Japan - Energy venture Hydrogen Energy Laboratory Project Co has developed a relatively inexpensive way to modify automobiles so they can run on hydrogen. 

To convert a gasoline-fueled car into a hydrogen-burning car, the company uses the existing gas tank to store water and installs a separate tank containing pressurized hydrogen. The hydrogen and water are fed to the engine and injected simultaneously, in computer-controlled volumes, into the cylinders, where the hydrogen is burned in a process that creates high temperatures and instantly vaporizes the water. 

The expansion that occurs when water converts to steam drives the pistons. The main substance exhausted from the car is water vapor. 
According to the company, one cubic meter of hydrogen can propel the car for about four kilometers, and the tank, which is made by a Canadian firm, can hold 70 cubic meters of hydrogen. 

Hydrogen Energy Laboratory Project said it currently costs 10 million yen (US$92,800) to modify an existing car to run on hydrogen, but this expense could be brought down to about 5 million yen. In comparison, the fuel-cell-based hydrogen-powered cars being developed by major auto makers now cost hundreds of millions of yen. 

Hydrogen Energy Laboratory Project will apply next year to the Japanese Transportation Ministry for permission to drive its hydrogen-powered vehicles on public roadways. Once the approval has been obtained, a partner company will try to license the technology to dealerships nationwide. 

Nissan Motor Co. said Monday it will begin leasing its 2003 model X-Trail FCV, a fuel cell vehicle approved by the government in November.

The lease will begin by the end of next March, the automaker said.

Based on the Nissan X-Trail sport utility vehicle, the X-Trail FCV is equipped with a compact lithium-ion battery featuring high power density, outstanding cooling performance and a compact design, according to the automaker.

The new model, which runs at a speed of up to 145 kilometers per hour, has also adopted a fuel cell stack that operates with superior efficiency, Nissan said. The stack was developed jointly by Nissan and UTC Fuel Cells of the United States.

Nissan has yet to announce the terms for lease contracts and other details.

Fuel-cell vehicles are widely viewed as the most promising pollution-free vehicles for the future because they are powered by electricity generated through the chemical reaction between hydrogen and oxygen and emit only water. 

UQM TECHNOLOGIES, INC. (Amex: UQM), a developer of alternative energy technologies, announced today that it delivered a UQM(R) electronic controller that manages the operation of an integrated air and hydrogen compression unit for use in an automotive OEM's fuel cell powered automobile.  The electromagnetic interference (EMI) compliant UQM(R) controller manages the operation of a compression unit developed by Barber Nichols which compresses hydrogen and air simultaneously and injects the gases into the fuel cell's chemical reaction apparatus.  Fuel cells combine hydrogen fuel with oxygen from air to create electricity without combustion and require auxiliary systems that manage the flow of gases into
the fuel cell.  Because these auxiliary systems consume a portion of the electricity produced by the fuel cell, improvements in the energy efficiency of auxiliary systems enhance the energy efficiency of the fuel cell and the automobiles that are powered by them.
    
The lightweight and compact UQM(R) controller is watertight and features digital signal processing, sensorless control and controller area network communication capability.  The unit also is EMI compliant and a patent application has been submitted covering the proprietary method used in the controller to minimize EMI emissions.
    
"This funded development has resulted in an expansion of our product offerings for the fuel cell market.  The patent pending proprietary approach to minimize EMI emissions developed during this project has application across our entire electronic product line and represents a valuable addition to our proprietary technology portfolio.  We are pleased that Barber Nichols has again chosen our company to develop and supply a compact, energy efficient and high performance electronic controller for their customer's fuel cell," said William G. Rankin, UQM Technologies' President and Chief Executive Officer.

UQM TECHNOLOGIES, INC. (AMEX:UQM), a developer of alternative energy technologies, announced today that it has received an order from Caterpillar Inc. for UQM® permanent magnet motors that will be installed on a fuel cell powered Caterpillar-Elphinstone R1300 mine loader under development by a consortium of companies including Caterpillar Inc., Natural Resources Canada, and the U.S. Department of Energy, and led by Vehicle Projects LLC of Denver, CO. The UQM® propulsion motors include a high torque 42kW motor that will power the cooling fan and a 75kW motor that will drive the hydraulic pump. The zero emission fuel cell powered mine loader is expected to be placed in demonstration at a mine in Nevada in early 2005 to evaluate the operability, and productivity of the system.

“We are pleased that Caterpillar has selected our power dense and energy efficient permanent magnet motors to power the cooling and hydraulic systems on this exciting program. Our systems were once again selected for a demanding application where power density and efficiency are a requirement to achieve optimal system operating efficiency”, said William G. Rankin, President and Chief Executive Officer of UQM Technologies, Inc.

UQM Technologies, Inc. is a developer and manufacturer of power dense, high efficiency electric motors, generators and power electronic controllers for the automotive, aerospace, telecommunications, medical, military and industrial markets. A major emphasis of the Company is developing products for the alternative energy technologies sector including power systems for electric, hybrid electric and fuel cell electric vehicles, 42-volt under-the-hood power accessories and other vehicle auxiliaries and distributed power generation applications. The Company's headquarters, engineering and product development center and motor manufacturing operation are located in Frederick, Colorado. Its electronic products manufacturing facility is located in St. Charles, Missouri. For more information on the Company, please visit its worldwide website at www.uqm.com. 

Proving the system durability and cost-benefit of fuel cells will ensure that end users begin to accept them as a superior alternative to conventional forms of energy generation, and result in increased sales.
    
New analysis from Frost & Sullivan (www.energy.frost.com) North American Stationary Fuel Cells Markets reveals revenues in this industry totaled $21.4 million in 2002 and are projected to reach $1.27 billion by 2009.
    
To increase awareness about fuel cells, companies set demonstration projects and conduct test trials. "After a brief lull, the fuel cell industry seems to be back on track with numerous field trials and pre-commercial product launches. In order to sustain this development phase, the support of 'early adopters' is very critical," says Frost & Sullivan Senior Industry Analyst, Ravi K.
    
Fuel cell developers need to clearly understand the operation and maintenance requirements and establish lifecycle costs of their systems and keep the customers aptly informed about the same. These factors become critical in decision-making, both for individual and organizational end users.
    
"Simulating running conditions will help companies mimic the requirements of different end users and address the maintenance and service issues pertaining to the respective segment," observes Ravi.
    
The ability of a company to sustain technological improvements and offer innovative service agreements will have a direct impact on the size of its user base.
    
The high-temperature fuel cell systems need expensive materials that withstand heat, and the low-temperature version depends on costly reformers and precious metal catalysts, placing fuel cells at a disadvantage when compared to cheaper conventional technologies.
    
Reducing the manufacturing costs of fuel cells is one of the top challenges and current focus of the fuel cell industry. Technological improvements in fuel processing, reduction of expensive materials, and increased production volumes can lower production costs.
    
Suppliers to the fuel cell industry, however, are fragmented and lack the efforts required to bring the component costs down since large fuel cell players are developing their own supply chain while the smaller ones are forced into partnerships. While more investments into the component industry is imperative, efforts to establish fuel cell component manufacturing clusters in different regions will help to sustain the market growth.
    
The fuel cell industry has the critical task of coordinating the efforts of various end user groups, regulatory authorities, component suppliers, and fuel cell distributors in order to sustain and accelerate growth.
    
If you are interested in an analysis overview, which provides manufacturers, end-users and other industry participants a summary of the North American Stationary Fuel Cells Markets, including industry challenges & drivers, send an e-mail to Nuha Kadri, Industrial Media Relations Executive, at nkadri@frost.com with the following information: your full name, company name, title, telephone number, fax number, e-mail. Upon receipt of your information, an overview will be sent to you via e-mail.
    
North American Stationary Fuel Cells Markets is part of the Energy subscription. It examines the current state of the stationary fuel cells markets and addresses the following four major technologies: proton exchange membrane (PEM) fuel cells, solid oxide fuel cells (SOFC), molten carbonate fuel cells (MCFC), and phosphoric acid fuel cells (PAFC). This service evaluates the market's growth potential in North America, provides market forecasts for the above technologies, and discusses the challenges faced by the industry and strategies to overcome these obstacles. In addition, major drivers and restraints influencing the market's growth are included to facilitate the implementation of effective marketing strategies. Interviews are available to the press.
    

Mr. Weymann Cheng, President, reports that Mach One Corporation ("Mach One") has entered into a Letter of Intent with SHEC Labs - Solar Hydrogen Energy Corporation ("SHEC") pursuant to which Mach One will commit to assist SHEC in securing up to $10 million in development capital. SHEC's primary focus is to develop cost effective, clean and renewable processes to produce hydrogen from water using sunlight. As stated on SHEC's web-site, it is SHEC's belief that clean renewable Hydrogen is the worlds best choice for a sustainable energy future and to improve the quality of the air we breath.
    
SHEC LABS has developed an advanced, low cost "Solar Concentrator Technology" for its proprietary hydrogen production process. This concentrator technology also has application for heating, even in extreme cold climates, as well as air conditioning, power generation and other uses. Applications for the "Solar Concentrator Technology" are for both large-scale industrial applications as well as small-scale personal energy systems. SHEC labs have recently received critical validation of their technology by receiving major grant money from the Canadian Government.
    
The hydrogen fuel market is currently $10 billion in North America and is expected to grow to be in excess of $100 billion over the next decade.
    
Mach One is delighted to be entering into an agreement with SHEC Labs. It is the Company's goal to participate in businesses on the technological forefront in their respective industries. As is the case with the Company's business initiatives in the Plasma TV industry, this new business opportunity will allow Mach One to contribute to the further development of the technology and allow us to be part of the enormous market opportunity. As all major automobile manufacturers either have or are currently making plans for producing hydrogen powered cars, and 'Clean-air legislation' is also compelling industry to look to alternative sources of energy to fossil fuels.
    
As part of the terms of the agreement, Mach One will be granted certain exclusive rights for the marketing, sale and distribution of a selection of SHEC's products. We believe that the cross industry applications for the technology are vast and represent a massive market prospect.
    
Interested parties are encouraged to review the details of the technology in greater detail by visiting the company's web-site at www.shec-labs.com
    
Mach One is committed to the development of leading edge businesses, companies and technologies.

California Institute of Technology researchers have built a type of fuel cell that uses a solid acid electrolyte and either hydrogen or methanol as fuel. It could eventually be used to power cars.

Fuel cells are cleaner than combustion engines because they extract energy from a fuel chemically rather than burning it. In a fuel cell, the electrolyte acts as a conduit for electrons.

The researchers' phosphate-based electrolyte material has potential advantages over current polymer solid electrolytes, including the ability to produce electricity at temperatures over 100 degrees Celsius and less chance of fuel leakage. The researchers demonstrated the fuel cell's viability by having it produce electricity for 100 hours at a temperature of 250 degrees Celsius.

The trick to using the solid acid electrolyte is having enough water vapor pressure—about 10 percent relative humidity at 100 degrees Celsius—to keep the material from dehydrating. This is relatively easy to do, according to the researchers.

The challenges to making a practical fuel cell from the material include scaling up the system from a single cell that puts out just a few thousandths of a watt of power to a system that produces enough power to run a real device. A car, for instance requires about 60,000 watts.

A prototype vehicle that uses the solid acid fuel cell could be on the road in five years, according to the researchers. The work was published online November 20 by the journal Science on the Science Express Web site.
 

HTC Hydrogen Thermochem Corp. (HTC) has the investors; signed a three-year research agreement with the University of Regina; and reached an agreement with Westrange Corp. to become a subsidiary of a publicly-traded corporation to produce hydrogen from natural gas at the end-user site. 

HTC Hydrogen Thermochem Corp. and the University of Regina entered into a three-year collaborative research agreement to study the cost-effective production of hydrogen from natural gas at the end of the energy distributed network. HTC President and CFO, Jeff Allison, said the three-year agreement marks a milestone for the company. "We're excited about combining our resources with those of the University," he said. "The opportunity to work with the physical and intellectual resources at the International Test Centre for Carbon Dioxide Capture means true collaboration - academically and financially - between a university and a private corporaation to achieve an environmentally friendly alternative fuel." 

Allison added, “The potential for hydrogen fuel to play a role in reducing greenhouse gas emissions has captured global interest. When hydrogen burns it produces large amounts of energy, emitting only water vapor as an emission. Developing an economical source of commercially available hydrogen, and the means to deliver it to market, have been cited as the two major roadblocks to its development as an alternative fuel.” 

The funding for this research has been provided by a broad-base of provincial, national and international investors who have made a long-term commitment to HTC’s hydrogen energy vision and to the University’s five PhD’s who will be committed to this project over the next three years and beyond. 

On June 24, 2003, Westrange Corp. entered into an irrevocable option agreement to exchange shares of the Corporation for all the outstanding shares of HTC. The Option Agreement may be exercised for a period of (18) months from the date of the Option Agreement, June 24, 2003. The acquisition will occur on the basis of between one and two Westrange Common Shares for each HTC Class A Share, depending on the market value of the Westrange shares at the time of exercise, and one Westrange Common Share for each HTC Class B Share and Class C Share. Based on the current market value of the Westrange Shares, approximately 2,210,000 Westrange Shares would be issuable in exchange for all of the HTC Shares. 

Jeff Allison, President and CFO, HTC Hydrogen Thermochem Corp. noted, “This acquisition by Westrange Corp. will give HTC shareholders two significant advantages. One is that, HTC as a publicly-traded company, will have a vehicle to raise additional capital to fund the second phase of hydrogen product development and commercialization. The other is, Westrange management brings their experience and knowledge of working in the highly-regulated securities market. This will allow HTC’s management to focus on its core business of hydrogen production research and product development utilizing the natural gas distributed energy network.” 

According to a press release from German shipbuilding company “Nordseewerke”, a second fuel cell powered U-Boat has been launched on Thursday last week. The boat, jointly developed with the HDW shipyard in Kiel, is the most modern, non-nuclear u-boat in the world.

The boat, called ”U-32” is part of the 212A-class, is 56 metres long and weighs 1.500 tones. However, it will take at least another year before it can go into service, since most of the equipment is not fitted yet. Furthermore, the shipyards have not finished the field trials with the sister u-boat “U-31” which was launched in March 2002. When all the test will be complete, the German Navy expects the boats to run for weeks without having to surface.
 

While many companies worldwide are developing direct methanol fuel cells for use in portable electronics, SFC Smart Fuel Cell AG in Germany has grabbed a leading position with its innovative DMFC technology, and is already rolling out
commercial products that are being integrated into mobile power solutions. The company has also established an international distribution infrastructure for its methanol fuel cartridges, and is ready to take on the world’s electronics giants in
getting its products into a power-hungry marketplace.

Fuel Cells Canada is pleased to announce the formation of the Hydrogen Village partnership in the Greater Toronto Area. This pioneering collaboration by industry, government and academia aims to accelerate the commercialization of hydrogen and fuel cell technology in Canada and solidify Canada's position as an international leader in this evolving industry sector. 

"It is exciting to see our Canadian hydrogen and fuel cell community come together to demonstrate what is possible with this new, clean power technology," said Pierre Rivard, Hydrogen Village spokesperson and Chairman of Fuel Cells Canada. "We are bringing together the strengths of many partners in this collaboration by industry, government, and the academic community, knowing that this is essential for projects like this to become a reality."

Over the course of this long-term project, the Hydrogen Village will deploy and demonstrate in a geographically defined setting, numerous technologies that support the integration and production of hydrogen to generate clean, reliable, and efficient energy. The Hydrogen Village has the potential to be duplicated in other locations enabling the early establishment of a larger hydrogen infrastructure in Canada and beyond. The desired outcomes of the Hydrogen Village include hydrogen and fuel cell technology advancements and cost reductions, early market development, broad stakeholder education, hands-on development of transferable codes and standards, and increased investment in the sector. 

The Hydrogen Village Partnership currently consists of 26 members including three key categories of contributors - end-users, technology providers and technology integrators. The end-user group includes potential early adopters of hydrogen and fuel cell technology, including municipal government groups, learning institutions, utilities and corporations. The technology providers are companies that develop fuel cells, fuel cell systems, hydrogen generation and conversion technologies, components, storage and fueling technologies. Technology integrators work as a bridge between the technology providers and the early-adopting end-users by integrating the technology into fully functional hydrogen and fuel cell applications. 

The Hydrogen Village project is being facilitated by Fuel Cells Canada, an industry association working to accelerate the commercialization of Canada's world leading fuel cell and hydrogen technology. The Hydrogen Village is managed by a committee elected from project members. 

Hydrogen Village Partnership Members

Air Liquide
Astris Energi Inc.
Ballard Power Systems Inc
Bell Canada
BET Services
City of Toronto
City of Mississauga
The Centre for Automotive Material and Manufacturing
Dynetek Industries Ltd.
Enbridge Gas Distribution
Enviromotive
Fuel Cell Technologies Ltd.
General Hydrogen Corporation
Giffels Associate Ltd.
HERA Hydrogen Storage Systems
Hydrogenics Corporation
John Deere ePower Technologies
Kinectrics Inc.
KPMG LLP
Ontario Power Generation
Pivotal Power
Purolator
QuestAir Technologies Inc
Sarnia/Lambton Economic Partnership
Stuart Energy Systems Inc
University of Toronto at Mississauga

The Indian Oil Corporation proposes to invest Rs 100 crore in the Research and Development of Hydrogen energy and formulating a roadmap for the country for introduction of Hydrogen as fuel.

Stating this at a news conference on the eve of an international workshop on Hydrogen Energy, IOC Director (R and D) Mr N R Raje said that the Petroleum Ministry had decided to initiate efforts to introduce Hydrogen Energy in the country with a particular focus on the transportation sector. 

He said IOC had been identified as the nodal agency for carrying out R and D activities and a roadmap would be finalised within the next three to four months.

As a first step in that direction, the IOC is organising a workshop in collaboration with all oil sector companies.

Mr Raje said Hydrogen was being envisioned as the fuel of next century and it was an accepted fact that hydrogen fuel is pollution-free, with water as the product of either a fuel cell reaction or combustion in an inter-combustion engine.

He said hydrogen also promised to free crude-oil importing nations like India from the insecurity of importing fuel from distant and volatile regions such as West Asia.

Proton Energy Systems, Inc., (Nasdaq: PRTN), a leader in on-site hydrogen generation products and regenerative fuel cell technology, announced today the completion of its acquisition of Northern Power Systems, Inc., a leader in the design,
manufacturing, and installation of integrated and on-site power systems for stationary commercial and industrial applications.  Together, as subsidiaries of a new corporate parent, Distributed Energy Systems Corp. (Nasdaq: DESC),
the companies plan to offer an array of practical energy technologies, including Proton's advanced hydrogen generation products and Northern's state- of-the-art renewable and fossil-fuel power systems.
    
At the close of market on December 10, 2003, the NASDAQ National Market will cease trading of Proton shares.  Effective December 11, 2003, NASDAQ will trade shares of Distributed Energy on the National Market under the ticker symbol "DESC."  Each outstanding share of Proton stock will be converted into a share of Distributed Energy common stock.  Stockholders of Proton will not need to trade in their existing Proton stock certificates.  Following the merger, former stockholders of Proton will hold approximately 96% of the 35.4 million outstanding shares of Distributed Energy and former stockholders of Northern will hold approximately 4% of the outstanding shares of Distributed Energy.
    
Distributed Energy paid $27.5 million to Northern's security holders, approximately $19 million in cash and the balance in Distributed Energy common stock and options.  Northern's security holders also received warrants to purchase approximately 2.1 million shares of Distributed Energy common stock.
    
In connection with the acquisition, Distributed Energy appointed three former Northern Directors, Paul Koeppe, Theodore Stern, and Clint "Jito" Coleman, to its Board of Directors.
    
Distributed Energy's President Walter "Chip" Schroeder said, "Northern's proven expertise in developing and delivering a wide range of turn-key distributed generation solutions creates tremendous potential to add revenue and margin to Proton's business plan.  We believe that with the growing interest in the "hydrogen economy," we have created the business combination
to deliver the essential link between renewable power and hydrogen as a fuel for energy sustainability."
    
Northern's President Clint "Jito" Coleman said, "This transaction builds on the strengths of both companies and creates new synergy for innovation, bringing together technologies and financial resources that we believe will enable us to build value faster than either of us could achieve separately. This transaction strongly positions us to compete and win in the new distributed energy marketplace."

Arbin Instruments has just received a purchase order of half million US dollars for its integrated fuel cell testing systems (Arbin’s FCTS) early November from a leading global automobile manufacturer.

 “The selection of Arbin in this order is purely technology and performance based.We are excited to be chosen to provide these systems after fulfilling stringent technical requirements by the customer. The significance of the order is the recognition of Arbin’s advanced technology and high standards“, said Dr. John Zhang, President and Chief of Technology at Arbin Instruments.“We will give our full efforts to deliver high-standard systems accordingly so to set new standards for the industry.”

Arbin has been completely involved in providing fuel cell testing products in the past three years and has sold from 50W up to 12-kW integrated fuel cell testing systems to worldwide customers.Backed by proprietary electronic load and dew point humidifier technologies, Arbin’s FCTS has gained industry’s acknowledgement as the most compact, integrated system providing accurate humidity control over wide temperature and flow rate ranges.
 

Hitachi and Tokai team up on Methanol Fuel-Cell Cartridge

Hitachi Ltd. has teamed up with disposable-lighter giant Tokai Corp. to commercialize a methanol cartridge for small fuel cells. 

Hitachi plans to introduce PDAs (personal digital assistants) in fiscal 2005 that use small fuel cells as their source of power. 

The companies have created a prototype cartridge that holds 50cc of methanol at a 20 per cent concentration. When inserted into a PDA, the cartridge will provide power for 6-8 hours of operation. 

Hitachi is in charge of basic design, and Tokai is handling mass production issues. 

The two plan to raise the concentration of the methanol to about 30 per cent to boost output. 

The Tokyo company developed the fuel cell with Tokai Corp., which is a major producer of disposable lighters and aerosol dispensers.

Direct methanol fuel cells mix methanol with air and water to produce electrical power.

Hitachi's prototype uses a methanol concentration of around 20 percent, although the company plans to raise this to around 30 percent by the time it becomes a commercial product, said Koichi Nemoto, a spokesman for the company's research and development laboratories in Hitachi City, Ibaraki prefecture.

The prototype fuel cell is a cartridge type around 1 centimeter in diameter and between 5 centimeters and 6 centimeters in length, said Nemoto. Hitachi considers this size, which is similar to that of a AA battery, as about the right size for commercial use and so won't be working on changing the dimensions by a large amount.

In making the announcement Hitachi becomes the third Japanese electronics company to disclose plans to commercially produce DMFCs.

NEC Corp. has demonstrated a prototype unit for use with notebook personal computers that it says will become a commercial product sometime in 2004. The prototype can deliver enough power for around five hours of use and the company's mid-term goal is to develop and sell a 40-hour unit by the end of 2005.

Toshiba Corp. has developed a DMFC that is intended to be used as a handheld charger for batteries for mobile electronics products. At present research has not progressed to the stage where a fuel cell small enough to fit into a portable device is within grasp so Toshiba hopes its charger, expected to be commercialized in 2005, will be the next best thing. 

Scientists at the CSIRO are working to develop micro fuel cells to power portable electronic devices and have made an important breakthrough that may make the technology cheaper to own and operate.

Fuel cells are often touted as a replacement for batteries in laptop computers and other devices, as their ability to generate many hours of power using fuels such as hydrogen or methanol promises greater longevity than conventional chemical batteries.

CSIRO is working on proton exchange membrane fuel cells, a technology which produces electricity by squeezing hydrogen atoms through a very thin polymer membrane, a process strips an electron from the atom. This electron is captured as electricity and the remaining hydrogen is then combined with air to produce water and a little heat, the only by products of the reaction.

Fuel cell technology is very well established – fuel cells are used on the space shuttle and a fuel cell-powered car led the women’s marathon at the Sydney Olympics – but the engineering problems of miniaturising fuel cells for use in portable electronics have long been a barrier to wider adoption.

Another issue is the need to periodically replace the membrane at the heart of a fuel cell, an additional cost consumers and business alike are unlikely to welcome.

CSIRO’s work is addressing this issue by lengthening the working life of membranes. A team in the organisation’s Melbourne-based Manufacturing and Infrastructure Technology unit has extended the life of the membrane to over 1500 working hours – over two months of operation.

CSIRO expects to make a formal announcement about the technology in early 2004, but will not yet commit to a lifespan for membranes or predict when its work will be commercialised.

Other manufacturers, however, are bolder: both NEC and Toshiba have announced that they will debut fuel-cell powered laptops during 2004, offering “battery” life exceeding five hours.

Enova Achieves Great Success Building First U.S. Air Force Fuel Cell Bus

Enova Systems, Torrance, California (OTCBB:ENVA), a global builder of digital power management systems for hybrid and fuel cell vehicles, heavy-duty buses, trucks and stationary applications, announced today that it has successfully integrated a fuel cell system into the U.S. Air Force's first hybrid fuel cell bus at Enova's facilities in Honolulu, Hawaii.
    
The U.S. Air Force's first battery dominant fuel cell hybrid bus, passing final acceptance tests with flying colors, was completed through a teaming effort between Enova, the U.S. Air Force, the State of Hawaii's High Technology Development Corporation (HTDC) and Hydrogenics (Nasdaq:HYGS). Enova provides the enabling technologies to convert fuel cell energy into useable power for propulsion and operation of the Air Force bus. Enova's technologies optimize the hybrid fuel cell bus by requiring a reduced fuel cell power module size through the introduction of a battery pack and the ability to capture "regeneration" energy from braking which is transferred back to the batteries.
    
"Enova is proud to be the total systems integrator of this very significant fuel cell program for the U.S. Air Force and the State of Hawaii. Our teaming partnership with Hydrogenics is most gratifying," commented Carl D. Perry, CEO and President. "Enova's engineering and integration teams have once again proven their prowess in the development and implementation of advanced digital power management and propulsions systems for heavy-duty applications. Drawing on our over three years of experience in fuel cell system development and integration programs with Ford Motor Company, Hyundai Motor Company, United Technologies and others, Enova has demonstrated its skill in providing the optimal solution."
    
Enova was chosen to be the team leader for this advanced ground transportation program and has accomplished its goal in three months from system design to completion and final acceptance. The U.S. Air Force's hybrid fuel cell bus's configuration consists of Enova System's Panther 120kW drive system integrated with Enova's newly developed Dual 8kW inverter, 380V DC/DC converter, an advanced version of its proven, successful Hybrid Control Unit and a Mobile Fuel Cell Generator, incorporating a Hydrogenics 20Kw fuel cell power generation module and a battery pack.
    
"We are excited with Enova's capability to quickly develop and integrate an advanced power fuel cell system into a flightline bus within the Air Force fleet," stated Carl Perazzola, Chief, Advanced Power Technology Office, Robins Air Force Base. "By providing standard modular components, Enova is bringing us very close to commercializing the fuel cell powered drive train required to transform the Air Force for the 'hydrogen economy.' This will reduce both overdependence on foreign oil and logistical requirements going forward, while helping clean our environment. Enova and Hydrogenics are partners with us that are making this win-win scenario a reality for the Department of Defense and our Nation."
    
This program follows several successful advanced technology efforts between the State of Hawaii and Enova including fast charging, electric powered Hyundai SUVs, an electric 120kW thirty-foot bus (also for use at Hickam Air Force Base) and a multi-car tram system.
    
"The State of Hawaii is pleased to be a partner with the U.S. Air Force on these dual purpose programs that provide both military and commercial opportunities," noted Tom Quinn, Director of the Hawaii Electric Vehicle Development Program (HEVDP) at HTDC. "Enova Systems continues to contribute greatly to Hawaii's ongoing efforts of being an environmentally friendly State. Over the past ten years, the joint efforts of Enova, the HEVDP and the U.S. Departments of Defense and Transportation, have developed and commercialized many advanced alternative transportation systems for automotive, transit and commercial use. Enova has demonstrated that they continue to be at the forefront of technology in the alternative power management markets."

The World Economic Forum today announced the designation of Medis Technologies Ltd. (NASDAQ:MDTL) ("Medis") as one of the 30 Technology Pioneers of 2004. Technology Pioneers are companies designated by The World Economic Forum as developing and applying the most innovative and transformational technologies. This dynamic group is at the forefront of change in a variety of technology sectors. Their cutting-edge work in fields such as renewable energy, nanotechnology and biotechnology represents an enormous resource of entrepreneurial talent.
    
Medis has invented a revolutionary fuel cell, with a proprietary, patented fuel and other proprietary elements to make the first commercial fuel cell for portable electronic devices. Medis' first fuel cell product is planned to be in the market by the end of 2004. Called a Power Pack, it offers the user of a cell phone, digital camera, MP3 or similar electronic device an inexpensive, continuing source of power small enough and light enough to fit into the user's hand, yet powerful enough to immediately operate their device when the device battery is discharged. The Power Pack is capable of charging the devices battery three to five times with each fueling. Insufficient battery life is a growing source of dissatisfaction for consumers using portable electronic devices, such as cell phones, which are offering increased capabilities that consume battery power, such as internet, video, and attached digital cameras. To this end, the Medis' Power Pack offers a very attractive solution. Consumers can refuel the Power Pack in a matter of seconds using a small fuel cartridge. Medis also has joined with General Dynamics' C4 Systems to offer its fuel cell solutions to the United States Department of Defense to power electronic devices used by the U.S. forces.
    
In line with the Forum's commitment to improving the state of the world, the Technology Pioneers program was established in 2000 to provide a new perspective on technological change. The Technology Pioneers program identifies and integrates those companies around the world that are involved in the design and development of new technologies. Each innovation, whether it has large or small consequences, is another step in society's attempt to harness, adapt and utilize technology to change and improve the way business and society operates. The World Economic Forum is invested in monitoring and highlighting these innovations and exploring possible societal repercussions.
    
Each year members, constituents and collaborators of the World Economic Forum nominate Technology Pioneers. The criteria for selection include:
1. Innovation. The company's technology must be truly innovative.
A new version or repackaging of an already well-accepted technological
solution does not qualify as an innovation. The innovation should be
recent - not more than two years old. The company should invest
significantly in R&D.
2. Potential Impact. The company's technology must have the
potential to have a substantial long-term impact on business and
society in the future.
3. Growth and Sustainability. The company should have all the
signs of a long-term market leader and should have well-formulated
plans for future development and growth.
4. Proof of Concept. The company must have a product on the market
or have proven practical applications of the technology. Companies in
"stealth" mode and companies with untested ideas or models will not
qualify.
5. Leadership. The company must have visionary leadership that
plays a critical role in driving the company towards reaching its
goals.
6. Status. The company must not currently be a Member of the World
Economic Forum. This criterion applies to the parent company - thus
wholly-owned subsidiaries of large firms are not eligible.
    
Nominees are evaluated by an external review committee comprised of technology experts with respect to the criteria above.
   
"We are delighted to be designated as part of this prestigious group of technology innovators that were chosen using such a rigorous selection process," said Robert K. Lifton, Chairman & CEO of Medis. "We look forward to participating in the forthcoming meeting of the Forum in January where we will have the opportunity to present our technology to leaders of the world's foremost corporations."
    
Mr Lifton continued, "We were also recently featured in Time Magazine's "More Power To You" article, which is included in the publication's December 15th Global Business Section, and are pleased with the visibility it has given to our Power Pack technology."
    
The uniqueness of the Technology Pioneer network ensures that companies involved in the development of new technologies are engaged in an integrated and interdisciplinary way. The Technology Pioneers community will provide the Foundation and its members with in-depth knowledge of some of the key technology issues facing society.

Other manufacturers, however, are bolder: both NEC and Toshiba have announced that they will debut fuel-cell powered laptops during 2004, offering “battery” life exceeding five hours.

Dynetek Industries Ltd. to Deliver Hydrogen Fuel Storage Systems to Ford Motor Company

Dynetek Industries Ltd. ("Dynetek"), a leader in developing, producing and marketing lightweight compressed natural gas (CNG) storage cylinders and compressed hydrogen storage cylinders, announced today it will deliver on-board complete hydrogen fuel storage systems for Ford Motor Company's 2004 Ford Focus FCV zero emission automobiles. Dynetek is providing the complete fuel storage and components solution using its certified 350 bar (5000 psi) hydrogen fuel storage system. The storage systems and components will all be approved to NGV-2 2000 for North American use. In addition a
number of these same systems will be shipped to the European market for automotive use and therefore have also been approved to German TUV requirements.
    
Dynetek continues to work with Ford after delivering hydrogen storage systems from as early as 1999. In August 2000 Dynetek entered into a Purchase and Supply Arrangement, under which Dynetek supplies compressed hydrogen storage cylinders to Ford for Ford's fuel cell zero emission vehicle programs. In return, the arrangement includes an equity incentive program that will earn the carmaker a minority interest in Dynetek.
    
"We are honored to be working with Ford in helping lead the way in adoption of zero-emission fuel cell technology," said Robb Thompson, Dynetek's President and CEO. "We have a strong relationship with Ford beginning with supplying the hydrogen storage system for the P2000 FCV in 1999. We have worked with them on a number of fuel cell projects and we are extremely excited to be involved in Ford's latest leading edge technology."

India may develop its first prototype vehicle running on hydrogen fuel in next three years and plans to invest heavily in developing technologies for producing hydrogen at reasonable cost over the next decade, Petroleum Minister Ram Naik said today.

"I am hopeful that we will develop by 2005-06 a three-wheeler autorickshaw that will be fuelled by hydrogen.

But commercial testing of hydrogen-based automobiles may take a while," he told reporters on the sidelines of an international workshop on 'Hydrogen Energy' here.

Hydrogen is considered the cleanest and most efficient fuel. Already, Japanese automobile companies have taken a lead in development hydrogen-powered fuel cells to run automobiles.

A few prototypes are already on roads in Japan and Europe.

Indian Oil Corporations' R&D centre is starting work on the alternative fuel and New Delhi will also have its prototype vehicle in next three years, he said.

India, which has already introduced petrol doped with ethanol extracted from sugarcane and is toying with the idea of doping diesel with non-edible oils to cut import dependence, will invest in developing technologies for producing hydrogen from liquid fuels, water, natural gas and coal and ultimately from renewable energy sources like solar and wind energy and biomass, he said.

Earlier speaking at the seminar, he said Planning Commission has constituted a committee under N K Singh, Member (Energy), to develop guidelines for hydrogen energy implementation in the country. PTI

Kobe Steel Ltd said Thursday it has developed a system to compress hydrogen gas to up to 1,000 atmospheres for environment-friendly fuel-cell vehicles.

The compressor, the first of its kind in the world, would increase the amount of hydrogen gas in fuel-cell vehicles, enabling them to run longer with a tank of gas, Kobe Steel said.

While hydrogen-gas tanks currently available for fuel-cell vehicles can withstand pressures of up to 350 atmospheres, studies are under way to raise the limit to 700 atmospheres, which will help double the mileage of fuel-cell vehicles to 600 kilometers for one tank of gas.

Kobe Steel plans to market the high-capacity compressor to hydrogen-gas filling stations.

Fuel-cell vehicles are widely viewed as the most promising pollution-free vehicles for the future because they are powered by electricity generated through a chemical reaction between hydrogen and oxygen and emit only water as waste. 

Almost without notice, a number of innovative, advanced material firms in the emerging fuel cell market have been acquired by larger firms. Two recent examples of the trend are Cabot Corp’s acquisition of Superior MicroPowders for $16 million in the United States and Belgium-based Timcal’s takeover of Erachem Comilog’s carbon black business unit in Europe.

Both of the acquired businesses are poised to supply materials to fuel cell makers. Things like nanopowders, nanostructured coatings and the like will play an important role in next generation fuel cell systems. “Nanomaterials have the potential to increase power density, extend durability, and lower costs,” said Toddington Harper, a business development manager at Fuel Cell Markets, a U.K.-based consulting company.

“It’s all about getting the more productivity out of small volumes. As a result, there is a great deal of investor interest in the firms able to supply such technologies,” said David Berkowitz, a partner at Ventures West in Vancouver, a pioneering investor in fuel cell companies.

Industry observers, such as Atakan Ozbek, director of energy research at ABI, a market research firm, see the merger and acquisition activity as a jockeying by the larger players to position themselves to serve the emerging fuel cell market. The large players do not want to be left behind “once fuel cell systems become premium energy suppliers," he said in an e-mail interview.

Ozbek expects this trend to continue in the coming years.

Berkowitz agrees, “There’s been a great deal of M&A activity to date and the trend will continue in the coming months.”

Cabot Corp. acquired Superior MicroPowders for its proprietary process to make “low precious metal content” electrocatalyst powders for proton exchange membrane (PEM) fuel cells. It is now doubling the number of R&D employees and moving to a larger facility in New Mexico.

Timcal acquired Erachem Comilog for its carbon black process in September, which is reportedly critical to lithium ion batteries and fuel cells. The unit has an annual turnover of approximately $18 million and owns an innovative special carbon black manufacturing process.

A wider trend

The silent snapup of nanomaterial manufacturers is part of a larger consolidation trend in emerging fuel cell market taking place on both sides of the fuel cell supply chain, according to Walter V. Nasdeo, an analyst at investment banking boutique Ardour Capital, in New York.

He goes as far as to say that fuel cells are a “commodity” and that the suppliers of parts and services are the ones who stand to have the “fattest margins” in the value chain in the future. This includes parts manufacturers, electrode assembly firms, power electronics, testers, materials suppliers, and on the other side of the fuel cell chain, the firms that can integrate fuel cells into systems.

PriceWaterhouseCoopers also noticed the trend in its “Fuel Cell Survey” published in October, pointing to Hydrogenics, which acquired venture-backed Greenlight Power and EnKat of Germany, to form the largest fuel cell testing equipment vendor in the world.

Indeed, the likes of GM, Shell and ChevronTexaco are starting to “hedge their bets on the sector, not just from one angle but from multiple platforms -both technically and strategically," said OOzbek.

“Too many companies were funded during the boom. There was too much capital available and now there is too little. Startups are learning that one little piece of technology does not a company make,” says Berkowitz.

In other words, consolidation is driven by the financial distress of companies that are making one component or element of a fuel cell system. They need to find stronger, cash-rich partners in order to develop their technology into a product.

Another driver is the realization among larger firms that it is taking a lot longer to get to market than they expected and they need to buy in the pieces of the puzzle that are still missing. “There used to be an aversion to components or sub systems from outside suppliers, a not-invented-here mentality,” said Berkowitz. “But that is quite rapidly being abandoned,” he posits.

The trend will lead to “stronger companies," according to PWC. 

CSA America and Underwriters Laboratories Inc. (UL) announced plans to jointly develop and publish a new standard that will set requirements for the process of extracting hydrogen from fuels, such as natural gas, to power fuel cells. The new standard will be one of the primary hydrogen generation standards for North America and is expected to be completed in December 2004. 

As part of the collaborative effort, CSA America and UL will share requirements they have previously developed for hydrogen generators that use fuel processing. UL will also continue to chair the Standard Technical Panel responsible for the new standard. This consensus body will include representatives from both CSA America and UL and a cross-section of hydrogen generator and fuel cell industry leaders, government agencies, regulatory authorities, manufacturers, users, and other knowledgeable, interested parties. 

“We are pleased that CSA is an equal partner in the development of what will be the first ANSI standard for hydrogen generation,” said Robert Williams, UL’s director of Global Standards. “Their expertise in related segments combined with our standards development leadership will be invaluable in contributing to a harmonized North American standard in the fuel cell industry.” 

Since fuel cells were first introduced to power early NASA space flights, they have steadily gained popularity as an alternative energy source. And because hydrogen produces roughly three times the amount of energy produced from gasoline and almost seven times that of coal, experts believe hydrogen will play an increasingly important role in U.S. energy plans over the next decade. According to the Department of Energy (DOE), 9 million tons of hydrogen is currently produced in the United States each year. This would be enough to power 20 million to 30 million cars or supply enough electricity for 5 million to 8 million homes. Currently, hydrogen is used primarily for chemical production, petroleum refining and metal treating. 

“For more than a decade CSA America has been the leader in developing fuel cell standards. We welcome the opportunity to work closely with our colleagues at Underwriters Laboratories to develop a new standard that will stimulate growth within the fuel cell industry and help provide North Americans with an alternative energy source,” said Spencer Grieco, Vice-president, Standards, CSA America. “ 

The two organizations’ combined efforts will parallel work being conducted within the international standards community and at the DOE. The final standard will be developed and proposed as an American National Standard.  

Singapore designed fuel cell costs half the price of existing ones

Three years ago, Singapore researchers began work on fuel cells or to the layman big batteries.

And they have designed one which costs less than half the usual price.

The team is from the Institute of Materials Research and Engineering, working with GasHub Power.

Unlike engines that run on fossil-fuels like petrol or diesel, the only by-products of fuel cell are heat and very pure water.

And a stack of the locally made fuel cells used to power a pedal scooter can produce 1 kilo watt of power -- the equivalent of a 85cc petrol engine.

With a large enough hydrogen tank, it can travel at up to 40 kilometres an hour, for 2 and a half hours.

What makes this fuel cell unique is this patented plastic-like conductive membrane.

According to the research team, the membrane, which feels like a contact lens, is better than anything on the market.

Said Professor Gan Leong Ming, Principal Research Fellow of the Institute: "In this case the membrane is developed here, so we are proud that Singapore is able to produce Proton Exchange Membrane. With this method, the price will be much cheaper than that available from the market."

Singapore's research focus is on providing a viable alternative power source for small appliances like pedal scooter. 

In the future, it is hoped that it'll be able to power household items like televisions, radios, laptops and even mobile phones.

GasHub Power's CEO, Roger Khoo, said: "Energy can be produced on site where it is required. So in any remote application for any particular kind of product, if energy is required, fuel cell is the solution."

And the fuel cells are so reliable, that the prototype built 3 years ago is still working well.
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