Inide the Fuel Cell Industry- Week of August 23/2003

In Phase One of a three-year clean energy demonstration project, Hydrogenics unveiled its 50 kW HySTAT hydrogen fuel cell stationary power generator at the National Trade Center during the 2003 Canadian National Exhibition (CNE). A live, working demonstration of what Hydrogenics calls "one of the world's most promising clean energy technologies" is currently taking place on the grounds of Exhibition Place. Toronto's Fuel Cell Demonstration is a partnership of Hydrogenics, City of Toronto, and the Board of Governors of Exhibition Place.

HySTAT demonstrates hydrogen-powered "peak shaving," an energy management practice that could use hydrogen fuel cells to provide clean supplemental power in times of peak demand, such as on the hottest days of summer when air conditioners strain the system.

Hydrogenics developed HySTAT with partial funding from Natural Resources Canada (NRCan) under the Government of Canada's TEAM program (Technology Early Action Measures). HySTAT produces enough electricity to meet the needs of 10-15 average Canadian homes. The first of its kind in Canada, HySTAT is equipped with a natural gas reformer as part of an integrated refueler system. This refueler system produces the hydrogen fuel for the HySTAT fuel cells and it also supplies hydrogen to an adjacent hydrogen dispenser for vehicle refueling. Cost sharing for HySTAT's integrated refueler system was provided by the Canadian Transportation Fuel Cell Alliance (also through NRCan), as announced earlier this year.

This first phase also includes a first-of-its-kind fuel cell vehicle demonstration. Hydrogenics and its partner, John Deere, will display a fuel cell-powered John Deere demonstrator commercial work vehicle that was developed under John Deere's ePower Technologies program. This vehicle will demonstrate that fuel cell technology can enhance the productivity of work vehicles at the same time that it enables quiet, zero emissions power. The John Deere vehicle will demonstrate hydrogen refueling at the HySTAT refueling dispenser.

Toronto's Fuel Cell Demonstration Project is a three-phase project designed to show the public, in a hands-on setting, how hydrogen fuel cells work and how they can be used in the near future to meet our energy needs, while producing no greenhouse gases or harmful emissions. At this year's CNE, running from August 15 to September 1, the public can view the demonstration project, complete with a comprehensive educational display. On August 27th, Green Day at the CNE, special tours will be given to showcase a few of the City's green initiatives, including the Fuel Cell Demonstration project and HySTAT unveiling.

"This demonstration project is an excellent example of how Toronto is embracing future technology, while ensuring that we are also protecting the environment at the same time," said Councilor Mario Silva, Chair of the Board of Governors, Exhibition Place. "The City of Toronto and Exhibition Place are thrilled that we can help showcase leading edge Canadian technology to the people of Toronto, in a real life situation."

"It is important to us to be able to show Canadians that the potential for hydrogen fuel is real; and it is here now," said Pierre Rivard, president and CEO of Hydrogenics Corporation. "Working with the City of Toronto and Exhibition Place, this demonstration enables Hydrogenics to show why hydrogen will be the fuel of choice for the future and the great potential of fuel cell technology to deliver clean mobile and stationary power."

In Phase Two, planned for the summer of 2004, the HySTAT Fuel Cell Stationary Power Generator will build on Phase One by demonstrating extended offsetting of the electricity required at the National Trade Centre. This will demonstrate how the durability of fuel cell systems is making progress for stationary applications. This is an important step if fuel cells are to compete with existing power technologies.

In Phase Three, Hydrogenics will seek an opportunity to incorporate a renewable energy source, such as wind or solar power, to supply electricity to power a Hydrogenics electrolyser refueler to produce hydrogen. There are plans for this hydrogen to be used to refuel a fuel cell hybrid urban transit bus that Hydrogenics is developing with other industry partners with funding from NRCan and the Province of Manitoba. By using wind or solar power to power the electrolyser, this will demonstrate how hydrogen and fuel cells enable a totally clean and renewable solution for power. There are also plans for the bus to demonstrate Hydrogenics' vehicle-to-grid technology for this phase of the project.

RACINE, Wis.--(BUSINESS WIRE)--Aug. 18, 2003--Modine Manufacturing Company (NASDAQ:MODI) announced today that it has received an order from Ballard Power Systems to supply thermal and water management components in support of Ballard's most advanced automotive fuel cell engines.

"We recognize Ballard Power Systems as a leader in PEM fuel cell engine development and are excited to participate in the development of this important technology," said David B. Rayburn, Modine's President and Chief Executive Officer. "We are very pleased to see Ballard's success through the worldwide implementation of their fuel cell engines, and as a development partner, we will continue to create innovative new products for Ballard, leading to the eventual commercial viability of fuel cell technology."

Beginning this summer, Modine will supply heat transfer and water management components to Ballard for incorporation into fuel cell engines being built for DaimlerChrysler and Ford Motor Company. DaimlerChrysler and Ford Motor Company will use the fuel cell engines in their Mercedes A-Class and Ford Focus vehicles, respectively. These vehicles will be introduced, in limited customer fleets, in Europe, Japan, Singapore and the United States to gain actual road miles under normal driving conditions. These cars will be the first fuel cell cars to move from the research stage to customer demonstrations for DaimlerChrysler and Ford Motor Company and are expected to provide valuable feedback for future generations of fuel cells.

"These demonstration vehicles will provide critical real world feedback that will influence the next generation of Ballard's fuel cell engines. This input will also help shape the types of components that Modine will need to design in support of Ballard's future needs," said Mark A. Baffa, Modine's Director Fuel Cell Products Group.

Ballard is a leader in developing, manufacturing and marketing zero-emission PEM fuel cells.

Modine specializes in thermal management, bringing heating and cooling technology to diversified markets. Modine's products are used in light, medium, and heavy-duty vehicles, HVAC equipment, industrial equipment, refrigeration systems, fuel cells and electronics. Modine can be found on the Internet at www.modine.com.

Ballard has delivered Nexa(R) RM systems for utility and server room UPS field trials and has scheduled deliveries for
telecommunications field trials before year-end. The goal of these field trials is to demonstrate, at Ballard customers' facilities, the benefits of fuel cell technology over incumbent technology, and to develop Ballard's Nexa(R) RM Series as the preferred, premium backup power product for mission critical applications.

"The Nexa(R) RM Series is ideally suited for high value power protection markets," said Dennis Campbell, Ballard's President
and Chief Executive Officer. "The reliability and durability of our Nexa(R) power module, along with extended run capability
during lengthy blackout periods and the environmental benefits of zero emissions, make the Nexa(R) RM Series a compelling choice for telecommunications, UPS and other emergency backup power applications. The scalability of the product in 1 kW increments provides the versatility to meet application specific load requirements across the power range. For telecom, the typical
application is in the range of 5 kW to 20 kW."

The scalable Nexa(R) RM Series has been designed for industry-standard 19-inch rack mounting. The system includes
electrical connections, an exhaust system and safety features along with N+1 redundancy capability for specific market
requirements. Hydrogen fuel for the Nexa(R) RM Series is available from existing hydrogen gas suppliers. Additional information regarding this product is available on the Ballard web site at www.ballard.com.

MGE UPS Systems Inc. (MGE), distributor and authorized service provider for Ballard's AirGen(TM) fuel cell generator, will also partner with Ballard to distribute and service the Nexa(R) RM Series.

"We see strong potential for fuel cell systems in mission critical applications where long back-up times are required," said Jack Pouchet, MGE's Director of Marketing. "MGE will conduct UPS field trials using our existing conventional powered products
integrated with Ballard's Nexa(R) RM Series cells. It is our intention to include Ballard(R) fuel cells in our 2004 product
line."

Nexa(R) RM Series prototype systems are now available for sale for additional field trials. Ballard plans to bring production
units of Nexa(R) RM Series to the market in 2004 upon completion of the ongoing field trials.

Over recent years, there has been a shift in the emphasis in fuel cell events from almost exclusively examining research and development issues to providing a showcase for commercial products. Alongside this, has been a move from many players outside of the fuel cell industry to look at the opportunities of supply into and purchases from the fuel cell industry.

Following this trend, the Grove fuel cell symposium has therefore introduced a "Meet the Buyer" programme for its next event in September of this year (in London). The aim of this programme is to put suppliers and potential purchasers of fuel cell related goods and services in touch with one another. Pam Chattin, organiser of the symposium commented, "This is a fantastic opportunity for our exhibitors to get in touch with these people. The fuel cell industry is still growing and finding contacts like this can be difficult."

Sixteen expressions of interest have been received which should be followed up during the event itself. These vary from the provision of services into the fuel cell sector to companies looking for investment. Particularly pleasing are the number of European government and other bodies looking to source fuel cells for demonstration projects.

The growth in interest in fuel cells and related areas shows up well: apart from those looking at specfic FC related issues, proposals range from those looking to adopt the technology for use in their specific field and those who can see a commercial or environmental opportunity, such as fuel supply or reforming.

Global Thermoelectric Inc. ("Global" or the "Company") announced that it has received a US$3.1 million purchase
order for thermoelectric power systems from the West-East Gas Pipeline Companyof China. The west-east pipeline is a US$8.9 billion 4,000-kilometre project to transport natural gas from Northwest China's Xinjiang Uygur Autonomous Region to Shanghai on the east coast of China. This initial order is for the first phase of the pipeline. Global will be responsible for the supply,
installation and commissioning of turnkey thermoelectric generator systems at 62 sites. The Company expects to begin delivering systems to China in the current quarter. The West-East Pipeline is a consortium comprised of PetroChina Co., Royal Dutch/Shell Group, Exxon Mobil Corp., and Gazprom.

This fall, people unfamiliar with hydrogen as a fuel source will have the opportunity to see, learn and experience the future of hydrogen and recent innovations through interactive exhibits and displays.

The Hydrogen Education Tour will make its debut in Denver at the Colorado Convention Center on Oct. 11-12, with additional stops scheduled for 2004 in Los Angeles, Washington, D.C., and other major cities in the United States.

Organized by HydrogenWorks(TM), a media company devoted to education and public awareness of hydrogen, fuel cells and clean energy, the Hydrogen Education Tour will offer information about production, storage and infrastructure, safety, and fuel cell applications of hydrogen.

"The Hydrogen Education Tour is the first-of-its-kind exhibit that will bring intellectuals, influencers and the public together to learn about hydrogen and its implications for the future," said Andrew Bermingham, president and CEO of HydrogenWorks. "Anyone with little or no knowledge of hydrogen fuel will be able to leave the exhibit with a deeper understanding of the potential for hydrogen energy."

Hydrogen as an energy source has recently been the focus of much attention by industry and political leaders. In his most recent State of the Union address, President George W. Bush announced a $1.7 billion research program to develop hydrogen as America's next energy source. President Bush predicted that in 20 years, Americans will drive hydrogen-powered fuel cell cars, reducing dependence on oil for gasoline.

Ford Motor Company and the Colorado School of Mines (CSM), a public research university devoted to engineering and applied science, are headline sponsors of the Hydrogen Education Tour. CSM has distinguished itself by developing a curriculum and research program that is geared towards responsible stewardship of the earth and its resources.

Ford will display its Model U concept vehicle, powered by an internal combustion engine (ICE) designed to run on hydrogen. The engine is supercharged and intercooled for maximum efficiency and power. Its emission of pollutants, including carbon dioxide, is nearly zero, and the engine is up to 25 percent more fuel efficient than gasoline. A hybrid-electric transmission system further improves efficiency.

"We have made great strides at Ford in developing hydrogen-powered vehicles -- both internal combustion engine and fuel cell vehicles," said Mike Schwarz, director, Sustainable Mobility Technologies, Ford Motor Company. "It may take some time to get the infrastructure in place, but we're moving forcefully in the right direction."

Dr. Geoffrey Ballard, honored by Time magazine as a "Hero for the Planet," will serve as a keynote speaker for the Education Tour. Ballard, who founded Ballard Power Systems and co-founded General Hydrogen, has pioneered the hydrogen movement through the development of fuel cell-powered forklifts and hydrogen storage systems.

During the two days prior to the Hydrogen Education Tour launch, HydrogenWorks and Montreux Energy will be hosting an executive roundtable for industry, government and international leaders. Montreux Energy organizes similar roundtables throughout the world on energy-related topics. The hydrogen roundtable discussion sessions in Denver will focus on challenges and investment opportunities in the critical infrastructure aspects of moving forward hydrogen production, storage and delivery systems. The Hydrogen Investment and Infrastructure Roundtable is sponsored by Honda, with supporting companies including BP, ChevronTexaco Corp., ConocoPhillips, Fuel Cell Energy and H2Gen Innovations.

HydrogenWorks is a for-profit company founded to provide the leadership and vision necessary to articulate and popularize the use of hydrogen energy. The HydrogenWorks objective is to facilitate the emergence of hydrogen energy through initiatives that provide insight, knowledge and education. Through its Web site, Hydrogen magazine and events, HydrogenWorks will become a world-class media company devoted to hydrogen. For more information, visit www.hydrogen.com.

An industry group representing Canadian fuel-cell companies is pushing the idea of a hydrogen corridor between Windsor and Montreal — a 900-kilometre strip of highway — with enough fuelling stations to support hydrogen-powered buses, trucks and other demonstration fleets.

Ron Britton, chief executive officer and president of Fuel Cells Canada, said the corridor would be a "stepping-off point" to building a nationwide hydrogen infrastructure, and would complement a similar project under development in British Columbia. "That (Ontario) corridor captures a third of all Canadians," said Britton. "If you can get that established, then you're breaking the back of all naysayers."

The federal government allocated $130 million last week to fuel-cell development and demonstration projects, part of Ottawa's $1.7 billion commitment to reaching its Kyoto emission targets. It's expected that a significant portion of those funds will go toward hydrogen infrastructure projects.

Critics of the fuel-cell industry say a key stumbling block is the lack of hydrogen fuelling stations and distribution facilities that could support the introduction of fuel-cell vehicles.

One way of overcoming this chicken-and-egg scenario, said Britton, is to create "nodes" of hydrogen production along corridors that could support fleet vehicles running on either hydrogen-powered internal combustion engines or fuel cells.

Such a plan is under development in British Columbia, where the National Research Council of Canada is working with B.C. Hydro and Methanex Corp., a producer of methanol that can be used as a source for hydrogen fuel.Their $23 million proposal is to build a "Hydrogen Highway" from the U.S. border to Whistler, B.C., in time for the 2010 Winter Olympics.

The Ontario plan, dubbed "Hydrogen Highway 2," is still in its conceptual stages, but Britton said the first steps to making it happen will be announced "within a year's time." "It's time to get the public to see this as something they can understand and adapt to, rather than some mystery technologies that's always just over the horizon," he said.

This same thinking has prompted regions of the United States to push forward with similar initiatives.

California is working toward a hydrogen corridor along Route 66 that would stretch from Los Angeles to Denver, with fuelling stations every 160 kilometres. Over time, the idea would be to connect these different corridors and highways to each other. "The infrastructure really has to be in place before they build the vehicles," said Matt Fairlie, vice-president of government affairs at Stuart Energy Systems Corp. in Mississauga.

Stuart Energy, a supplier of hydrogen fuelling stations, has one of its stations up and running in Vancouver at a subsidiary of B.C. Hydro. Another is being installed at the National Research Council.

Fairlie said a Windsor-Montreal route would be an ideal area to showcase emerging hydrogen fuelling and transportation technologies.

"It's a high-visibility corridor," he said. "There's a lot of traffic, and it's connecting a lot of important centres in Ontario where work is being done on hydrogen energy systems.

Mississauga-based Hydrogenics Inc. will be demonstrating a stationary power generator based on fuel-cell technology at the Canadian National Exhibition this month, in addition to a hydrogen-powered John Deere vehicle.The University of Toronto at Mississauga is among a number of institutions that are looking to become "Hydrogen Villages" for showcasing such technologies. These villages would act as pit stops along proposed hydrogen highways.

"The next step is going to involve, just as it did on the West Coast, securing a supply of (hydrogen-powered) vehicles," said Fairlie. "I expect that certainly within the year we'll have an announcement in that regard." Ford Motor Co., Natural Resources Canada and Fuel Cells Canada announced in June that Vancouver would receive a fleet of Ford Focus fuel-cell vehicles early next year for demonstration purposes.

Scientists in the University of Delaware’s nationally ranked chemical engineering program are taking a leading role in research on hydrogen-based fuel cell technology.

President George W. Bush announced a hydrogen fuel cell initiative during a speech in February 2003 and budgeted $1.2 billion over the next five years to kick-start the program. The initial grants are now being awarded by the Department of Energy, and Delaware’s Congressional delegation announced July 24 that two state corporations, Ion Power and DuPont, have been funded.

Through a $2.5 million grant, Ion Power of Bear will partner with UD’s Department of Chemical Engineering and DuPont to develop technology for the recycling or remanufacturing of catalyst-coated fuel cell membranes and processing components, which make use of the precious metal platinum and the expensive polymer Nafion.

DuPont will receive $7 million in a separate grant to develop the technology for a 40,000-hour Proton Exchange Membrane (PEM) stack. The technology will be used to reinforce fuel cells and make them more capable of withstanding higher temperatures, traits required for increased power and efficiency.

The two companies and UD were among 13 businesses and educational institutions in 12 states to receive funds for research in advanced fuel cell technology for vehicles, buildings and other applications.

The UD team includes Norman Wagner, professor of chemical engineering and a researcher in the Center for Molecular and Engineering Thermodynamics; Brian Willis, assistant professor of chemical engineering; and Jingguang Chen, professor of chemical engineering and director of the Center for Catalytic Science and Technology.

“Hydrogen fuel cells are very environmentally clean and very energy efficient compared with internal combustion engines,” Chen said. “The major problem is that they are expensive because they rely on platinum electrodes and Nafion, which is a high priced polymer.”

Working with Ion Power and DuPont, the UD scientists will develop technologies to recover both platinum and Nafion from deactivated fuel cells.

“If fuel cells catch on, we will be using larger quantities of precious metals,” Willis said. “Through this project, we will have in place the technology to recover and recycle them, thus making the fuel cells more cost-effective.”

“We will establish this capability by combining the forces of two internationally renowned research centers in thermodynamics and catalytic science here at the University of Delaware,” Wagner said.

Wagner said UD researchers are working in a number of areas related to fuel cell technology beyond the project recently funded by the federal government and hopes the funding will catalyze the establishment of a center for fuel cell research and development on campus.

He said UD research is under way in four key areas: the development of alternative catalysts that would move away from reliance on precious metals; membrane performance alternatives that would seek polymers less expensive than Nafion; hydrogen storage because mobility is critical if fuel cells are to be effective vehicle power plants; and hydrogen production.

Wagner said that as one of the leading chemical engineering programs in the nation, UD has been able to attract top-level doctoral candidates. With the support of federal funds in fuel cell research, he said those students would be well prepared for careers in fuel cell research and technology.

Chen added the state is home to several companies with interest in fuel cell technologies, including DuPont, W.L. Gore & Associates and Ion Power. He said it is hoped the federal funding, combined with corporate interest and UD’s expertise, will create an atmosphere in which Delaware is able to establish itself a leader in the field in the northeast corridor.

In announcing the funds, U.S. Rep. Michael N. Castle said, “Delaware companies continue to be leaders in renewable energy. I have been a strong supporter of federal funding for renewable energy research, and I am pleased to see Delaware companies benefit from this commitment.”

Castle added that fuel cell technology holds “the greatest promise to power important aspects of our daily lives with clean energy. Energy efficiency and energy conservation programs are a critical element to our environmental and economic well-being. Additionally, this research and development is vital in reducing America's dependence on fossil fuels and foreign oil.”

“These grants will help Delaware solidify its status as being at the forefront of developing cutting-edge, alternative energy sources,” U.S. Sen. Thomas R. Carper said. “Developing effective fuel cell technology will benefit the state and the nation economically, while helping us make the jump to clean energy sources.”

“I have no doubt that the work being done at Ion Power will revolutionize the energy industry as we know it,” U.S. Sen. Joseph R. Biden Jr. added. “This is truly cutting-edge technology with dual benefits—it is both cost-effective and environmentally friendly.”

Greenvolt Corp. has released its first product, the SAM-CellT PM-132, a small, personal fuel cell that generates 12 volts DC and 120 volts AC at 100 watts for more than 35 hours before requiring a recharge. Using a configuration of salt water, air and magnesium (SAM), the SAM-Cell generates clean electricity with no noise, no pollution and is non-toxic. It weighs in at 2.2 kilograms dry and 5.5 Kg after the saltwater is poured in, and can be stored dry and will remain ready to go when it is needed. The product is advertised as ideal for weekend camping or as an emergency power source, when it can run lights and TV or radios long enough to traverse most blackout periods. It is priced at $350 (U.S.)

Worcester Polytechnic Institute (WPI) chemical engineering professor Yi Hua Ma has received $1.5 million in grant funding from Shell International Exploration & Production Inc. to study ways to refine hydrogen for fuel cells.

Ma says he believes the best way to do this is by using membranes made from the precious metal palladium. With the funding from Shell International Exploration & Production, Ma is engaged in a three-year research study.

According to Ma, palladium is an excellent membrane for separating hydrogen from gaseous mixtures. Palladium, however, costs hundreds of dollars an ounce. The technical challenge for Ma’s research team is to keep the mass of palladium to a minimum while retaining the performance and properties of the metal.

The research program is in its second phase and is based on WPI-patented technology developed at WPI’s Center for Inorganic Membrane Studies.

“This is one of the largest single industrial grants in this line of research, and one of the largest palladium membrane research groups in the world,” said William W. Durgin, associate provost and vice president for research at WPI, in a statement. “It complements work being done in WPI’s Fuel Cell Center, which together with the palladium membrane research could have a direct and dramatic impact on the direction of society in decades to come.”

Moving forward in its program to develop the use of fuel cell power systems as part of its energy delivery mix, the Long Island Power Authority (LIPA) announced today that it has installed Plug Power Inc. (Nasdaq: PLUG) fuel cells with combined heat and power capability at the Suffolk County William Rogers Legislative Building in Hauppauge.

The three 5-kW fuel cells will be interconnected to LIPA's grid and will operate in a combined heat and power mode, providing electricity and heat on-site. Operation of this system, which will be powered by natural gas, will enable evaluation of the integration of fuel cells at the specific point of need, along with the advanced technology of providing both electricity and heat.

A fuel cell is a device that converts the energy of a fuel (hydrogen, natural gas, methanol, gasoline, etc.) and an oxidant (air or oxygen) into useable electricity.

Fuel cells generate electricity through an electrochemical process rather than combustion. No particulate matter, nitrogen or sulfur oxides (NOx or SOx) are produced. Additionally, a significant percentage of heat produced by fuel cells can now be captured and reused, instead of being released into the air or water.

"Following last week's regional power outage, it is clear that the technology of fuel cells holds the key to a future of environmentally
sensitive electric redundancy," said LIPA Chairman Richard M. Kessel. "Fuel cells are ecologically-friendly mini-power sources. LIPA believes that fuel cells will be an important component of an alternative energy mix for Long Island.

We are proud to take this step today with the Suffolk County Legislature, as we strive to better understand the issues associated with the integration of fuel cells at customer facilities while aiding in ensuring complete blackouts for facilities are a thing of the past."

With the support of Governor George Pataki, LIPA's involvement in the development of fuel cell technology began in 2000 when it field tested six Plug Power fuel cells at locations on Long Island to gain operational experience that has supported the evolution of grid interconnected fuel cell systems. In 2001, LIPA constructed a 3-acre site at its substation in West Babylon. Seventy-five Plug Power fuel cell systems were commissioned in late 2001 and have generated in excess of 400,000-kilowatt hours of electricity.

"The success of LIPA's fuel cell demonstration site in the Suffolk County Legislative Building is due in large part to the cooperation and assistance of Legislator Jon Cooper," said Mr. Kessel. "This unit will provide 10,000 watts of electrical power to the building's electrical supply grid and approximately 30,000 BTUs of heat to the building's domestic hot water heater," said Suffolk County Executive Robert J. Gaffney. "Obviously the County is extremely pleased to be working with LIPA on this alternative energy project. This is one of several pilot projects we're working on to reduce the demand for off-site power while providing clean,
efficient energy."

"Now, more than ever, we as a nation need to develop clean efficient alternatives to the petrochemical treadmill we are on," said Legislator Jon Cooper, 18th District. "Chairman Kessel, LIPA and the people of Suffolk County have, as usual, been ahead of the curve and taken a giant step in that direction today."

"One lesson from last week's electric outage is that we should make our electric system more reliable with clean, distributed generators such as fuel cells located closer to where the electricity is needed," said Gordian Raacke, Executive Director of the Citizens Advisory Panel, the Long Island Energy Watchdog.

"Plug Power continues to work with LIPA to fulfill their long-term vision of providing clean, distributed power to customers in their service territory," said Roger Saillant, Plug Power President and Chief Executive Officer. "This installation of a combined heat and power fuel cell at a LIPA customer site continues to help advance this technology."

In addition to the Suffolk County Legislative Building, there are several other sites featuring Plug Power Fuel Cells (3 at SUNY Farmingdale, 3 at Hofstra, 1 at Babylon Town Hall, 1 at East Hampton Town Hall and 1 at McDonalds in Deer Park).

Funding for the fuel cell project is being provided under LIPA's Clean Energy Initiative (CEI). The CEI is a 10-year, $355 million program, originally proposed by Governor Pataki, designed, in part, to foster the development and application of clean energy technologies including fuel cells. More information on LIPA's CEI programs can be found on its Web site at
http://www.lipower.org.

Plug Power Inc. designs, manufactures and markets proton exchange membrane (PEM) fuel cells for stationary applications. Plug Power's strategic partners include GE Fuel Cell Systems, DTE Energy Technologies, Vaillant GmbH, Honda R&D Co., Ltd., Engelhard Corporation and Celanese Ventures. The Company's headquarters are located in Latham, N.Y., with offices in
Washington, D.C., and The Netherlands. For more information visit Plug Power's Web site at http://www.plugpower.com.

LIPA owns the retail electric system on Long Island, and provides electric service to nearly 1.1 million customers in Nassau and Suffolk counties, and the Rockaway Peninsula in Queens. LIPA does not provide natural gas service.

Proton Energy Systems announced Wednesday that its hydrogen-based UNIGEN generator is ready for the commercial market. The Mohegan Tribe, which owns the Mohegan Sun casino in Uncasville, is one of the newest customers to sign up for one of the generators, company officials said.

The UNIGEN combines a hydrogen generator with a regenerative fuel cell system. The fuel cell system can produce hydrogen, store it and generate electricity out of the stored hydrogen during power outages.

"The reliability problems faced by end users cannot be solved with more and better centralized generation and transmission," said Walter Schroeder, Proton Energy’s chief executive officer, in a conference call Wednesday. "Fuel cells will see widespread use in stationary units long before they are heavily used in autos."

The UNIGEN can make and store enough hydrogen to last for five hours or more. Proton Energy officials said they make a better alternative to batteries for power outages that last between 8 and 20 hours.

Company officials said Proton Energy has spent $3 million on research and testing of the backup generators, which provide 1 to 5 kilowatts of power.

In the tests, the generator started replacing power so quickly that electronic equipment did not even respond to the outage, said Proton Energy President Larry Sweet.

The units produce no pollution or noise, making them more attractive than batteries to high-end niche companies, he said.

"We could produce volume in these products in the next two to three years," Sweet said.

Support for the research came from the Connecticut Clean Energy Fund, the U.S. Department of Energy and the U.S. Navy.

EATONTOWN, N.J.--(BUSINESS WIRE)--Aug. 21, 2003--The world's first electric fuel cell water taxi powered by Millennium Cell's Hydrogen on Demand(TM) hydrogen fuel system successfully operated in the Newport Beach, California harbor, as part of pre-launch testing. The project, which will demonstrate the utility of hydrogen fuel in generating power for ships and facilities in ports, is a cooperative effort between Millennium Cell (Nasdaq:MCEL), Seaworthy Systems, Duffy Electric Boat and Anuvu, Inc. This 30-day demonstration project, which will occur in September, is funded by California's Center for the Commercial Deployment of Transportation Technologies (CCDoTT), a partnership of academic institutions, government, and commercial corporations at California State University, Long Beach (CSULB).

The Duffy-Herreshoff 30 electric boat has been fitted with the Millennium Cell Hydrogen on Demand(TM) hydrogen storage and delivery system running through a complete PEM fuel cell engine from Anuvu, a developer and manufacturer of fuel cells and fuel cell engines. The 3kW Hydrogen on Demand(TM) system weighs less than 150 pounds and is used to power a stack of four 1.5kW Anuvu Power-X(TM) PEM fuel cells. This system replaces a diesel generator used to extend the range of the boat, which is 30 feet long and has a capacity of 18 passengers. It also provides an option to recharge the batteries from the Anuvu fuel cell engine without having to dock near electricity. Seaworthy Systems directed the system integration and engineering for the project.

"We are proud to be a partner in demonstrating the advantages of hydrogen fuel cells for ports and harbors, which face serious environmental challenges and need a clean fuel to stop the progress of water and air pollution," said Dr. Stephen S. Tang, Millennium Cell President and CEO. "Our Hydrogen on Demand(TM) system is clean and easy to use in this application, as it is in other transportation, consumer electronic and standby power applications."

"The Newport Beach water taxi demonstrates that hydrogen-powered fuel cell systems are available -- today -- to help contribute to a healthier environment," said Rex Hodge, president and CEO of Anuvu. "The successful technology integration of Millennium Cell's hydrogen system and Anuvu's fuel cell engine shows the viability of hydrogen fuel cell power for the marine industry."

Millennium Cell's Hydrogen On Demand system is a recyclable, clean-burning energy source that can be used with fuel cells and gas and diesel turbine engines. When used with a fuel cell, the only emission is water vapor. A liquid fuel, it is compatible with existing infrastructure for liquid petroleum fuels, produces about the same amount of energy per gallon as that of gasoline, and is completely safe to produce, store and transport.

Millennium Cell's Hydrogen on Demand system generates hydrogen from sodium borohydride, which is derived from sodium borate, commonly known as borax. Dissolved in water and passed through a proprietary catalyst chamber, the sodium borohydride releases a perfect stream of pure hydrogen -- on demand -- to power a fuel cell or an iinternal combustion engine. The fuel's byproduct is water and borax.

One of the key hurdles in green energy is dependability. When the sun doesn’t shine and the wind doesn’t blow, air conditioners and coffee makers don’t run. But that’s not the case with fuel cells. That’s one reason they’re gaining attention from power-crunched utilities to your local phone company.

A Fuel Cell uses a catalyst to convert hydrogen and oxygen into water, producing electricity and heat in the process. Now this technology is expanding so rapidly that could be soon be powering your home. Some utilities across the U.S. have already adapted the technology into their power grids. And some telecom companies plan to replace their old battery backup systems with fuel cell power. But despite its reliability — fuel cell power is still very expensive to generate.

It may look like any ordinary McDonald’s, but green energy supporters say a fast-food location on Long Island is the wave of the future — a restaurant powered by fuel cell technology.

“I certainly foresee the time in the not too distant future when you will see thousands of them across Long Island,” said Richard Kessel, CEO of the Long Island Power Authority.

Right now, Long Island’s fuel cells provide less than one percent of the utility’s overall output. But as the area runs out of land for new power plants, LIPA needs to explore new options.

“There are tremendous price spikes in the cost of fossil fuels like natural gas and oil and we want a clean environment here in Long Island,” said Kessel.

Saillant says this new product could make Plug Power profitable by 2006. Analysts agree the outlook is promising, but not without its kinks.

“One of the biggest hurdles for widespread adoption is the lack of availability of hydrogen for use of fueling,” said industry analyst David Kurzman at H.C. Wainwright.

Medis Technology doesn’t have that hurdle. Its fuel cell battery pack runs on ethanol.

“This little product, which fits in the palm of my hand, weighs 200 grams and is capable of charging the phone and running the phone at the same time,” said Robert Lifton, CEO of Medis Technologies. “And with each refill cartridge is nine hours of talk time.”

The roughly $20 price tag makes it pricey for most. So Medis is teaming up with General Dynamics to market the pack to the military.

Fuel cells are even being tested in automobiles. Ballard Power already has prototypes on the road. But researchers say fuel cell cars are at least a decade away from commercial readiness.

For those investing in the technology right now, the wait is besides the point, said Kessler.

“I think of people who say: ‘What is a fuel cell? What the big deal here? It’s providing some of the electricity at one McDonalds,’ ” he said. ” Those are the same people who said what’s the big deal about sending up our first satellite — which led to man on the moon.”

According to reports in Japan Cehmcial Week, Toyobo has developed a new membrane for use in PEM fuel cells. Its main selling point is its performance at high temerpature and under low humidifcation.

It is built, apparently as a nano-compositie of other materials produced by Toyobo: a hydrocarbon polymer and a heat resistant polyphenylene benzobis oxazole film.

The ability to operate at higher temperature will reduce the effect of poisons such as carbon monoxide, potentially therefore allowing cost savings in the catalyst used and potentially in other components. The report also suggests that the membrnae may be suitable for use nidirect methanol fuel cells.

As evidenced by last week's blackout across Northeastern states and parts of Canada, the power grid is poorly equipped for getting power from where there is surplus, to where it is needed. The solution is not necessarily to build more transmission lines. There is an alternative: distributed power generation.

A first step is to create an environment for distributed resources to flourish. An example of how to move forward can be seen in a recently-published standard that is now available to guide interconnecting distributed generation technologies to the grid. The US Fuel Cell Council, which participated in the writing of the standard, has sent a letter urging Governors to adopt the Institute of Electrical and Electronics Engineers' "IEEE 1547 Standard for Interconnecting Distributed Resources With Electric Power Systems." This standard addresses the performance, operation, testing, and safety of interconnection products and services.

Distributed generation technologies - including fuel cells, renewables, microturbines and other ancillary services - can be located closer to where the power is needed, reducing traffic on the already "grid-locked" superhighways of the electrical distribution system. Distributed generation technologies can help states begin to address the challenge of satisfying electrical demand for such critical loads, by providing flexibility in siting these technologies where they do not require additional high voltage transmission lines. Newspapers reported that fuel cells kept the lights on for offices, households and the Central Park Police Precinct during the blackouts.

Since 1999, more than 350 individuals participated in the working group that formulated the IEEE 1547 standard, which can now be used in legislation and rulemaking, and by utilities in developing technical requirements for interconnection agreements. Members of the working group included those from manufacturers of electrical components, fuel cells, photovoltaics, gas turbines, and diesel generators, as well as those from utilities, government laboratories, and state and federal governments.

"Passage of IEEE 1547 shows what can happen when the industry pulls together for the common good," said Robert Wichert, technical director for the US Fuel Cell Council and participant on the IEEE 1547 Working Group. "This will have a significant effect on not only the fuel cell industry, but other distributed generation technologies, and the stability of our country's electric grid."

The USFCC is the trade association for the fuel cell industry, dedicated to fostering the commercialization of fuel cells. For more information on USFCC, see our web site, www.usfcc.com.

The European Commission has cleared the creation of a proposed joint venture between MTU Friedrichshafen, a subsidiary of the DaimlerChrysler group, and RWE Fuel Cells. The joint venture, which will be called MTU CFC Solutions GmbH, will be active in the development, production and marketing of high temperature fuel cells. (The operation, notified on 22 July 2003, was examined under the simplified merger review procedure)

Japan Metals and Chemicals, the Japanese metal and materials company, is looking to sell its two plants in North America. One of these factories, in North Carolina, was specifically built to produce metal hydride (MH) powder (the other, of less relevance to the fuel cell industry is designed to manufacture ultra-pure chromium for the electronics industry). The metal hydride factory was initially set up in 1997, with a view to short term supply of metal hydride in powder form to a locally-based secondary battery manufacturer. Closure of this main customer in fact means that the plant concerned has never been properly operational and JMC is now looking to sell it to limit any further losses.

As a result, it is selling the building complete with equipment capable of producing up to 1,000 metric tonnes of MH annually. Metal hydride itself has been used to store hydrogen for fuel cells, particularly in the portable sector.

Along with this initial supply to an immediate customer, JMC's specific aims for the facility related to increasing involvement in hybrid vehicles and fuel cells. Kenichi Sakamachi, President of JMC in the USA, points out, however, the disappointing pace of development, "Ground-breaking legislation such as California's zero emission rules was expected to create a large market for this product [metal hydride] but has consistently been put back."

Nonetheless, JMC is continuing to manufacture the metal hydride materials in Japan and even to research new potential metal hydride mixtures for the reversible storage of hydrogen to enable the introduction of fuel cell technology.

NAGOYA (Kyodo) Toyota Motor Corp. delivered its fuel-cell-powered vehicles Friday to the governments of Aichi Prefecture and the city of Nagoya, the first local authorities to lease the company's fuel-cell cars.

Toyota Motor Corp. Vice Chairman Iwao Isomura and Aichi Gov. Masaaki Kanda pose next to a fuel-cell car Friday.

Toyota also delivered fuel-cell cars to its first corporate clients, including Tokyo Gas Co., Nippon Oil Corp., and Toho Gas Co. the same day.

Toyota only leases fuel-cell cars at present. It charges a monthly rate of 1.2 million yen per vehicle.

Aichi Gov. Masaaki Kanda and Toyota Vice Chairman Iwao Isomura were among those attending a delivery ceremony at the prefectural office Friday morning.

Fuel-cell cars are powered by a chemical reaction between hydrogen and oxygen and are considered the ultimate clean-energy cars; the cells emit only water.

Aichi officials plan use their fuel-cell car to publicize its environmental appeal.

Toyota was three months behind schedule in delivering the vehicles to Aichi and Nagoya due to a leakage of hydrogen in the fuel system.

The problem was detected in May, and Toyota engineers spent the past three months fixing the problem and performing safety checks.