Inide the Fuel Cell Industry- Week of Sept 07/2003

Alternate Energy Corporation (OTCBB: ARGY) announced today the results of the company's highly anticipated hydrogen purity testing. AEC's low-cost hydrogen production system will help enable residential and commercial customers generate their own electricity off-grid at on-grid competitive prices.

Affordable hydrogen and an affordable fuel cell system are the only necessary components to grid-free power that compares in price and quality to grid power. Just as the cell phone industry has freed residential and business telephone users from copper wires run to their homes, AEC is working to free these same customers from utility power.

According to AEC CEO Blaine Froats, "The results of the first purity test were most pleasing as only one unacceptable impurity existed at low levels. From an analysis of the preliminary results, our engineering staff has concluded that the low-level impurity originated from air contamination through a leakage and not from the process itself."

AEC's second test was conducted under more controlled conditions, which reduced this impurity by approximately 95%. A further impurity reduction of approximately 4% is required before AEC can run a fuel cell and proceed with line testing. Mr. Froats added that, "We are very confident that only fine adjustments need to be made to eliminate the remaining small percentage of this impurity and are looking forward to the joint testing phase."

Last Month the company announced that Astris Energi Inc., a world leader in alkaline fuel cell technology, had signed a Letter of Intent with AEC. The proposed joint venture plans to combine these fuel cell and hydrogen technologies to produce and sell complete stationary electric power systems for the vast household and business markets.

Tests of AEC's low-cost hydrogen production process have been on going since last month. The purpose of these tests is to measure the purity of hydrogen that is produced by the AEC process, ensuring that it meets the purity standards required to run the Astris alkaline fuel cell. An independent laboratory is administering all testing to ensure confidentiality and un-biased results. AEC's meeting of Astris' hydrogen input (purity and volume) standards will provide a low-cost supply of hydrogen for the fuel cell company. This is expected by some to be a breakthrough in the industry, as AEC's inexpensive source of hydrogen will help make the fuel cell an economically viable energy solution for all.

Moving forward in its program to develop the use of fuel cell power systems as part of its energy delivery mix, the Long Island Power Authority (LIPA) has installed Plug Power fuel cells with combined heat and power capability at the Suffolk County William Rogers Legislative Building in Hauppauge.

The three 5 kW fuel cells will be interconnected to LIPA's grid and will operate in a combined heat and power mode, providing electricity and heat on-site. Operation of this system, which will be powered by natural gas, will enable evaluation of the integration of fuel cells at the specific point of need, along with the advanced technology of providing both electricity and heat.

"It is clear that the technology of fuel cells holds the key to a future of environmentally sensitive electric redundancy," said LIPA Chairman Richard M. Kessel. "Fuel cells are ecologically-friendly mini-power sources. LIPA believes that fuel cells will be an important component of an alternative energy mix for Long Island.

Kessel said that the step taken by the Suffolk County Legislature will help to increase understanding of the issues associated with the integration of fuel cells at customer facilities, as fuel cells use can aid in ensuring complete power blackouts in Long Island are a thing of the past.

With the support of Governor George Pataki, LIPA's involvement in the development of fuel cell technology began in 2000 when it field tested six Plug Power fuel cells at locations on Long Island to gain operational experience that has supported the evolution of grid interconnected fuel cell systems. In 2001, LIPA constructed a 3-acre site at its substation in West Babylon. Seventy-five Plug Power fuel cell systems were commissioned in late 2001 and have generated in excess of 400,000-kilowatt hours of electricity.

"The success of LIPA's fuel cell demonstration site in the Suffolk County Legislative Building is due in large part to the cooperation and assistance of Legislator Jon Cooper," said Kessel.

"This unit will provide 10,000 watts of electrical power to the building's electrical supply grid and approximately 30,000 BTUs of heat to the building's domestic hot water heater," said Suffolk County Executive Robert J. Gaffney. "Obviously the County is extremely pleased to be working with LIPA on this alternative energy project. This is one of several pilot projects we're working on to reduce the demand for off-site power while providing clean efficient energy."

"Now, more than ever, we as a nation need to develop clean efficient alternatives to the petrochemical treadmill we are on," said Legislator Jon Cooper, 18th District. "Chairman Kessel, LIPA and the people of Suffolk County have, as usual, been ahead of the curve and taken a giant step in that direction today."

Gordian Raacke, Executive Director of the Citizens Advisory Panel, the Long Island Energy Watchdog said that one lesson Long Islanders should learned from last month's electric outage is that the electric system should be made more reliable with clean, distributed generators such as fuel cells located closer to where the electricity is needed.

Roger Saillant, Plug Power President and Chief Executive Officer said that his company shares LIPA's long-term vision tof providing clean distributed power to customers in their service territory.

"This second installation of a combined heat and power fuel cell at a LIPA customer site continues to help advance this technology," Saillant said.

In addition to the Suffolk County Legislative Building, there are several other sites featuring Plug Power Fuel Cells: three at SUNY Farmingdale, three at Hofstra University, one at Babylon Town Hall, one at East Hampton Town Hall, and one at a McDonald's retaurant in Deer Park.

Funding for the fuel cell project is being provided under LIPA's Clean Energy Initiative (CEI). The CEI is a ten-year, US$355 million program, originally proposed by Governor Pataki, designed, in part, to foster the development and application of clean energy technologies including fuel cells.

Showcasing the latest advancements in alternative fuel technology, Hyundai Motor Company will debut its Santa Fe Fuel Cell Hybrid Electric Vehicle (FCHEV) at this year's Challenge Bibendum(TM). The Santa Fe FCHEV, which recaptures lost energy when braking to provide greater fuel efficiency, will join the proven Santa Fe Fuel Cell Electric Vehicle (FCEV) in competing against other alternative energy vehicles Sept. 22-25 in Sonoma and San Francisco, Calif.

Both Hyundai prototypes are powered by compressed hydrogen gas, which combines with oxygen in the vehicles fuel cell stack to produce electricity
that powers the car. The only emission is water vapor from the tailpipe. The Santa Fe FCHEV offers greater efficiency by storing energy typically lost
during the braking process in an onboard battery. When the vehicle needs additional power, such as during acceleration, reserved battery power is
tapped. The result is that the Santa Fe FCHEV performs more like a standard internal combustion engine vehicle than any other fuel cell vehicle Hyundai
has developed.

"Challenge Bibendum offers Hyundai the opportunity to showcase advanced, environmentally friendly vehicles to an International audience and we look
forward to participating again this year," said Dr. Won-Suk Cho, President, Hyundai America Technical Center, Inc., which is responsible for alternative
fuel research in the United States. "The true challenge for Hyundai will be improving on the strong benchmarks we set in 2001 and demonstrating the steps we've taken towards commercializing fuel cell technology in the past two years."

In the 2001 Challenge Bibendum, the Santa Fe FCEV earned gold medals in both the emissions and noise tests, and received silver medals for its
performance in the slalom and fuel efficiency tests. The Santa Fe FCEV's solid performance in 2001 proved that Hyundai's fuel cell technology was ready
for real-world applications and Hyundai recently announced the beginning of its fuel cell fleet testing program, scheduled to begin in late 2004.

The Hyundai Team for the 2003 Challenge Bibendum includes:
2001 Hyundai Santa Fe FCEV: prototype SUV with gaseous hydrogen powered fuel cell.
2002 Hyundai Santa Fe FCHEV: prototype SUV with gaseous hydrogen powered fuel cell; combines battery power with fuel cell-generated power for
maximum efficiency and performance.

The hydrogen fuel cell system that powers each Hyundai vehicles' motor was developed by UTC Fuel Cells of South Windsor, Conn., part of the UTC Power unit of United Technologies Corp. Enova Systems of Torrance, Calif., which supplies the electric drivetrain, motor and control unit. The onboard
hydrogen storage tank was developed by Quantum Technologies.

"Hydrogen fuel is one of the important new energy sources being developed for sustainable mobility vehicles," said Ron Musgnug, project manager for the
2003 Challenge Bibendum. "We are proud to have this advanced technology andthe Hyundai team again this year."

Dana Corporation (NYSE: DCN) and HyRadix, Inc., today jointly announced that they have entered into agreements to cooperate on design and supply of small-scale fuel processing systems.

Under the collaboration agreement, Dana will apply its design-for- manufacture expertise to the HyRadix Agilon(TM) stationary hydrogen fuel
processor and further develop the system for high-volume manufacture. Dana will then be the worldwide manufacturer of the HyRadix Agilon fuel processor.

"As fuel-cell technology use increases, demand for hydrogen will also increase," said Joe Magliochetti, Dana chairman and CEO. "Together, Dana and
HyRadix are supporting the commercialization of fuel cell technology by making hydrogen fuel processors more widely available."

Added Robert Gray, president and CEO of HyRadix, "This agreement is a milestone toward commercialization of the HyRadix proprietary fuel-reforming
technology. We have made steady progress to meet the challenging performance requirements of our customers. Now, with this agreement to apply Dana's design and manufacturing abilities, we have laid the groundwork to achieve the price point needed to make this a viable product."

The HyRadix Agilon(TM) fuel processor converts readily available hydrocarbon fuels, such as natural gas and liquefied petroleum gas, to hydrogen fuel for stationary proton-exchange membrane fuel-cell applications. HyRadix selected Dana to develop and supply the reformers because of its product development expertise, experience in the fuel-cell industry, and mass manufacturing and program management capabilities. The program will bring the
technology from demonstrations to high-volume manufacture.

Dana expects volume production of the fuel processors to begin within three to four years.

Stationary and residential fuel-cell technologies can be used as distributed power sources for homes and commercial facilities. Product development of the fuel processors will be done at Dana's Oakville, Ontario, Canada, Fuel Cell Support Center. Dana has three additional Fuel-Cell Support Centers in Paris, Tenn.; Rugby, England; and Neu-Ulm, Germany, to support the development of fuel-cell technology worldwide.

"We're very proud of the science, technology, and experience we can contribute to this program and look forward to securing additional opportunities in the near future," said Mike Laisure, president of Dana's Engine and Fluid Management Group.

HyRadix, based in Des Plaines, Ill., is dedicated to the development and commercialization of hydrogen generation technology for fuel-cell, hydrogen-
vehicle refueling, and industrial applications. Using an innovative combination of technology and equipment, HyRadix hydrogen generation technology produces hydrogen from natural gas or LPG. For more information, visit http://www.HyRadix.com .

Dana Corporation is a global leader in the design, engineering, and manufacture of value-added products and systems for automotive, commercial,
and off-highway vehicle manufacturers and their related aftermarkets. The company employs approximately 60,000 people worldwide. Founded in 1904 and based in Toledo, Ohio, Dana operates hundreds of technology, manufacturing, and customer service facilities in 30 countries. The company reported sales of $9.5 billion in 2002.

The European technology platform for hydrogen will be established before the end of the year and will play a crucial role in encouraging cooperation within Europe and beyond, according to EU Research Commissioner Philippe Busquin.

The platform is being created on the recommendation of the high level group on hydrogen and fuel cells, whose role is to facilitate Europe's transition to a hydrogen economy.

Addressing a conference in Grenoble, organised be the French association for hydrogen, Mr Busquin said that following the adoption of a common strategic vision the hydrogen economy is moving into a new phase, with the creation of instruments designed to turn vision into reality.

'The projects, structures, networks and initiatives that will focus on hydrogen and fuel cells are at the heart of the technology platform,' said the Commissioner. 'It will allow Europe to move forward with a united front, and speak with one voice on the international stage.'

The US has already proposed the creation of an international partnership for the hydrogen economy, and Mr Busquin would like to see Europe play a major role in such initiatives.

However, the Commissioner stressed that the active involvement of Member States from the outset would be crucial if the platform is to generate the various national and regional projects that are required.

He described hydrogen policies and research in Europe as 'fragmented', and said that the European Research Area still needs to be completed in this field.

There was, however, an optimistic message for delegates at the conference to take away with them. 'Europe has the competences and the scientific, technical and industrial resources necessary to play a leading role in the transition to a hydrogen economy,' Mr Busquin concluded.

Damnation... your mobile phone, on which your work and social life depend, has become a useless lump of plastic and silicon: the battery is dead.

Just reach for the nearest bowl of sugar, flip open the phone, top up the battery with a wee spoonful, give it a little time -- and hey presto, you are connected to the world again.

This sci-fi scenario may lie in the not-too-distant future, thanks to a pair of US-based scientists who say they have invented the world's first efficient "bacterial battery."

In a Pentagon-backed project, University of Massachusetts researchers Swades Chaudhuri, an Indian, and Derek Lovley, an American, say the battery's source is an underground bacterium that gobbles up sugar and converts its energy into electricity.

Their prototype device ran flawlessly without refuelling for up to 25 days and is cheap and stable.

"This is a unique organism," Lovley told AFP in an interview, as he outlined an array of potential applications.

The bug in question is Rhodoferax ferriducens, which was found in airless sediment deep below ground at a terrestrial site at Oyster Bay, Virginia, and identified as a promising candidate for oxidising simple sugars.

The two scientists, whose work is published on Sunday in the specialist journal Nature Biotechnology, set up a small two-chambered vessel, with each side containing a graphite electrode and separated by a membrane.

On one side was R. ferriducens swimming in a glucose solution, which it broke down into carbon dioxide (CO2) and electrons.

The electrons were transported to the nearby electrode, called the anode, and driven around an external circuit to the other electrode, the cathode: electrical power.

Microbial fuel cells are not new, but until now they have run into big problems of cost and energy efficieny.

Typically, they yield efficiency of "10 percent or less," which makes them big and unwieldy relative to the power they provide, Lovley said.

But this was only achieved thanks to chemicals called mediators which sneak across the cell's membranes, pick up the free electrons and ferry them to the anode.

The mediators are expensive and have to be replenished frequently, and this makes them unsuitable as a simple, long-term energy source.

The prototype made by Lovley and Chaudhuri cranks out only a tiny amount of current -- enough to run a calculator or Christmas tree lights.

Its energy efficiency is an extraordinary 83 percent, which implies that, if engineering obstacles can be overcome and manufacturing techniques devised, it could one day be as compact as household batteries.

It worked not only with glucose but also with the fruit sugar fructose, with sucrose (found in sugar cane and sugar beet) and even xylose, a sugary byproduct of wood and straw.

In addition, the bacterium is rugged and stable, able to grow at temperatures ranging from four to 30 C (39.2 to 86 F), with 25 C (77 F) the optimum.

All of the fuel is used up. The process does have a pollutant, in the form of CO2, which is a greenhouse gas, but the contribution to global warming would be far less than the equival emission using fossil fuel, says Lovley.

"In the short term, I see the usefulness would be for charging up batteries that can be used in a cell phone, something like that," said Lovley.

The technology could also be used in environments where it is difficult or costly to charge the batteries, he said, explaining that the US Department of Defense was interested in it for powering underwater microphones and sonar to spot passing ships and submarines.

And, for people living in poor, remote communities, it should be possible to adapt the electrodes so that they used carbohydrate waste from farm animals or sewage to power batteries for running fridges and stoves.

Dalian Institute of Chemical Physics(DICP), one of the leading organisations conducting fuel cell research in China, has announced that it has successfully operated a intermediate temperature solid oxide fuel cell (IT-SOFC) stack.

Consisting of 12 pairs of single cells, a power output of 616W was attained, and for each pair of the single cells, the current density was 740 mA/cm2 at 800oC and 700 mV. The power density was higher than 500 mW/cm2.

In the Koto ward in the land-fill area close to the Rainbow Bridge in Tokyo lies the Ariake Hydrogen Station, capable of servicing compressed hydrogen gas powered cars like Honda FCX, DaimlerChrysler F-Cell, Nissan X-TRAIL, Toyota FCHV, Honda FCX and the liquid hydrogen fuelled HydroGen3 from General Motors.

The Ariake fuelling station is the only liquid hydrogen station in Japan and part of the Japan Hydrogen and Fuel Cell (JHFC) Demonstration Project that includes another five hydrogen fuelling stations each unique and each using a different source to produce and deliver hydrogen. Ariake Hydrogen Station was built in collaboration amongst Tokyo Metropolitan Government, Iwatani International Corp. and Showa Shell Sekiyu. The station is now in operation a jointly operated by the same partners.

For Katsumi Yoshida, Manager of Hydrogen Project Section of Showa Shell, hydrogen is an important part of the future energy portfolio in Japan, a country so reliant on import of energy. Hence, the METI - Ministry of Economy, Trade and Industry - set fourth to establish the Japan Hydrogen and Fuel Cell Demonstration Project to demonstrate methods that can reduce Japan's dependence on imported energy. Other important factors to look at hydrogen as en energy carrier are Japan's commitments on a global level to reduce emissions and the need to combat local pollution in the densely populated mega cities.

To Mr Yoshida there is no doubt "Hydrogen as an energy carrier is the way to reduce emissions and to mitigate local pollution." Kawasaki just south of Tokyo has had its issues with pollution and environmental issues are high to residents and politicians in Tokyo.

"But getting hydrogen into densely populated areas is also a challenge", says Mr Yoshida and continues: "The Ariake Site was generously provided by the Tokyo Metropolitan Government for this project. It is well suited as it is classified as a semi-industrial site." The classification allows for operating the hydrogen fuelling station using regulations covering hydrogen as an industrial gas. "At present, we would not have been able to build this hydrogen station in the inner city of Tokyo in the absence of applicable regulations. Not because it is not safe. Hydrogen is safe when treated in appropriate ways as any other fuels currently used are," says Mr Yoshida. "One objective of the Ariake Station is to demonstrate safe operation and provide important data to influence changing regulations to allow operation of hydrogen fuelling stations in residential and commercial areas in Tokyo", says Mr Yoshida.

Changing to hydrogen is not only about technology. Approval by respective authorities is equally important. According to Mr Yoshida, the design and construction of the Ariake station would have taken six months had it been any ordinary industrial processing plant, but this first station took one year to finish.

Security and safety is important at all times. All personnel at the Ariake Hydrogen Station have a license to handle high-pressure gasses. The station is constantly manned and monitored by various sensor systems, including four hydrogen flame detectors. .

"Showa Shell is very pleased to be part of the JHFC and to partner with Tokyo Metropolitan Government in this project. It is important to share experiences from the learning curve with institutions that will later have to design, implement and manage regulations", says Mr Yoshida.

Showa Shell is a Japanese company, but Mr Yoshida is also part of Shell Hydrogen, one of the Royal Dutch/Shell Group of Companies' global businesses, as a Business Development Advisor. "It is important for Shell to get as much experience with hydrogen in different markets", says Mr Yoshida. "Using renewable energy sources like thermal and hydro power to produce hydrogen is the obvious solution in Iceland", says Mr Yoshida and continues: "I like the idea of producing hydrogen through electrolysis from wind mills. This could be a future option mainly in Northern Japan. However introducing hydrogen in a highly populated area as Tokyo is our current big challenge in Japan. This experience is an important contribution from Showa Shell to Shell Hydrogen." Likewise, Shell Hydrogen's experience with public acceptance from Iceland provides valuable insight to Showa Shell.

According to Mr Yoshida, it is an important task for Showa Shell and Shell Hydrogen to contribute in setting standards for safety as well as increased public awareness.

Already now, the Ariake Hydrogen is in operation and serves GM's HydroGen3, which makes use of the only liquid Hydrogen filling station in Japan. Mr Yoshida is pleased to announce that the station will have another commercial customer in a Honda FCX leased by Iwatani Corporation. "Of course demonstrations projects are important, but Shell welcomes any cars powered by hydrogen", finishes Mr Yoshida.

Gas Technology Institute (GTI), in a cooperative program with the Army Research Laboratory (ARL), reports that a new membrane developed by GTI for proton exchange membrane (PEM) fuel cells has substantially improved direct methanol fuel cell (DMFC) system
performance.

"We've already achieved exceptional results with this new membrane using hydrogen as a fuel source and now we're achieving outstanding performance with methanol," says Bill Liss, GTI's Director, Advanced Energy Systems.

Independent testing by ARL researchers has verified that GTI's non-fluorinated membrane outperformed the standard Nafion(R) 117-membrane
during multiple DMFC tests. ARL tested the GTI and Nafion membranes for electrical conductivity using a standard four-point conductivity test. The
results indicated that the GTI membrane produced approximately 10 times greater electrical conductivity than Nafion. Improved conductivity means DMFC power systems using the GTI membrane will have lower current resistance losses (commonly referred to as IR losses), higher cell voltages, and greater power for a given cell volume.

ARL cell testing indicates that the GTI membrane, at a constant voltage, provides between 41 and 89 percent greater current output (depending on operating pressure and temperature) compared to a similar Nafion cell. Traditionally, DMFC power has been limited by a phenomenon referred to as
methanol crossover (the diffusion of methanol from the anode to the cathode). Tests by GTI indicate that this new membrane has lower methanol crossover than traditional membranes.

GTI is conducting long-term membrane testing using hydrogen-air, with over 5100 hours accumulated to date in a 60-square centimeters cell and over 3000 hours to date with the membrane in a multi-cell, 360-square centimeters fuel cell stack.

"These interim results are of interest to the several companies that are developing DMFC power devices for commercial and military applications," adds
Liss.

Notes Gerry Runte, GTI's Executive Director of Hydrogen and Distributed Energy Systems, "These new membranes should help accelerate the development of small portable power devices, an exciting part of the emerging fuel cell market. In addition to improving on DMFC performance, the GTI membrane technology is likely to be far less costly than what is currently available in the PEM and DMFC fuel cell market place."

Additional testing is planned by both GTI and ARL on these new membranes, including testing of stack configurations with new molded graphite and
metallic plates currently being developed by GTI.

In response to the U.S. Administration’s challenge for the development of a hydrogen-based energy economy, the main objective of the Symposium is to assess the role that Nuclear Energy might play in a hydrogen-based energy economy.

The Symposium organized by the Center for Advanced Nuclear Energy Systems (CANES) at MIT will bring together leading U.S. and international experts in the field of nuclear energy development and hydrogen production, transport, and storage.

Invited speakers will review the current status of high temperature nuclear reactors usable for the production of electricity and hydrogen. Invited experts on hydrogen production will also review the status of the economic production of hydrogen gas and liquid hydrogen compounds.

The symposium shall address issues such as Hydrogen Economy Policy, Economics of Hydrogen Production and Distribution, and High Temperature Nuclear Reactors.
General aspects of the Hydrogen Economy such as hydrogen use in power and transport systems and alternatives for future hydrogen production methods will be covered.

The Symposium will be held in the Wong Auditorium (Tang Center/Bldg. E51) at MIT in Cambridge, Massachusetts, USA from Tuesday, September 23 through Wednesday, September 24, 2003.

Executives from MTI MicroFuel Cells Inc., a subsidiary of Mechanical Technology Inc. (Nasdaq: MKTY), will speak about company progress and advancements in the portable fuel cell field at three international industry conferences this month.

Dr. Shimshon Gottesfeld, vice president and chief technology officer for MTI Micro, is a keynote speaker at the "World PC Forum," part of the "World PC Expo 2003" being held September 17-20 in Chiba, Japan. The Expo is the largest information technology conference in Asia, and the World PC Forum features lectures by experts on the latest developments in the personal computer field. Gottesfeld will speak about the global market potential for micro fuel cells as a future solution to the energy needs of the mobile computing industry.

Gottesfeld will also speak at the "Eighth Grove Fuel Cell Symposium" being held September 24-26 in London, England. The Symposium, considered one of premier international conferences for the industry, brings together leaders in the fuel cell field with a focus on the most current progress in fuel cell technology development and commercialization. Gottesfeld will discuss the research and advancements made by MTI Micro as the company moves towards its first product launch in 2004. MTI Micro will also be an exhibitor at the Symposium and will have on display its most recent commercial and military prototypes.

Alan Soucy, MTI Micro's chief operating officer, will speak at the "Portable Power Conference & Expo" being held September 21-23, in San Francisco, California. The conference will focus on advancements in portable
power and the challenges facing the industry. Soucy will be part of a panel that will discuss micro fuel cells as a solution to the energy needs of current and future wireless devices.

Avista Labs, the leading provider of reliability-based fuel cell solutions for premium backup power, announced
it has received approvals from CE and CSA for its 1 kilowatt Independence 1000(TM) fuel cell product.

The CE mark on a product indicates that a company has met all applicable performance and safety requirements for the European Union. This process includes stringent testing for electro-magnetic interference (EMI) thus
ensuring that the product is well-suited for applications powering telecommunications equipment.

CSA is a leading provider of international product testing and certification services. CSA certification assures potential customers and users that a product has been evaluated by a formal process involving examination, testing and follow-up inspection, and that it complies with applicable standards for safety and performance.

Mike Davis, chief executive officer for Avista Labs said, "These product certifications are another indication of the commercial readiness of our products. They are key to providing customer confidence in our technology as
we continue to expand sales of our fuel cell products. The testing we have completed in pursuit of the CE and CSA certifications demonstrates that our products are highly reliable for telecom, utility and government applications, our primary focus.

The Independence 1000(TM) is designed for industrial back-up power applications, allowing the user to affordably increase back-up run time while decreasing dependency on large battery stacks. This fuel cell is capable of providing power solutions for applications up to 6kW.

Additionally, the Independence 1000(TM) has received approval from the U.S. General Services Administration (GSA) for sales to the federal government community. The contract, which runs through April 30, 2008, allows the 1000-watt fuel cell to be sold under the classification of power distribution
equipment, generators, and batteries. Avista Labs' outdoor fuel cell enclosure, which provides a self-contained solution for both fuel cell power and hydrogen fuel, was also added to the GSA contract. The outdoor enclosure makes site preparation a simple and inexpensive process.

As the only car manufacturers of the world, the BMW Group presents a V12 hydrogen combustion engine at the IAA Frankfurt Motor Show.

The trend-setting twelve-cylinder engine is operated bivalently: it runs thus both with hydrogen and with gasoline. Dr. Burkhard Goeschel, Executive Director of Development and Purchase of the BMWS AG: "With this engine we want to show that the potential of the combustion engine after 100 years is not yet over. The combination of combustion engine and hydrogen makes a new dimension possible in performance and emission reduction."

The BMW Group presented a first step in this direction at the Wiener Motor Symposium. The 12-cylinder concept engine with a capacity of six litres yields 170 kW (231 HP) at 5 500/min. The engine already achieves its maximum torque of 337 Nm at 2000/min.

Burn of Hydrogen in BMW Internal Combustion Engine.

BMW sees the dual-fuel internal combustion engine as the bridge to building a hydrogen infrastructure. Dr. Burkhard Goeschel: "When there is a hydrogen infrastructure, we make the engines monovalent - only for hydrogen - then the real potential of the hydrogen becomes a reality."

According to BMW, only the combustion engine offers the advantage state-of-the-art to be able to drive on two fuels. The objective is to achieve an overall efficiency of 50 per cent.

Research and development on BMW's monovalent hydrogen combustion engine shows that by optimal utilization of the fuel characteristics of the hydrogen, a completely new performance potential of the hydrogen combustion engine opens. The way is to use a developed and patented air/fuel mixture procedure. Hydrogen is injected directly into the combustion chamber. The efficiency and energy use can be crucially improved with this technology. "The goal for us set of realizing an overall efficiency of the engine to 50 per cent," closes Dr Goeschel.

A team of scientists of the German Fraunhofer-Institute for Interfacial Engineering and Biotechnology in Stuttgart, lead by Dipl Ing Norbert Stroh, developed a fuel cell technology which is said to be far better than industry is expecting on the mid and long-term run , especially as regards to the cost level and power density.

The scientists have developed a concept of making fuel cells, completely different to conventional concepts. Today, fuel cells are almost exclusively made by planar singular cells in a so called planar geometry which are assembled to stacks. Such stacks reach a power density up to one kilowatt per litre. They require a lot of material, especially since all singular cells of a stack have to be separated by so called bipolar plates to ensure gas supply.

Fraunhofer’s technical and economical alternative is a capillary system. Assembled in a modular way, every scale of power is possible. The capillary geometry leads according to Stroh to a power density which is three to six times higher compared to common planar systems. Capillary fuel cell components are much smaller, so that on one hand the start-up period is reduced and, on the other hand, costs are reduced drastically to a level which is demanded by the industry for the end of this decade. This is said to be proved already by hand-made samples.

Hamburg based Magnum GmbH, which is the exclusive licensee of the registered capillary fuel cell system, just ordered a first pilot assembly-line for the semi-automatic production of Proton Exchange Membrane Fuel Cells (PEM-FC) with a capacity of 10 kW per hour. Horst Möller, Managing Director of Magnum GmbH:” Compared to all so far produced fuel cell devices of the world, this assembly line will contribute essentially to a massive supply of marketable fuel cells.”

Fraunhofer and Magnum are also focussing on the development of high-temperature capillary fuel cells. They expect that those fuel cells will show not only a further increase of power density but also a further decrease of costs since materials differ from PEMFC materials.

Apart from technical problems like the availability of hydrogen, which still have to be solved, the breakthrough of fuel cells is according to Möller in case of Magnum also related to the questions „where?“ and „together with whom?“. For the realization of the project, which so far is based only on privat assets of the share-holders, Magnum actually is in contact with potential strategic partners who are interested in the exploitation of this new technology as well as in a cooperation for the production and marketing of the capillary fuel cells.

NextEnergy, Michigan's alternative energy initiative will host The National Hydrogen Association's (NHA) fall Hydrogen Safety Codes and Standards Workshop at the Westin Detroit Metropolitan Airport Hotel in Romulus, Michigan, September 22-23, 2003. In
anticipation of new hydrogen demonstration projects in Michigan, and requests by local safety officials for more information on hydrogen safety, NextEnergy and the NHA have structured this workshop to focus on those needs and codes and standards in Michigan.

This fall, the NHA Hydrogen Safety Codes and Standards workshop is expected to draw 150 participants from throughout Michigan and around the country, including code officials, hydrogen experts, local authorities and others involved in the siting and operation of hydrogen energy technology demonstrations. Presenting hydrogen energy experts include: Neil Rossmeissl, U.S Department of Energy-Office of Energy Efficiency and Renewable Energy, Carl Rivkin, National Fire Protection Association and Robert Mauro, Chair of the US Technical Advisory Group for ISO TC 197 on hydrogen technologies.

During the two day event, participants will have the opportunity to learn more about hydrogen and codes and standards, and they will be able to provide input into the important efforts to advance hydrogen technologies. Attendees at this workshop will be among the first audiences for the National Renewable Energy Lab's (NREL) presentation of new guidebook to assist Fire Marshals and other code officials in permitting hydrogen energy projects. As a special benefit to workshop participants on Tuesday afternoon, participants will have the unique opportunity for a ride and drive in the Ford Focus fuel cell vehicle and viewing GM's Autonomy concept fuel cell vehicle.

Registration for the workshop is free. The registration deadline is September 19. Register on-line at http://www.HydrogenSafety.info. Information to secure your hotel reservation can be found on the website as well.

PolyFuel, a leading provider of fuel cell membrane technology for portable applications today announced that it has been awarded a $2 million grant from the National Institute of Standards and Technology's Advanced Technology Program. PolyFuel will use the funds to develop a next-generation fuel cell gas diffusion layer to be combined with its membrane technology for portable fuel cell applications.

The National Institute of Standards and Technology's Advanced Technology Program awards finance leading-edge research projects that are ahead of current technology developments. Additionally, these projects must demonstrate tremendous economic and commercial promise, providing a viable solution to one or several global industries. The awards are granted on the basis of peer-reviewed projects that best qualify in the areas of technological ideas, potential economic benefits and the likelihood of commercialization.

PolyFuel's innovative membrane is based on more than 14 years of research and development at SRI International, one of the world's leading research facilities. Specifically designed for methanol fuel cell systems, the PolyFuel membrane delivers substantial performance and system cost advantages over both traditional lithium ion batteries and other competing fuel cell membrane technologies.

"Winning the National Institute of Standards and Technology award provides PolyFuel with the funding to expand into the development of a promising next-generation gas diffusion layer," said Jim Balcom, President and Chief Executive Officer of PolyFuel. "This new gas diffusion technology, when combined with the PolyFuel membrane will ensure the rapid introduction of portable fuel cells in numerous applications. This peer-reviewed award is a significant validation of the technology leadership position that PolyFuel has achieved with its breakthrough membrane technology."

In a Communication published on 10 September, the Commission presented a roadmap towards a European Partnership for a sustainable hydrogen economy in an effort to decrease the EU's dependence on fossil fuels.

Commission President Romano Prodi, Vice President Loyola de Palacio and Research Commissioner Philippe Busquin on 10 September presented a Communication proposing the creation of a European Hydrogen and Fuel Cells Technology Partnership, involving all major private and public hydrogen stakeholders at EU level. The aim of this partnership will be the promotion of hydrogen research in Europe, which is seen to be a future alternative source of energy.

The Communication came as a response to the US "Freedom Car" initiative, which was announced in January 2002 to promote the development of hydrogen as an alternate fuel in an effort to reduce American dependence on foreign oil. Similarly to the EU action plan, this initiative consists of a partnership between government and industry representatives, notably car manufacturers. "Freedom Car" receives a funding of 1.2 billion US dollar.

The production of hydrogen remains a critical challenge. The current reliance on conventional fossil fuels and gas undermines the much praised potential of hydrogen to contribute to the security of energy supply, and the reduction of greenhouse gases. It does not yet represent a diversification away from fossil fuels as the primary energy sources. Some critics claim that the US-EU strategy for hydrogen is no more than a "hype" while others insist that any future action needs to be built on production of hydrogen from renewable sources.

Franco-Italian chip maker STMicroelectronics said on Wednesday it had created technology for a tiny fuel cell to power mobile phones and increase the time between battery charges to 20 days.

The fuel cell could be commercial in a few years' time, depending on demand from cell phone manufacturers, ST said.

Fuel cells, which generate energy through an electrochemical reaction between hydrogen and oxygen, could replace current batteries, which are heavier and not as efficient.

ST says the new batteries would be as small as current mobile phone batteries, which, containing toxic metals, are also environmentally unfriendly when disposed of.

The fuel cell would be filled with an alcohol such ethanol and contain no toxic heavy metals, an ST spokesman said.

"This is a very promising technology. One cell will give a phone 20 days of standby time and there will be no toxic metals which are one of the major environmental concerns with today's batteries," he said.

ST made its announcement based on work by its own researchers and those at the University of Naples, Pirelli Labs and CNR institutes.

The company broke through in battery technology a decade ago when it started supplying its largest customer Nokia, the world's biggest mobile phone maker, with chips that made its handsets last for days on a single battery charge.

ST's new technology involves creating channels on flat pieces of silicon. These thousands of microchannels would maximize the contact area for hydrogen and oxygen to react and generate heat, water and electrical energy.

The company could not forecast how expensive the fuel cells would be, but said they would use standard semiconductor production technology which should keep prices low.

According to an article in The Columbus Dispatch, fuel cell component manufacturer NexTech has opened a new production facility in Delaware County, Ohio, USA. The company, founded in 1994, had outgrown its 8,500-square-foot building in Worthington and moved into a 56,000-square-foot space in Delaware County.

The company has 30 employees and sales of between $4 million and $5 million -- both double from two years ago -- with 110 customers in 25 countries.

NexTech is the first company in Ohio which received funding from Gov. Taft’s three-year, US$ 103 million initiative to back fuel cell research projects. Furthermore, the company also benefits from a US$850,000 low-interest loan, grants and training funds provided by the state.

NexTech’s President and Chief Executive William J. Dawson predicted that the general public is going to see fuel cell products from next year, powering laptop computers. Fuel cells also will begin to appear in generators and other power sources, he said. NexTech's first major commercial application of fuel-cell technology could be the home energy appliance in five to seven years, so Dawson.

The company expects demand for its products to increase as demonstration projects test fuel-cell technology. One project in Westerville will use fuel cells to generate electricity for 250 homes.

About NexTech:
NexTech Materials, Ltd. is a developer and manufacturer of innovative ceramic products to meet the needs of the fuel cell, chemical, electrochemical, electronics and consumer markets. It provides materials solutions for fuel cells and fuel cell related products. Product areas and expertise include: ceramic powder synthesis methods for SOFC component materials, and water-gas-shift catalysts for fuel processors in PEMFC systems.

On 26 September 2003, at the Grove Fuel Cell Conference (www.grovefuelcell.com) at ExCeL in London’s Docklands, the UK Fuel Cell Vision will be launched by the Department of Trade and Industry (DTI). The Vision highlights the benefits to the UK in taking a leading role in fuel cell development and deployment, and describes a pathway for fuel cells in the UK over the coming years. As such, it provides a basis for future policy making and strategic planning around fuel cells.

In building the Vision, Fuel Cells UK has gathered input from over 150 members of the UK fuel cell community. Celia Greaves of Fuel Cells UK says “We have been tremendously encouraged by the enthusiasm of fuel cell stakeholders to work with us on the Vision. This represents an important first step in providing a cohesive framework within which we can move forward.”

Stephen Timms, Energy Minister, who will formally open the Grove Fuel Cell Exhibition, said "Fuel cell technology has the potential to revolutionise the energy market. The UK fuel cell vision will be key in providing a framework for action by the leading players in the industry.

"The DTI launched Fuel Cells UK earlier this year to bring together the industry and the research community, to help us develop a world leading fuel cells capability. And it will play an important role in the UK's changing energy landscape, working with others to make the vision a reality."

The use of fuel cell technology can, in the short term offer a more efficient use of fossil fuel resources, while in the longer term the aim is for a hydrogen infrastructure based on renewable energy. Attendees at the Grove Fuel Cell Symposium will see how far fuel cells have come towards commercialisation and view fuel cells in action powering applications from laptops to vehicles.

A number of the various UK initiatives already seeking to support the development and deployment of fuel cell technology will present at the conference. Fuel cells are seen as a key mechanism for achieving regional aspirations for economic growth and environmental improvement.

Delegates will hear from the Tees Valley Hydrogen Project on the challenge of creating a viable fuel cell industry – in the Tees Valley, the expertise from the process and chemical industry already exists for hydrogen production with obvious benefits for the local population in creating new jobs.

In Scotland, renewable energy sources could theoretically meet all the UK energy needs, including transport. The Scottish Fuel Cell Consortium have been working on a variety of projects using hydrogen as an energy source, and delegates at the conference will hear on the use of hydrogen in a fuel cell powered vehicle developed by the Consortium – which is on display at the event.

Gary Acres, Honorary President of the Grove Fuel Cell Symposium and a member of the Steering Group for Fuel Cells UK, the organisation charged with gaining input for the Vision, says, “There had been concern, that on an international scale, the government had left it too late for the UK to lead the global development of fuel cell industries. However, as shown by the number of UK companies and initiatives presenting at this year’s Grove Conference, the UK is already playing an important role in fuel cell development and has a significant relevant skills base in the area. The UK Fuel Cell Vision should help us to further develop the industry at a time when commercialisation of the technology really does seem around the corner.”

From an international perspective, funding for fuel cell research in the UK has lagged behind other countries especially the USA, Canada, Japan and Germany which have been very active in supporting their own national development of the fuel cell sectors. A series of presentations at the Conference will review various international initiatives from residential CHP systems to micro applications such as mobile phones. Delegates will also learn of the various government incentives, both in the EU and the US which is helping to drive forward fuel cell research overseas.

Companies exhibiting at the Grove Fuel Cell Exhibition see the launch of the UK Fuel Cell Vision as a commitment by the UK Government to formulate a sustainable and renewable energy policy. Judith Agar, Director of Marketing & Communications at Intelligent Energy Ltd, who are among the 115 companies exhibiting at the Exhibition, says "There is clearly a global opportunity for fuel cell technology, yet there is much still to be done across the spectrum from developing infrastructure to building consumer confidence, to promote the creation of market ready products and applications. From our perspective as a UK based company with world class PEM designs and systems, it is critical that the UK has a clear and coherent vision which can direct support to the Fuel Cell industry as it moves toward delivery of internationally competitive products."

Find out more about developments in fuel cell technology and commercialisation at the Grove Fuel Cell Conference at the ExCeL Exhibition Centre in Docklands, London from Wednesday 24 September to Friday 26 September 2003. The event is organised by Elsevier in association with Fuel Cells Bulletin. For full programme details and a complete list of exhibitors visit: www.grovefuelcell.com

Hosokawa Micron Corp. (TSE:6277) has begun a joint effort with an Osaka University professor to develop a better electrode material for SOFCs (solid-oxide fuel cells).

The goal is to leverage Hosokawa Micron's nanoparticle technology to make electrodes that will enable SOFCs to operate at the relatively low temperature of around 600 C while retaining the high energy-conversion efficiency for which they are known.

Today's SOFCs need to be heated to around 1,000 C before they begin operating. This can take as long as one day, and the high temperature requires the use of expensive heat-resistant ceramic materials for the separator that sits between the two electrodes of the fuel cell.

If electrodes that operate at around 600 C can be developed, it will allow use of inexpensive stainless-steel separators and lead to SOFCs that take as little as several minutes to reach operating temperature.

There is tremendous potential demand for SOFCs of this type as power sources in the home, and the Japan Science & Technology Corp. is providing an annual grant of around 30 million yen (US$256,206).

Air Products will showcase its position as leading producer of hydrogen when the company supplies the hydrogen needs for the Grove Fuel Cell Symposium in London (24th-26th September).

The Grove Fuel Cell Symposium is the one of the world’s largest and most important events for fuel cell and hydrogen technology, comprising a multi-stream conference and major exhibition and fuel cell demonstration area. Air Products, whose decades of experience in hydrogen-fuelled transport ranges through cars, commercial vans, buses, boats and even naval submarines, will be supplying the hydrogen needs for the show.

This includes cylinders for exhibitors and gas for several demonstration vehicles, including two fuel-cell operated Ford Focus cars.

For Air Products, the event represents an opportunity for the company to raise its profile within the UK hydrogen energy community by highlighting the company’s vast knowledge and understanding of producing, storing, safe handling and transporting hydrogen. The company has experience in over 20 hydrogen-fuelling transport projects in the USA, Germany, Italy and Asia.

Air Products operates 60 hydrogen production facilities across several continents and transports more than 300 million litres of hydrogen per year.

The development of fuelling infrastructure to support hydrogen technology is the key to its successful growth, and this will be the focus of a lecture to be delivered at the Grove Conference by Ian Williamson, Director, Future Energy Solutions at Air Products. He will explain how the company is meeting some of the challenges through developments such as the Series 100 Fuelling Station.

“It is already apparent that diverse transport projects require different infrastructure solutions and we are helping to bridge that gap,” he said.

In addition to infrastructure and fuelling, another key focus for Air Products is safety training and awareness, and the company will be running an introductory session to its KnowH2ow safety training at the show.

Air Products (NYSE:APD) serves customers in technology, energy, healthcare and industrial markets worldwide with a unique portfolio of products, services and solutions, providing atmospheric gases, process and specialty gases, performance materials and chemical intermediates. The company is the largest global supplier of electronic materials, hydrogen, helium and select performance chemicals.

Founded in 1940, Air Products is recognized for its innovative culture, operational excellence and commitment to safety and the environment. With annual revenues of $5.4 billion and operations in over 30 countries, the company's 17,200 employees build lasting relationships with their customers and communities based on understanding, integrity and passion. For more information on Air Products visit www.airproducts.com.