Japan's top car manufacturer had begun leasing the million-dollar-plus cars to four Japanese government ministries and two California university campuses last December, becoming the world's first automaker, along with rival Honda Motor Co, to market the environmentally friendly vehicles.

The deployment of the zero-emission vehicles, in two different sizes, will begin late this year and continue in 2004 and will be the first use of fuel cell technology in a commercial delivery fleet in North America. It was announced at a news conference at the National Vehicle and Fuel Emissions Laboratory by EPA Administrator Christie Whitman and corporate executives along with Gov. Jennifer Granholm, Sen. Carl Levin and Rep. John Dingell.

 The company claims its PEMFC technology offers 100W, instant power-up capability and it is garnering interest from both military and commercial customers because of the instant power-up capability of the hybrid fuel cell battery technology.

"Despite predictions to the contrary, as equipment goes digital, power consumption has doubled due to the growing expectations of functionality and performance," said Dr. Kevin Green from Qinetiq. 

"Traditionally, battery improvement is slow and steady. I don't see anything on the horizon for batteries that would lift their performance significantly. Even if that happened, our fuel cell battery hybrid would be many times better." 

 Of 45 employees, 34 remain at the Spokane Valley company. Nine people were laid off, and two others left to pursue other opportunities, company spokeswoman Sandra Saathoff said.

 "People have always known that when you work for a startup, you're taking a risk," Saathoff said, explaining that the company is honing its focus to manufacturing and sales.

The inverter, which was developed in collaboration with RWE 
Piller GmbH, meets a need for a more efficient, and less complex method of converting the power output of fuel cells into electricity that can be delivered to the utility grid. 

SJI and Stockton were joined by local government officials, business leaders and representatives of the New Jersey Board of Public Utilities, which presented Stockton with a $710,000 NJ Clean Energy program check during the ribbon cutting ceremony on the Pomona campus.

Ener1 Inc.'s equipment makes thin and thick films of electrode materials and solid electrolytes using a new production process, also developed by the Company. Ener1 executives believe this new development could substantially improve its competitive position in the emerging markets for fuel cell energy resources.

Under the terms of the deal, Proton will pay for about two-thirds of the purchase in cash and the rest in common stock. Northern's security holders will also receive warrants to buy about 2.5 million shares of Proton stock.

In addition, Wallingford, Connecticut-based Proton said it will make a special cash distribution of $1 a share, or about $33.5 million.

The deal is expected to close in the third quarter.

The chairman of Proton's board of directors, Robert Shaw, is also the chairman of Northern's board of directors. Proton said Shaw did not participate in negotiations on behalf of either company and did not vote on the transaction as a board member for either company.