-Global Thermoelectric Terminates Combination Agreement With Quantum
-FuelCell Energy to Acquire Global Thermoelectric for US$80 Million in Stock
-FuelCell Energy Invests $2 Million in Versa Power Systems To Further Develop Complementary 
-Five Southern California cities will add hydrogen-fueled vehicles to their fleets next year 
-Starwood's First Energy Fuel Cell System Completes Installation at Sheraton Edison Hotel; 
-Entegris and Minnesota Governor Pawlenty Mark the State's First Use of a Stationary PEM Fuel Cell
-Fuel Cell Locomotive for Military and Commercial Railways
-Market analysis firm warns: Fuel cell market forecasts vastly over-inflated
-DOE Announces Italy to Join Intl Partnership for Hydrogen Economy
-Motorola, Engelhard, University of Michigan Win ATP Award to Develop Miniature Fuel-Cell Power Source
-Astris Energi, Alternate Energy Corp. Plan Fuel Cell, Hydrogen Production Joint Venture
-FUEL CELL DEVELOPER TURNS FUGITIVE EMISSIONS INTO HYDROGEN
-The Marubeni Corporation Releases or Production Three Megawatt Order With FuelCell Energy
-Renewableenergystocks.com - Features Newsletter, Stocks,Research andd Industry News for Renewable Energy Investment Ideas
-2003 TRAVERSE CITY Q&A:Mass-produced fuel cells await final design-Interview with Dennis Campbell of Ballard Power
-Tokyo gov't to run fuel-cell buses
-ECN's MCFC Patent Portfolio For Sale
-Eletropaulo invests US$570,000 in fuel cell research - Brazil
-Fuel cell power comes to town-
-V&E scores victory in patent case-Hydrogenics Corp.vs.Lynntech Inc.
-Dynetek supplies hydrogen storage for CNE Fuel Cell Demonstration Project
-Hydrogen-power innovator dies in triathlon
-Fuel cell company comes to C-U-Renew Power signs up a new technology found  at the University of Illinois

Quantum Fuel Systems Technologies Worldwide, Inc., (Nasdaq: QTWW) announced today that Global Thermoelectric Inc. (TSE: GLE.TO) has terminated the Combination Agreement with Quantum as a result of a proposed combination between Global Thermoelectric and FuelCell Energy, Inc. (Nasdaq: FCEL).  Pursuant to the terms of its Combination Agreement with Global Thermoelectric, Quantum had three days to respond to the competing proposal by FuelCell.  Upon reviewing the terms of the competing proposal and after full consideration of the possible alternative terms that may be offered by Quantum, the board of directors of Quantum concluded that it is not in the best interest of Quantum or its stockholders to propose any adjustments or improvements to the terms and conditions of the transaction contemplated by the Combination Agreement between Quantum and Global Thermoelectric.  As a result of the termination of the Combination Agreement, Quantum today received a USD$2 million break-up fee from Global Thermoelectric.

FuelCell Energy, Inc. ("FuelCell")(NasdaqNM: FCEL), the industry leader in the commercialization of carbonate fuel cell products for stationary power, and Global Thermoelectric Inc. ("Global") (TSX:GLE), a leading developer of solid oxide fuel cell ("SOFC") technology, today announced that they have entered into a definitive agreement for FuelCell to acquire Global in an all-stock transaction. Under the terms of the agreement, the transaction is valued at US$2.72, or approximately CDN$3.82, per Global common share for a total value of approximately US$80 million, or approximately CDN$112 million(1). The proposed combination has the unanimous support of both companies' boards of directors.
    Jerry D. Leitman, Chairman, President and CEO of FuelCell, said, "We believe that this combination represents an excellent strategic and technological fit. Global's advanced SOFC technology has a strong complementary fit with our core carbonate technology and product development expertise and will also strengthen our position throughout the 10-year, US$139 million Solid-State Energy Conversion Alliance ("SECA") contract recently awarded to FuelCell by the US Department of Energy."
    Leitman added, "The combined company will also benefit from a rationalization of R&D and administrative expenses and the consolidation of financial, technology and intellectual property resources. Additionally, the combined entity will have improved access to capital and expanded strategic relationships with distributors, suppliers and government agencies. Further, and most importantly, we will be well positioned to continue our emphasis on the commercialization of our Direct FuelCell(R) products."
    Peter Garrett, Global's President and CEO said, "The combination of FuelCell's and Global's leading technologies, resources, and the resulting market opportunities is fully complementary and will create a stronger new entity and a very attractive investment. Upon completion of the transaction, Global shareholders will have the opportunity to own stock in a top tier fuel cell company with cash reserves in excess of US$200 million (or CDN$280 million), enhanced equity currency, greater liquidity and better opportunities for realizing future shareholder value. Given our complementary technologies and FuelCell's role within SECA, I am confident that the combined company will have a bright future."

(1) Based on exchange rate of CDN$1.4048 to US$1 as of close of business on August 1, 2003

    Transaction Terms

    The exchange ratio for determining the number of shares of FuelCell common stock or exchangeable shares that a Global shareholder will receive for each Global share will be equal to US$2.72, or approximately CDN$3.82, divided by FuelCell's 20-day volume-weighted average share price ending on the third trading day preceding the Global shareholders meeting to be called to approve the transaction. However, if the 20-day volume-weighted average trading price of FuelCell stock is less than US$7.96, the exchange ratio will be 0.342, and if the 20-day volume-weighted average FuelCell trading price is greater than US$9.74, the exchange ratio will be 0.279.
    Global shareholders will be entitled to elect to receive either shares of FuelCell common stock or exchangeable shares to be listed on The Toronto Stock Exchange. The disposition of Global shares in exchange for exchangeable shares by Canadian residents holding Global shares as capital property will not result in a taxable Canadian transaction and will qualify as Canadian property for RRSP, RRIF, RESP and other savings and pension plans as long as the exchangeable shares remain listed on a Canadian stock exchange. The exchangeable shares will also have equivalent voting and dividend rights as FuelCell common stock.
    At closing, outstanding options to purchase Global shares will be assumed by FuelCell and will represent options to purchase FuelCell common stock based on the transaction exchange ratio and the existing terms of each individual option agreement.
    Following the close of the transaction, Global shareholders will own approximately 17% to 20% of the fully diluted shares of FuelCell. One person, possibly two, nominated by Global will be appointed to the board of FuelCell. The transaction is expected to close in the fourth quarter of 2003 and is subject to approval by the shareholders of each company, court approval, regulatory approvals and other customary closing conditions, including mutual covenants related to cash and working capital positions at closing. The transaction will be implemented pursuant to a plan of arrangement under the Business Corporations Act (Alberta). As a result of the proposed combination with FuelCell, Global has terminated the Combination Agreement dated as of April 8, 2003, and amended as of June 27, 2003, with Quantum Fuel System Technologies Worldwide, Inc., and has paid a US$2 million break-up fee in accordance with the terms thereof.

FuelCell Energy, Inc. (NasdaqNM: FCEL), the leader in commercializing fuel cell products for stationary power, announced today it has invested $2 million in Versa Power Systems of Des Plaines, Illinois and will be represented on Versa's board. With this equity investment, representing 15.8% of Versa's shares, FuelCell Energy will be in a position to provide greater input in the solid oxide fuel cell (SOFC) technology developed for the Department of Energy's Solid State Energy Conversion Alliance (SECA) program announced in April 2003.

The DOE selected FuelCell Energy (FCE) as a prime awardee for the 10-year, $139 million SECA program to develop and accelerate the commercialization of low-cost solid oxide fuel cell technology. Under FCE's SECA program, Versa will lead the FCE subcontractor team's development efforts.

The SECA program, part of the DOE's commitment to develop clean, efficient, reliable and affordable power generation for a variety of markets, is expected to develop SOFC modules in the 3-kilowatt to 10-kilowatt size range. These modules can be fitted together for applications in larger sizes. Target markets include remote sites, telecommunications, commercial and residential buildings, as well as back-up, mobile standby, and auxiliary power units.

Currently, FCE is delivering Direct FuelCell(R) (DFC(R)) power plants ranging in size from 250 kilowatts to 2 megawatts for applications including utilities, industrial facilities, data centers, wastewater treatment plants, office buildings, hospitals, universities and hotels.

Jerry D. Leitman, Chairman and CEO of Fuel Cell Energy, said, "While our focus remains firmly on delivering our DFC power plants to commercial and industrial customers for a variety of applications worldwide, our investment in Versa gives us a vested ownership interest in the development of solid oxide fuel cells that will come out of the SECA project. This will enhance our current expertise and enable us to seize future commercialization opportunities in smaller sized high-temperature fuel cell products."

The timing of FCE's equity position in Versa is designed to build and leverage intellectual property development for market entry in the later phases of the project, several years down the road, according to Leitman.

"We are very pleased that FuelCell Energy is making a stronger commitment to Versa and our development plans, reflecting their confidence in the future of solid oxide fuel cell technology. We look forward to working together to develop a viable and complementary fuel cell module that will expand opportunities in the distributed generation marketplace," says Robert Stokes, CEO of Versa Power Systems.

    Long-term benefits
 

FCE expects the knowledge and technology generated from the SECA program will in turn complement its DFC development efforts, including materials, high-temperature fuel cell systems, manufacturing capabilities and licensing opportunities.

The DOE selected FuelCell Energy as a lead participant in the SECA program because of its expertise in, and development of, high-temperature carbonate fuel cell technology and systems, its manufacturing experience and its progress and leadership in DFC commercialization. In addition to Versa Power Systems, other team members, chosen for their expertise, include Materials and Systems Research, Inc., the University of Utah, Gas Technology Institute, Electric Power Research Institute, Dana Corporation, and Pacific Northwest National Laboratory.

    Versa Power Systems Focused on Solid Oxide Technology
 

Established in September 2001, Versa Power Systems was formed to produce a range of products for the distributed generation market incorporating its patented planar, reduced-temperature solid oxide fuel cell system. Versa is a joint venture of the Gas Technology Institute, Electric Power Research Institute, Materials and Systems Research Inc., the University of Utah and FCE.

DIAMOND BAR, Calif. (AP) - Five Southern California cities - Riverside, Ontario, Santa Ana, Burbank aand Santa Monica - will add hydrogen-fueled vehicles to their fleets next year as a test.

The South Coast Air Quality Management District is soliciting bids for development of 30 vehicles - six for each city - and construction of six hydrogen refueling stations by the end of 2004.

"The goal is to collect data on fuel economy, overall emissions and reliability, as well as gather similar information on the hydrogen infrastructure," said Naveen Berry, district program supervisor for technology advancement.

President Bush proposed spending $1.7 billion on research to develop hydrogen cars and fuel storage and distribution systems. Proponents see hydrogen as a key pollution-fighting tool for Southern California in its struggle to meet federal mandates to reduce ozone by 2010.

"I think hydrogen offers a very promising technology that's going to have big-time federal support, and Riverside wants to be part of that," Riverside Mayor Ron Loveridge said.

The district's hydrogen project will rely on internal-combustion engines rather than fuel cells. Fuel cells use hydrogen and oxygen to produce electricity to power vehicles that produce very little air pollution.

Burning hydrogen in an internal-combustion engine produces oxides of nitrogen but not the health-threatening particulate matter and volatile organic compounds that come from burning petroleum.

Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announced today the completed installation of its first clean, reliable fuel cell energy system at its Sheraton Edison Hotel Raritan Center, in Edison, New Jersey.

Recently named as ENERGY STAR(R) Partner of the Year Award for the last two years, Starwood Hotels & Resorts signed an agreement a year ago with Allentown, PA.-based PPL Corporation (NYSE: PPL) to install, own and operate individual 250-kilowatt fuel cell systems at both the Sheraton Edison and the Sheraton Parsippany (NJ) hotels. The two Sheraton projects are part of a master agreement Starwood and PPL signed that would offer PPL the possibility of installing fuel cells at Starwood locations throughout the United States. The Sheraton Parsippany Hotel's fuel cell project is scheduled for completion this September. Groundbreaking for both fuel cell units began this spring.

The fuel cell system is being dedicated today at a ceremony at the Sheraton Edison Hotel. PPL's distributed generation and energy services subsidiary developed the Sheraton Edison fuel cell project, which provides about 25% of the hotel's electricity and hot water. H.T. Lyons, another PPL subsidiary based in Allentown, PA, was responsible for its installation. PPL will own, operate and maintain the fuel cell system.

PPL has a distribution agreement with Danbury, Ct.-based FuelCell Energy, Inc., (FCE), and PPL has agreed to install, own, operate and maintain fuel cell units at both of the above-referenced properties. Starwood will become the first hotel company to install an FCE power plant.

FuelCell Energy of Danbury, Connecticut (Nasdaq NM: FCEL) manufactured the hotel's fuel cell power plant, which uses natural gas that will be supplied by NUI - Elizabethtown Gas of Bedminster, New Jersey, for fuel. PPL has an equity investment in FuelCell Energy and is a distributor of its fuel cells in the United States.

The New Jersey Clean Energy Program provided $860,000 in funding to PPL as part of its incentive program to encourage the use of clean and efficient energy technology.

"We are thrilled that our first hotel application of fuel cell system technology has been completed and are pleased to be working in conjunction with PPL on this important initiative," said John Lembo, Director of Energy for Starwood. "Having been the recipient of the ENERGY STAR Partner(R) of the Year Award for the last two years, Starwood Hotels & Resorts will continue to adopt and implement environmentally safe and friendly practices that save energy and protect the environment. We feel that energy fuel cell technology will play an important role in reducing harmful emissions and reduce the hotels' overall energy costs."

"PPL is very proud to be working with Starwood Hotels and Resorts to provide clean, reliable and efficient on-site energy systems," said Michael E. Kroboth, President PPL Energy Services Holdings. "Fuel cells are now part of a growing range of environmentally friendly energy solutions PPL is providing to our customers."

"We are delighted to be working with Starwood as it continues its vision and commitment to environmental leadership with the first of two installations of DFC power plants at its hotel properties this year," said FuelCell Energy Chairman and CEO Jerry D. Leitman. "This unit represents PPL's fourth successful installation, demonstrating its role as a premier provider of ultra clean energy using our highly efficient DFC power plants."

By utilizing fuel cell energy, each hotel will reduce its overall energy costs, improve efficiency and help conserve natural resources. Fuel cells are also an environmentally-friendly source of energy technology.

FuelCell Energy Inc. (www.fuelcellenergy.com) is a world-recognized leader for the development and commercialization of high-efficiency fuel cells for electric power generation. The company is developing Direct FuelCell(R) technology for stationary power plants with the U.S. Department of Energy through the National Energy Technology Laboratory, whose advanced fuel cell research program is focused on developing a new generation of high-performance fuel cells that can generate clean electricity at power stations or in distributed locations near the customer, including hospitals, schools, universities and other commercial and industrial applications.

PPL Corporation, headquartered in Allentown, Pa., controls about 11,500 megawatts of generating capacity in the United States, sells energy in key U.S. markets, and delivers electricity to customers in Pennsylvania, the United Kingdom and Latin America.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 740 properties in more than 80 countries and 105,000 employees at its owned and managed properties. With internationally renowned brands, Starwood is a fully integrated owner, operator and franchisor of hotels and resorts including: St. Regis, The Luxury Collection, Sheraton, Westin, Four Points by Sheraton, W brands, as well as Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts. For more information, please visit www.starwood.com

Entegris, Inc., (Nasdaq:ENTG) the materials integrity management company, today announced it will host a fuel-cell commissioning ceremony at its facility in Chaska, Minn. on Monday, Aug. 4, 2:30 - 4:00 p.m. The ceremony will inaugurate Minnesota's first multi-kilowatt, stationary, polymer electrolyte membrane (PEM) fuel cell and showcase the first use of a stationary fuel cell in Entegris operations.

Using natural gas as a source for hydrogen, the new fuel cell will provide electricity to supplement the power source currently used at Entegris' Chaska facility. The implementation of the stationary fuel cell will provide Entegris with valuable experience in operating this type of fuel cell system.

To help commemorate the event, Minnesota Governor Tim Pawlenty will be on hand to give brief remarks and "turn the switch" to activate the fuel cell that will help power Entegris' manufacturing facility. Pawlenty is a strong supporter of energy conservation and alternative fuels for Minnesota business.

"As part of our overall strategy leveraging over 36 years of materials integrity management experience into new markets, we are providing advanced technology, innovative products and comprehensive services to fuel cell developers," said Michael Wright, Entegris' chief operating officer. "The installation of the stationary fuel cell at our Chaska facility clearly demonstrates our commitment to the rapidly emerging fuel cell industry."

John Goodman, president of the Entegris fuel cell market, will open the ceremony with brief comments about the company's role in the commercialization of fuel cells. Entegris is helping fuel cell developers pave the way for promising renewable energy by providing components that lower the fuel cell cost and weight, while improving system reliability.

Entegris is working with project sponsors Plug Power, CenterPoint Energy and the city of Chaska to support the use of alternative fuels, environmental health and energy conservation. Representatives from Plug Power and the city of Chaska will provide brief comments at the ceremony about this viable renewable energy source.

"Implementing the PEM fuel cell at our manufacturing facility will enable us to gain valuable real-world experience in operating a fuel cell system and its related technology," Goodman said. "Using supplemental power from a fuel cell system enhances our position in the industry and will help us move closer to our goal of advancing the development of fuel cells from concept to commercialization(SM)."

In addition to manufacturing bipolar and monopolar plates, Entegris provides fluid handling components, assemblies and services for Balance of Plant (BOP) applications to the fuel cell industry. For more information on Entegris and its fuel cell market segment, visit www.entegris.com or www.entegrisfuelcells.com.

An international consortium is developing the world’s largest fuel cell vehicle, a 109 metric-ton, 1 MW locomotive. The five-year project, which commenced 27 May 2003, will develop and demonstrate the first fuel cell-powered locomotive for military and commercial railway applications. Fuel cells are solid-state devices that directly convert the energy of a fuel into electric power. Based on electrochemistry rather than combustion, they are efficient, quiet, and have zero emissions. 

The project was conceived, organized, and is led by Vehicle Projects LLC of Denver, USA, and is funded and administered by the US Army Tank-automotive and Armaments Command (TACOM), National Auto-motive Center (NAC), Warren (MI), USA, via prime contractor Jacobs Engineering Group Inc, Pasadena, USA. 

Vehicle Projects previously developed and demonstrated a fuel cell mine locomotive and is also developing a 23 metric-ton, 100 kW fuel cell battery hybrid mine loader (see www.fuelcellpropulsion.org), both projects supported by the US Department of Energy and Natural Resources Canada. 

Foster Bryan Ltd., an independent market analysis firm, issued a warning today for investors to avoid being lured into the fuel cell market by some research firms’ predictions that the fuel cell market will reach $1 billion in shipments by 2005. 

In its proprietary, 85-page Report on Fuel Cell Technology, Industry, Applications and Demand, Atlanta-based Foster Bryan Ltd. predicts shipments of fuel cell systems by 2005 will only be about $100 million. 

“Our conclusion is that unless the US, Japanese or other federal government steps in with a huge subsidy, and none is pending at present, there is frankly no way the fuel cell industry will approach anywhere near the value of shipments being touted by some so-called independent market analysis firms,” said James Throckmorton, Managing Director of Foster Bryan Ltd. 

The popular belief that hydrogen driven electric or hybrid electric autos powered by fuel cells will be produced en masse in the immediate future is pure myth, the researchers contend. “There are simply too many problems in cost and implementation for autos to adopt fuel cells before about 2010, if then,” Throckmorton continued. “There are one or two companies that will have fuel cell products for portable electronics on the market next year, but equipping an auto with a fuel cell is a significantly more complex task.” 

Sales of fuel cell systems were $75 million in 2002 the report notes. Forecast growth rates for 2003 and beyond include approximately 10 percent growth for the next three years, the report concludes. The comprehensive report also makes these points: 

• The fuel cell industry is far from the commercialization stage. Some companies are shipping products but not at a commercially competitive price. These high prices, lack of field experience and difficulties with producing reliable products hamper adoption of this technology.
• None of the small-cap companies in the industry is making a profit. At most, only one or two will make a profit soon.
• Driving the market are research and development investments and contracts from automobile makers among others, and subsidies and grants from national and state governments. Were it not for these sources, most fuel cell companies would be out of business.
• Constraining the market are acquisition prices per kilowatt that range from three to 100 times alternatives.
• The cost of maintaining and operating fuel cells is largely unknown.

Since 1996, Foster Bryan Ltd. has been providing independent, objective analysis of emerging technologies and businesses in the small and large cap sectors, both publicly and privately held, for its clients and customers. Foster Bryan, which makes no buy or sell recommendations, is the only independent market analysis firm in the U.S. with a contractual relationship with a major research university institution, the Georgia Tech Research Institute.
 

Following a meeting today with Italy's Minister of Productive Activities Antonio Marzano, U. S. Secretary of Energy Spencer Abraham announced Italy's intention to join the International Partnership for the Hydrogen Economy (IPHE). Italy is one of the core countries that support the IPHE, several other countries have also shown interest.

"We are pleased to learn of Italy's decision to join the partnership for hydrogen and fuel cell technology research, development and demonstration activities," Secretary Abraham said. "International cooperation is key to achieving hydrogen and fuel cell program goals such as those President Bush stated in his recent State of the Union address."

The Government of Italy has a well developed research and development program addressing hydrogen and fuel cell technology applications in the transportation and electric utility sectors. Italy and the U.S. cooperate under a bilateral science and technology agreement, as well as under the Implementing Agreements of the International Energy Agency (IEA). Cooperative research and development activities include the topics of hydrogen production, storage, transport, end-use technologies, and codes and standards.

Secretary Abraham called for international collaboration in his speech to the IEA Ministerial meeting held in Paris, France in April. Additionally, Secretary Abraham will host a Ministerial meeting of the IPHE in the fall in the United States.

The IPHE will support the deployment of hydrogen energy technologies, establishing collaborative efforts in hydrogen production, storage, transport, and end-use technologies; common codes and standards for hydrogen fuel utilization; and the sharing of information necessary to develop hydrogen fueling infrastructure.

"The vision of the International Partnership for the Hydrogen Economy is that a participating country's consumers will have the practical option of purchasing a competitively priced hydrogen power vehicle, and be able to refuel it near their homes and places of work, by 2020," Secretary Abraham added.

A growing number of countries have committed to accelerate the development of hydrogen energy technologies in order to improve their energy, economic, and environmental security. For example, the United States has committed $1.7 billion for the first five years of a long-term research and development program for hydrogen, hydrogen infrastructure, fuel cells, and hybrid vehicle technologies. The European Union has committed up to 2 billion Euros to long-term research and development of renewable and hydrogen energy technologies.

The use of hydrogen as an energy carrier offers several important advantages relative to existing systems. Hydrogen can be derived from multiple feedstocks, which fosters fuel versatility. End-use technologies that employ hydrogen, such as fuel cells, are more efficient and can be used safely while improving the environment and public health.

Secretary Abraham is traveling in Europe meeting with government officials regarding international energy issues. 

Motorola, Inc. (NYSE:MOT), Engelhard Corporation (NYSE:EC) and the University of Michigan (UM) have been named recipients of an Advanced Technology Program (ATP) award to develop a miniature catalytic fuel processor to provide power for a wide range of fuel-cell-based portable electronic devices, such as laptop computers, cell phones and two-way radios.

The Motorola-Engelhard-UM collaboration was one of 16 projects announced on July 1, 2003 to earn funding under the ATP which is administered by the Commerce Department's National Institute of Standards and Technology (NIST).

Users of portable electronic devices are often frustrated by the short life of batteries and the hours required for recharging. Depending on the fuel source, miniature fuel cells could last five to 10 times longer than today's lithium ion batteries. Recharging such fuel cells could be as simple as replacing a fuel cartridge. The high energy density of these fuel cell systems could enable the design of smaller, lighter power sources and more portable electronic devices.

"We are delighted to receive the ATP award and to be recognized among industry leaders in the research and development of innovative technologies that could offer more efficient portable energy alternatives," said Dr. Terry Poles, Director - Fuel Cells at Engelhard. "The potential for fuel cells is clearly emerging, and this grant supports our efforts to develop critical catalyst technologies for use in fuel cells."

"We are striving to accelerate the research on fuel cells for a range of portable devices," said Jerry Hallmark, Manager of Micro Technologies Research Lab at Motorola. "In the future, this methanol reforming technology could be applied to other areas, including portable generators and remote charging stations."

Motorola Labs, Engelhard and the UM have partnered to develop a miniature fuel-cell power source that uses a catalyst microchannel reactor for methanol steam reforming (MSR) to generate hydrogen. Using hydrogen from the miniature fuel cell processor in the fuel cell provides distinct performance advantages over methanol, the current fuel of choice for most fuel cell-based, portable technologies. Benefits include more compact power sources and a greater power range for even smaller and lighter consumer products.

In a three-year project, Engelhard will lead the search for an improved and practical MSR catalyst (today's catalysts deactivate after a few days), and Motorola Labs will work to develop a miniature ceramic reformer. The University of Michigan College of Engineering will collaborate with Engelhard to search for new MSR catalysts and with Motorola Labs to model the chemical and physical processes that occur within the miniature reformer. 

Astris Energi Inc. (OTCBB:ASRNF), world leader in alkaline fuel cell technology, announced today that it has signed a Letter of Intent with Alternate Energy Corp. (OTCBB:ARGY), which has acquired the rights to a unique and reportedly low-cost technology for the production of hydrogen gas required for fuel cell operation.

The proposed joint venture plans to combine these fuel cell and hydrogen technologies to produce and sell complete stationary electric power systems for the vast household and business markets.

According to Jiri K. Nor, President and CEO of Astris Energi, the company and its Czech Republic affiliate, developed and delivered more than two years ago a four-kilowatt fuel cell to provide electricity, heat and hot water for individual homes and small businesses. It has also been operating a golf car powered by a two-kilowatt Astris alkaline fuel cell "engine" since early 2001.

Fuel cells generate electric energy through a chemical reaction between hydrogen gas and oxygen from the air. They are noiseless, odourless and release no pollutants to the atmosphere, the only effluent being pure water one can drink.

"The fuel cell industry has long awaited a cost effective method of extracting the high quality hydrogen gas required to run the fuel cell," said Blaine Froats, Chairman of Alternative Energy Corp. "The merging of a reliable alkaline fuel cell (Astris) with a low-cost supply of hydrogen (AEC) is expected to provide the market with an affordable fuel cell for the consumer. The prospective joint venture with Astris will place our two companies in the forefront of the industry," he asserted.

Under the Letter of Intent, set-up of the Joint Venture operation will begin within sixty days, following completion of hydrogen quality tests using the new AEC process.

FCT installed its pilot VOC reformer and solid oxide fuel cell (SOFC) system at the paint shop at Ford's Rouge paint shop. SOFCs run at higher temperatures and for longer operating times than proton exchange membrane fuel cells used in automobiles.

"One of the ingenious aspects of the system is that it can use either paint fumes of natural gas," according to Ford. "When the shop isn't spraying paint, the system will automatically reform natural gas into hydrogen to keep the fuel cells running. Once the paint shop starts up again, the system will automatically switch back using paint fumes as fuel."

The pilot system consumes emissions from the vehicle painting process and converts them to hydrogen for fuel cell use. Airborne paint solvents are
collected and concentrated into a rich mixture. The concentrated fumes are then fed into a reformer that breaks the VOCs into a hydrogen rich gas. The resulting hydrogen rich gas is then fed into FCT's 5 kilowatt (kW) SOFC, which generates electricity and heat for the facility.

The paint shop pilot project is a proof-of-concept, integrated system, FCT said.It will be operated to assess SOFC operation using VOCs. The project is also supported by DTE Energy and the State of Michigan Public Service Commission.

A larger system with the capacity to generate more than 100,000 watts of power is planned for 2004, the companies said.

For refiners, capturing fugitive VOCs is a challenge, but the incentive to do so increases as the emissions are valued as a fuel with the potential to displace costly natural gas.

"Although we are confident of the technology being applicable to refiners in certain aspects of the operation, unless the area of the fugitive emissions is enclosed and the air flow is controlled, the system is really not suitable for fugitive situations," said Gary Allen, director of Sales for FCT.

DANBURY, Conn., Aug. 6 /PRNewswire-FirstCall/ -- FuelCell Energy, Inc. (Nasdaq: FCEL - News) today announced that its Asia-Pacific strategic partner Marubeni Corporation (TSE: 8002 - News) has released for production its three megawatt order for Direct FuelCell® (DFC®) power plants for new customer commitments.

"Seeing is believing -- witnessing the successful operation of Kirin's DFC power plant has convinced ministry officials and prospective customers that DFC power plants are a viable solution for Japan's energy needs," said Marc G. Aube, Vice President of Strategic Business Development for Marubeni's Utility & Infrastructure Division. "Marubeni is focused on delivering clean and efficient distributed power generation to the Japanese markets and is leading this effort with DFC power plants."

Due to the high cost of energy and the focus on eliminating harmful greenhouse gases, Japan has developed a strong focus on cogeneration from highly efficient generating technologies such as stationary fuel cell power plants. Marubeni has targeted the industrial, commercial and municipal market segments that value high efficiency, while still recognizing the need to be environmentally responsible. Industrial cogeneration, hospitals, data centers and wastewater treatment facilities all have the need for reliable, base load power.

"What is really significant is the potential that this represents," said Jerry D. Leitman, chairman and CEO of FuelCell Energy. "The Japanese market has shown a high level of interest in our technology, and this release of three megawatts of our DFC products by Marubeni demonstrates their confidence that stationary fuel cell power plants for commercial and industrial applications are a reality today.

There is a particular focus on the use of opportunity fuels such as anaerobic digester gas. The current municipal and industrial wastewater treatment market in Japan presents a good fit for DFC products, with more than 2,000 MWs of potential electricity generation. The initial size of this market segment, and recently passed regulations that provide government support for additional wastewater treatment facilities throughout Japan, represents a sustainable growth market for distributed power generation, including DFC technology.

Marubeni committed to order three megawatts of DFC products when it signed an alliance agreement and invested $10 million in FuelCell Energy in June 2001, strengthening the relationship established a year earlier that included an order of five DFC300A power plants. Increased order activity in the Japanese market prompted Marubeni to release this three megawatt order to production. Announcements of individual power plant sites will be forthcoming, with each customer's request and authorization.

FuelCell Energy and Marubeni have agreed to extend the terms of their original alliance agreement by 18 months, to March 15, 2005. World economic conditions, reduced energy consumption and slowdowns in industrial capital development combined to delay the demand for all power generation in Japan and other global markets. Extending the term recognizes the resurgence of interest in Japan based on our initial demonstrations in the Asian market.

Point Roberts, WA - ECON Corporate Services (ECON) http://www.Investorideas.com is pleased to announce the updated version of its recently launched research and investor resource page at http://www.renewableenergystocks.com. The site now offers investors research, news and company links within the renewable energy sector.  To compliment this site, we also feature http://www.fuelcellcarnews.com to meet the interest in fuel cell technology and the participating public and private companies.  With Industry leaders including DaimlerChrysler, Ford, Honda, Hyundai, Nissan and Toyota, the investor community is paying close   attention to the future of hydrogen and fuel cell technology.

The Renewable Energy Stocks section is broken down by industry category to include:  Fuel Cell stocks, Flywheel stocks, Micro -Turbine Stocks, Photovoltaic Stocks, Wind Power Stocks, and Recycling Stocks.

The new site http://www.renewableenergystocks.com also features live industry news feed provided by

http://www.alternate-energy.net/.

Ballard Power Systems Inc. CEO Dennis Campbell wants his company to be a major supplier of fuel cell powertrains for automobiles. Ballard is supplying fuel cells to Ford Motor Co., DaimlerChrysler AG and Hon-da Motor Co.

But like other suppliers and automakers, the Vancouver, British Columbia, company can't invest in production equipment until the design of the fuel cell stack is refined further. That is one of several challenges facing the fuel cell and automotive industries on the trek toward mass production of fuel cell vehicles. Campbell spoke with Staff Reporter Richard Truett about those challenges.

Where is the auto industry in its efforts to develop a manufacturing infrastructure for fuel cells, and where is Ballard?

The manufacturing infrastructure is, in some people's minds, just a vision. We are just a little bit ahead of the curve in terms of where you want to be for scaling up. In 1999, we built our first production plant.

From the day we started designing production-volume fuel cell engines, we felt it was very important to think about manufacturing. We put our operations guys on the design teams right from the beginning. 

Everything we do is designed for manufacturability. We have our pilot plant, our first production plant, in place right next to our r&d lab in Vancouver. 

If you received an order for 10,000 automotive fuel cells, could you flip a switch and get cranking? What is the volume of your production plant?

Well, we have basically pilot operations in place to demonstrate high-volume capability. We have capacity in place to carry us through our business plan, which goes out through 2007. 

Now, to scale up to 100,000 and half a million and a million units, obviously we are going to need more equipment and to put in place high-volume production equipment. It isn't there now.

Are you mass-producing the fuel cell stacks by automation or by hand?

It's a combination of automation and handwork. But it's a scalable process that we can ramp up. As our volume accelerates, we'll be automating that process further. But there is some automation in place now.

How dependent will the creation of the manufacturing equipment be on the final design of the fuel cell?

That's why we don't have in place the high-volume automation. As the design itself evolves, we don't want to get too far ahead of the curve by making commitments on the machinery. 

That's why we have those production people on our design teams. 

When will we see automotive fuel cell stacks that have the durability, reliability and power to propel a vehicle the size of a Ford Focus?

Right now, the track we are on is that we are rolling out our first-generation production stack. 

It will power the Ford Focus, Mercedes' A-class car and the Honda FCX. We are going to follow that with a second generation. 

This first generation is really aimed at demonstrating the feasibility of the design. The next wave, basically around 2008 or 2009, will be aimed at demonstrating the long-term reliability, durability and cost.

Will automakers design the stack and hire companies such as Ballard to build it, or will they keep the production in-house?

I think it will vary by automaker. We believe that most of the automakers will be buying our stack. 

Some will ask us to build the whole system, the whole driveline. But others, such as Honda, might say, "We want your stack, but we'll do the system design." So, we'll find our niche in different places.

Of all the obstacles facing fuel cells - the fueling infrastructure, etc. - where do you rank the building of the manufacturing infrastructure on the scale of importance?

It's important but not challenging. 

Scaling up to high-volume production is a problem we know how to solve once we decide the stack is the way we want it.

TOKYO — The Tokyo metropolitan government decided Wednesday to run fuel-cell buses on public roads on a trial basis from later this month, officials said.

The environment-friendly buses will run on two regular routes to the new Tokyo waterfront in Koto Ward from Tokyo Station and Monzen-Nakacho in the same ward.

The bus is capable of carrying 61 people, about 10 fewer than a regular bus. It runs on electricity generated by the chemical reaction of oxygen and gaseous hydrogen fuel. (Kyodo News)

As you are probably aware, the Energy research Center of the Netherlands (ECN) has undertaken over 250 man-years of specialized research in the field of  Molten Carbonate Fuel Cells (MCFC) over the period 1986 till 1999. In this period ECN has developed an impressive technology package covering inventions at system design level, stack development and at the cell level. The resulting patent portfolio consisting of thirteen patents is now available for sale as a result of a refocusing of the research activities of ECN's Fuel Cell Research Group. 

ECN's decision to terminate its activities in MCFC was among others based on the decision of its closely involved industrial partners to focus on their core activities as a result of decreasing R&D budgets. ECN management decided to concentrate on fuel processing, SOFC cell and systems, and PEM fuel cell systems. The package of technology now is available for an industrial research consortium to take it to the commercialization stage and create viable low cost high efficient systems for decentralized energy generation. 

Molten carbonate fuel cells are a class of "second generation" fuel cells. Designed to operate at higher temperatures than phosphoric acid or proton exchange membrane fuel cells, molten carbonate technology can achieve higher fuel-to-electricity and overall energy use efficiencies than lower temperature cells. Molten carbonate fuel cells can reach fuel-to-electricity efficiencies approaching 60%, considerably higher than the 37-42% efficiencies of a phosphoric acid fuel cell plant. 

One reason for competitiveness of MCFC technology is that the electrodes of a molten carbonate fuel cell can be made of nickel catalysts rather than the more costly platinum of phosphoric acid systems. The ECN technology is based on internal reforming. The elimination of the external fuel reformer also contributes to lower costs. 

Planet Capital Management has been asked by ECN to offer strategic parties with an active interest in the field of fuel cell development and commercialization such as yourselves the opportunity to acquire with this patent portfolio an important step forward in the development of an entire MCFC system, or to complement your current intellectual property position with the patent portfolio built up by ECN in this over 35 million Euro program. Planet Capital Management was involved earlier this year in the successful spin out of an (SOFC) fuel cell research activity of ECN, called InDEC, which was sold to Bayer subsidiary H.C.Starck of Goslar, Germany. 

There is an extensive information package available for interested parties, including an overview of the patents, forward references of the patents, and a description of the selling procedure. 

Sao Paulo distributor Eletropaulo is investing 1.7mn reais (US$570,000) to produce a prototype fuel cell using hydrogen to produce electric power, Eletropaulo business analyst Mara Ellern told BNamericas. 

The fuel cell is being produced in partnership with Brazilian research firm Eletrocell and Sao Paulo state university USP, Ellern said. Financing comes from Eletropaulo's research and development fund, into which, according to concession rules, Eletropaulo must pay 0.75% of net annual revenues. 

The 30kW prototype should be ready for field tests by the end of this year, and a definitive conclusion on the feasibility of the cell should be available within 2 years, Ellern said. 

In broad terms, the fuel cell splits hydrogen molecules into protons and electrons: protons are extracted by combining with oxygen to form water, while the electrons are captured for electric power generation. 

The cells could produce between 10-100kW, although they could be put in series to produce higher volumes, Elern said. 

If successful, the fuel cell would be cleaner, quieter, cheaper, and more efficient and cost-effective than a combination of diesel generators and battery packs, Elern said. This concept is particularly attractive in Sao Paulo, where pollution limits prevent generators and battery packs from being used, she said. 

Furthermore, the water produced by the cell comes out at 80 degrees centigrade, meaning it can also be used in air conditioning, showers, disinfections of hospital equipment, and traditional co-generation, Ellern said. 

Production of hydrogen is an important part of the process: although abundant in nature, hydrogen must be extracted from other sources, usually gasoline and natural gas, Ellern said. Although this process does produce some pollution, it is less than applying the fuels directly to an engine, she said. - (BNamericas.com)

Entegris has brought a developing potential source of power to Chaska, with the manufacture of fuel cell energy components.

On Monday afternoon Gov. Tim Pawlenty flipped the ceremonial switch on the first fuel cell in front of hundreds of Entegris employees and local, county and state officials.

"It's nice to see Entegris take a step like that, to be on the cutting edge," said Chaska Mayor Gary Van Eyll, following the ceremony.

The 5kW fuel cell, manufactured by the New York company Plug Power, converts natural gas into a hydrogen-rich gas, which is then converted into electricity. The fuel cell supplements electricity used at the Peavey Boulevard manufacturing plant and also provides hot water for the building's restrooms and de-ices the concrete foundation in the winter. 

The fuel cell is touted as an alternative to fossil fuels. "Only so many dinosaurs died 65 million years ago," said John Goodman, president of Entegris' fuel cell market, and host of the Monday event. With the arrival of fuel cells "we expect to see regional Saudi Arabias," Goodman said, of the global fuel center.

Entegris will manufacture components of Plug Power's next generation of fuel cells.

"This is a win-win-win for everybody," said Pawlenty, before flipping the switch, which turned on a series of colored flashing lights behind the podium.
~~~~~~~~~~~~~~~~~~~~~~~

Entegris held a fuel-cell commissioning ceremony at its facility in Chaska, Minn. on Monday, Aug. 4, 2003. The ceremony inaugurated Minnesota’s first multi-kilowatt, stationary, polymer electrolyte membrane (PEM) fuel cell and showcased the first use of a stationary fuel cell in Entegris operations.

To help commemorate the event, Minnesota Governor Tim Pawlenty was on hand to deliver brief remarks and “turn the switch” to activate the fuel cell that will help power Entegris’ manufacturing facility. Pawlenty is a strong supporter of energy conservation and alternative fuels for Minnesota business.

Entegris is working with project sponsors Plug Power, CenterPoint Energy and the city of Chaska to support the use of alternative fuels, environmental health and energy conservation.Theatre.

Lawyers in the Austin office of Houston law firm Vinson & Elkins LLP have successfully defended a Canadian energy company in a major patent infringement case and recovered half the firm's legal fees.

Toronto-based Hydrogenics Corp. [Nasdaq: HYGS], a developer and manufacturer of fuel cell products, was sued by Lynntech Inc. of College Station in January 2002. Lynntech claimed Hydrogenics infringed on two U.S. patents related to fuel cell testing.

A federal judge in Houston ruled in January that Hydrogenics didn't infringe on either of the Lynntech patents. V&E lawyers subsequently went after legal fees -- based partly on allegations that the pretrial investigation was inadequate -- and recouped 50 percent of Hydrogenics' court costs and legal fees Aug. 4, says V&E partner Bill Schuurman, the lead attorney for Hydrogenics.

"Only under exceptional cases can a company get back attorneys' fees" in a patent infringement case, Schuurman says. "So to get back what we did is significant."

The amount Hydrogenics will recoup wasn't disclosed.

In a company news release, Hydrogenics President and CEO Pierre Rivard cites defense of the patent infringement suit as a highlight of the company's second quarter.

A Lynntech spokeswoman couldn't be reached for comment.

Lynntech develops and brings to market scientific and engineering concepts in a variety of areas, including fuel cell technology.

 Dynetek Industries Ltd. ("Dynetek"), a leader in developing, producing and marketing lightweight compressed natural gas (CNG) cylinders and compressed hydrogen cylinders, announced today that two of its hydrogen storage systems are being demonstrated at the Canadian National Exhibition (CNE) in Toronto. Dynetek's lightweight storage systems are used in the Hydrogenics HySTAT Fuel Cell Stationary Generator/Hydrogen Refueler and in Deere & Company's (John Deere) technology demonstrator fuel cell-powered Commercial Work Vehicle (CWV) on display at the CNE.

Dynetek is supplying the hydrogen storage system for the Hydrogenics 50 kilowatt HySTAT Fuel Cell Stationary Generator/Hydrogen Refueler. The HySTAT will demonstrate "peak shaving" by supplying power to the National Trade Center during peak consumption periods. The 50-kilowatt generator is capable of providing enough power to meet the needs of 10-15 average Canadian homes. The HySTAT is fueled by natural gas that is reformed to hydrogen by an integrated fuel processor. The hydrogen is then stored in the Dynetek hydrogen
storage system until it is consumed by the fuel cell power module or dispensed to a fuel cell vehicle.

Dynetek is also supplying its lightweight hydrogen storage cylinders to the John Deere technology demonstrator fuel cell-powered CWV that is being highlighted at the event. The vehicle will be on the Exhibition grounds to demonstrate how fuel cell technology can deliver substantial benefits by providing quiet, zero-emissions power to vehicles. The John Deere vehicle is refueled at the HySTAT's refueling dispenser.

Michael David Veith dreamed of helping humanity by developing hydrogen-powered homes and workplaces. He was just weeks from seeing a demonstration project begun in Hawaii when he died Sunday (Aug. 3) while swimming in a triathlon near his Spokane home.

Mr. Veith was 57.

His family and the National Tropical Botanical Garden in Kauai still hope to complete his legacy. His system would have powered the garden's visitors center by using solar energy to electrolyze water and produce hydrogen.

"He was really excited. This thing was just on the verge of finally breaking loose," said Chipper Wichman, the garden's acting director. "We are all determined. If nothing else, we are going to pull this off for Mike."

Mr. Veith grew up in Bellevue and graduated from Sammamish High School. He completed a bachelor's degree in business, then a master's degree at Western Washington University. He was a Vietnam veteran and earned a Bronze Star as a platoon leader with the Army Corps of Engineers.

He met his wife of 36 years, Cristi Veith, while stationed in Alaska. They married and moved to Bellingham, where he worked as a bookkeeper and auditor. She worked as a nurse. 

When their second son was about to start college in 1991, the couple decided to do something "wild and crazy" by moving to Hawaii, she said. Mr. Veith worked first as the director of finance for the county of Kauai, then later as president of the botanical garden.

"It was exquisite," Cristi Veith said of their time there. "It is so unique; it is like living in a whole other world."

They moved back to Washington in 1999, settling in Spokane. The couple set up the company H2 Energy Systems, and Mr. Veith devoted himself to a life-long passion: hydrogen-fuel systems.

Son Greg Veith, 33, of Bellevue, said his father was "bubbling over with enthusiasm" for the visitors-center project. "It couldn't happen fast enough," he said.

Mr. Veith was also a hero to his two grandchildren, ages 5 and 2, Greg Veith said. He loved "trolling for cats" with the children by attaching catnip to a string and taking it down the street. He was planning a visit to Bellevue after telling the children that sugar planted in the garden during a full moon might grow into lollipops.

CHAMPAIGN – Two Canadians in search of a new technology found one they liked at the University of Illinois, so they're starting a fuel-cell company in Champaign.

Neil Huff and David McCloud, both former Ballard Power Systems executives, leased space for the new business, Renew Power, this week at UI's EnterpriseWorks facility.

Renew Power aims to bring to market tiny fuel cells that can run laptop computers, cellphones and personal digital assistants (PDAs) as much as five times longer than current batteries.

The business expects to build on the research of Richard Masel, a UI professor of chemical and biomolecular engineering. Many fuel cells today run on methanol, but Masel's fuel cell runs on formic acid, a relatively weak organic acid found naturally in ants and some plants.

"We looked at a number of technologies, all fuel-cell or battery-related technology," said McCloud, Renew's vice president for business development. "This had the most commercial potential."

Huff said he and McCloud found the university – specifically IllinoisVentures, EnterpriseWorks and the UI's Office of Technology Management – very accommodating.

"It's the most amazing thing. The people are so focused on trying to help you," said Huff, the company's president. "We found the technology in April. Now, we're not only established here in the incubator, but we've closed on a half-million dollars in financing, and we've licensed the technology. The level of cooperation and can-do attitude here have been remarkable."

Rob Schultz, senior director of IllinoisVentures, said half the financing came from an investor in the Vancouver, British Columbia, area, and the other half came in the form of equity investments from IllinoisVentures ($175,000), Illinois Technology Enterprise Center funds ($50,000) and Fox Development Corp. ($25,000).

"It's a picture-perfect example of how this process could work for Illinois companies," Schultz said.
   Huff and McCloud said they aim to have a commercial prototype in 12 months and a commercial product in 24 months.

For now, Renew Power will lease about 1,600 square feet of lab and office space in the EnterpriseWorks building at 60 Hazelwood Drive in the university's research park.

But Mike Fritz, director of the UI's Office of Technology Management, said the company expects it will take $10 million to get to the manufacturing stage.

"They've committed to do product development here, and they'll explore opportunities for where to locate a manufacturing facility," he said. "At some point in time, the community will have to consider what it has to do if it wants to keep it here."

Fritz called Renew Power "an incredible opportunity."

Huff, 48, of Coquitlam, British Columbia, and McCloud, 57, of North Vancouver, British Columbia, worked several years together at Ballard Power.

Huff, originally from Kingston, Ontario, was chief executive officer of Ballard's lithium battery division from 1992 to 1997. That division was spun out of the company in 1995 as Blue Star Battery Systems.

McCloud, who is originally from Winnipeg, Manitoba, was vice president of marketing for Ballard Power from 1983 to 1996.

They formed Northgate Energy Technologies, based in the Vancouver suburb of Burnaby, in March. Huff and McCloud said they plan to remain in the Vancouver area and concentrate on other Northgate projects, including hydrogen storage, nanomaterials, synthetic fuels and catalysis.

They said they have three other partners in Renew Power, a Northgate Energy subsidiary: Masel, the chief technology officer; John Sutherland, the chief financial officer; and Malcolm Man, who will oversee product development. Renew has also hired its first employee: UI graduate student Brian Adams.

Huff said the chief advantage of fuel cells over batteries is that users of devices powered by fuel cells don't have to be "tethered" to electrical outlets – and they don't have to remember to plug in batteries to be recharged.

"You don't have to worry about carrying around a charger," McCloud said.

McCloud said cellphone batteries generally provide four to six hours of talk time before batteries need to be recharged. The formic acid fuel cell could provide five times as much talk time, he said.

McCloud noted that fuel cells are energy conversion devices, while batteries are energy storage devices. He said the fuel cell's only byproducts are electricity, heat, water and carbon dioxide.

He said he liked Masel's approach to designing the fuel cell.

"It's a simple view of technology," he said. "If you keep it simple, you'll probably win."