Inide the Fuel Cell Industry- Week of Oct 05/2003

Within the realization of its fuel cell project Airbus the world’s largest aircraft manufacturer selected FuelCon to supply them with testing and laboratory equipment. The order includes test technology for reforming, SOFC- and PEMFC- systems as well as for balance-of-plant components. All of the necessary supply and safety modules were part of the order too.

**October 5 - October 11, 2003**
Highlights: *Significant Fuel Cell Industry Milestones/Events
--FuelCon received Airbus order --Fuel Cell Cars Will Make Hybrids Obsolete, GM Says --Renew Power of Illinois Has Ambitious Plans for Fuel Cell Technology --Marubeni and FuelCell Energy Announce Siting of a Direct FuelCell of a Direct FuelCell® (DFC®) power plant at Japan Petroleum Exploration Co.* --Alternate Energy Corp.'s Hydrogen Increases In Purity As Process Is Refined-Maxxam Analytics Finds --DaimlerChrysler Services North America Creates Platform For Transatlantic Dialogue on Fuel Cell Technology --Quantum Awarded Military Contract to Develop Fuel Cell Vehicle* --Avista Labs Fuel Cell Powers Critical Radio Site During Hurricane Isabel --MTI MicroFuel Cells and Harris Corporation to Further Develop Micro Fuel Cells for Military --Hitachi joins in notebook fuel cell race* --Scottish university plans to spin out fuel cell IP firm --Allan Rock and Herb Dhaliwal announce a $215 million investment to extend Canadian Leadership in the Emerging Hydrogen Economy* --Stuart Energy, Statkraft and EHN Sign Joint Cooperation Agreement for Renewable Hydrogen * --DaimlerChrysler Fuel Cell Sprinter to be Field-tested by UPS* --Honda Introduces Breakthrough Fuel Cell Stack That Operates At Below Freezing Temperatures* --Industry Minister Allan Rock intrigued by hydrogen highway plan
FuelCon received Airbus order Within the realization of its fuel cell project Airbus the world’s largest aircraft manufacturer selected FuelCon to supply them with testing and laboratory equipment. The order includes test technology for reforming, SOFC- and PEMFC- systems as well as for balance-of-plant components. All of the necessary supply and safety modules were part of the order too. “This order is a highlight in the FuelCon development”, CEO Dr. Ingo Benecke said, “Our high sophisticated technical solutions were selected within a hard bidding contest and FuelCon was able to meet the very high requirements of the Airbus supply chain procedures” Fuel Cell Cars Will Make Hybrids Obsolete, GM Says Less than a week after its biggest Japanese rival touted the economic and ecological benefits of hybrids, General Motors made a case of its own on Monday: only hydrogen-fueled cars will survive in the endgame. As the debate heats up over what the car of the future will ultimately look like, auto makers are staging a loud public relations battle to play up their strengths and justify the huge spending on developing the technologies so far. Just last Thursday, Japan's top auto maker, Toyota Motor, invited journalists to tour the production site of its new Prius hybrid to demonstrate how cheaply they could be built by sharing an assembly line with conventional mass-market cars. But Larry Burns, GM's vice president of research, development and planning, said zero-emission fuel cell vehicles (FCV) will eventually make gasoline-electric hybrids obsolete, rejecting Toyota's view that hybrids will remain on the road even after FCVs become affordable for the average consumer. "The race needs to be judged with a long-term view -- the goal is to get automobiles out of the environmental debate altogether," he told Reuters in an interview. Hybrids use electric motors and battery packs to improve fuel efficiency, adding power during acceleration and reclaiming energy when braking and coasting, but still need gasoline to run. GM has invested about $1 billion in developing fuel cells to power electric motors in vehicles, and wants to be the first auto maker to sell a million FCVs. It hopes to commercialize FCVs by 2010 -- one of the most optimistic targets in the industry. Japan's Toyota and Honda Motor became the first to put a saleable FCV on the road last year, but the cars are only on lease since they still cost millions of dollars to produce. Despite the many hurdles that remain to make FCVs commercially viable -- such as a lack of infrastructure and safety standards -- Burns said weaning the industry off gasoline would become imperative as fledgling car markets like those in China and India continue to grow. "If you look at the growth of economies in the world -- whether it be the U.S., Japan, Europe, or Brazil, Russia, India, China and Korea -- commensurate with that is the growth in eenergy consumption," he said. And with many countries relying almost 100 percent on foreign oil, they would eventually want vehicles that don't o conventional gasoline combustion engines in the interim before FCVs take over. In a week-long presentation in Tokyo with its Japanese affiliates that started on Monday, the GM group will showcase other cutting-edge technology such as truck maker Isuzu Motors' clean diesel engines and Fuji Heavy Industries' research into next-generation car batteries. GM, which also has a capital alliance with minivehicle maker Suzuki Motor and South Korea's Daewoo Motor in Asia, plans to begin selling its first gas-electric hybrid cars next year. Related Story: GM Aims To Sell 1 Million Fuel-Cell Cars By 2020 General Motors Corp. (NYSE:GM - News) aims to sell 1 million units of its fuel-cell vehicles by 2020, a senior official of the U.S. carmaker said Monday, Kyodo News reported. GM will launch full-scale commercial sales of fuel-cell cars in 2010, aiming for total sales of 1 million units in the global market in the following 10 years, GM Vice President Lawrence Burns said during an interview in Tokyo with Kyodo News. Burns, who is in charge of GM's research and development, also said the company is currently spending about 25% of all R&D spending on fuel-cell vehicle development. Burns said GM will discuss a plan to sell fuel-cell cars in the Japanese market with its group companies in Japan such as Isuzu Motors Ltd. (J.IZM or 7202), Suzuki Motor Corp. (J.SUZ or 7269) and Fuji Heavy Industries Ltd. (J.FJH or 7270). It has not yet been decided whether GM will launch sales of fuel-cell cars on its own in the Japanese market or if it will install its fuel-cell system in the cars of Japanese group automakers, Burns said, according to Kyodo. Fuel-cell cars 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 as a byproduct. Carmakers around the world are competing to take the lead in their development. GM is keeping a close eye on its rivals' moves in the fuel-cell car field, especially those of Japanese carmaker Toyota Motor Corp. (NYSE:TM - News; TM or 7203) and Canadian fuel-cell developer Ballard Power Systems Inc. (NasdaqNM:BLDP - News) , Burns said. Renew Power of Illinois Has Ambitious Plans for Fuel Cell Technology A company that plans to make fuel cells for cellphones and laptop computers hopes to have prototypes ready in 2004. "We plan to have a 1-watt prototype early next year," Renew Power President Neil Huff said. That would be enough power to operate a cellphone today but not enough to power all the functions of a cellphone in 2006, he said. So by next August, the company intends to have a 3-watt prototype ready. Renew Power plans to build fuel cells powered by formic acid. To do so, it will use technology developed by Richard Masel, a University of Illinois professor of chemical and biomolecular engineering. "We intend to commercialize formic acid fuel cells here in Illinois, not anywhere else," said David McLeod, Renew's vice president of marketing and business development, at a fuel cells forum Monday in Champaign. "When we put Renew Power here, we're going to keep it here," he declared. Renew was formed in April and already has an office in the EnterpriseWorks building at the UI Research Park. "We'll definitely have our third, and I hope fourth, employee in the lab by the end of October," Huff said. Huff and McLeod both live in the Vancouver, British Columbia, area, where Renew's parent company, Teckion Solutions Inc., is based. Teckion Solutions, formerly Northgate Energy Technologies, is devoted to advanced materials development related to fuel cells, Huff said. "Seventy-five percent of our time is spent on Renew Power, but we're not down here 75 percent of the time," he said. "I try to physically be here two weeks each month." McLeod and Huff are former Ballard Power Systems executives. Having spent time in the fuel cell and battery business, they wanted to identify a new fuel cell technology that could yield a commercial product in two or three years. "When we started looking for technology, we looked across Canada and the United States," Huff said. "The University of Illinois was the one that stood out." Added McLeod: "We've never been treated as well as we've been treated here. 'What can we do for you?' is not something we're used to hearing." McLeod said Renew's mission is to set a standard for a new energy conversion device in portable electronics. To do that, it hopes to get support from the military as well as private venture capital, he said. Both Renew Power executives attended the fuel cells forum Monday at Champaign's Hawthorn Suites. The forum was the second of six around the state sponsored by the Illinois Coalition, a group supporting high-tech development in the state. Co-sponsors of the local forum were the UI's Urbana-Champaign campus and the Champaign County Economic Development Corp. Christopher Tynan, venture development manager for the Illinois Coalition, said possible applications for fuel cells include both vehicles and portable electronic devices. But he said much research needs to be done before a market for fuel cells can be realized. McLeod said it may take small companies such as Renew Power to lead the way. "Sometimes you have to bet the house, and big guys don't bet the house," he said. "The little guy'll probably do it." Marubeni and FuelCell Energy Announce Siting of a Direct FuelCell of a Direct FuelCell® (DFC®) power plant at Japan Petroleum Exploration Co. The Marubeni Corporation (TSE: 8002) and FuelCell Energy, Inc. (Nasdaq: FCEL), announced the siting of a Direct FuelCell(R) (DFC(R)) power plant at Japan Petroleum Exploration Co., Ltd. (JAPEX) facilities near Nagaoka City in Japan. Marubeni, Asian partner of fuel cell developer FuelCell Energy, will supply a 250-kilowatt DFC300A power plant to JAPEX's Katakai natural gas gathering station located in the Niigata Prefecture in the fourth quarter of 2003. The DFC unit will operate on the natural gas being produced from the field, and will provide electricity for JAPEX's natural gas processing facilities on the site. "We are pleased to provide JAPEX with a highly-reliable, high-efficiency source of power for use in remote areas such as their natural gas field," said Takeo Nakata, General Manager of Marubeni's New Energies Team. "The remote, off-grid and island markets in Japan and Asia are another major market segment that holds significant potential for small and large-scale DFC power generation. This project will demonstrate the market potential for this technology throughout JAPEX's service territory in Northern Japan. DFC power plants offer a clean alternative to traditional reciprocating engine-based distributed generation." "This siting announcement demonstrates Marubeni's commitment to developing new and exciting markets for our DFC power plants," said Herbert T. Nock, Senior Vice President of Marketing and Sales of FuelCell Energy, Inc. "With the projects announced to date, Marubeni is seeding the market in key applications that we believe will be the foundation for additional orders in Japan and Asia." This is Marubeni's fourth identified DFC power plant project in Japan. Previously, Marubeni announced the siting of 250-kilowatt DFC power plants at the Nippon Metal Industry facility, the Fukuoka Metropolitan Wastewater Treatment District and at the Kirin Brewery in Toride. The Kirin Brewery DFC300A power plant has been operating since January 2003, and the Nippon and Fukuoka units are expected to be operating this fall. Marubeni has a total customer commitment of 4.25 megawatts for DFC power plants from FuelCell Energy. Alternate Energy Corp.'s Hydrogen Increases In Purity As Process Is Refined-Maxxam Analytics Finds Latest Affordable Hydrogen Production Lab Test Results Show 99.9% Purity Alternate Energy Corporation (OTCBB:ARGY - News) announced today that the company's most recent tests of its proprietary hydrogen production process yielded the best purity results to date. AEC engineers were delighted when the hydrogen produced during this most recent trial resulted in an impressive 99.9% purity. The latest tests were conducted at Maxxam Analytics state-of-the-art facilities in Ontario. Maxxam Analytics is a leading analytical laboratory company in Canada offering services in petroleum & petrochemical analysis and environmental analysis. According to AEC Chairman Blaine Froats, "Though the minimum purity requirement for joint fuel cell testing was met ahead of schedule, impurities - especially carbon dioxide, can have deleteerious effects on a fuel cell. We therefore felt it important that we continue to pursue the highest level of purity as possible. We are very satisfied with the results. Our team achieved as close to 100% purity as one can attain, while still keeping the final product cost at a very affordable level." "Maxxam Analytics was pleased to provide analytical services to Alternate Energy Corporation. In the most recent round of analytical testing, using accredited and approved methods; the hydrogen purity was determined to be 99.9 %. This sample was taken directly from a small generating unit set up in the laboratory," says Joyce MacDonald, Supervisor Air Quality Services, Maxxam Analytics. The prices of fuel cells have been gradually moderating over the past few years, however, the commodity pricing of the hydrogen needed to make these fuel cells work has shown little progress. In addition, there is a continued negative public perception regarding the transportation and storage of hydrogen, which has contributed to its limited acceptance. AEC clearly recognized that hydrogen is the ideal fuel because it is both clean, abundant and can be made affordably. That is why the company has drafted a corporate mission with two key objectives. The first was to make hydrogen available on an as-needed basis, to avoid transportation and storage issues. The second, to make hydrogen so inexpensive that people all over the world could afford it. "Hydrogen is the most abundant element in the universe. Mother Nature has been producing it for millions of years. Written records even indicate that hydrogen has been produced by man since 1671. The difficulty has been to produce quality hydrogen cheaply. That is where we come in," says Froats. Last month AEC became the exclusive owner of a proprietary hydrogen production technology that works to achieve both of these goals. AEC, which had been a licensee of the technology, was so impressed with the process that it bought the system. This latest purity achievement translates into a number of benefits. The first is the minimization of potential damage to the fuel cell, achieved by reducing contaminants such as carbon dioxide and other impurities to a safe level. Ultimately, this means that there is less wear-and-tear on the fuel cell, resulting in less overall maintenance and cost of operation. The company's recent improvements in hydrogen purity were achieved when the hydrogen production unit was physically brought into Maxxam's laboratory for testing. Hydrogen samples were taken directly from the unit itself to avoid leakage inaccuracies that had occurred with past analyses. AEC continues to work to reduce the size of its hydrogen production unit for the consumer market, as well as the building of additional demonstration units for presentation to major corporate entities. DaimlerChrysler Services North America Creates Platform For Transatlantic Dialogue on Fuel Cell Technology * Company hosts Michigan House of Representatives Commerce Committee * Germany's Baden-Wuerttemberg State Parliament Economics Committee Attends Open Session * Honorary Consul of Germany Fred Hoffman Initiates Discussion on Fuel Cell Technology as Alternate Energy Source DaimlerChrysler Services North America, the captive finance arm of DaimlerChrysler, created a platform for the transatlantic discussion for members of the Michigan House of Representatives Commerce Committee and their counterparts from Germany's State of Baden-Wuerttemberg in Southern Germany. DaimlerChrysler Services hosted and sponsored the dialogue between the two Government delegations at the North American headquarters in Farmington Hills, Mich. The dialogue was an open session in which members from both governments discussed the use of fuel cells as alternate energy in the hopes of gaining a better understanding for the transportation needs of both countries. The dialogue was the first of its kind between both governments and underlined the importance of global knowledge sharing between the automotive cities of both countries. "We are excited to open up our headquarters for this initial open session. As a global company we understand the importance of constructive dialogues as relationships are built, positions understood and progress made. By hosting these delegations we are reaffirming our position as a corporate citizen in the State of Michigan and in Germany," stated Juergen Walker, President and CEO of DaimlerChrysler Services North America. In a series of presentations and testimonies relating to the fuel cell, the two delegations gained invaluable insight to the progress and potential of the fuel cell as an alternate energy source. Since the 1999 closing of the German Consulate General in Detroit, Michigan, limited dialogues between the two countries have taken place. Fred Hoffman, Director of State Relations at the Chrysler Group was appointed Honorary Consul of Germany in 2003. His position is to facilitate a constructive dialogue between the two countries and foster relations. "With the support of DaimlerChrysler Services, we are able to open up a constructive dialogue between the Commerce and Economics committees and in doing so, are in a position to share important information about the technology of the future," stated Fred Hoffman. The dialogue represents the first of a host of joint sessions between the two governments, which will take place throughout 2003-2004. Quantum Awarded Military Contract to Develop Fuel Cell Vehicle Quantum Fuel System Technologies Worldwide, Inc., (Nasdaq: QTWW) announced today that it has been awarded a contract by the U.S. Army TARDEC-NAC (National Automotive Center) to develop and demonstrate a high performance, hydrogen fuel cell powered light-duty, special operations vehicle. The vehicle will be designed by Quantum's Advanced Vehicle Concept Center in Lake Forest, California. Quantum will complete the development program and will support the U.S. Army's demonstrations at military bases throughout the country. This is Quantum's second contract supporting the U.S. Army in the development of hydrogen fuel cell systems applications. This program will integrate a hydrogen fuel cell powered hybrid electric powertrain into a light-duty off-road vehicle, and will achieve performance that meets or exceeds the gasoline internal combustion engine version. Specifically, Quantum will develop a chassis and body, integrate the fuel cell power module, design the electric drive system, design the hydrogen fuel storage and delivery system, and develop the operational and maintenance documentation. Benefits from these vehicles will include a reduced thermal signature, near-silent propulsion, and the rapid deployment of equipment utilized by troops. With the increasing tactical and communication equipment being implemented on the battlefield and the need for electrical power to support it, fuel cell powered vehicles also have the capability of exporting electrical power silently for a multitude of applications. With fuel comprising 70 percent of the supplies transported by the Armed Services to support battlefield operations, this project has the potential to illustrate a pathway to address logistic issues. The U.S. Army has the option to expand this project to include a refueling system designed by Quantum. Dennis Wend, Executive Director of the U.S. Army's National Automotive Center said, "The U.S. Army is always looking at new technologies with partners like Quantum to provide solutions that address the military's challenges in the battlefield. Fuel cells have the potential to provide more efficient, stealthier vehicles through the use of advanced drivetrain technologies, and to solve tactical and logistical issues faced by the military." Quantum's web site: http://www.qtww.com. Avista Labs Fuel Cell Powers Critical Radio Site During Hurricane Isabel Avista Labs, the leading provider of reliability-based fuel cell solutions for backup power applications, and havePOWER, LLC, a leading power solution integrator for State emergency communications, announced successful backup power performance during the most extreme conditions of Hurricane Isabel. havePOWER's integrated power solution, featuring Avista Labs' Independence 1000(TM) modular fuel cell system, was installed at a Maryland government microwave radio tower site in Elk Neck State Park in May 2003. The Elk Neck site, along with much of eastern Maryland, was impacted severely by Hurricane Isabel on September 18-19, causing it to lose grid power. In the midst of Isabel's fury, it became necessary to remove the backup generator at the site from service. The failure of the grid and the combustion generator was detected by havePOWER's integrated power solution, which instantly activated the Avista Labs Independence 1000(TM). The fuel cell system enabled critical Maryland Institute for Emergency Medical Systems Services (MIEMSS), State Police, Emergency Medical Services (EMS) and other critical communications during the hurricane and its aftermath until grid power was restored. State of Maryland Director of Communications, Tom Miller stated, "The fuel cell system carried the day. This is exactly why we began implementing a backup power program featuring the modular havePOWER/Avista Labs package. We need highly reliable communications, especially during emergencies. I am very pleased with this result." The Elk Neck site is the first field site installed under a distribution agreement between Avista Labs and havePOWER. havePOWER is working with MIEMSS to install an identical solution in other critical, emergency communications sites across Maryland. Avista Labs has granted havePOWER exclusive marketing rights for specific government communications requirements in 18 states through 2006. Avista Labs CEO, Mike Davis commented, "Outages occur with more regularity than we'd like. The events of Hurricane Isabel provided the ultimate test of the reliability of our fuel cell products in critical telecommunications applications. We see growing demand for our products in critical back-up applications. We are very proud of the performance of our fuel cell products and the excellent work of havePOWER." George Milne, chief operating officer at havePOWER stated, "We are not surprised by the job the fuel cell system did at Elk Neck. It did exactly what it was designed to do." MTI MicroFuel Cells and Harris Corporation to Further Develop Micro Fuel Cells for Military MTI MicroFuel Cells Inc. (MTI Micro), a subsidiary of Mechanical Technology Inc. (Nasdaq: MKTY) and Harris Corporation (NYSE: HRS) today announced an agreement that builds on work completed under an earlier project and advances their joint development of micro fuel cell systems for portable military communications equipment. As part of the first agreement between the two companies, entered into November 2002, MTI Micro developed direct methanol micro fuel cell (DMFC) system power-pack prototypes for use with Harris' tactical handheld radios. In May 2003, the two companies began demonstrating the resultant prototypes and discussed future military applications for micro fuel cells at a number of military and fuel cell industry conferences. Under the new agreement, Harris will purchase next generation direct methanol micro fuel cell system prototypes from MTI Micro. "The military needs smaller, more sophisticated radios, with more functions and a longer use time, all of which means a greater need for power," said MTI Micro president and chief executive officer Dr. William Acker. "Working with a demonstrated leader like Harris can accelerate the development of micro fuel cell systems to provide these benefits." "We are pleased to continue our work with MTI Micro as we address the need for an improved power source for today's military communication devices," said David Stephenson, vice president, marketing and new business initiatives, Harris Corporation, RF Communications Division. Hitachi joins in notebook fuel cell race Eight hours dream machine A NOTEBOOK fuel cell that will give eight hours of power for notebook PCs at 10 watts is under development by Hitachi. According to today's Japanese press, the device is expected to be on the market by the beginning of 2005. The Nihon Keizai Shimbun said that Hitachi has managed to reduce platinum particles, which catalyse the methanol-hydrogen process, from 10 nanometers down to a really minute two nanometers. µ Scottish university plans to spin out fuel cell IP firm The University of St Andrews aims to spin out a company to exploit fuel cell intellectual property. "We are just on the edge of spinning out," said Professor John Irvine, "requesting £2m from the funding community." The initial aim of St Andrews Fuel Cells, the likely name of the venture, "is to build 100W and 1kW demonstrators by the end of 2004", said Irvine. The university has been researching solid oxide fuel cells (SOFCs). "Essentially we have developed a minimalist fuel cell concept," said Irvine. "In our opinion, it is hard to see how any alternative design could achieve better cost or performance capabilities." There are two ways to construct SOFCs, according to Irvine, planar and cylindrical. Planar cells use less material, but cylindrical cells are easier to construct. St Andrews claims to have found a way to adapt the low-material structure used in planar cells, making it suitable for low-cost cylindrical cell construction. "The key thing is cost per kilowatt. Our paper studies suggest our cell will cost $150/kW," said Irvine. "The US Department of Energy's ten year cost target is $400/kW." Early cells will be designed to run from LPG (liquefied petroleum gas) and other hydrocarbon fuels. Micro-scale applications include portable generators for camping, remote installations and the military. Using fuel to store energy Fuel cells are getting a lot of attention for two reasons: First, they have the potential to beat the energy density of the best practical batteries in handheld devices and laptops. Second, not being thermodynamic devices, they can extract up to 100 per cent of energy from a fuel as electricity. Thermodynamic devices including power stations struggle not to waste 60 per cent as heat. Cool-running methanol fuel cells are currently favoured for sub-20W applications. Hot-running solid oxide fuel cells can consume hydrocarbon fuels directly and look good for higher power applications up to several kW. Hydrogen fuel cells are the simplest in principle, but practical methods are proving hard to develop. Allan Rock and Herb Dhaliwal announce a $215 million investment to extend Canadian Leadership in the Emerging Hydrogen Economy The Government of Canada today announced a $215 million investment that will capitalize on the use of hydrogen and fuel cells, and lead to cleaner air and a more sustainable economy in Canada. Applications for transformative, hydrogen-based technologies are wide-ranging and the initiatives announced today will assist in delivering the immense potential of an economy running on hydrogen to Canada. The announcement was made today by Allan Rock, Minister of Industry, and Herb Dhaliwal, Minister of Natural Resources. "Hydrogen represents an opportunity to improve the quality of life for all Canadians, through both a cleaner environment and a more productive economy," said Minister Rock. "The applications for hydrogen are virtually limitless, and by building on the innovative advances that Canadian companies and researchers have made we will continue to have communities and industries that are the envy of the world." This investment in efforts to develop and demonstrate hydrogen-based technologies will enable Canada to reduce greenhouse gas emissions that cause climate change, as well as build a more innovative, efficient and sustainable economy poised for future growth. Through these initiatives, Canada will build on its world leadership in this innovative industry, and continue to attract investment and be a magnet for skilled talent. "This hydrogen economy initiative, by demonstrating the practical applications of this clean energy technology, is a key part of Canada's climate change strategy," said Minister Dhaliwal. "We want the world to turn to Canada when looking for the technology needed to address climate change. This investment will help ensure that happens." The investment is directed by three strategic priorities: - early adoption of hydrogen technologies through integrated demonstration projects undertaken by partnerships that will showcase a working model of the hydrogen economy in real-world settings; - improved performance and reduced costs of hydrogen technologies, and extension of Canadian leadership through research and development of innovative new applications in strategic areas of the hydrogen value chain; and - initiatives to establish a hydrogen infrastructure through Sustainable Development Technology Canada, building on the foundation's success in establishing successful, partnership projects. Accelerating the development, commercialization and early adoption of hydrogen technologies and applications in Canada is a key element of these investments. The Government of Canada will partner with eligible recipients to demonstrate these technologies and to integrate them into a comprehensive working model of the hydrogen economy. This includes fostering clusters of expertise and partnerships in the form of real-world "hydrogen villages." As part of this, Industry Canada and its Portfolio partners, such as Technology Partnerships Canada and the National Research Council will dedicate more than $85 million to hydrogen economy efforts, advancing the work already underway, and increasing hydrogen activity across the Industry Portfolio. "With early support of integrated hydrogen economy projects in Canada, we will learn by doing," said Minister Rock. "The Government of Canada is open to receive proposals, and we are excited about partnering with the private sector to demonstrate the viability of hydrogen solutions." "In Canada we have the technology and the expertise to show the potential of the hydrogen economy to the world," added Minister Dhaliwal. Industry Canada will work with proponents to advance their innovative hydrogen demonstration projects. Information about this early adopters program is available at www.tpc.ic.gc.ca/h2 or by calling 1 800 391-3363. Stuart Energy, Statkraft and EHN Sign Joint Cooperation Agreement for Renewable Hydrogen Stuart Energy Systems Corporation (TSX:HHO), Statkraft SF and Corporacion Energia Hidroelectrica de Navarra S.A. (EHN), have signed a joint cooperation agreement intended to establish a framework to jointly assess, demonstrate and develop advanced renewable energy based hydrogen production and distribution solutions. Stuart Energy is a leading manufacturer and integrator of turnkey water electrolysis based Hydrogen Energy Stations (HES), Statkraft is the foremost electricity company in Norway and major renewable energy producer in Europe. EHN is the second largest European producer of electricity from wind power. The three companies share a common belief that hydrogen produced from renewable energy sources will be a vital energy carrier of the future. Stuart Energy brings to the partnership its expertise in developing multi-purpose hydrogen infrastructure products (HES) that use electricity and water to generate and store hydrogen energy. This stored hydrogen can then be redeployed on demand as either fuel for vehicles, or as electricity for peak shaving or power applications. The HES has five modules: hydrogen generation, compression, storage, dispensing and power generation. Statkraft and EHN will enrich the partnership with their considerable knowledge of electrical networks, as well as their deep technical expertise in generating renewable electricity using wind and hydropower turbine technology. Both Statkraft and EHN have each purchased a Stuart Energy HES hydrogen generation module and are actively evaluating sites to demonstrate transportation and power applications of wind generated hydrogen. "Statkraft is committed to the implementation of environmentally friendly energy solutions. We see hydrogen produced from renewable energy sources, such as wind energy, through electrolysis as the pathway to bringing the full benefits of clean hydrogen to applications in the transport and stationary sectors," said Erlend Broli, Director Development of Statkraft. "EHN is committed to demonstrating the technical and economic viability of the sustainable energy model," says Carlos Itoiz, Deputy CEO of EHN. "We are present in a number of renewables, particularly wind energy, where we have developed almost 30% of the installed capacity of Spain, and this agreement enables us to make a decisive entry into the field of hydrogen. Working with our partners we can generate hydrogen from the wind, thus ensuring a completely clean cycle in its production." "Hydrogen produced through electrolysis using renewable energy addresses the issues of energy security, climate change and urban air quality," said Jon Slangerup, President and CEO of Stuart Energy. "Hydrogen is a zero-emission fuel that can be produced and distributed where it is required, making it indigenous to every country. We, along with our partners, recognize the tremendous role hydrogen will play in the future, and we look forward to working together to develop long term deployable energy solutions." DaimlerChrysler Fuel Cell Sprinter to be Field-tested by UPS DaimlerChrysler and UPS, the world's biggest parcel service, are embarking on a joint venture to field-test and further develop the Mercedes-Benz fuel cell Sprinter. The collaboration agreement, under which fuel cell models will be tested in commercial practice, was drawn up in Ann Arbor (Michigan/USA) in May 2003 at a meeting between DaimlerChrysler, UPS and the US Environmental Protection Agency (EPA). A fuel cell Sprinter will be handed over to UPS at the DaimlerChrysler plant in Düsseldorf today. Dr Rolf Bartke, Head of Mercedes-Benz Vans at DaimlerChrysler, explained, "Looking to the future, fuel cell technology is the most promising alternative drive concept — which is why DaimlerChrysler is not only interested in establishing its expertise in this field, but also in encouraging its practical application in collaboration with select customers. This Mercedes-Benz Sprinter is a vision of the future for this century's innovative courier service: environmentally friendly and quiet. In it, DaimlerChrysler offers its customers the opportunity to be one of the front runners and to familiarise themselves with the latest innovations at an early stage." Rudolf Schulz, Director Automotive, UPS Europe and Asia, pointed out, "The hand-over of the Mercedes Sprinter today underlines the positive collaboration between UPS and DaimlerChrysler when it comes to testing new technology. The use of fuel cell technology ties in with our efforts to cut down on the use of fossil fuels by actively protecting the environment." The Mercedes-Benz fuel cell van has front-wheel drive and uses gaseous hydrogen as fuel. Depot-based commercial vehicle operations are ideal for this form of fuel cell drive. A genuine zero-emission vehicle, the Mercedes-Benz Sprinter has a 55-kW electric engine which allows the van to achieve a top speed of 120 km/h and a range of over 150 km. The fuel cell technology on board does not restrict the Sprinter panel van's cargo capacity. This demonstration project will give DaimlerChrysler the opportunity to carry out further testing on its fuel cell vehicles, particularly with regard to fuel consumption, operation at low temperatures and performance. The project will provide EPA, DaimlerChrysler and UPS with valuable experience in the practical use of both fuel cell vehicles and hydrogen filling stations. Honda Introduces Breakthrough Fuel Cell Stack That Operates At Below Freezing Temperatures Honda-Developed FC Stack Delivers Improved Performance, Range, Energy Efficiency and Recycleability Honda Motor Co., Ltd. announced the development of the Honda FC Stack, a remarkably compact next-generation fuel cell stack that delivers higher performance with increased range and fuel efficiency, and is designed to operate at temperatures as low as -20 degrees C (-4 degrees F). Cold weather operation is one of the most significant technical barriers to the mass-market application of fuel cell technology. Honda will soon begin public road evaluation of the vehicle's cold start and driving performance capabilities to advance more widespread use of fuel cell vehicles. Honda's originally developed FC stack is the world's first fuel stack to feature a stamped metal separator structure combined with newly developed electrolyte membranes for improved efficiency, recycleability, and operation over a greater range of temperatures. Where conventional fuel cell stacks have a complex structure in which carbon separators are fastened together with bolts, the Honda FC Stack has a simplified structure composed of metal separators with rubber seals that are attached in a unique molding process and enclosed by panels. This reduces the number of components by almost 50 percent compared to a conventional stack, and more than doubles the output density when compared to the Honda FCX V3 stack, resulting in world-leading performance. Further, the use of newly developed electrolyte membranes greatly improves durability and allows for power generation at temperatures ranging from -20 degrees C (-4 degrees F) to +95 degrees C (+203 degrees F) -- a difficult achievement for stacks that employ conventional fluorine electrolyte membranes. The driving range of the FCX with a Honda FC Stack also has increased by 20 miles to more than 180 miles (Honda estimate based on EPA's range certification method). Fuel economy is also improved by over 10 percent compared to the current model FCX. Honda began fuel cell technology research in the 1980s. Tests of Honda developed fuel cell stacks were conducted under a range of driving conditions using the 1999 FCX-V2 and the 2001 FCX-V3 prototypes. Developed with a view to volume production and the ultimate need to recycle fuel cell vehicles, this next generation Honda FC Stack significantly reduces the use of special materials and offers excellent driving performance and low temperature starts. The Honda FCX is the world's first fuel cell vehicle certified for commercial use by the U.S. government, and the first to meet all applicable U.S. motor vehicle safety standards. The FCX earned certification from the EPA and the California Air Resources Board (CARB) in July 2002. The FCX is also the first and only fuel cell vehicle to be tested and listed in the EPA's 2003 fuel economy guide. In December 2002, the city of Los Angeles took delivery of the first of five FCX vehicles being leased by the city for regular daily use as part of their alternative fuel vehicle fleet. In September of this year, the city of San Francisco joined Los Angeles in committing to the use of advanced Honda fuel cell technology and will take delivery of two vehicles before the end of this year. Key Features of the Honda FC Stack Compact, high output -- The number of components is reduced by almost 50 percent through use of the world's first stamped metal separators and a panel-type structure, while the output density is almost double that of the Honda FCX V3 stack. Low-temperature startup -- Proton conductivity at low temperatures is double that of a conventional stack due to the use of newly developed electrolyte membranes. -- Use of metal separators improves conductivity. -- Thermal capacity is reduced because the unit is more compact. Warm-up time is just 20% of a conventional stack. Durable even at high temperatures -- Power can be generated at up to +95 degrees C (+203 degrees F). Next-generation fuel cell stack developed with an eye towards mass production and recycling. -- Some special materials have been replaced by more readily-available materials. Specifications of the Honda FC Stack-equipped FCX Name FCX with Honda FC Stack Number of occupants 4 Max. speed 93mph Max. output 80kW (107hp) Motor Max. drive 272N * m (201 lb-ft) Type Permanent Magnet AC synchronous Fuel cell stack Type PEMFC (2 units) (Proton exchange membrane fuel cell) Output 86kW Fuel Type Compressed Hydrogen Storage High-pressure hydrogen tank (5000psi) Capacity 156.6 liters Dimensions (L x W x H, mm) 4165 x 1760 x 1645 Energy storage Ultra Capacitor (manufactured by Honda) Vehicle range More than 180 miles (real world) Industry Minister Allan Rock intrigued by hydrogen highway plan OTTAWA (CP) - Industry Minister Allan Rock and newly elected California Gov. Arnold Schwarzenegger share visions of cruising a West Coast hydrogen highway. Rock said Thursday that he is interested in proposals for a Canada-U.S. highway equipped with hydrogen filling stations to fuel a coming fleet of zero-emissions vehicles. Schwarzenegger, who recently converted his Humvee to run on hydrogen, promised during his campaign that he would promote a hydrogen highway if elected. "The idea is to link B.C. and California," Rock said after appearing at a Commons committee meeting. "It's neat." Rock said his department will invest $85 million in hydrogen-related research, in addition to $130 million in federal funding already announced. Hydrogen has been touted as the fuel of the future since it produces no greenhouse emissions or other pollution when burned. However, it takes a lot of energy to produce and the fuel is difficult to store safely because of high volatility, and a whole new infrastructure would be needed for distribution. The technology is also bedeviled by a chicken-and-egg problem: vehicles can't be introduced until there are filling stations, but stations are hard to justify without vehicles. The notion of a hydrogen highway was launched about 18 months ago by National Research Council, Methanex and B.C. Hydro, said NRC scientist Yoga Yogendran. "It's a vision we created," he said. "The vision is all about having hydrogen fueling stations . . . that will allow hydrogen fueled vehicles to operate from Victoria to Whistler." The goal is to get the highway in operation in time for the 2010 Olympics at Whistler, said Yogendran. Meanwhile, the U.S. Department of Energy has opened some stations in California and is looking at extending the network into Oregon and Washington State, he said. "It's something we could work on with the Americans eventually to have this highway running right along the West Coast. We don't have a project yet, what we have is a vision. Now I think it's time to be pulled together as a project." Rock did not make any specific commitment to the West Coast project, but told the committee Canada must maintain its lead in hydrogen technology. Matthew Bramley of the Pembina Institute said hydrogen, which requires electricity to produce, can provide major environmental advantages if that electricity comes from clean sources such as wind, solar or natural gas. There is no advantage if the electricity comes from coal-fired plants, he said. ~

“This order is a highlight in the FuelCon development”, CEO Dr. Ingo Benecke said, “Our high sophisticated technical solutions were selected within a hard bidding contest and FuelCon was able to meet the very high requirements of the Airbus supply chain procedures”

Less than a week after its biggest Japanese rival touted the economic and ecological benefits of hybrids, General Motors made a case of its own on Monday: only hydrogen-fueled cars will survive in the endgame.

As the debate heats up over what the car of the future will ultimately look like, auto makers are staging a loud public relations battle to play up their strengths and justify the huge spending on developing the technologies so far.

Just last Thursday, Japan's top auto maker, Toyota Motor, invited journalists to tour the production site of its new Prius hybrid to demonstrate how cheaply they could be built by sharing an assembly line with conventional mass-market cars.

But Larry Burns, GM's vice president of research, development and planning, said zero-emission fuel cell vehicles (FCV) will eventually make gasoline-electric hybrids obsolete, rejecting Toyota's view that hybrids will remain on the road even after FCVs become affordable for the average consumer.

"The race needs to be judged with a long-term view -- the goal is to get automobiles out of the environmental debate altogether," he told Reuters in an interview.

Hybrids use electric motors and battery packs to improve fuel efficiency, adding power during acceleration and reclaiming energy when braking and coasting, but still need gasoline to run.

GM has invested about $1 billion in developing fuel cells to power electric motors in vehicles, and wants to be the first auto maker to sell a million FCVs. It hopes to commercialize FCVs by 2010 -- one of the most optimistic targets in the industry.

Japan's Toyota and Honda Motor became the first to put a saleable FCV on the road last year, but the cars are only on lease since they still cost millions of dollars to produce.

Despite the many hurdles that remain to make FCVs commercially viable -- such as a lack of infrastructure and safety standards -- Burns said weaning the industry off gasoline would become imperative as fledgling car markets like those in China and India continue to grow.

"If you look at the growth of economies in the world -- whether it be the U.S., Japan, Europe, or Brazil, Russia, India, China and Korea -- commensurate with that is the growth in eenergy consumption," he said.

And with many countries relying almost 100 percent on foreign oil, they would eventually want vehicles that don't o conventional gasoline combustion engines in the interim before FCVs take over.

In a week-long presentation in Tokyo with its Japanese affiliates that started on Monday, the GM group will showcase other cutting-edge technology such as truck maker Isuzu Motors' clean diesel engines and Fuji Heavy Industries' research into next-generation car batteries.

GM, which also has a capital alliance with minivehicle maker Suzuki Motor and South Korea's Daewoo Motor in Asia, plans to begin selling its first gas-electric hybrid cars next year.

Related Story: GM Aims To Sell 1 Million Fuel-Cell Cars By 2020

General Motors Corp. (NYSE:GM - News) aims to sell 1 million units of its fuel-cell vehicles by 2020, a senior official of the U.S. carmaker said Monday, Kyodo News reported.

GM will launch full-scale commercial sales of fuel-cell cars in 2010, aiming for total sales of 1 million units in the global market in the following 10 years, GM Vice President Lawrence Burns said during an interview in Tokyo with Kyodo News.

Burns, who is in charge of GM's research and development, also said the company is currently spending about 25% of all R&D spending on fuel-cell vehicle development.

Burns said GM will discuss a plan to sell fuel-cell cars in the Japanese market with its group companies in Japan such as Isuzu Motors Ltd. (J.IZM or 7202), Suzuki Motor Corp. (J.SUZ or 7269) and Fuji Heavy Industries Ltd. (J.FJH or 7270).

It has not yet been decided whether GM will launch sales of fuel-cell cars on its own in the Japanese market or if it will install its fuel-cell system in the cars of Japanese group automakers, Burns said, according to Kyodo.

Fuel-cell cars 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 as a byproduct. Carmakers around the world are competing to take the lead in their development.

GM is keeping a close eye on its rivals' moves in the fuel-cell car field, especially those of Japanese carmaker Toyota Motor Corp. (NYSE:TM - News; TM or 7203) and Canadian fuel-cell developer Ballard Power Systems Inc. (NasdaqNM:BLDP - News) , Burns said.

A company that plans to make fuel cells for cellphones and laptop computers hopes to have prototypes ready in 2004.

"We plan to have a 1-watt prototype early next year," Renew Power President Neil Huff said.

That would be enough power to operate a cellphone today but not enough to power all the functions of a cellphone in 2006, he said. So by next August, the company intends to have a 3-watt prototype ready.

Renew Power plans to build fuel cells powered by formic acid. To do so, it will use technology developed by Richard Masel, a University of Illinois professor of chemical and biomolecular engineering.

"We intend to commercialize formic acid fuel cells here in Illinois, not anywhere else," said David McLeod, Renew's vice president of marketing and business development, at a fuel cells forum Monday in Champaign.

Renew was formed in April and already has an office in the EnterpriseWorks building at the UI Research Park.

"We'll definitely have our third, and I hope fourth, employee in the lab by the end of October," Huff said.

Huff and McLeod both live in the Vancouver, British Columbia, area, where Renew's parent company, Teckion Solutions Inc., is based.

Teckion Solutions, formerly Northgate Energy Technologies, is devoted to advanced materials development related to fuel cells, Huff said.

"Seventy-five percent of our time is spent on Renew Power, but we're not down here 75 percent of the time," he said. "I try to physically be here two weeks each month."

McLeod and Huff are former Ballard Power Systems executives. Having spent time in the fuel cell and battery business, they wanted to identify a new fuel cell technology that could yield a commercial product in two or three years.

"When we started looking for technology, we looked across Canada and the United States," Huff said. "The University of Illinois was the one that stood out."

Added McLeod: "We've never been treated as well as we've been treated here. 'What can we do for you?' is not something we're used to hearing."

McLeod said Renew's mission is to set a standard for a new energy conversion device in portable electronics. To do that, it hopes to get support from the military as well as private venture capital, he said.

Both Renew Power executives attended the fuel cells forum Monday at Champaign's Hawthorn Suites. The forum was the second of six around the state sponsored by the Illinois Coalition, a group supporting high-tech development in the state.

Co-sponsors of the local forum were the UI's Urbana-Champaign campus and the Champaign County Economic Development Corp.

Christopher Tynan, venture development manager for the Illinois Coalition, said possible applications for fuel cells include both vehicles and portable electronic devices. But he said much research needs to be done before a market for fuel cells can be realized.

"Sometimes you have to bet the house, and big guys don't bet the house," he said. "The little guy'll probably do it."

The Marubeni Corporation (TSE: 8002) and FuelCell Energy, Inc. (Nasdaq: FCEL), announced the siting of a Direct FuelCell(R) (DFC(R)) power plant at Japan Petroleum Exploration Co., Ltd. (JAPEX) facilities near Nagaoka City in Japan.
Marubeni, Asian partner of fuel cell developer FuelCell Energy, will supply a 250-kilowatt DFC300A power plant to JAPEX's Katakai natural gas gathering station located in the Niigata Prefecture in the fourth quarter of 2003. The
DFC unit will operate on the natural gas being produced from the field, and will provide electricity for JAPEX's natural gas processing facilities on the site.

"We are pleased to provide JAPEX with a highly-reliable, high-efficiency source of power for use in remote areas such as their natural gas field," said Takeo Nakata, General Manager of Marubeni's New Energies Team. "The remote, off-grid and island markets in Japan and Asia are another major market segment that holds significant potential for small and large-scale DFC power generation. This project will demonstrate the market potential for this technology throughout JAPEX's service territory in Northern Japan. DFC power plants offer a clean alternative to traditional reciprocating engine-based
distributed generation."

"This siting announcement demonstrates Marubeni's commitment to developing new and exciting markets for our DFC power plants," said Herbert T. Nock, Senior Vice President of Marketing and Sales of FuelCell Energy, Inc. "With the projects announced to date, Marubeni is seeding the market in key applications that we believe will be the foundation for additional orders in Japan and Asia."

This is Marubeni's fourth identified DFC power plant project in Japan. Previously, Marubeni announced the siting of 250-kilowatt DFC power plants at the Nippon Metal Industry facility, the Fukuoka Metropolitan Wastewater Treatment District and at the Kirin Brewery in Toride. The Kirin Brewery DFC300A power plant has been operating since January 2003, and the Nippon and Fukuoka units are expected to be operating this fall. Marubeni has a total customer commitment of 4.25 megawatts for DFC power plants from FuelCell Energy.

Alternate Energy Corporation (OTCBB:ARGY - News) announced today that the company's most recent tests of its proprietary hydrogen production process yielded the best purity results to date. AEC engineers were delighted when the hydrogen produced during this most recent trial resulted in an impressive 99.9% purity. The latest tests were conducted at Maxxam Analytics state-of-the-art facilities in Ontario. Maxxam Analytics is a leading analytical laboratory company in Canada offering services in petroleum & petrochemical analysis and environmental analysis.

According to AEC Chairman Blaine Froats, "Though the minimum purity requirement for joint fuel cell testing was met ahead of schedule, impurities - especially carbon dioxide, can have deleteerious effects on a fuel cell. We therefore felt it important that we continue to pursue the highest level of purity as possible. We are very satisfied with the results. Our team achieved as close to 100% purity as one can attain, while still keeping the final product cost at a very affordable level."

"Maxxam Analytics was pleased to provide analytical services to Alternate Energy Corporation. In the most recent round of analytical testing, using accredited and approved methods; the hydrogen purity was determined to be 99.9 %. This sample was taken directly from a small generating unit set up in the laboratory," says Joyce MacDonald, Supervisor Air Quality Services, Maxxam Analytics.

The prices of fuel cells have been gradually moderating over the past few years, however, the commodity pricing of the hydrogen needed to make these fuel cells work has shown little progress. In addition, there is a continued negative public perception regarding the transportation and storage of hydrogen, which has contributed to its limited acceptance.

AEC clearly recognized that hydrogen is the ideal fuel because it is both clean, abundant and can be made affordably. That is why the company has drafted a corporate mission with two key objectives. The first was to make hydrogen available on an as-needed basis, to avoid transportation and storage issues. The second, to make hydrogen so inexpensive that people all over the world could afford it.

"Hydrogen is the most abundant element in the universe. Mother Nature has been producing it for millions of years. Written records even indicate that hydrogen has been produced by man since 1671. The difficulty has been to produce quality hydrogen cheaply. That is where we come in," says Froats.

Last month AEC became the exclusive owner of a proprietary hydrogen production technology that works to achieve both of these goals. AEC, which had been a licensee of the technology, was so impressed with the process that it bought the system.

This latest purity achievement translates into a number of benefits. The first is the minimization of potential damage to the fuel cell, achieved by reducing contaminants such as carbon dioxide and other impurities to a safe level. Ultimately, this means that there is less wear-and-tear on the fuel cell, resulting in less overall maintenance and cost of operation.

The company's recent improvements in hydrogen purity were achieved when the hydrogen production unit was physically brought into Maxxam's laboratory for testing. Hydrogen samples were taken directly from the unit itself to avoid leakage inaccuracies that had occurred with past analyses.

AEC continues to work to reduce the size of its hydrogen production unit for the consumer market, as well as the building of additional demonstration units for presentation to major corporate entities.

* Company hosts Michigan House of Representatives Commerce Committee
* Germany's Baden-Wuerttemberg State Parliament Economics Committee
    Attends Open Session
* Honorary Consul of Germany Fred Hoffman Initiates Discussion on Fuel
       Cell Technology as Alternate Energy Source

DaimlerChrysler Services North America, the captive finance arm of DaimlerChrysler, created a platform for the transatlantic discussion for members of the Michigan House of Representatives Commerce Committee and their counterparts from Germany's State of Baden-Wuerttemberg in Southern Germany. DaimlerChrysler Services hosted and sponsored the dialogue between the two Government delegations at the North American headquarters in Farmington Hills, Mich.

The dialogue was an open session in which members from both governments discussed the use of fuel cells as alternate energy in the hopes of gaining a better understanding for the transportation needs of both countries. The dialogue was the first of its kind between both governments and underlined the importance of global knowledge sharing between the automotive cities of both countries. "We are excited to open up our headquarters for this initial open session. As a global company we understand the importance of constructive dialogues as relationships are built, positions understood and progress made.
By hosting these delegations we are reaffirming our position as a corporate citizen in the State of Michigan and in Germany," stated Juergen Walker, President and CEO of DaimlerChrysler Services North America.

In a series of presentations and testimonies relating to the fuel cell, the two delegations gained invaluable insight to the progress and potential of the fuel cell as an alternate energy source. Since the 1999 closing of the German Consulate General in Detroit, Michigan, limited dialogues between the two countries have taken place. Fred Hoffman, Director of State Relations at the Chrysler Group was appointed Honorary Consul of Germany in 2003. His position is to facilitate a constructive dialogue between the two countries and foster relations. "With the support of DaimlerChrysler Services, we are
able to open up a constructive dialogue between the Commerce and Economics committees and in doing so, are in a position to share important information about the technology of the future," stated Fred Hoffman.

The dialogue represents the first of a host of joint sessions between the two governments, which will take place throughout 2003-2004.

Quantum Fuel System Technologies Worldwide, Inc., (Nasdaq: QTWW) announced today that it has been awarded a contract by the U.S. Army TARDEC-NAC (National Automotive Center) to develop and demonstrate a high performance, hydrogen fuel cell powered light-duty, special operations vehicle. The vehicle will be designed by Quantum's Advanced Vehicle Concept Center in Lake Forest, California. Quantum will complete the development program and will support the U.S. Army's demonstrations at military bases throughout the country.

This is Quantum's second contract supporting the U.S. Army in the development of hydrogen fuel cell systems applications. This program will integrate a hydrogen fuel cell powered hybrid electric powertrain into a light-duty off-road vehicle, and will achieve performance that meets or exceeds the gasoline internal combustion engine version. Specifically, Quantum will develop a chassis and body, integrate the fuel cell power module, design the electric drive system, design the hydrogen fuel storage and delivery system, and develop the operational and maintenance documentation.

Benefits from these vehicles will include a reduced thermal signature, near-silent propulsion, and the rapid deployment of equipment utilized by troops. With the increasing tactical and communication equipment being implemented on the battlefield and the need for electrical power to support it, fuel cell powered vehicles also have the capability of exporting electrical power silently for a multitude of applications. With fuel comprising 70 percent of the supplies transported by the Armed Services to support battlefield operations, this project has the potential to illustrate a pathway to address logistic issues.

The U.S. Army has the option to expand this project to include a refueling system designed by Quantum.

Dennis Wend, Executive Director of the U.S. Army's National Automotive Center said, "The U.S. Army is always looking at new technologies with partners like Quantum to provide solutions that address the military's challenges in the battlefield. Fuel cells have the potential to provide more efficient, stealthier vehicles through the use of advanced drivetrain technologies, and to solve tactical and logistical issues faced by the military."

Quantum's web site: http://www.qtww.com.

Avista Labs, the leading provider of reliability-based fuel cell solutions for backup power applications, and havePOWER, LLC, a leading power solution integrator for State emergency communications, announced successful backup power performance during the most extreme conditions of Hurricane Isabel. havePOWER's integrated power solution, featuring Avista Labs' Independence 1000(TM) modular fuel cell system, was installed at a Maryland government microwave
radio tower site in Elk Neck State Park in May 2003. The Elk Neck site, along with much of eastern Maryland, was impacted severely by Hurricane Isabel on September 18-19, causing it to lose grid power. In the midst of Isabel's
fury, it became necessary to remove the backup generator at the site from service. The failure of the grid and the combustion generator was detected by havePOWER's integrated power solution, which instantly activated the Avista Labs Independence 1000(TM). The fuel cell system enabled critical Maryland Institute for Emergency Medical Systems Services (MIEMSS), State Police, Emergency Medical Services (EMS) and other critical communications during the hurricane and its aftermath until grid power was restored.

State of Maryland Director of Communications, Tom Miller stated, "The fuel cell system carried the day. This is exactly why we began implementing a backup power program featuring the modular havePOWER/Avista Labs package. We need highly reliable communications, especially during emergencies. I am very pleased with this result."

The Elk Neck site is the first field site installed under a distribution agreement between Avista Labs and havePOWER. havePOWER is working with MIEMSS to install an identical solution in other critical, emergency communications sites across Maryland. Avista Labs has granted havePOWER exclusive marketing rights for specific government communications requirements in 18 states through 2006.

Avista Labs CEO, Mike Davis commented, "Outages occur with more regularity than we'd like. The events of Hurricane Isabel provided the ultimate test of the reliability of our fuel cell products in critical telecommunications applications. We see growing demand for our products in critical back-up applications. We are very proud of the performance of our fuel cell products and the excellent work of havePOWER."

George Milne, chief operating officer at havePOWER stated, "We are not surprised by the job the fuel cell system did at Elk Neck. It did exactly what it was designed to do."

MTI MicroFuel Cells Inc. (MTI Micro), a subsidiary of Mechanical Technology Inc. (Nasdaq: MKTY) and Harris
Corporation (NYSE: HRS) today announced an agreement that builds on work completed under an earlier project and advances their joint development of micro fuel cell systems for portable military communications equipment.

As part of the first agreement between the two companies, entered into November 2002, MTI Micro developed direct methanol micro fuel cell (DMFC) system power-pack prototypes for use with Harris' tactical handheld radios.
In May 2003, the two companies began demonstrating the resultant prototypes and discussed future military applications for micro fuel cells at a number of military and fuel cell industry conferences. Under the new agreement, Harris will purchase next generation direct methanol micro fuel cell system prototypes from MTI Micro.

"The military needs smaller, more sophisticated radios, with more functions and a longer use time, all of which means a greater need for power," said MTI Micro president and chief executive officer Dr. William Acker. "Working with a demonstrated leader like Harris can accelerate the development of micro fuel cell systems to provide these benefits."

"We are pleased to continue our work with MTI Micro as we address the need for an improved power source for today's military communication devices," said David Stephenson, vice president, marketing and new business initiatives, Harris Corporation, RF Communications Division.

A NOTEBOOK fuel cell that will give eight hours of power for notebook PCs at 10 watts is under development by Hitachi.

According to today's Japanese press, the device is expected to be on the market by the beginning of 2005.

The Nihon Keizai Shimbun said that Hitachi has managed to reduce platinum particles, which catalyse the methanol-hydrogen process, from 10 nanometers down to a really minute two nanometers. µ

The University of St Andrews aims to spin out a company to exploit fuel cell intellectual property.

"We are just on the edge of spinning out," said Professor John Irvine, "requesting £2m from the funding community."

The initial aim of St Andrews Fuel Cells, the likely name of the venture, "is to build 100W and 1kW demonstrators by the end of 2004", said Irvine.

The university has been researching solid oxide fuel cells (SOFCs). "Essentially we have developed a minimalist fuel cell concept," said Irvine. "In our opinion, it is hard to see how any alternative design could achieve better cost or performance capabilities."

There are two ways to construct SOFCs, according to Irvine, planar and cylindrical. Planar cells use less material, but cylindrical cells are easier to construct.

St Andrews claims to have found a way to adapt the low-material structure used in planar cells, making it suitable for low-cost cylindrical cell construction. "The key thing is cost per kilowatt. Our paper studies suggest our cell will cost $150/kW," said Irvine. "The US Department of Energy's ten year cost target is $400/kW."

Early cells will be designed to run from LPG (liquefied petroleum gas) and other hydrocarbon fuels. Micro-scale applications include portable generators for camping, remote installations and the military.

Fuel cells are getting a lot of attention for two reasons:
First, they have the potential to beat the energy density of the best practical batteries in handheld devices and laptops.

Second, not being thermodynamic devices, they can extract up to 100 per cent of energy from a fuel as electricity. Thermodynamic devices including power stations struggle not to waste 60 per cent as heat.

Cool-running methanol fuel cells are currently favoured for sub-20W applications. Hot-running solid oxide fuel cells can consume hydrocarbon fuels directly and look good for higher power applications up to several kW.

Hydrogen fuel cells are the simplest in principle, but practical methods are proving hard to develop.

The Government of Canada today announced a $215 million investment that will capitalize on the use of hydrogen and fuel cells, and lead to cleaner air and a more sustainable economy in Canada. Applications for transformative, hydrogen-based technologies are wide-ranging and the initiatives announced today will assist in delivering the immense potential of an economy running on hydrogen to Canada. The announcement was made today by Allan Rock, Minister of Industry, and Herb Dhaliwal, Minister of Natural Resources.

"Hydrogen represents an opportunity to improve the quality of life for all Canadians, through both a cleaner environment and a more productive economy," said Minister Rock. "The applications for hydrogen are virtually limitless, and by building on the innovative advances that Canadian companies and researchers have made we will continue to have communities and industries that are the envy of the world."

This investment in efforts to develop and demonstrate hydrogen-based technologies will enable Canada to reduce greenhouse gas emissions that cause climate change, as well as build a more innovative, efficient and sustainable economy poised for future growth. Through these initiatives, Canada will build on its world leadership in this innovative industry, and continue to attract investment and be a magnet for skilled talent.

"This hydrogen economy initiative, by demonstrating the practical applications of this clean energy technology, is a key part of Canada's climate change strategy," said Minister Dhaliwal. "We want the world to turn to Canada when looking for the technology needed to address climate change. This investment will help ensure that happens."

    The investment is directed by three strategic priorities:
    - early adoption of hydrogen technologies through integrated
      demonstration projects undertaken by partnerships that will showcase a
      working model of the hydrogen economy in real-world settings;
    - improved performance and reduced costs of hydrogen technologies, and
      extension of Canadian leadership through research and development of
      innovative new applications in strategic areas of the hydrogen value
      chain; and
    - initiatives to establish a hydrogen infrastructure through Sustainable
      Development Technology Canada, building on the foundation's success in
      establishing successful, partnership projects.

Accelerating the development, commercialization and early adoption of hydrogen technologies and applications in Canada is a key element of these investments. The Government of Canada will partner with eligible recipients to demonstrate these technologies and to integrate them into a comprehensive working model of the hydrogen economy. This includes fostering clusters of expertise and partnerships in the form of real-world "hydrogen villages."

As part of this, Industry Canada and its Portfolio partners, such as Technology Partnerships Canada and the National Research Council will dedicate more than $85 million to hydrogen economy efforts, advancing the work already underway, and increasing hydrogen activity across the Industry Portfolio.

"With early support of integrated hydrogen economy projects in Canada, we will learn by doing," said Minister Rock. "The Government of Canada is open to receive proposals, and we are excited about partnering with the private sector to demonstrate the viability of hydrogen solutions."

"In Canada we have the technology and the expertise to show the potential of the hydrogen economy to the world," added Minister Dhaliwal.

Industry Canada will work with proponents to advance their innovative hydrogen demonstration projects. Information about this early adopters program is available at www.tpc.ic.gc.ca/h2 or by calling 1 800 391-3363.

Stuart Energy Systems Corporation (TSX:HHO), Statkraft SF and Corporacion Energia Hidroelectrica de Navarra S.A. (EHN), have signed a joint cooperation agreement intended to establish a framework to jointly assess, demonstrate and develop advanced renewable energy based hydrogen production and distribution solutions.

Stuart Energy is a leading manufacturer and integrator of turnkey water electrolysis based Hydrogen Energy Stations (HES), Statkraft is the foremost electricity company in Norway and major renewable energy producer in Europe. EHN is the second largest European producer of electricity from wind power. The three companies share a common belief that hydrogen produced from renewable energy sources will be a vital energy carrier of the future.

Stuart Energy brings to the partnership its expertise in developing multi-purpose hydrogen infrastructure products (HES) that use electricity and water to generate and store hydrogen energy. This stored hydrogen can then be redeployed on demand as either fuel for vehicles, or as electricity for peak shaving or power applications. The HES has five modules: hydrogen generation, compression, storage, dispensing and power generation.

Statkraft and EHN will enrich the partnership with their considerable knowledge of electrical networks, as well as their deep technical expertise in generating renewable electricity using wind and hydropower turbine technology. Both Statkraft and EHN have each purchased a Stuart Energy HES hydrogen generation module and are actively evaluating sites to demonstrate transportation and power applications of wind generated hydrogen.

"Statkraft is committed to the implementation of environmentally friendly energy solutions. We see hydrogen produced from renewable energy sources, such as wind energy, through electrolysis as the pathway to bringing the full benefits of clean hydrogen to applications in the transport and stationary sectors," said Erlend Broli, Director Development of Statkraft.

"EHN is committed to demonstrating the technical and economic viability of the sustainable energy model," says Carlos Itoiz, Deputy CEO of EHN. "We are present in a number of renewables, particularly wind energy, where we have developed almost 30% of the installed capacity of Spain, and this agreement enables us to make a decisive entry into the field of hydrogen. Working with our partners we can generate hydrogen from the wind, thus ensuring a completely clean cycle in its production."

"Hydrogen produced through electrolysis using renewable energy addresses the issues of energy security, climate change and urban air quality," said Jon Slangerup, President and CEO of Stuart Energy. "Hydrogen is a zero-emission fuel that can be produced and distributed where it is required, making it indigenous to every country. We, along with our partners, recognize the tremendous role hydrogen will play in the future, and we look forward to working together to develop long term deployable energy solutions."

DaimlerChrysler and UPS, the world's biggest parcel service, are embarking on a joint venture to field-test and further develop the Mercedes-Benz fuel cell Sprinter. The collaboration agreement, under which fuel cell models will be tested in commercial practice, was drawn up in Ann Arbor (Michigan/USA) in May 2003 at a meeting between DaimlerChrysler, UPS and the US Environmental Protection Agency (EPA). A fuel cell Sprinter will be handed over to UPS at the DaimlerChrysler plant in Düsseldorf today.

Dr Rolf Bartke, Head of Mercedes-Benz Vans at DaimlerChrysler, explained, "Looking to the future, fuel cell technology is the most promising alternative drive concept — which is why DaimlerChrysler is not only interested in establishing its expertise in this field, but also in encouraging its practical application in collaboration with select customers. This Mercedes-Benz Sprinter is a vision of the future for this century's innovative courier service: environmentally friendly and quiet. In it, DaimlerChrysler offers its customers the opportunity to be one of the front runners and to familiarise themselves with the latest innovations at an early stage."

Rudolf Schulz, Director Automotive, UPS Europe and Asia, pointed out, "The hand-over of the Mercedes Sprinter today underlines the positive collaboration between UPS and DaimlerChrysler when it comes to testing new technology. The use of fuel cell technology ties in with our efforts to cut down on the use of fossil fuels by actively protecting the environment."

The Mercedes-Benz fuel cell van has front-wheel drive and uses gaseous hydrogen as fuel. Depot-based commercial vehicle operations are ideal for this form of fuel cell drive. A genuine zero-emission vehicle, the Mercedes-Benz Sprinter has a 55-kW electric engine which allows the van to achieve a top speed of 120 km/h and a range of over 150 km. The fuel cell technology on board does not restrict the Sprinter panel van's cargo capacity.

This demonstration project will give DaimlerChrysler the opportunity to carry out further testing on its fuel cell vehicles, particularly with regard to fuel consumption, operation at low temperatures and performance. The project will provide EPA, DaimlerChrysler and UPS with valuable experience in the practical use of both fuel cell vehicles and hydrogen filling stations.

Honda-Developed FC Stack Delivers Improved Performance, Range, Energy Efficiency and Recycleability

Honda Motor Co., Ltd. announced the development of the Honda FC Stack, a remarkably compact next-generation fuel cell stack that delivers higher performance with increased range and fuel efficiency, and is designed to operate at temperatures as low as -20 degrees C (-4 degrees F).

Cold weather operation is one of the most significant technical barriers to the mass-market application of fuel cell technology. Honda will soon begin public road evaluation of the vehicle's cold start and driving performance capabilities to advance more widespread use of fuel cell vehicles.

Honda's originally developed FC stack is the world's first fuel stack to feature a stamped metal separator structure combined with newly developed electrolyte membranes for improved efficiency, recycleability, and operation over a greater range of temperatures.

Where conventional fuel cell stacks have a complex structure in which carbon separators are fastened together with bolts, the Honda FC Stack has a simplified structure composed of metal separators with rubber seals that are attached in a unique molding process and enclosed by panels. This reduces the number of components by almost 50 percent compared to a conventional stack, and more than doubles the output density when compared to the Honda FCX V3 stack, resulting in world-leading performance.

Further, the use of newly developed electrolyte membranes greatly improves durability and allows for power generation at temperatures ranging from -20 degrees C (-4 degrees F) to +95 degrees C (+203 degrees F) -- a difficult
achievement for stacks that employ conventional fluorine electrolyte membranes. The driving range of the FCX with a Honda FC Stack also has increased by 20 miles to more than 180 miles (Honda estimate based on EPA's range certification method). Fuel economy is also improved by over 10 percent compared to the current model FCX.

Honda began fuel cell technology research in the 1980s. Tests of Honda developed fuel cell stacks were conducted under a range of driving conditions using the 1999 FCX-V2 and the 2001 FCX-V3 prototypes. Developed with a view to volume production and the ultimate need to recycle fuel cell vehicles, this next generation Honda FC Stack significantly reduces the use of special materials and offers excellent driving performance and low temperature starts.

The Honda FCX is the world's first fuel cell vehicle certified for commercial use by the U.S. government, and the first to meet all applicable U.S. motor vehicle safety standards. The FCX earned certification from the EPA and the California Air Resources Board (CARB) in July 2002. The FCX is also the first and only fuel cell vehicle to be tested and listed in the EPA's 2003 fuel economy guide. In December 2002, the city of Los Angeles took delivery of the first of five FCX vehicles being leased by the city for regular daily use as part of their alternative fuel vehicle fleet. In September of this year, the city of San Francisco joined Los Angeles in committing to the use of advanced Honda fuel cell technology and will take delivery of two vehicles before the end of this year.

     Key Features of the Honda FC Stack

     Compact, high output

       -- The number of components is reduced by almost 50 percent through use
          of the world's first stamped metal separators and a panel-type
          structure, while the output density is almost double that of the
          Honda FCX V3 stack.

     Low-temperature startup

       -- Proton conductivity at low temperatures is double that of a
          conventional stack due to the use of newly developed electrolyte
          membranes.

       -- Use of metal separators improves conductivity.

       -- Thermal capacity is reduced because the unit is more compact.
          Warm-up time is just 20% of a conventional stack.

     Durable even at high temperatures

       -- Power can be generated at up to +95 degrees C (+203 degrees F).

     Next-generation fuel cell stack developed with an eye towards mass
     production and recycling.

       -- Some special materials have been replaced by more readily-available
          materials.

    Specifications of the Honda FC Stack-equipped FCX

     Name                                        FCX with Honda FC Stack

     Number of occupants                         4

     Max. speed                                  93mph

                           Max. output           80kW (107hp)
     Motor                 Max. drive            272N * m (201 lb-ft)
                           Type                  Permanent Magnet AC
                                                  synchronous

     Fuel cell stack       Type                  PEMFC
     (2 units)                                   (Proton exchange membrane
                                                  fuel cell)
                           Output                86kW

     Fuel                  Type                  Compressed Hydrogen
                           Storage               High-pressure hydrogen tank
                                                  (5000psi)
                           Capacity              156.6 liters

     Dimensions (L x W x H, mm)                  4165 x 1760 x 1645

     Energy storage                              Ultra Capacitor
                                                  (manufactured by Honda)

     Vehicle range                               More than 180 miles
                                                  (real world)

OTTAWA (CP) - Industry Minister Allan Rock and newly elected California Gov. Arnold Schwarzenegger share visions of cruising a West Coast hydrogen highway.

Rock said Thursday that he is interested in proposals for a Canada-U.S. highway equipped with hydrogen filling stations to fuel a coming fleet of zero-emissions vehicles.

Schwarzenegger, who recently converted his Humvee to run on hydrogen, promised during his campaign that he would promote a hydrogen highway if elected.

"The idea is to link B.C. and California," Rock said after appearing at a Commons committee meeting. "It's neat."

Rock said his department will invest $85 million in hydrogen-related research, in addition to $130 million in federal funding already announced.

Hydrogen has been touted as the fuel of the future since it produces no greenhouse emissions or other pollution when burned.

However, it takes a lot of energy to produce and the fuel is difficult to store safely because of high volatility, and a whole new infrastructure would be needed for distribution.

The technology is also bedeviled by a chicken-and-egg problem: vehicles can't be introduced until there are filling stations, but stations are hard to justify without vehicles.

The notion of a hydrogen highway was launched about 18 months ago by National Research Council, Methanex and B.C. Hydro, said NRC scientist Yoga Yogendran.

"It's a vision we created," he said. "The vision is all about having hydrogen fueling stations . . . that will allow hydrogen fueled vehicles to operate from Victoria to Whistler."

The goal is to get the highway in operation in time for the 2010 Olympics at Whistler, said Yogendran.

Meanwhile, the U.S. Department of Energy has opened some stations in California and is looking at extending the network into Oregon and Washington State, he said.

"It's something we could work on with the Americans eventually to have this highway running right along the West Coast. We don't have a project yet, what we have is a vision. Now I think it's time to be pulled together as a project."

Rock did not make any specific commitment to the West Coast project, but told the committee Canada must maintain its lead in hydrogen technology.

Matthew Bramley of the Pembina Institute said hydrogen, which requires electricity to produce, can provide major environmental advantages if that electricity comes from clean sources such as wind, solar or natural gas.