hydride storage system for hydrogen, and how a hydrogen fuel cell can reduce emissions for the vehicles we test," said Tom Naderi, Ph.D., assistant professor and director of environmental engineering at Suffolk University. 

"Hydrogen is being used for ever-expanding applications, from generating cleaner-burning gasolines, to powering new-generation automobiles, to generating power," said Cliff Caldwell, RNA Manager of Specialty Gases, Linde Gas. "As a leading hydrogen provider, Linde supplies thousands of customers globally who perform research on new uses of hydrogen. Our work with Proton Energy Systems and Suffolk University is another example of Linde's ongoing commitment to exploring environmentally sound uses for this exciting molecule." 

"The exciting work at Suffolk's Frank Sagan Energy Research Laboratory is a great example of how the next generation of scientists are helping perfect hydrogen-based technologies," said Proton Energy Systems CEO Walter "Chip" Schroeder. "We're honored to be working with Linde and with Suffolk University to provide faculty and students with the essential equipment for their progress." 

Fuel Cell Market Survey: Small Stationary Applications(Click on Link to Dowload Fuel Cell Today PDF)

London (UK) - Around 1,900 small stationary fuel cell systems are in operation worldwide, according to a new market survey by online resource, Fuel Cell Today (www.fuelcelltoday.com). Fuel cells in this field continue to make progress as power sources for homes and back-up applications. The report, an updated and extended version of the article published on Fuel Cell Today in February 2002, examines the activity in this area. 
“This survey is similarly structured to our other surveys about various applications, technologies and geographical areas”, explains Stefan Geiger, co-author of the new report. "We have evaluated the activities of all companies and organisations involved and summarised the major projects and achievement over the last 16 months.” 

The research has resulted in several interesting finding. “There has been a noticeable shift from residential to back-up power as the first markets”, notes Mark Cropper, the second author of the report. “Another feature of recent development has been the rising market share of solid oxide fuel cells (SOFC).” 

WHAT: Minnesota Governor Pawlenty will help Entegris turn the switch on Minnesota's first multi-kilowatt Polymer Electrolyte
Membrane (PEM) fuel cell. The 5KW stationary fuel cell will supplement the electricity used at Entegris's Chaska manufacturing facility to supply power and hot water. This ceremony showcases Governor Pawlenty's support for alternative power in Minnesota and brings together representatives from the State, city of Chaska, and local businesses.

WHO: Minnesota Governor Tim Pawlenty 
Governor Pawlenty will speak briefly at the commissioning and make the ceremonial turning of the fuel cell switch. Pawlenty, a staunch supporter of renewable and alternative energy, has a strong interest in energy conservation and fuel cell technology, and encourages Minnesota businesses and residents to become involved in new energy technologies.

John Goodman, president, Entegris fuel cell market

Goodman will discuss the significance of Minnesota's first multi-kilowatt PEM fuel cell on the company and how Entegris supports Minnesota's move toward alternate fuels and reliable fuel cell energy. As both a user and developer of fuel cell technology, Entegris and Goodman play a key role in the support of alternative energy. Goodman was recently elected to the United States Fuel Cell Council and named industrial advisory board chairman for the University of South Carolina Fuel Cell Center, funded in part by the National Science
Foundation. He possesses a broad understanding of the fuel cell industry and a passion for furthering its technological development.

Representatives from the city of Chaska, Plug Power and project sponsor CenterPoint Energy will also attend the ceremony.

WHEN: Monday, Aug. 4, 2003 2:30 - 4:00 p.m.

WHERE: Entegris, Inc.
           101 Peavey Road
           Building 3
           Chaska, MN 55318

FuelCell Energy, Inc. (NasdaqNM: FCEL) announced today that its one megawatt Direct FuelCell(R) (DFC(R)) power plant, the DFC1500, has been certified to meet the American National Standards Institute (ANSI) products safety standards for stationary fuel cell systems, ANSI Z21.83, making it the largest power plant to be certified under this standard. This certification will significantly reduce the time and cost for installation of the Company's DFC products and enhances the product's eligibility for incentive funding throughout the U.S.

ANSI Z21.83 applies to packaged, self-contained or factory matched packages of integrated systems of fuel cell power plants up to 1 megawatt in capacity using natural gas or liquefied propane gas (LPG) as a fuel source and specifically identifies criteria for construction and safety of applicable fuel cell power plants. FuelCell Energy's DFC1500 becomes the first matched modular fuel cell power plant under the ANSI standard.

The Company's 250-kilowatt DFC300A received ANSI Z21.83 certification in April 2003.

"Certifying our sub-megawatt and megawatt-class DFC power plants is an integral part of product standardization strategy," said Herbert T. Nock, Senior Vice President of Marketing & Sales at FuelCell Energy, Inc. "We are making significant strides in reducing our product costs from a technological, engineering and manufacturing standpoint, and this national product safety certification further enhances the competitiveness of our DFC products by streamlining installation processes at commercial and industrial sites."

FuelCell Energy's sub-megawatt DFC power plants were certified for grid-interconnection under U.L. 1741 and California's 'Rule 21' standard in February 2003 and state certified to meet California Air Resources Board stringent new "ultra clean" emissions standards for 2007. Both certifications enhance the eligibility of the Company's DFC power plants for state incentive programs, such as the California Public Utility Commission's Self Generation Program and the CEC's Emerging Renewables Buydown Program. Both offer subsidies of up to $4,500/kW or 50 percent (whichever is less) for fuel cell projects that utilize renewable fuels. The CEC's program also offers subsidies of $2,500/kW or 40 percent of total project cost (whichever is less) for combined heat and power fuel cell projects that operate on natural gas.

Energy Conversion Devices, Inc. (Nasdaq: ENER) today announced a series of initiatives aimed at aggressively continuing to grow revenue through increased photovoltaic production and sales, continued expansion of NiMH battery manufacturing capability and expected growth in solid hydrogen storage systems while significantly reducing operating costs.  The Company continues to have discussions and negotiations with potential strategic partners to increase the funding available to develop emerging technologies such as fuel cells and
information products which are gaining worldwide recognition.

With the uncertainties surrounding both the national and worldwide economies, and the need to maximize resources for accelerated
commercialization of its products and technologies, ECD business units are analyzing every means of reducing costs.  Workforce reallocation and reductions of up to 20% are being implemented to meet the company's aggressive cost reduction targets, and business units will also reduce discretionary spending and other costs associated with the company's operations.  Cost reduction initiatives will also include salary freezes, attrition, and reduced purchased services and contract employees.  The cost containment initiatives will start immediately and should be fully implemented by Jan. 1, 2004.  In aggregate, they are expected to save the company from $19,000,000 to
$25,000,000 annually.

"Our decision to reduce our workforce is a very difficult one," said Stanford R. Ovshinsky, president and CEO of ECD Ovonics.  "Building our company has always been about solving problems.  We have made important advances in all areas of our work and are aggressively focusing on the commercialization of our technologies.  Despite our very important work and increasing interest in our successful enabling technologies, like many others in the current economic environment, it is imperative that we reduce costs. At the same time, we intend to grow revenue and, of course, to maintain our leadership position in innovative technologies, manufacturing and products. Energy and information are the basic pillars of our global economy.  We have a very strong leadership position that enhances our shareholder value."  He further noted that ECD's Rare Earth Ovonic joint venture has begun production in a rapidly growing market for NiMH batteries in China and that ECD's joint venture in Russia, Sovlux Battery, has recently reported very significant progress in its commercialization activities.

"ECD Ovonics, along with its joint ventures and subsidiaries, will continue to concentrate on our strong brand portfolio of Ovonic products and technologies with the greatest potential for increasing shareholder value," Robert C. Stempel, Chairman, said.  "The new leadership in our photovoltaic sales and the newly formed Ovonic Integrated Solutions group are examples of ECD Ovonics' commitment to increase commercialization of its products and to the continued growth and long-term success of the company."

Commenting on the cost-containment initiatives, James R. Metzger, ECD Ovonics vice chairman and chief operating officer, said, "We continue to explore all possible ways to realign our organization to reflect our current business needs and accelerate commercialization.  We are balancing our cost structure with the opportunity to grow revenue in focused areas."

Idemitsu plans to begin mass production in 2006 of the fuel cell for use in home cogeneration systems expected to be commercialized in Japan within this decade, company President Akihiko Tembo recently told Dow Jones Newswire in an interview.

 In late July, the company started testing its newly developed fuel cell at a 5-kilowatt test plant constructed by Ishikawajima-Harima Heavy Industries Co. ( J.ISH or 7013), Tempo said.

 The cell utilized technology Idemitsu developed to extract sufur from kerosene and then produce hydrogen from the kerosene.

 The 5-kilowatt fuel cell could meet electricity demand equivalent to the volume typically consumed at a small-sized restaurant or drugstore. The fuel cell requires about 1.7 liters of kerosene when it runs at full capacity for one hour.

 A family of four would likely use the smaller 1- to 3-kilowatt fuel cells, Tembo said.

 The major drawback remains cost of production as one fuel cell costs more than Y10 million to produce.

 "Cutting the output costs to Y500,000 is the key to introducing (the fuel cell) to the market," said Tembo.

 A fuel cell cogenerator will provide electricity and heating water to the home, helping Japanese homeowners trim power and gas costs while cutting carbon- dioxide emissions.

 The Ministry of Economy, Trade and Industry projected in a recent report that domestic demand for gasoil will fall to 33.46 million kiloliters in 2007, a 15% drop from this year.

 Demand for combined B- and C-type heavy fuel oil is set to decrease as much as 17% to 20.63 million kiloliters over the same period. For environmental concerns, Japanese power utilities have been encouraged to use more natural gas and nuclear fuel, becoming less reliant on oil-fired thermal power generation.

 Gasoline and kerosene demand is, however, forecast to increase during the same period. However, growth will be a marginal 1%-2%. METI said gasoline demand is expected to total 60.32 million kiloliters in 2007, up 1.4% from its demand estimate for this year.

 The economy ministry forecast the country's kerosene demand to total 29.6 million kiloliters in 2007, a 1.2% rise from this year.

 Other Japanese refiners are also expanding their businesses in areas other than oil refining and wholesale.

 Nippon Oil Corp. (J.NPO or 2001), Cosmo Oil Co. (J.COO or 5007) and Japan Energy Corp. have developed similar technologies to produce hydrogen from refined oil products such as naphtha, liquefied petroleum gas and city gas in an effort to capitalize on expected demand for hydrogen fuel cells.

 Major Reform To Complete For Oil Refining Business

 Despite the weaker demand outlook for gasoil and heavy fuel oil, "refining and oil wholesale will be our main businesses," Tembo said, adding the company plans to increase its share in the domestic gasoline market in the medium term.

 Idemitsu reported a group operating profit for the fiscal year ended March this year of Y73.3 billion, 42% of which came from its oil refining and sales businesses.

 During the fiscal year, Idemitsu sold 35 million kiloliters of refined products. Gasoline sales accounted for about 25% of the total.

 Idemitsu plans in the spring next year to close its affiliated 110,000 barrels a day Okinawa refinery to reduce production costs and prevent a future supply glut of gasoil and fuel oil.

 In April this year, Idemitsu closed its 80,000-b/d Hyogo refinery.

 "I don't think we should reduce our refining capacity anymore," he said, implying the company's major restructuring of its oil refining business is nearing an end.

 The capacity cuts would allow Idemitsu to maintain refinery operations at a relatively high rate of above 80% capacity, with the company operating its refineries more effectively.

 While pushing forward with the project to develop the next-generation fuel cell, Idemitsu will take measures to reduce production costs for its existing business to improve refining margins and to expand its gasoline share at home.

Johnson & Johnson will begin using an alternative fuel source at its world headquarters in New Brunswick this fall as a step toward lowering its corporate carbon-dioxide emissions.

The fuel-cell technology is expected to account for 10 percent of the energy needs of the 15-acre headquarters campus on Albany Street, company spokesman Mark Monseau said yesterday. The supplemental source will supply electricity and hot water to J&J's 15-story tower and its seven-atrium building, he said.

Work began earlier this week on the headquarters' lawn along Albany Street. Backhoes were removing dirt yesterday so a basement can be built to hold an inground generator for the fuel cells, Monseau said.

When the power plant is completed this fall, only an exhaust pipe will be visible from the street, he said.

It will be J&J's first use of fuel-cell technology, said Monseau. The technology, which involves combining hydrogen and oxygen to create electricity, heat and water, will be more efficient and help the company meet its goal of reducing carbon-dioxide emissions, he said.

Fuel-cell technology is about 80 percent efficient, meaning that for 100 percent of energy created, 80 percent is captured, Monseau said. A traditional gas-turbine plant is only about 30 percent efficient, he said.

Monseau declined to say how much it would cost J&J to install the fuel-cell equipment or how much the company might save on energy costs.

"We typically don't disclose that investment," he said.

The possibility of using fuel cell batteries to provide electricity in households is gaining more attention as Japan braces for blackouts this summer due to suspended operations at nuclear power plants.

Fuel cell batteries generate electricity through the chemical reaction between hydrogen and oxygen. They are often referred to as "small power generating plants" and the "ultimate source" of clean energy.

They can cut power consumption by about 20% and carbon dioxide emissions by 25%, developers said.

The state is promoting their use because they are considered energy efficient and environmentally friendly. Firms are rushing to develop them as part of efforts to make Japan more self-sufficient in terms of energy resources, industry sources said.

Fuel-cell batteries generate only electricity, heat and water, and do not emit carbon dioxide, the source of global warming, or air-polluting nitrogen oxide.

Their use in a wide range of products from cars to hand-held computers is being promoted. But the possibility of using them to power households is especially attractive because of the massive potential market.

A report compiled by a task force at the Ministry of Economy, Trade and Industry said tests for using them in households and automobiles will be finished next year for introduction in 2005.

Fuel-cell batteries that generate electricity by taking hydrogen from city gas and combining it with oxygen in the atmosphere are also being developed.

The existing gas supply infrastructure can be used and they can be installed at each household and used when necessary for supplying hot water and air conditioning.

"It's ideal to take out hydrogen by using wind power and other natural energy, but for the time being, it's practical to depend on fossil fuels, like oil and natural gas," said Shunichi Koike, chief of the hydrogen project group at Tokyo Electric Power Co (TEPCO).

Since last year, TEPCO, which was forced to suspend operations at its nuclear power stations after cracks were found in nuclear reactors, has been carrying out tests by installing prototype fuel cell batteries at its employees' homes, Koike said.

The firm hopes to introduce the devices on the market in the second half of fiscal 2004.

"The fuel battery is the culmination of technologies for electric home appliances," said Tsuneo Shibata, head of the fuel cell battery business development section at Matsushita Electric Industrial Co.

Production costs will initially be very expensive and therefore mass production will not take effect right away, Shibata said.

Even if users can get public subsidies for buying the batteries, the price needs fall lower than 500,000 yen so users can recoup the expenditure through savings on utility bills, Shibata added.

Makoto Inoue, a researcher at the Center for the Strategy of Emergence at the Japan Research Institute, said, "A framework should first be introduced in which the battery can be controlled by small-scale networks formed by local communities or third parties." (Kyodo News)

Tucked against a wall of the Fairbanks Natural Gas building and producing a faint humming sound, an unassuming box full of tubes, wires and computer technology is creating a fervor among University of Alaska Fairbanks researchers and energy industry representatives.

 The box holds a fuel cell, a device designed to produce power using a minimal amount of natural gas.

 UAF purchased the fuel cell so researchers can use it as a gauge for how feasible fuel cells could be as a power source for rural Alaska communities. Researchers are trying to weigh the potential benefits of fuel cells against factors such as their high cost and relatively unproven status as consistent energy sources. 

Although they are a long way from being available on the commercial market, researchers at UAF's Arctic Technology Development Laboratory have taken a strong interest in fuel cells during recent years. 
 

Laboratory director Dennis Witmer said fuel cells are an appealing idea for rural Alaska because they are efficient, have the potential to operate for long periods of time without much maintenance and produce next to no emissions.

 The fuel cell, which was created by the Canadian company Fuel Cell Technologies and delivered to Fairbanks last week, is linked to a natural gas tank outside the building. The fuel cell converts energy created by chemical reactions in the natural gas into electricity. 

Fairbanks Natural Gas is using electricity created by the fuel cell to partially power the building.

 Representatives from the company, UAF and Fuel Cell Technologies held a start-up party of sorts on Friday afternoon after the fuel cell was activated earlier in the day. The representatives posed for pictures in front of the fuel cell, chatted with a few visitors and did their best to explain the technology to the less science-savvy types in the crowd.

 Witmer said that UAF researchers will probably monitor the fuel cell for several years.

 The researchers want to evaluate how much electricity it produces in relation to the amount of natural gas it uses, how well the mechanical components of the device, such as the computer-control system, function and how long the fuel cell will stay operational.

 "I would love it if this thing would run for 10 or 15 years. It certainly has that potential," said Witmer, explaining that the long-term functionality of fuel cells is one largely unknown factor. 

Witmer said UAF is considering establishing a Web site that would provide postings on the performance of the fuel cell. 

Making fuel cells accessible to the public is an important part of the technology becoming a viable power source for rural areas like Alaska, said Matt Hofford, a mechanical designer with Fuel Cell Technologies who spent much of Friday afternoon explaining the intricate mechanical functions of the fuel cell. 

"Everyone's skeptical," he said. "There have been a lot of people making claims that haven't worked. That's why it's important to actually have a fuel cell out here for the public." 

UAF researchers have monitored fuel cells in Fairbanks in the past. However, those fuel cells utilized a different technology and were called proton exchange membrane models. 

The recently arrived fuel cell is called a solid oxide model. The difference between the two, Witmer said, is that the proton exchange membrane model adds a step in the conversion process. The proton exchange membrane fuel cell first has to convert gas into hydrogen, which is then converted into electricity. 

He said the solid oxide model uses a direct chemical reaction process to produce electricity. 

Witmer added that UAF researchers hope the solid oxide fuel cells work better than the proton exchange models, which were not as efficient and did not last as long as originally hoped. 

While Witmer expressed excitement about fuel cells Friday, he stressed that the technology is still largely in its development stages and will likely present researchers with snags. Still, he said the idea of having an efficient power source that could function with little maintenance in rural Alaska makes continuing to develop fuel cell technology worthwhile. 

"Right now, I would say we're probably at least five or 10 years from these being used in a remote village," he said. 

Vancouver, BC, August 1, 2003--Palcan Fuel Cells has announced the appointment of Allan Waisman as a Director of the Company.

Mr. Waisman has many years of successful and prominent business experience in a wide range of business endeavours. He was recently involved as an investor, executive manager and Director of Navigator Mutual Fund Company subsequently acquired by the Dynamic Mutual Funds Group. 

“Being a businessman and someone who has developed companies from the early stages to operational successes, my appointment to Palcan’s Board allows me the latitude to contribute my expertise and assist in steering the Company towards achieving its operational goals. Palcan is an established company with tangible products on the cusp of graduating to a semi-automated assembly line for our products, within the next six months as we penetrate the Asian, European and other target markets,” stated Mr. Waisman.

Mr. Waisman was also founder and president of RC Baxter Ltd., one of Canada’s larger commercial property developers during his tenure. Al then went on to found Architectura, which became one of the largest architectural firms in Canada, and was recently acquired by Stantec, one of Canada’s largest engineering firms.

In addition to being a pioneer of the Navigator Mutual Fund Company, Mr. Waisman has been involved as an investor, director and/or founder of several large successful companies such as Emerging Information Systems Inc., International Care and Historical Experiences Inc., many of which have become significant leaders in their respective industries.

“We are very pleased that Allan Waisman has agreed to become a Director of Palcan. His varied business experience and his depth of involvement in the investment community position him as an ideal addition to the Palcan team. During our next phase of growth, the commercial phase, Mr. Waisman’s experience in the capital markets will assist us in elevating our awareness and extending Palcan’s reach to the institutional sector,” stated Dr. John Shen, Palcan’s President & CEO.

Mr. Waisman also has extended his knowledge of management and business acumen to advancing cultural development throughout Canada, while being an ongoing contributing member to affiliations of his discipline. He has served as a Director of the Urban Development Institute, stands as Chairman of the BC Chapter of the Architectural College of Fellows, is a Member City of Vancouver’s Development Permit Advisory Board, he is a Canadian Council Member of the Royal Winnipeg Ballet and is presently Chairman of the Vancouver Playhouse Theatre.