Inide the Fuel Cell Industry- Week of August 31/2003

Researchers at the University of Wisconsin say they have found a viable substitute for platinum to use in the extraction of hydrogen fuel from plants.

The scientists have found a nickel-tin alternative that can be used as a catalyst rather than the expensive precious metal.

The substitute was identified after lengthy testing to find a nickel-tin-aluminium combination that would provoke a reaction from biomass-derived hydrocarbons.

The reaction had to create hydrogen and carbon dioxide, but avoid the production of excessive amounts of methane. The single step process developed by the team uses pressure, temperature and a catalyst to convert hydrocarbons.

Products resulting from this process consist of 50 per cent hydrogen, with the remainder carbon dioxide and gaseous alkanes. Thanks to the fact that plants grown as fuel crops absorb the carbon dioxide, the process is greenhouse-gas neutral.

The low temperature process does not boil any water, so is a significant energy saving over ethanol production or conventional fossil-fuel-based hydrogen-generation methods that boil water.

Biological engineering professor James Dumesic said the research was an important step in the process of establishing the use of environmentally sustainable power.

'The conversion of biomass into useful products is an important aspect of managing our natural resources effectively for sustainable production of needed chemicals and energy', he said.

'Our study illustrates how a systematic approach involving fundamental aspects of chemical and biological engineering can lead to new, environmentally sustainable processes for the production of energy,' he concluded.

Power & Energy, Inc., (P&E) a small company with 12 employees, founded in 1993 in Bucks County Pennsylvania is about to revolutionize the use of fuel cells and kick-start the Hydrogen Economy.

The company, which develops and manufactures hydrogen separators, has developed new hybrid hydrogen separation technology specifically designed for fuel cell applications. Using advanced nano-technology, a system the size of a typical telephone directory (one tenth of a cubic foot) can supply the hydrogen needed for a 100KW fuel cell that could be used to power a car. By using P&E’s technology, auto manufacturers could dramatically shorten the projected time needed to make fuel cells powered vehicles practical for the general public.

P&E’s new product will allow fuel cell vehicles to use easier-to-handle liquid fuels such as ethanol. Ethanol is derived from corn and is already used as a fuel for automobiles in many regions in the United States. Using this new technology, hydrogen can be extracted from liquid fuel as it is needed by the fuel cell. This will allow existing gasoline stations to be refueling points for Hydrogen driven vehicles.

Without this technology, auto manufacturers have been planning to install high pressure hydrogen storage tanks in fuel cell cars. This would require a network of hydrogen refueling stations and a completely different fuel supply network. Investments to produce, store and dispense high pressure hydrogen would likely cost several millions of dollars per station. P&E technology will allow local gas stations to dispense ethanol from existing fuel pumps and storage tanks.

The United States Department of Defense (DOD) has already provided some funding for research & development. At the request of the DOD, P&E has submitted a proposal for additional funding to develop a hydrogen separation membrane that would be suitable for portable fuel cells. These fuel cells could be used to replace costly and inefficient battery power for ground personnel and many other military needs.

**September 1 - September 7 2003**
This weeks highlights: -Researchers find platinum substitute for hydrogen fuel production -Power & Energy Develops Key Fuel Cell Technology -Acumentrics and Sumitomo to Form Joint Venture to Develop and Market Solid Oxide Fuel Cells for Japan -ECD Moves Toward Independent Board With Resignation of Four Directors -Cost Reductions Will Hasten Fuel Cell Commercialization -BCC Research quanitatively forecasts PEM market size -Fuel Cells: Getting there -Palcan Develops Stationary 2-Kilowatt PEM Fuel Cell System For Growing Telecommunications And UPS Market -Sustainable Energy Expands Fuel Cell Customer Base -Voller Energy to launch portable fuel cell at London's Grove conference -Hydrogen Infrastructure Deployment is Key Component to U.S. and Canada Having One Million Fuel Cell Vehicles by 2015, Says ABI -Delphi SECA Solid Oxide Fuel Cell Successfully Powered By Gasified Coal -Umicore Fuel Cell Division acquires Catalyst Patents from Max Planck Institute
Researchers find platinum substitute for hydrogen fuel production Researchers at the University of Wisconsin say they have found a viable substitute for platinum to use in the extraction of hydrogen fuel from plants. The scientists have found a nickel-tin alternative that can be used as a catalyst rather than the expensive precious metal. The substitute was identified after lengthy testing to find a nickel-tin-aluminium combination that would provoke a reaction from biomass-derived hydrocarbons. The reaction had to create hydrogen and carbon dioxide, but avoid the production of excessive amounts of methane. The single step process developed by the team uses pressure, temperature and a catalyst to convert hydrocarbons. Products resulting from this process consist of 50 per cent hydrogen, with the remainder carbon dioxide and gaseous alkanes. Thanks to the fact that plants grown as fuel crops absorb the carbon dioxide, the process is greenhouse-gas neutral. The low temperature process does not boil any water, so is a significant energy saving over ethanol production or conventional fossil-fuel-based hydrogen-generation methods that boil water. Biological engineering professor James Dumesic said the research was an important step in the process of establishing the use of environmentally sustainable power. 'The conversion of biomass into useful products is an important aspect of managing our natural resources effectively for sustainable production of needed chemicals and energy', he said. 'Our study illustrates how a systematic approach involving fundamental aspects of chemical and biological engineering can lead to new, environmentally sustainable processes for the production of energy,' he concluded. Power & Energy Develops Key Fuel Cell Technology Power & Energy, Inc., (P&E) a small company with 12 employees, founded in 1993 in Bucks County Pennsylvania is about to revolutionize the use of fuel cells and kick-start the Hydrogen Economy. The company, which develops and manufactures hydrogen separators, has developed new hybrid hydrogen separation technology specifically designed for fuel cell applications. Using advanced nano-technology, a system the size of a typical telephone directory (one tenth of a cubic foot) can supply the hydrogen needed for a 100KW fuel cell that could be used to power a car. By using P&E’s technology, auto manufacturers could dramatically shorten the projected time needed to make fuel cells powered vehicles practical for the general public. P&E’s new product will allow fuel cell vehicles to use easier-to-handle liquid fuels such as ethanol. Ethanol is derived from corn and is already used as a fuel for automobiles in many regions in the United States. Using this new technology, hydrogen can be extracted from liquid fuel as it is needed by the fuel cell. This will allow existing gasoline stations to be refueling points for Hydrogen driven vehicles. Without this technology, auto manufacturers have been planning to install high pressure hydrogen storage tanks in fuel cell cars. This would require a network of hydrogen refueling stations and a completely different fuel supply network. Investments to produce, store and dispense high pressure hydrogen would likely cost several millions of dollars per station. P&E technology will allow local gas stations to dispense ethanol from existing fuel pumps and storage tanks. The United States Department of Defense (DOD) has already provided some funding for research & development. At the request of the DOD, P&E has submitted a proposal for additional funding to develop a hydrogen separation membrane that would be suitable for portable fuel cells. These fuel cells could be used to replace costly and inefficient battery power for ground personnel and many other military needs. Acumentrics and Sumitomo to Form Joint Venture to Develop and Market Solid Oxide Fuel Cells for Japan Acumentrics Corporation, a leading developer of Solid Oxide Fuel Cells, and Sumitomo Corporation, one of Japan's largest integrated trading companies, today announced the formation of Acumentrics Japan Co. The purpose of the new company will be to market and sell Acumentrics' proprietary tubular solid oxide fuel cell power systems throughout Japan. The formation of this new company comes on the successful conclusion of a year-long market and fuel cell technology study. Acumentrics and Sumitomo will initially concentrate on modifying Acumentrics' prototype natural gas powered, rapid-start tubular solid oxide fuel cell "T-SOFC" systems for the Japanese market, specifically targeting 2-10 kilowatt residential and small commercial applications. Acumentrics will be solely responsible for SOFC technology while Sumitomo will be responsible for market requirements and actual marketing of the fuel cell products. Future products may extend beyond 100 kilowatts for applications such as large commercial power and transmission congestion relief. It is also anticipated that other major Japanese corporations will soon join and contribute to the development of the products. "Japan depends on imports for over 95% of its primary energy needs. This dependency, coupled with the nation's commitment to reduce greenhouse gas emissions, has led to the need to develop and introduce new highly efficient energy systems. We see solid oxide fuel cell systems as a major contributor in helping our nation meet this need," said Mr. Kazuaki Mori, Business Development Manager of Sumitomo Corporation. He continues, "Our research has convinced us that the Acumentrics' solid oxide fuel cell systems, in particular, have a real potential to emerge as the leading technology in the fuel cell market, which would be start from FY 2005 in Japan." "Sumitomo has enormous expertise and resources in designing, integrating and distributing leading-edge technology-based products throughout Japan and Asia. We are honored to have this opportunity to partner with Sumitomo and believe the benefits of their experience will carry over to all our customers," said Gary A. Mook, President & CEO of Acumentrics Corporation. Solid oxide fuel cells are ceramic devices that silently and efficiently produce electricity and heat electrochemically, unlike traditional engine generators. Acumentrics' proprietary low-pressure bundled tubular "fuel inside the tube" design gives it a unique edge over other fuel cell designs for stationary use because of their inherent low cost, simplicity and fuel versatility. Acumentrics' T-SOFC is capable of internally reforming natural gas and propane to achieve over 40% efficiency gas to AC output, at less than 1/2% degradation per 1000 hours. ECD Moves Toward Independent Board With Resignation of Four Directors (ECD) (Nasdaq: ENER - News) today reported that four of its directors, Donald L. Paul, Greg M. Vesey, Hellmut Fritzsche and Subhash K. Dhar, have resigned from the Board of Directors of ECD. ECD is moving toward compliance with the heightened independent standards for members of boards of directors provided in the Sarbanes-Oxley Act passed just over a year ago, as well as satisfying the independent directors' requirements under proposed NASDAQ rules. "We have started to adjust the membership of our Board of Directors so that we will comply with the requirement to have a majority of independent directors on the Board," said Robert C. Stempel, Chairman of ECD. Both Messrs. Paul and Vesey have been the designated nominees of ChevronTexaco Corporation (NYSE: CVTX - News; ChevronTexaco) and have served on ECD's Board of Directors since 2001. Don Paul is Vice President and Chief Technology Officer of ChevronTexaco. Reporting to Mr. Paul, Greg Vesey is President of ChevronTexaco Technology Ventures with management and budget responsibilities for Texaco Ovonic Battery Systems LLC, a 50-50 joint venture between a unit of ChevronTexaco and Ovonic Battery Company, a subsidiary of ECD, and for Texaco Ovonic Hydrogen Systems, a 50-50 joint venture between a unit of ChevronTexaco and ECD. The departure of Messrs. Paul and Vesey from ECD's Board will permit them to participate more actively in the affairs of the joint ventures and matters related to ECD which otherwise were limited due to their relationship to ChevronTexaco and their status as non-independent members of ECD's Board. Dr. Hellmut Fritzsche is Vice President of ECD and a long-time collaborator with Stanford R. Ovshinsky, President and CEO of ECD, in the field of amorphous materials. Dr. Fritzsche is the former chairman of the Department of Physics at the University of Chicago. He has been a member of the Board of ECD since 1969. Mr. Subhash Dhar is President of the Ovonic Battery Company. He has worked closely with Stan Ovshinsky on the development of the Ovonic(TM) nickel-metal hydride battery and the Ovonic(TM) regenerative fuel cell. He has been a member of the Board since 1999. Dr. Fritzsche and Mr. Dhar, in their respective positions as Vice President of ECD and President of Ovonic Battery Company, will continue to provide significant contributions as valued members of ECD's management team. Cost Reductions Will Hasten Fuel Cell Commercialization The commercial viability of the fuel cell, the clean and quiet technology, is heavily dependant on cost reductions that assume greater significance as worldwide concern for rapidly depleting non-renewable fossil fuels increases. Fuel cell costs are augmented by a few factors. These systems use expensive heat resistant materials that enable smooth functioning in very high temperatures, and they rely on precious metals, such as platinum, as catalysts. Moreover, conversion of available fuels to hydrogen requires expensive reformers. "At present, it is far less expensive to use power from the grid and other traditional sources," says Technical Insights Analyst Jayanthi Kamalaratnam. "Non-traditional fueling infrastructures are needed, which translate into high costs." All fuel cells are either powered by fuels that are converted to hydrogen, or they are powered by hydrogen itself. This appears to be an advantage, because hydrogen is an abundant element with the potential to replace fossil fuels as an energy source. Still, this element has its drawbacks. It is expensive and currently requires high costs for storage and delivery. The infrastructure required to launch a full-scale hydrogen economy does not currently exist, and setting up a hydrogen fueling network further increases the expense of fuel cell systems. Hydrogen is usually stored under high pressure, is relatively heavy, and does not lend itself to convenient refueling. Storage in liquid form requires high energy to ensure safety. As the storage tanks are relatively large, liquid hydrogen is not suitable for use in automobiles. In transportation systems, converting non-hydrogen fuels, such as natural gas and ethanol, to hydrogen adds bulk and expense. "Hydrogen storage still remains a significant challenge as the fuel has a very low energy density at normal ambient conditions, making its storage difficult in any mobile storage vessel," says Kamalaratnam. "Researchers are investigating metal hydrides and carbon nanotubes as possible solutions." The success of fuel cells will depend on proactive consumer education and creation of awareness, as these power-producing systems are mostly used in consumer-oriented applications such as transportation systems and stationary residential and portable devices. Consumers need to be convinced that fuel cells are capable of providing environment-friendly electricity and are highly efficient and reliable in the long term. Assurances on proper infrastructure, and having qualified, skilled personnel to provide maintenance services are likely to boost market acceptance. Reducing cost remains the key commercial and technological challenge. New analysis by Technical Insights, a business unit of Frost & Sullivan (www.Technical-Insights.frost.com), Advances in Fuel Cell Technologies, details the technological breakthroughs, which are likely to make an indelible mark on the future energy sector. The analysis also provides invaluable information on major market participants, technology developers, key patents, and various restraints in the commercialization of fuel cells. Technical Insights will hold a conference call at 3:00 p.m. (EDT)/ 12:00 p.m. (PDT) on Sept. 9, 2003 to provide a summary and analysis of the latest developments in fuel cells. Those interested in participating in the call are requested to send e-mail to Julia Paulson at jpaulson@frost.com with the following information for registration: Full name, Company Name, Title, Contact Tel Number, Contact Fax Number, E-mail. Upon receipt of the above information, a confirmation/pass code for the live briefing will be e-mailed to you. Frost & Sullivan is a global leader in strategic market consulting and training. Acquired by Frost & Sullivan, Technical Insights is an international technology analysis business that produces a variety of technical news alerts, newsletters, and reports. Ongoing analysis on fuel cell technologies is available in "Inside R&D Alert," a Technical Insights subscription service. Technical Insights and Frost & Sullivan also offer custom growth consulting to a variety of national and international companies. Executive summaries and interviews are available to the press. Advances in Fuel Cell Technology BCC Research quanitatively forecasts PEM market size Currently the US market value of the proton exchange membrane (PEM) and the rest of the components making up the fuel cell stack are valued at $149 million. This will increase at an impressive 26 per cent AAGR (average annual growth rate) over the next five years to reach $475 million by 2008, according to author Anna Crull in RC-235 Membrane and Membrane Electrode Assemblies for PEM Fuel Cells, a soon-to-be-released report from Business Communications Company. This report analyses the major components of a fuel cell stack including the bipolar plates, the ion selective membranes, the catalyst ink/electrodes, and the gas diffusion layers. The cost of the membrane electrode assembly (MEA) and the bipolar plates is influenced by many factors including component and assembly costs. Ion selective membranes used in PEM fuel cells are a part of the overall group of materials performing a variety of functions. To place the PEM fuel cell's emerging industry within this context, it is central to look at the polymers and the conditions that make up membrane technology. The membranes to be developed for the PEM fuel cells are not the province of electrochemists, but the developmental arena of synthetic polymer chemists, chemical engineers, and membranologists. The current $1.7 billion membrane separations market is expected to increase at an AAGR of 8.9 per cent to reach about $2.6 billion in 2008. The membrane itself is at the center of the PEM fuel cell. The story here is that perfluorosulphonic acid polymers and their close relatives dominate the membrane market for PEM fuel cells. On the near term horizon, other materials may to find use including sulphonated hydrocarbons, heterocyclics such as PBI, and their related polymers and esters modified. Required to move the PEM fuel cell into a larger commercial reality are high volume automated manufacturing, greater carbon monoxide tolerances at the anode, lower cost carbon media, lower loadings of higher activity catalyst, and more compatible assembly interfaces. Recent improvements include a reduction in proton exchange membrane thickness, which does improve performance and reduce costs. At the present time and across the total range of applications, bipolar plates are about 22 per cent of the total value of stack components and membranes are a little over 32 per cent of the total value. The vast majority of PEM fuel cells are prototypes and demonstration units. The MEAs that are going to PEM fuel cells are mostly in the 5-kW to 75-kW range. The "Holy Grail" is to move PEMs into vehicular applications and to all battery-powered electronic portable applications. As costs fall and durability improves, new applications for PEM fuel cells will emerge. This will assist fuel cells in meeting industrial, commercial, consumer power and transportation needs. MEAs must move into higher production volumes to go from prototypes to at least limited production runs to meet the need to reduce costs to be competitive with traditional energy sources. This cost efficiency proceeds one component at the time: first the membrane, then the catalyst ink, then the gas diffusion layer, then the bipolar plates, and, finally, optimising all the interfaces and manufacturing techniques. Fuel Cells: Getting there Progress in commercialising hydrogen technology is advancing rapidly. Stationary fuel cells could be supplying domestic energy needs as early as next year, while hydrogen-powered cars could be on sale by the end of the decade. Tom Nicholls reports. Palcan Develops Stationary 2-Kilowatt PEM Fuel Cell System For Growing Telecommunications And UPS Market Palcan Fuel Cells Ltd. (TSX-V: PC) is pleased to announce the successful completion of its joint development project with Goodings Environmental Inc. and Fuel Cells Canada. The project was created to develop a regenerative system that could provide back-up, "off-grid" power for the telecommunications, uninterruptible power supply (UPS) and critical applications markets. This project developed a stationary PEM fuel cell system, which can utilize an external source of hydrogen fuel or generate its own hydrogen fuel by converting renewable energy such as solar power (photovoltaic) or wind power into hydrogen. This is significant because a fuel cell can be powered in any location without having to rely on pre-existing supplies of hydrogen. Such regenerative, fuel cell energy systems can provide greater security for governments, businesses, hospitals, emergency services, police departments, the elderly or the infirmed, in remote off grid locations where hydrogen supplies are not readily available or during times of power shortages or failures. Typically, health care and telecommunication environments depend on batteries or diesel generators for their backup power needs. These markets are strong candidates for the Palcan/Goodings Environmental/Fuel Cells Canada regenerative system. "The recent power blackouts in Eastern Canada, the United States, and London England, is a prime example of global vulnerability to disruptions in power delivery," stated John Shen, Palcan's President & CEO. "The Palcan/Goodings Environmental/ Fuel Cells Canada' system stores excess power, generated using renewable sources such as the sun and wind, which is then utilized for emergency backup or continuous power when traditional energy supplies are disrupted. Once commercial production has reduced the costs of manufacturing these units, countries such as Japan, where the average home requires less than 5 kilowatts could employ stand-alone units to replace existing hydro resources", he Sustainable Energy Expands Fuel Cell Customer Base Sustainable Energy Technologies (TSXV: STG) announced that it has completed deliveries of several bi-directional, grid-interactive inverters to a leading developer of stationary fuel cell systems. The product placement is part of a larger order, with additional units being delivered over the next three months. "With this sale, Sustainable Energy has established itself as a market leader in developing power electronics solutions for small-scale stationary fuel cell systems," said Michael Carten, Sustainable Energy's President & CEO. "Our patented power inverter technology supports a remarkably simple platform that meets the power electronics challenges of grid-interactive stationary fuel cells, eliminating system complexity, and achieving one of the industry's highest average electrical conversion efficiencies. "Most importantly," Carten added, "the design offers the best opportunity to achieve the alternative energy industry's long-term cost, efficiency and reliability targets." Grid-interactive inverters are an important part of the emerging market for smaller decentralized power systems that will improve the reliability of North America's power infrastructure and contribute to a cleaner environment. Inverters convert the power output of alternative energy generation and storage devices into the high quality power that is required by the power grid. Inverters also manage the interface between the power source and the grid to optimize the efficiency of the alternative power source, and to ensure the integrity and safety of the system in the case of power outages. According to industry analysts, the market for renewable energy inverters, such as those manufactured by Sustainable Energy, will be one of the fastest growing sectors in the electrical industry over the next five years. Sustainable Energy's power inverter platform is easily adapted to a variety of alternative energy technologies and applications. The same platform developed for fuel cell applications will also support a range of power inverter products for the solar power industry. The Company will introduce a 5kW grid-interactive inverter for the solar power market later this year. Based in Calgary, Alberta, Sustainable Energy is a leader in developing and manufacturing intelligent power electronics products for the alternative and renewable energy industries. Voller Energy to launch portable fuel cell at London's Grove conference Voller Energy is introducing one of the first portable fuel cell systems to go on open sale at the Grove Fuel Cell event in London, which takes place on the 24-26 September. You can be one of the first to own a hand portable fuel cell system. If you order at or before the Grove Event you will save £200. The innovative VE100 is the size of a small attaché case and is designed to be hand carried. The unit provides true portable power featuring a selectable 60 Hz 110v or 50 Hz 230v AC mains supply and a 12v DC battery charging supply. You can either plug in just like you would into an ordinary wall socket or use a 'cigar lighter' type DC plug like you would find in a car to recharge your mobile phone battery or run your computer. The VE100 provides clean, reliable portable power wherever you are. No exhaust gases ! The Voller Energy Portapack VE100 is targeted towards the mobile user who has an immediate need for independent power to recharge or use either a laptop computer, cellular telephone, power tool or other similar device. The Portapack VE100 is capable of providing electricity in remote off-grid locations to power lighting, recharge batteries, power personal communications and photographic equipment. The VE100 is an ideal product for you to learn more about fuel cell technology, or to demonstrate the effective use of fuel cells to friends and colleagues. You can see the VE100 demonstrated in the General Exhibition area at the Grove Fuel Cell event in London. Promotional offer closes on September 26, 2003. Price of VE100 fuel cell system is £3,000. VE100 hydrogen canister is £600, promotional price of hydrogen canister is £400. Price excludes VAT, hydrogen and delivery. VE100 must be operated in accordance with instructions in VE100 Operating and Instruction Manual. VE100 is supplied as an evaluation unit and at the time of writing will not carry all necessary product approvals. VE100 hydrogen canisters must only be refilled by trained operatives. Sold subject to Voller Energy terms and conditions of sale. Export of VE100 to certain countries and territories may be restricted. Hydrogen Infrastructure Deployment is Key Component to U.S. and Canada Having One Million Fuel Cell Vehicles by 2015, Says ABI The total number of fuel cell vehicles in use by the general population is expected to reach one million, according to the latest fuel cell study by market research firm ABI. The vehicles will be in use in the top nine states in the U.S. and the top two provinces in Canada that are actively engaged in and supporting a hydrogen fueling infrastructure. "For the deployment of hydrogen fuel cells, the issue has traditionally been 'chicken or the egg,' but this can be overcome by the active and dedicated involvement of all major stakeholders in the hydrogen fuel cell sector," explains Atakan Ozbek, ABI's Director of Energy Research. "In order to thrive, the entire hydrogen fueling infrastructure needs a strong definitive roadmap, as well as clearer signals, provided by the U.S. and Canadian Governments." Building consensus and developing rational pathways towards a healthy hydrogen infrastructure will be the necessary groundwork needed across the world. However, that does not mean that all global markets are expected to create and maintain a uniform hydrogen fueling infrastructure. Political and social preferences, as well as technical and regional characteristics, will play a substantial role in building the long-term hydrogen infrastructure network. "According to ABI's projections, California may need as many as 2,000 hydrogen fueling stations by 2015 to fuel fuel cell vehicles in the state," continues Ozbek. "The U.S. and Canadian federal and state governments must dictate clear financial incentives for the sector in general, so that early hydrogen fueling infrastructure can witness the transition from fleet vehicles to limited passenger cars in metropolitan areas by 2015." It is difficult to predict how fuel cell vehicle penetration routes will take place amidst uncertainties surrounding the technology, codes and regulations, in addition to political intervention. Transitional pathways, which have long been considered an optimal strategy by some, are still rife with too many uncertainties to make them a possibility at the present time. ABI's report quantifies the total amount of hydrogen production expected and the number of hydrogen fueling stations required for the North American market from 2005 to 2015. The study outlines a strategic business plan from energy and automotive companies, and also includes a discussion of regional utility companies, which could assume a critical role in defining tomorrow's hydrogen-based economy. ABI's study, "Hydrogen Infrastructure: Business Models, Adoption Cycles, and Scenario Forecasts for the Development of Fuel Cell Markets in North America," details pathways for hydrogen production, distribution, and storage from 2005 to 2015 in major urban centers in the U.S. and in Canada. The study analyzes fuel cell vehicle adoption rates and essential infrastructure requirements for alternative routes, from capital investment to technological challenges. ABI details each major fuel source for hydrogen by delineating supply and demand, as well as price correlations. The projections for the most active states and provinces, broken down by metropolitan areas, are provided with realistic adoption rates to depict a clear picture for major stakeholders, which include federal, state and local governments and energy, auto, utility and fuel cell companies. ABI is a N.Y.-based technology market research firm founded in 1990. ABI publishes market research and technology intelligence on the wireless, automotive, electronics, networking and energy industries. Details can be found on the web at abiresearch.com or by calling 516-624-3113. Delphi SECA Solid Oxide Fuel Cell Successfully Powered By Gasified Coal Delphi Corporation (NYSE: DPH) has proven that its Solid State Energy Conversion Alliance (SECA) Generation-2 solid oxide fuel cell (SOFC) can use coal-derived fuel gas for power. The feasibility study took place in June 2003 at the Power Systems Development Facility (PSDF) coal-gasification plant in Wilsonville, Alabama. To advance coal-based power systems, the PSDF was established by the US Department of Energy (DOE). Southern Company manages and operates the facility and provides co-funding in conjunction with DOE and other industrial partners. This effort tested whether gas produced from coal can be effectively used in a fuel cell to generate electricity. It was conducted under Delphi's existing cooperative agreement with the DOE's Office of Fossil Energy/National Energy Technology Laboratory (NETL). "We're excited that Delphi's SOFC generated electricity using fuel gas. Fuel purity was an issue, especially using fuel from coal. SOFC's can tolerate contaminates. But tolerance to the wider range of contaminants in coal-derived fuel gas requires additional study, and this test provides insight on these interactions. The gas cleanup system that was tested achieved the needed fuel purity," said Dr. Jean Botti, chief technologist, Delphi Dynamics and Propulsion Innovation Center. "This significant achievement demonstrated that a planar low-temperature SOFC power generation system can produce electricity from gasified coal. Coal is abundant in the U.S., and this event is a good first step in proving that it is a viable, environmentally friendly resource for powering fuel cells." According to the Department of Energy's Office of Fossil Energy, the U.S. has 350 years worth of coal reserves. Gasification at the PSDF is based on an advanced circulating fluidized bed reactor. For this fuel cell test, a fuel gas cleanup system was added that included both hot gas and cold gas modules and provided fuel to the stack free of sulfur, chlorine, and tar. The SECA fuel cell is being considered for the economical co-production of hydrogen and electricity from coal with near zero emissions. It is a candidate component for DOE's Office of Fossil Energy "FutureGen" initiative that is a key part of President Bush's Hydrogen Fuel Program. Delphi's SOFC fuel cell was heated to an operating temperature of 750 degrees C and then fueled by coal-derived fuel gas. The fuel gas consisted of a mixture of hydrogen, carbon monoxide, methane, carbon dioxide, water and nitrogen. This experiment was repeated with a second SOFC stack. The two stacks together operated for a period of more than 75 hours. The test successfully demonstrated that an SOFC fuel cell can generate expected levels of power from coal-derived fuel gas. Additional fuel testing on coal-derived fuel gas is being planned. Delphi has been developing fuel-cell technology for the past 10 years and is a leader among industry-wide efforts to bring fuel-cell technology to the marketplace. This development effort involves the 10-year, $138 million, cooperative agreement with NETL. The objective of the agreement is to produce and test a SECA SOFC power-unit design that can be mass-produced at low cost with multiple fuel options. This coal-gas feasibility study was conducted under this development project. Delphi's development activities have concentrated on the progress of SOFCs that generate auxiliary electric power for passenger, commercial and military applications. Units are being designed to provide auxiliary power for mobile applications and stationary distributed generation that generate from 1kilowatt to 25kilowatts of power for while simultaneously reducing fuel consumption, emissions and noise. Delphi is on track to meet the DOE's SECA cost and performance criteria for SOFC technology, and leads the way for making them viable for the commercial market. Umicore Fuel Cell Division acquires Catalyst Patents from Max Planck Institute Umicore’s Fuel Cell Division, located in Hanau-Wolfgang, Germany, has successfully completed the acquisition of various protective rights related to fuel cell catalyst technology from German Max-Planck-Institute (MPI) in Muelheim. The patent portfolio taken over by Umicore incorporates three US patents No. 5,620,584, No. 5,925,463 and No. 6,090,746 as well as their foreign counterparts in Europe, Canada and Japan. The protective rights are based on research & development work performed by Prof. M. Reetz and Prof. H. Boennemann in the field of catalysis and nano-technology at the „Max-Planck-Institute fuer Kohlenforschung“ (MPI) in Muelheim/Ruhr. Electrocatalysts are the heart of Umicore’s technology of membrane-electrode-assemblies (MEAs) and thus are of primary importance for the lifetime, performance and cost efficiency of polymer electrolyte membrane fuel cells (PEMFC) and direct methanol fuel cells (DMFC). Based on a unique nano-technology process, the Max-Planck-Institute invented new methods and procedures for manufacturing of high performance catalyst materials with superior, stable precious metal dispersions even at high loading levels. The patents acquired by Umicore offer broad protection for nano-sized precious metal colloids, for methods of their manufacture as well as for fuel cell catalysts made therefrom. They significantly strenghten Umicore’s Intellectual Property position and fit well into the global fuel cell patent portfolio of the company. Furthermore, they are in line with the ongoing research activities in the field of catalysis. The Fuel Cell Division of Umicore is a global leader in the development and manu-facturing of advanced components for fuel cell systems. With its roots in Degussa and over 100 years of experience in precious metals and catalyst technology, Umicore is committed to developing new products that contribute to the progress in energy technology, communication technology as well as environmental protection. ~

Acumentrics Corporation, a leading developer of Solid Oxide Fuel Cells, and Sumitomo Corporation, one of Japan's largest integrated trading companies, today announced the formation of Acumentrics Japan Co. The purpose of the new company will be to market and sell Acumentrics' proprietary tubular solid oxide fuel cell power systems throughout Japan. The formation of this new company comes on the successful
conclusion of a year-long market and fuel cell technology study.

Acumentrics and Sumitomo will initially concentrate on modifying Acumentrics' prototype natural gas powered, rapid-start tubular solid oxide
fuel cell "T-SOFC" systems for the Japanese market, specifically targeting 2-10 kilowatt residential and small commercial applications. Acumentrics will be solely responsible for SOFC technology while Sumitomo will be responsible for market requirements and actual marketing of the fuel cell products. Future products may extend beyond 100 kilowatts for applications such as large commercial power and transmission congestion relief. It is also anticipated that other major Japanese corporations will soon join and contribute to the development of the products.

"Japan depends on imports for over 95% of its primary energy needs. This dependency, coupled with the nation's commitment to reduce greenhouse gas emissions, has led to the need to develop and introduce new highly efficient energy systems. We see solid oxide fuel cell systems as a major contributor in helping our nation meet this need," said Mr. Kazuaki Mori, Business Development Manager of Sumitomo Corporation. He continues, "Our research has convinced us that the Acumentrics' solid oxide fuel cell systems, in particular, have a real potential to emerge as the leading technology in the fuel cell market, which would be start from FY 2005 in Japan."

"Sumitomo has enormous expertise and resources in designing, integrating and distributing leading-edge technology-based products throughout Japan and Asia. We are honored to have this opportunity to partner with Sumitomo and believe the benefits of their experience will carry over to all our
customers," said Gary A. Mook, President & CEO of Acumentrics Corporation.

Solid oxide fuel cells are ceramic devices that silently and efficiently produce electricity and heat electrochemically, unlike traditional engine
generators. Acumentrics' proprietary low-pressure bundled tubular "fuel inside the tube" design gives it a unique edge over other fuel cell designs
for stationary use because of their inherent low cost, simplicity and fuel versatility. Acumentrics' T-SOFC is capable of internally reforming natural
gas and propane to achieve over 40% efficiency gas to AC output, at less than 1/2% degradation per 1000 hours.

(ECD) (Nasdaq: ENER - News) today reported that four of its directors, Donald L. Paul, Greg M. Vesey, Hellmut Fritzsche and Subhash K. Dhar, have resigned from the Board of Directors of ECD.

ECD is moving toward compliance with the heightened independent standards for members of boards of directors provided in the Sarbanes-Oxley Act passed just over a year ago, as well as satisfying the independent directors' requirements under proposed NASDAQ rules.

"We have started to adjust the membership of our Board of Directors so that we will comply with the requirement to have a majority of independent directors on the Board," said Robert C. Stempel, Chairman of ECD.

Both Messrs. Paul and Vesey have been the designated nominees of ChevronTexaco Corporation (NYSE: CVTX - News; ChevronTexaco) and have served on ECD's Board of Directors since 2001. Don Paul is Vice President and Chief Technology Officer of ChevronTexaco. Reporting to Mr. Paul, Greg Vesey is President of ChevronTexaco Technology Ventures with management and budget responsibilities for Texaco Ovonic Battery Systems LLC, a 50-50 joint venture between a unit of ChevronTexaco and Ovonic Battery Company, a subsidiary of ECD, and for Texaco Ovonic Hydrogen Systems, a 50-50 joint venture between a unit of ChevronTexaco and ECD.

The departure of Messrs. Paul and Vesey from ECD's Board will permit them to participate more actively in the affairs of the joint ventures and matters related to ECD which otherwise were limited due to their relationship to ChevronTexaco and their status as non-independent members of ECD's Board.

Dr. Hellmut Fritzsche is Vice President of ECD and a long-time collaborator with Stanford R. Ovshinsky, President and CEO of ECD, in the field of amorphous materials. Dr. Fritzsche is the former chairman of the Department of Physics at the University of Chicago. He has been a member of the Board of ECD since 1969.

Mr. Subhash Dhar is President of the Ovonic Battery Company. He has worked closely with Stan Ovshinsky on the development of the Ovonic(TM) nickel-metal hydride battery and the Ovonic(TM) regenerative fuel cell. He has been a member of the Board since 1999.

Dr. Fritzsche and Mr. Dhar, in their respective positions as Vice President of ECD and President of Ovonic Battery Company, will continue to provide significant contributions as valued members of ECD's management team.

The commercial viability of the fuel cell, the clean and quiet technology, is heavily dependant on cost reductions that assume greater significance as worldwide concern for rapidly depleting non-renewable fossil fuels increases.

Fuel cell costs are augmented by a few factors. These systems use expensive heat resistant materials that enable smooth functioning in very high temperatures, and they rely on precious metals, such as platinum, as catalysts. Moreover, conversion of available fuels to hydrogen requires expensive reformers.

"At present, it is far less expensive to use power from the grid and other traditional sources," says Technical Insights Analyst Jayanthi Kamalaratnam. "Non-traditional fueling infrastructures are needed, which translate into high costs."

All fuel cells are either powered by fuels that are converted to hydrogen, or they are powered by hydrogen itself. This appears to be an advantage, because hydrogen is an abundant element with the potential to replace fossil fuels as an energy source. Still, this element has its drawbacks. It is expensive and currently requires high costs for storage and delivery. The infrastructure required to launch a full-scale hydrogen economy does not currently exist, and setting up a hydrogen fueling network further increases the expense of fuel cell systems.

Hydrogen is usually stored under high pressure, is relatively heavy, and does not lend itself to convenient refueling. Storage in liquid form requires high energy to ensure safety. As the storage tanks are relatively large, liquid hydrogen is not suitable for use in automobiles. In transportation systems, converting non-hydrogen fuels, such as natural gas and ethanol, to hydrogen adds bulk and expense.

"Hydrogen storage still remains a significant challenge as the fuel has a very low energy density at normal ambient conditions, making its storage difficult in any mobile storage vessel," says Kamalaratnam. "Researchers are investigating metal hydrides and carbon nanotubes as possible solutions."

The success of fuel cells will depend on proactive consumer education and creation of awareness, as these power-producing systems are mostly used in consumer-oriented applications such as transportation systems and stationary residential and portable devices.

Consumers need to be convinced that fuel cells are capable of providing environment-friendly electricity and are highly efficient and reliable in the long term. Assurances on proper infrastructure, and having qualified, skilled personnel to provide maintenance services are likely to boost market acceptance. Reducing cost remains the key commercial and technological challenge.

New analysis by Technical Insights, a business unit of Frost & Sullivan (www.Technical-Insights.frost.com), Advances in Fuel Cell Technologies, details the technological breakthroughs, which are likely to make an indelible mark on the future energy sector. The analysis also provides invaluable information on major market participants, technology developers, key patents, and various restraints in the commercialization of fuel cells.

Technical Insights will hold a conference call at 3:00 p.m. (EDT)/ 12:00 p.m. (PDT) on Sept. 9, 2003 to provide a summary and analysis of the latest developments in fuel cells. Those interested in participating in the call are requested to send e-mail to Julia Paulson at jpaulson@frost.com with the following information for registration:

Full name, Company Name, Title, Contact Tel Number, Contact Fax Number, E-mail. Upon receipt of the above information, a confirmation/pass code for the live briefing will be e-mailed to you.

Frost & Sullivan is a global leader in strategic market consulting and training. Acquired by Frost & Sullivan, Technical Insights is an international technology analysis business that produces a variety of technical news alerts, newsletters, and reports. Ongoing analysis on fuel cell technologies is available in "Inside R&D Alert," a Technical Insights subscription service. Technical Insights and Frost & Sullivan also offer custom growth consulting to a variety of national and international companies. Executive summaries and interviews are available to the press.

Currently the US market value of the proton exchange membrane (PEM) and the rest of the components making up the fuel cell stack are valued at $149 million. This will increase at an impressive 26 per cent AAGR (average annual growth rate) over the next five years to reach $475 million by 2008, according to author Anna Crull in RC-235 Membrane and Membrane Electrode Assemblies for PEM Fuel Cells, a soon-to-be-released report from Business Communications Company.

This report analyses the major components of a fuel cell stack including the bipolar plates, the ion selective membranes, the catalyst ink/electrodes, and the gas diffusion layers. The cost of the membrane electrode assembly (MEA) and the bipolar plates is influenced by many factors including component and assembly costs.

Ion selective membranes used in PEM fuel cells are a part of the overall group of materials performing a variety of functions. To place the PEM fuel cell's emerging industry within this context, it is central to look at the polymers and the conditions that make up membrane technology. The membranes to be developed for the PEM fuel cells are not the province of electrochemists, but the developmental arena of synthetic polymer chemists, chemical engineers, and membranologists. The current $1.7 billion membrane separations market is expected to increase at an AAGR of 8.9 per cent to reach about $2.6 billion in 2008.

The membrane itself is at the center of the PEM fuel cell. The story here is that perfluorosulphonic acid polymers and their close relatives dominate the membrane market for PEM fuel cells. On the near term horizon, other materials may to find use including sulphonated hydrocarbons, heterocyclics such as PBI, and their related polymers and esters modified.

Required to move the PEM fuel cell into a larger commercial reality are high volume automated manufacturing, greater carbon monoxide tolerances at the anode, lower cost carbon media, lower loadings of higher activity catalyst, and more compatible assembly interfaces. Recent improvements include a reduction in proton exchange membrane thickness, which does improve performance and reduce costs.

At the present time and across the total range of applications, bipolar plates are about 22 per cent of the total value of stack components and membranes are a little over 32 per cent of the total value. The vast majority of PEM fuel cells are prototypes and demonstration units. The MEAs that are going to PEM fuel cells are mostly in the 5-kW to 75-kW range. The "Holy Grail" is to move PEMs into vehicular applications and to all battery-powered electronic portable applications.

As costs fall and durability improves, new applications for PEM fuel cells will emerge. This will assist fuel cells in meeting industrial, commercial, consumer power and transportation needs. MEAs must move into higher production volumes to go from prototypes to at least limited production runs to meet the need to reduce costs to be competitive with traditional energy sources. This cost efficiency proceeds one component at the time: first the membrane, then the catalyst ink, then the gas diffusion layer, then the bipolar plates, and, finally, optimising all the interfaces and manufacturing techniques.

Progress in commercialising hydrogen technology is advancing rapidly. Stationary fuel cells could be supplying domestic energy needs as early as next year, while hydrogen-powered cars could be on sale by the end of the decade. Tom Nicholls reports.

Palcan Fuel Cells Ltd. (TSX-V: PC) is pleased to announce the successful completion of its joint development project with Goodings Environmental Inc. and Fuel Cells Canada. The project was created to develop a regenerative system that could provide back-up, "off-grid" power for the telecommunications, uninterruptible power supply (UPS) and critical applications markets.

This project developed a stationary PEM fuel cell system, which can utilize an external source of hydrogen fuel or generate its own hydrogen fuel by converting renewable energy such as solar power (photovoltaic) or wind power into hydrogen. This is significant because a fuel cell can be powered in any location without having to rely on pre-existing supplies of hydrogen.

Such regenerative, fuel cell energy systems can provide greater security for governments, businesses, hospitals, emergency services, police departments, the elderly or the infirmed, in remote off grid locations where hydrogen supplies are not readily available or during times of power shortages or failures. Typically, health care and telecommunication environments depend on batteries or diesel generators for their backup power needs. These markets are strong candidates for the Palcan/Goodings Environmental/Fuel Cells Canada regenerative system.
"The recent power blackouts in Eastern Canada, the United States, and London England, is a prime example of global vulnerability to disruptions in power delivery," stated John Shen, Palcan's President & CEO. "The Palcan/Goodings Environmental/ Fuel Cells Canada' system stores excess power, generated using renewable sources such as the sun and wind, which is then utilized for emergency backup or continuous power when traditional energy
supplies are disrupted. Once commercial production has reduced the costs of manufacturing these units, countries such as Japan, where the average home requires less than 5 kilowatts could employ stand-alone units to replace existing hydro resources", he

Sustainable Energy Technologies (TSXV: STG) announced that it has completed deliveries of several bi-directional, grid-interactive inverters to a leading developer of stationary fuel cell systems. The product placement is part of a larger order, with additional units being delivered over the
next three months.

"With this sale, Sustainable Energy has established itself as a market leader in developing power electronics solutions for small-scale stationary fuel cell systems," said Michael Carten, Sustainable Energy's President & CEO. "Our patented power inverter technology supports a remarkably simple platform that meets the power electronics challenges of grid-interactive stationary fuel cells, eliminating system complexity, and achieving one of the industry's highest average electrical conversion efficiencies.

"Most importantly," Carten added, "the design offers the best opportunity to achieve the alternative energy industry's long-term cost, efficiency and reliability targets."

Grid-interactive inverters are an important part of the emerging market for smaller decentralized power systems that will improve the reliability of North America's power infrastructure and contribute to a cleaner environment. Inverters convert the power output of alternative energy generation and storage devices into the high quality power that is required by the power grid. Inverters also manage the interface between the power source and the grid to optimize the efficiency of the alternative power source, and to ensure the integrity and safety of the system in the case of power outages.

According to industry analysts, the market for renewable energy inverters, such as those manufactured by Sustainable Energy, will be one of the fastest growing sectors in the electrical industry over the next five years.

Sustainable Energy's power inverter platform is easily adapted to a variety of alternative energy technologies and applications. The same platform developed for fuel cell applications will also support a range of power inverter products for the solar power industry. The Company will introduce a 5kW grid-interactive inverter for the solar power market later this year.

Based in Calgary, Alberta, Sustainable Energy is a leader in
developing and manufacturing intelligent power electronics
products for the alternative and renewable energy industries.

Voller Energy is introducing one of the first portable fuel cell systems to go on open sale at the Grove Fuel Cell event in London, which takes place on the 24-26 September. You can be one of the first to own a hand portable fuel cell system. If you order at or before the Grove Event you will save £200*.

The innovative VE100 is the size of a small attaché case and is designed to be hand carried. The unit provides true portable power featuring a selectable 60 Hz 110v or 50 Hz 230v AC mains supply and a 12v DC battery charging supply. You can either plug in just like you would into an ordinary wall socket or use a 'cigar lighter' type DC plug like you would find in a car to recharge your mobile phone battery or run your computer. The VE100 provides clean, reliable portable power wherever you are. No exhaust gases !

The Voller Energy Portapack VE100 is targeted towards the mobile user who has an immediate need for independent power to recharge or use either a laptop computer, cellular telephone, power tool or other similar device. The Portapack VE100 is capable of providing electricity in remote off-grid locations to power lighting, recharge batteries, power personal communications and photographic equipment. The VE100 is an ideal product for you to learn more about fuel cell technology, or to demonstrate the effective use of fuel cells to friends and colleagues.

You can see the VE100 demonstrated in the General Exhibition area at the Grove Fuel Cell event in London.

*Promotional offer closes on September 26, 2003. Price of VE100 fuel cell system is £3,000. VE100 hydrogen canister is £600, promotional price of hydrogen canister is £400. Price excludes VAT, hydrogen and delivery. VE100 must be operated in accordance with instructions in VE100 Operating and Instruction Manual. VE100 is supplied as an evaluation unit and at the time of writing will not carry all necessary product approvals. VE100 hydrogen canisters must only be refilled by trained operatives. Sold subject to Voller Energy terms and conditions of sale. Export of VE100 to certain countries and territories may be restricted.

The total number of fuel cell vehicles in use by the general population is expected to reach one million, according to the latest fuel cell study by market research firm ABI. The vehicles will be in use in the top nine states in the U.S. and the top two provinces in Canada that are actively engaged in and supporting a hydrogen fueling infrastructure.

"For the deployment of hydrogen fuel cells, the issue has traditionally been 'chicken or the egg,' but this can be overcome by the active and dedicated involvement of all major stakeholders in the hydrogen fuel cell sector," explains Atakan Ozbek, ABI's Director of Energy Research. "In order to thrive, the entire hydrogen fueling infrastructure needs a strong definitive roadmap, as well as clearer signals, provided by the U.S. and Canadian Governments."

Building consensus and developing rational pathways towards a healthy hydrogen infrastructure will be the necessary groundwork needed across the world. However, that does not mean that all global markets are expected to create and maintain a uniform hydrogen fueling infrastructure. Political and social preferences, as well as technical and regional characteristics, will play a substantial role in building the long-term hydrogen infrastructure network.

"According to ABI's projections, California may need as many as 2,000 hydrogen fueling stations by 2015 to fuel fuel cell vehicles in the state," continues Ozbek. "The U.S. and Canadian federal and state governments must dictate clear financial incentives for the sector in general, so that early hydrogen fueling infrastructure can witness the transition from fleet vehicles to limited passenger cars in metropolitan areas by 2015."

It is difficult to predict how fuel cell vehicle penetration routes will take place amidst uncertainties surrounding the technology, codes and regulations, in addition to political intervention. Transitional pathways, which have long been considered an optimal strategy by some, are still rife with too many uncertainties to make them a possibility at the present time.

ABI's report quantifies the total amount of hydrogen production expected and the number of hydrogen fueling stations required for the North American market from 2005 to 2015. The study outlines a strategic business plan from energy and automotive companies, and also includes a discussion of regional utility companies, which could assume a critical role in defining tomorrow's hydrogen-based economy.

ABI's study, "Hydrogen Infrastructure: Business Models, Adoption Cycles, and Scenario Forecasts for the Development of Fuel Cell Markets in North America," details pathways for hydrogen production, distribution, and storage from 2005 to 2015 in major urban centers in the U.S. and in Canada. The study analyzes fuel cell vehicle adoption rates and essential infrastructure requirements for alternative routes, from capital investment to technological challenges. ABI details each major fuel source for hydrogen by delineating supply and demand, as well as price correlations. The projections for the most active states and provinces, broken down by metropolitan areas, are provided with realistic adoption rates to depict a clear picture for major stakeholders, which include federal, state and local governments and energy, auto, utility and fuel cell companies.

ABI is a N.Y.-based technology market research firm founded in 1990. ABI publishes market research and technology intelligence on the wireless, automotive, electronics, networking and energy industries. Details can be found on the web at abiresearch.com or by calling 516-624-3113.

Delphi Corporation (NYSE: DPH) has proven that its Solid State Energy Conversion Alliance (SECA) Generation-2 solid oxide fuel cell (SOFC) can use coal-derived fuel gas for power.

The feasibility study took place in June 2003 at the Power Systems Development Facility (PSDF) coal-gasification plant in Wilsonville, Alabama.
To advance coal-based power systems, the PSDF was established by the US Department of Energy (DOE). Southern Company manages and operates the facility and provides co-funding in conjunction with DOE and other industrial partners.

This effort tested whether gas produced from coal can be effectively used in a fuel cell to generate electricity. It was conducted under Delphi's existing cooperative agreement with the DOE's Office of Fossil Energy/National Energy Technology Laboratory (NETL).

"We're excited that Delphi's SOFC generated electricity using fuel gas. Fuel purity was an issue, especially using fuel from coal. SOFC's can tolerate
contaminates. But tolerance to the wider range of contaminants in coal-derived fuel gas requires additional study, and this test provides insight on these
interactions. The gas cleanup system that was tested achieved the needed fuel purity," said Dr. Jean Botti, chief technologist, Delphi Dynamics and
Propulsion Innovation Center. "This significant achievement demonstrated that a planar low-temperature SOFC power generation system can produce electricity from gasified coal. Coal is abundant in the U.S., and this event is a good first step in proving that it is a viable, environmentally friendly resource
for powering fuel cells."

According to the Department of Energy's Office of Fossil Energy, the U.S. has 350 years worth of coal reserves.

Gasification at the PSDF is based on an advanced circulating fluidized bed reactor. For this fuel cell test, a fuel gas cleanup system was added that
included both hot gas and cold gas modules and provided fuel to the stack free of sulfur, chlorine, and tar.

The SECA fuel cell is being considered for the economical co-production of hydrogen and electricity from coal with near zero emissions. It is a candidate
component for DOE's Office of Fossil Energy "FutureGen" initiative that is a key part of President Bush's Hydrogen Fuel Program.

Delphi's SOFC fuel cell was heated to an operating temperature of 750 degrees C and then fueled by coal-derived fuel gas. The fuel gas consisted of
a mixture of hydrogen, carbon monoxide, methane, carbon dioxide, water and nitrogen. This experiment was repeated with a second SOFC stack. The two stacks together operated for a period of more than 75 hours. The test successfully demonstrated that an SOFC fuel cell can generate expected levels
of power from coal-derived fuel gas. Additional fuel testing on coal-derived fuel gas is being planned.

Delphi has been developing fuel-cell technology for the past 10 years and is a leader among industry-wide efforts to bring fuel-cell technology to the
marketplace. This development effort involves the 10-year, $138 million, cooperative agreement with NETL. The objective of the agreement is to produce and test a SECA SOFC power-unit design that can be mass-produced at low cost with multiple fuel options. This coal-gas feasibility study was conducted under this development project.

Delphi's development activities have concentrated on the progress of SOFCs that generate auxiliary electric power for passenger, commercial and military
applications. Units are being designed to provide auxiliary power for mobile applications and stationary distributed generation that generate from
1kilowatt to 25kilowatts of power for while simultaneously reducing fuel consumption, emissions and noise.

Delphi is on track to meet the DOE's SECA cost and performance criteria for SOFC technology, and leads the way for making them viable for the
commercial market.

Umicore’s Fuel Cell Division, located in Hanau-Wolfgang, Germany, has successfully completed the acquisition of various protective rights related to fuel cell catalyst technology from German Max-Planck-Institute (MPI) in Muelheim.

The patent portfolio taken over by Umicore incorporates three US patents No. 5,620,584, No. 5,925,463 and No. 6,090,746 as well as their foreign counterparts in Europe, Canada and Japan. The protective rights are based on research & development work performed by Prof. M. Reetz and Prof. H. Boennemann in the field of catalysis and nano-technology at the „Max-Planck-Institute fuer Kohlenforschung“ (MPI) in Muelheim/Ruhr.

Electrocatalysts are the heart of Umicore’s technology of membrane-electrode-assemblies (MEAs) and thus are of primary importance for the lifetime, performance and cost efficiency of polymer electrolyte membrane fuel cells (PEMFC) and direct methanol fuel cells (DMFC).

Based on a unique nano-technology process, the Max-Planck-Institute invented new methods and procedures for manufacturing of high performance catalyst materials with superior, stable precious metal dispersions even at high loading levels.

The patents acquired by Umicore offer broad protection for nano-sized precious metal colloids, for methods of their manufacture as well as for fuel cell catalysts made therefrom. They significantly strenghten Umicore’s Intellectual Property position and fit well into the global fuel cell patent portfolio of the company. Furthermore, they are in line with the ongoing research activities in the field of catalysis.

The Fuel Cell Division of Umicore is a global leader in the development and manu-facturing of advanced components for fuel cell systems. With its roots in Degussa and over 100 years of experience in precious metals and catalyst technology, Umicore is committed to developing new products that contribute to the progress in energy technology, communication technology as well as environmental protection.