The European Hydrogen Association will therefore step up its work in promoting these technologies on an international level. On the European level, continued cooperation with the European Commission will be of primary importance. A number of "Networks of Excellence" are to be created in the 6. Framework Program for Research, and EHA sees many ways to contribute to them, being a Network of Excellence itself by its very nature. 

Among the other partners are the International Energy Agency and the International Association for Hydrogen Energy. Among the tasks immediately at hand are the European Hydrogen Energy Conference (EHEC) to be held from 2. to 5. September in Grenoble (France) and also the World Hydrogen Energy Conference 2006 to be held in Lyon. The venue of the EHEC 2005 will be announced in September. 

The new board, which was elected during the General Assembly held in Utrecht (The Netherlands) on 11. June, accepted these items as central parts of the work program. New EHA president is Prof. Lars Sjunnesson from Sweden, a member of the High Level Group on Hydrogen which has been installed by the European Commission. Mr. Georges Fratacci (France) was elected as Vice President, Dr. Ulrich Schmidtchen (Germany) as secretary, and Dr. Christer Morén (Sweden) as treasurer. Another member of the board is Prof. Jobst Hapke (Germany). 

The associations from Norway and The Netherlands are expected to join EHA in the near future. A number of recently founded national hydrogen association from various countries in Europe have also expressed their interest to join EHA. 

EDMONTON, June 24 /CNW/ - ATCO Gas will invest $1.2 million to develop new research focused on determining viable commercial applications for power generated by Canada's first high voltage, fully operational fuel cell.
    
Installed at the Northern Alberta Institute of Technology (NAIT), the $3.25 million fuel-cell project at the applied technology post-secondary institution is funded in partnership with provincial and federal government
agencies.
    
"This leading Canadian initiative will research breakthrough ways to generate clean energy and develop innovative applications to use the electricity and heat," said Jerome Engler, President, ATCO Gas. "The applied research has potential to return enormous, environmentally positive dividends
to all energy users."
    
Western Economic Diversification Canada, Alberta Energy Research Institute, ATCO Gas, and Climate Change Central are combining resources to install both a 200 kW phosphoric acid fuel cell and a smaller, 5kW solid oxide fuel cell at NAIT's power generation laboratory.
    
An interactive interpretive centre-incorporating the 200kW fuel-cell will open at NAIT in early 2004 making information about the technology more accessible to Albertans.
    
The project will also place NAIT's Power Engineering program at the forefront of international fuel-cell education, creating a growing trained workforce capable of applying the emerging technology worldwide.

Energy Conversion Devices, Inc. (ECD) (Nasdaq: ENER) announced today that it
has acquired the interest of Texaco Energy Systems LLC (TES) in Texaco Ovonic
Fuel Cell Company LLC for $1.00, effective as of December 31, 2002.  ECD and
TES, a unit of the ChevronTexaco Corporation, formed the joint venture, with
each having 50 percent interest, in September 2000 to further develop ECD's
Ovonic(TM) regenerative fuel cell technology.  The company, which is now owned
100 percent by ECD, will be renamed Ovonic Fuel Cell Company LLC.
    
"Ovonic Fuel Cell Company will pursue commercialization of its fuel cell
technology in both the transportation and non-transportation applications,"
said Mr. James R. Metzger, Vice Chairman and Chief Operating Officer of ECD.
"While current efforts are focused on designing and building Ovonic(TM) fuel
cell systems for portable and stationary applications (50W - 1,000W) which, we
believe, will provide nearer term opportunity for revenue growth, we are
continuing our activities to develop fuel cells for transportation
applications.  Widespread utilization of small fuel cells is important to
advance the acceptance of both fuel cell technology and hydrogen as a fuel,"
he added.
    
In September 2002, ECD was granted a basic patent (No. 6,447,942) on its
Ovonic(TM) fuel cell technology which does not rely on expensive and rare
noble metals such as platinum and palladium.  Other unique advantages over
conventional fuel cells, such as proton exchange membrane fuel cell, are the
ability to start up instantly, accept recaptured energy, such as that of
regenerative braking, lower cost, and a dramatic improvement in operating
temperature range of -20 to 120 degrees Celsius.
    
ECD and ChevronTexaco, through TES, continue to support two other joint
ventures, Texaco Ovonic Battery Systems LLC, a manufacturer of Ovonic(TM)
nickel metal hydride (NiMH) batteries for both automotive and non-automotive
applications, and Texaco Ovonic Hydrogen Systems LLC, to further develop and
advance the commercialization of ECD's proprietary solid hydrogen storage
technology.

Medis Technologies Ltd. (NASDAQ: MDTL) reported that at the Annual Meeting held today in New York N.Y., the shareholders of Medis voted for the election of the eight incumbent directors and to approve a proposal to amend the 1999 Stock Option Plan to increase the number of shares of common stock available for option grant from 3,000,000 to 3,300,000.
    
During the meeting, Robert K. Lifton, Chairman and CEO of Medis, discussed the state of the different technologies that Medis is developing. A major focus of his presentation was on the Company's fuel cell products. He noted that the first planned commercial fuel cell product is the Power Pack, an auxiliary power source for operating and charging a portable device such as a cell phone or PDA. The Power Pack allows the user of a cell phone whose battery is discharged, to operate the phone at the same time as it charges the battery. 

The Power Pack prototype for the cell phone has demonstrated the ability to provide about nine hours of talk time for each fueling, with a fuel cartridge replacing the fuel and electrolyte in a matter of seconds and providing an additional nine hours for each refueling. At the meeting, Mr. Lifton displayed a prototype Power Pack and the first prototype of a fuel cartridge, which has recently been completed.

PSA/Peugeot-Citroen expects fuel-cell cars to be mass marketed in about 2015. By then PSA says the innovative propulsion system should be no more costly to produce than a standard combustion engine. 

At present, building a fuel-cell vehicle costs about 100 times more than one with a combustion engine, said Robert Peugeot, PSA’s head for innovation and quality. 

Were those prototypes produced for the mass market, there would be economies of scale. But they would still cost 10 times as much as “normal” cars, he added. 

“Hopefully the price will be down to a one-to-one ratio by 2015,” Peugeot said. 

In the short term, PSA says the use of hybrid vehicles combining diesel and electric engines will significantly cut pollution. 

PSA Chairman Jean-Martin Folz said at the annual shareholders’ meeting on May 28 that the company would launch hybrid vehicles by 2004. That same year, PSA is expected to also launch vehicles with stop-start engine ignition devices, which also red-uce pollution. 

According to Robert Peugeot, the main technical challenges to overcome before fuel cells become widespread in cars are: 

The pace of research on fuel cells is accelerating worldwide because of environmental concerns. 

Another factor is that western countries want to reduce their dependency on oil. The world’s main oil reserves are located in politically sensitive regions. 

Robert Peugeot spoke at a press conference PSA held jointly with Centre de l’Energie Atomique, or CEA, a French state-funded research organization on nuclear power that cooperates with private sector companies such as PSA on specific projects. 

Alain Bugat, general manager for the CEA, said: “On hydrogen power, we’ve reached the point of no return. It will happen.”

Mazda will continue development of a hydrogen-powered rotary engine in an effort to compete with bigger rivals investing in fuel cells and other reduced-emission technology, Bloomberg News reported. Hiroshima-based Mazda's chairman Kazuhide Watanabe told investors on Tuesday at the company's annual shareholders' meeting that it will continue development work on such an engine.

Avista Labs, a wholly owned subsidiary of Avista Corp. (NYSE: AVA), and SiGEN, a Scottish fuel cells integrator, have entered into a collaborative agreement for the development of fuel cell systems and product sales, marking a significant milestone in the growth of the United Kingdom's fuel cell
industry.
   
SiGEN has been appointed a non-exclusive distributor and service agent in the UK for the Avista Labs Independence(TM) fuel cell systems, which feature Avista Labs' patented Modular Cartridge Technology(TM). Under the terms of the agreement, SiGEN will purchase a small number of Independence(TM) fuel cells during 2003, with an increase in those numbers for 2004. The agreement runs through May 2005.
    
SiGEN's strategy is to develop key relationships with fuel cell systems manufacturers who have proven commercially available products and are focused and responsive to customer needs. By having access to a range of non-competing products, SiGEN is able to offer the most credible advice and system solutions best suited to customer needs.
    
"We are pleased to add Avista Labs fuel cells to our offering," said Dave McGrath, managing director of SiGEN. "Their Modular Cartridge Technology(TM) design adds reliability, which is highly desirable to our customers. This is a highly significant milestone in the commercialization path of fuel cells. Developments in the past six months have seen system availability increasing, significant price moves, with major technical advances and power capacities."
    
Mike Davis, Avista Labs chief executive officer, added, "Our agreement with SiGEN opens an exciting door into the UK uninterruptible power supply market. SiGEN is making great strides in that area and we are pleased to be associated with them."
    
Avista Labs currently markets its three Independence(TM) fuel cell products for commercial and industrial back-up power solutions in the 50-watt to five-kilowatt range. Its patented modular cartridge technology(TM) allows Avista Labs to provide customers the ability to perform maintenance while the system continues to operate, increasing the reliability of the system. Avista Labs is in the process of completing the CE certification process on its Independence 1000(TM), which assures that a product complies with accepted design and safety practices and is necessary for manufacturers desiring to sell products to the European Union.
    
The distribution agreement is marked by SiGEN's receipt of the first Avista Labs, fully CE-compliant Independence 1000(TM) fuel cell system, delivered to the UK for the "SiGEN 1kW UPS". This product debuted at the All-Energy Conference in Aberdeen, Scotland in May. SiGEN announced that the
first customer for this system would be AMEC, an international engineering services company named as one of the world's most respected companies in the 2002 Financial Times/ PricewaterhouseCoopers survey. AMEC is planning to install the fuel cell at one of its northwest England offices.
    
"We expect such systems to become widespread, and we hope our lead in using this hydrogen powered, green, and efficient technology will be helpful to our own customers," said Alastair Rennie, head of renewables for AMEC.

Millennium Cell Inc. (NASDAQ: MCEL), a leading technology company that has created a patented system to safely store, generate and deliver pure hydrogen, has been chosen to receive a grant from the U.S. Department of Energy (DOE) for hydrogen research and development.
    
Funding in this first year is anticipated at up to $600,000, with total potential funding of $3.5 million over three years. The company has additional government funding proposals pending and in preparation with DOE and the U.S. Department of Defense.
    
Calling Millennium Cell a leader in sodium borohydride technologies, the DOE notification letter also said, "Borohydride is an attractive chemical hydrogen storage option due to capacity, ease of delivery and safety." Millennium Cell's Hydrogen on Demand(TM) system safely generates pure hydrogen, which is carried in the chemical bonds of sodium borohydride and water.
    
"Millennium Cell is pleased that our research proposal will be funded by the Department of Energy in 2003 -- the year President Bush placed hydrogen fuel at the top of our country's energy agenda in his State of the Union address," said Dr. Stephen S. Tang, Millennium Cell President and CEO. "This very important work on the regeneration of sodium borohydride will confirm our belief that there is a commercially viable, energy efficient, and less costly process than the current 60-year-old manufacturing technology to make sodium borohydride. Our team will include Air Products & Chemicals Inc., the largest global supplier of hydrogen and select performance chemicals. Our technical expertise in boron chemistry will be complemented by those of Air Products in basic process research and innovative technology approaches to hydrogen generation and usage."

Opcon Autorotor, a subsidiary of the Swedish listed Group, Opcon AB, has received an additional important order for air systems from Ballard Power Systems, world leader in commercializing fuel cell engines. The new order is for air systems designed for fuel cell engines in cars. 

"This order signals that the fuel cell market for cars has entered into a new phase, hence strenghtening Opcon's position on this emerging market at major car manufacturers through Ballard Power Systems. We are very pleased to increase our business with Ballard," said Sven G Oskarsson, CEO for the Opcon Group.

Fuel cells are cleaner for the environment than traditional combustion engines. A fuel cell generates electrical energy to power a vehicle through a chemical process involving hydrogen and oxygen. The only emission is water. Opcon Autorotor's compressor supplies compressed air to the fuel cell. This is a key component that determines the performance level of the fuel cell.

The pace of fuel cell development has increased in recent years, partly due to new energy policies in the US and Europe aimed at reducing the dependence on oil and improving the environment. In the next few years several hundred fuel cell vehicles will be placed in customer's hands as part of a global fleet demonstration. "This new order from Ballard shows that fuel cells are leaving the development phase and entering traditional production phase," said Roland Arleback, Managing Director of Opcon Autorotor AB. The order comprises compressors and expanders designed for cars produced by Ford and DaimlerChrysler. The deliveries starts in August and have a duration of one year.

The Class A common shares of Snow Leopard Resources Inc. (Symbol: SNW.A) are suspended from trading effective immediately, for failure to meet the continued listing requirements of TSX.

Aircraft manufacturer Boeing Co. (NYSE:BA - News) has become the seventh partner in the private-equity Chrysalix Energy Limited Partnership, Chrysalix said Thursday.

Vancouver-based Chrysalix invests in early-stage companies developing fuel cells and related infrastructure for various electronics, power-generation and transportation applications.

 Boeing, Chicago, has several divisions that are focusing on new markets for fuel-cell technology, a Boeing executive said in the news release. It didn't say how much Boeing is contributing to Chrysalix but said the aerospace firm becomes an equal partner.

 The Boeing participation is through Boeing Phantom Works, the company's advanced research and development arm, according to the news release.

ARLINGTON, Va.--Scientists have developed a hydrogen-making catalyst that uses cheaper materials and yields fewer contaminants than do current processes, while extracting the element from common renewable plant sources. Further, the new catalyst lies at the heart of a chemical process the authors say is a significant advance in producing alternate fuels from domestic sources.

In the June 27 issue of the journal Science, James Dumesic, John Shabaker and George Huber, of the University of Wisconsin at Madison, report developing the catalyst from nickel, tin and aluminum and using it in a process called aqueous-phase reforming (APR), which converts plant byproducts to hydrogen. The process performs as well as current methods that use precious metals such as platinum, yet runs at lower temperatures and is much cleaner.Photos of high-throughput reactor showing A) reactor with common headspace top plate (used for catalyst reduction) and B) reactor with isolated headspace plate (used for reaction and gas chromatograph analysis).
Credit: G. W. Huber, J. W. Shabaker, and J. A. Dumesic, University of Wisconsin-Madison; NSF, DOE 

"The APR process can be used on the small scale to produce fuel for portable devices, such as cars, batteries, and military equipment, " said Dumesic. "But it could also be scaled up as a hydrogen source for industrial applications, such as the production of fertilizers or the removal of sulfur from petroleum products."

The team is now collaborating with scientists at Virent Energy Systems in Wisconsin as part of a National Science Foundation (NSF) Small Business Technology Transfer (STTR) grant to develop catalysts for generating fuels from biomass.

NSF is an independent federal agency that supports fundamental research and education across all fields of science and engineering.

Hydrogen is a "clean" fuel because when it burns, it combines with oxygen to form water; no toxic byproducts or greenhouse gasses are produced in the process. The APR process extracts hydrogen from a variety of biological sources, especially simple carbohydrates and sugars generated by common plants.

The precious metal platinum (Pt) is well known to be an excellent catalyst in a number of chemical reactions. It is one component in a car's catalytic converter, for example, that helps remove toxins from automobile exhaust. Yet, platinum is rare and very expensive, costing more than $17 per gram (about $8,000 per pound).

Catalytic platinum (Pt) and nickel (Ni) stand out from other metals (such as copper or iron) because they process reaction molecules much faster. But pure nickel, unlike platinum, recombines the hydrogen product with carbon atoms to make methane, a common greenhouse gas. Dumesic and his colleagues tested over 300 catalysts to find one that could compete with platinum and perform in the APR process. Using a specially designed reactor that can test 48 samples at one time, the team finally found a match in a modified version of what researchers call a Raneynickel catalyst, named after Murray Raney, who first patented the alloy in 1927.

Raney-nickel is a porous catalyst made of about 90 percent nickel (Ni) and 10 percent aluminum (Al). While Raney-nickel proved somewhat effective at separating hydrogen from biomass-derived molecules, the researchers improved the material's effectiveness by adding more tin (Sn), which stops the production of methane and instead generates more hydrogen. Relative to other catalysts, the Raney-NiSn can perform for long time periods (at least 48 hours) and at lower temperatures (roughly 225 degrees Celsius).

According to Dumesic, a substitute for platinum catalysts is essential for the success of hydrogen technology. "We had to find a substitute for platinum in our APR process for production of hydrogen, since platinum is rare and also employed in the anode and cathode materials of hydrogen fuel cells to be used in products such as cars or portable computers," he said.

A new Regina-based company is joining forces with the University of Regina in hopes of one day delivering cost-effective hydrogen as a clean, alternative fuel.

"Welcome to the dawn of the hydrogen age," Jeff Allison, president of HTC Hydrogen Thermochem Corp. told a crowd of business and industry officials gathered Wednesday at Research Park.

Flanked by bottled water bearing the company's logo, Allison and U of R president David Barnard signed a three-year, $480,000 agreement. Hydrogen is a component of water, but the research team will be focusing on producing hydrogen gas from natural gas.

In an interview, Allison said there's two big benefits to producing fuel from hydrogen. "The only other thing that comes out of the exhaust pipe is oxygen and water, which means you totally eliminate pollution in your cities and all over the world, and you eliminate greenhouse gases."

"The other big benefit is that if you can eventually develop hydrogen from water, you're able to have an unlimited fuel supply, and then obviously you're not reliant on foreign oil anymore," he said.

While there are currently hydrogen cars on the market, Allison said the biggest hurdle right now is the lack of hydrogen infrastructure, such as hydrogen gas stations.

The research team, led by the U of R's Dr. Raphael Idem of the faculty of engineering, will be looking to solve that problem by developing a cost-effective and reliable hydrogen fuel delivery system.

"Our concept is to take the natural gas that goes to most businesses and homes right now, and create a little mini-reformer that's about the size of a refrigerator or smaller, and create hydrogen in that unit right there on the spot, and use it to fill up on-site storage tanks," he explained.

"If you had a little mini-reformer at a gas station, you'd be able to pull up -- just as you would to a propane station -- and fill up your car," Allison added.

The project will focus on using natural gas instead of water because it's an easier, efficient process.

"Water's really the holy grail of the hydrogen economy. If you can do water in a cost-effective way, then every place in the world has unlimited fuel. ...That is the ultimate goal, but right now you can't do it cost effectively," he said.

Barnard said the agreement enhances the research already going on at the university's Petroleum Technology Research Centre and Greenhouse Gas Technology Centre. "Our colleagues will be able to take a longer-term view. What will we do when petroleum sources are not as readily available? What will we use as a fuel source? How can we reduce the impact that we as a race and as industrialized communities are having on the environment?" he told reporters.

The intellectual property developed under the agreement will be owned by the university and licensed exclusively to HTC Hydrogen Thermochem, which was incorporated two years ago, for commercial product development.

Hyundai Motor Co. and UTC Fuel Cells, a unit of United Technologies Corp.'s UTC Power unit, have
signed an agreement to jointly develop a new automotive fuel cell power plant capable of operating in freezing conditions, one of the remaining hurdles in the development of fuel cells for automobiles.
    
The agreement calls for Hyundai and UTC Fuel Cells to work jointly to develop a freeze-capable fuel cell power plant and integrate it into a Hyundai sport utility vehicle platform.  Hyundai plans to make fuel cell vehicles available for lease by fleet operators by 2004. Financial terms of the
agreement were not disclosed.
    
Fuel cell power plants, which combine hydrogen and oxygen to produce electricity without environmentally harmful emissions, produce and consume water. One key challenge in developing fuel cells for transportation applications is starting fuel cells after the water in a system has frozen.
    
"Hyundai is dedicated to developing commercially viable, zero-emission vehicles and our agreement with UTC Fuel Cells brings us one step closer to our goal," said Dong Jin Kim, president and CEO of Hyundai Motor Company.  "By 2004, Hyundai will be testing and evaluating the performance of fuel cell vehicles in fleet applications, allowing us to further refine the application of fuel cells for every-day transportation."
    
"Our work with Hyundai since 2000 has achieved tremendous results in demonstrating the viability of fuel cell vehicles and specifically the performance of UTC Fuel Cells' proprietary fuel cell design," said Jan van Dokkum, president of UTC Power.  "Hyundai has been a terrific partner and we are pleased to be extending our relationship through this agreement."
    
UTC Fuel Cells and Hyundai have worked together on fuel cell vehicle development since 2000, when the companies unveiled the first Hyundai Santa Fe fuel cell SUV at the California Fuel Cell Partnership opening ceremonies. A total of six Hyundai fuel cell Santa Fe prototypes were produced under the previous agreement.  A Hyundai Santa Fe, powered by a UTC Fuel Cells power plant, scored best in class in efficiency and noise at the 2001 Michelin Challenge Bibendum, an annual event where new automotive technologies are evaluated by independent judges.
    

Global Thermoelectric Inc. (Toronto: GLE - News) and Quantum Fuel Systems Technologies Worldwide, Inc. (Nasdaq: QTWW - News) today announced that they have settled legal action commenced by Enbridge Inc. (the owner of all outstanding Global Series 2 Preferred Shares) challenging the combination between Quantum and Global. In addition, the parties have re- affirmed their commitment to commercializing Global's solid oxide fuel cell ("SOFC") technology.

In connection with the settlement, Enbridge agreed to discontinue its legal action challenging the Combination and agreed not to oppose the Combination, and the parties agreed to the following matters, effective upon completion of the Combination:

• Quantum will guarantee Global's dividend obligations under the terms of the Global Series 2 Preferred Shares and will cause Global to pay the minimum CDN$500,000 of annual dividends in cash to the holder of the Series 2 Preferred Shares.

• While Enbridge holds the Global Series 2 Preferred Shares, Enbridge will have the contractual right to one director to each of the Quantum board and the Global board following completion of the Combination. The Combination Agreement, which provided Global with two nominees on the Quantum board immediately following completion of the transaction, was amended to provide one of those two board seats to Enbridge.

• Quantum granted Enbridge the right to require Quantum to purchase all of the Global Series 2 Preferred Shares from Enbridge at a price of CDN$15 million, plus any accrued and unpaid dividends on the shares. Enbridge may exercise this "put" right as follows: (1) during the first three years subsequent to the Combination in the event of a change of control of Quantum or the bankruptcy or insolvency of Quantum or Global; (2) between the first and third anniversary of the closing of the Combination in the event Quantum's unrestricted consolidated cash position falls below CDN$25 million; or (3) anytime between the third and fourth anniversary of the closing of the Combination.

• Quantum will assume Global's obligations under Global's existing joint development agreement with Enbridge.

• For the two year period following completion of the Combination, Quantum committed to spend a minimum of CDN$6 million annually on the development and commercialization of SOFC technology. Quantum believes that this financial commitment is within Global's historical expenditures on SOFC development.

• Quantum agreed to use reasonable commercial efforts to fund the commercialization of SOFC systems and technology and to secure additional outside funding to be used for SOFC commercialization.

FuelCell Energy, Inc. (Nasdaq: FCEL), a leading manufacturer of Directm FuelCell(R) (DFC(R)) stationary power plants, announced today it has been selected for four U.S. government small business program contract awards totaling $1.45 million to support continued fuel cell development.

     -- U.S. Department of Energy Small Business Innovative Research Phase 2
        Award, Advanced Control Modules for Hybrid Fuel Cell/Gas Turbine Power
        Plants - The DOE has selected FuelCell Energy for a two-year, $750,000
        contract to further the development of advanced control modules for
        its patented Direct FuelCell/Turbine(R) (DFC/T(R)) combined cycle
        power plant.  This will advance the developments of Phase 1 to include
        additional dynamic optimization mechanisms such as data reconciliation
        and fault accommodation techniques.  FuelCell Energy will be working
        with the National Fuel Cell Research Center located in Irvine, Calif.,
        as a subcontractor.  The overall goal of this multi-phase project is
        to reduce costly manual interaction by plant controllers and engineers
        and enhance electronic monitoring of the integrated fuel cell and
        unfired gas turbine hybrid system.

     -- U.S. Navy Small Business Technology Transfer Phase 1 Award, Compact
        Plasma Reformer for the Ship Service Fuel Cell System - The U.S. Navy
        has selected FuelCell Energy for a nine-month, $100,000 contract to
        develop an alternative reforming process for the production of
        methane-rich gas for its Ship Service Direct FuelCell System.  The
        plasma reforming system has potential cost-reduction advantages over
        conventional steam reforming due to its more compact design.  This
        proposed plasma reformer project may result in breakthrough
        technologies for liquid-fueled DFC power plants and increased power
        density of the system.  FuelCell Energy will be working with Stevens
        Institute of Technology of Hoboken, N.J.  Following a successful
        Phase 1, a Phase 2, two-year effort, may be awarded for up to
        $750,000.

     -- U.S. Army Small Business Technology Transfer Phase 2 Award,
        Field-Enhanced Carbon Monoxide Tolerance of PEM Fuel Cells - The U.S.
        Army has selected FuelCell Energy for a 2-year, $500,000 contract.
        The selection is based on promising results obtained in the Phase 1
        program that demonstrated improved carbon monoxide tolerance when
        magnetic particles are introduced into the fuel cell anode.  The
        objective of the Phase 2 research is to further develop this process
        and to test complete membrane electrode assemblies with a variety of
        techniques to define performance limits and favorable operating
        conditions.  FuelCell Energy will be working with the University of
        Iowa as a subcontractor.  The overall goal of this multi-phase project
        is to enhance carbon monoxide tolerance and performance of PEM fuel
        cells that will result in widespread use for portable, transportation
        and stationary applications.

     -- U.S. Department of Energy Small Business Innovative Research Phase 1
        Award, Molecular Sieve Based Nano-Cathode Structure for Proton
        Exchange Membrane (PEM) Fuel Cells - The DOE has selected FuelCell
        Energy for a six-month, $100,000 contract to develop advanced cathode
        catalyst structures for oxygen reduction reaction for proton exchange
        membrane (PEM) fuel cells.  The Company will develop molecular sieve
        structures to improve cathode reaction and reduce resistance losses.
        The goal of this project is to meet the DOE's objective to reduce the
        cost of the PEM fuel cell system and accelerate the commercialization
        of PEM fuel cells for both transportation and stationary applications.
        FuelCell Energy will be working with the University of Connecticut and
        Ion Power of Bear, Del., as subcontractors.  As with the U.S. Navy
        project selection, successful Phase 1 projects are eligible for Phase
        2 project awards with funding up to $750,000.

    "These awards recognize Fuel Cell Energy's expertise and success in commercializing its fuel cell technology," said Hans Maru, FuelCell Energy's Executive Vice President and Chief Technology Officer.  "More important, the goal of these projects is to accelerate the process to make fuel cells more competitive and environmentally friendly.  The government will be able to take advantage of our extensive knowledge, and these developments will allow us to advance our own expertise in our core DFC and other fuel cell technologies."
    
FuelCell Energy's technology developments also include a growing portfolio of intellectual property.  The Company currently has 182 worldwide patents and patents pending, including 51 patents and patents pending in the U.S., with an average remaining life of 9.6 years.
    
All project selections are subject to final negotiation and contract execution.