The financial information presented in this survey has been obtained from the annual report of 16 North American publicly traded fuel cell companies for fiscal years ending in 2002. 
All figures are expressed in U.S. dollars. Companies were included if (a) their primary goal is fuel cell production and/or system integration and/or related fueling infrastructure, and (b) they were a stand-alone public company based in Canada or the U.S. as of December 31, 2002. 

Industry Overview
In North America, most public fuel cell companies are developing proton exchange membrane fuel cells (PEMFC) and related fueling infrastructure. This emphasis on PEMFC technology suggests that investor interest in the potentially huge transportation market has historically outweighed that for portable and stationary applications. However, with commercialization in the portable and stationary markets expected to precede commercialization in the transportation market, companies focused on PEMFC technology may remain dependent on financing for considerably longer than companies focused on other fuel cell technologies.

Revenue and Income
Across the companies surveyed, revenues increased 71%, from US$128 million in 2001 to US$219 million in 2002.

Customer Base
Fuel cell companies are beginning to generate revenue from sales of products and contract engineering.

Canadian fuel cell companies reported revenues from customers within Canada and from several other countries, while U.S. companies found most of their revenues at home.

Profitability
Despite an increase in revenue between 2001 and 2002, none of the companies surveyed were profitable, largely due to the high cost of low-volume production and a continual focus on R&D. Losses totaled US$405 million in 2002, up 35% from 2001.

Innovation
R&D expenses account for a major proportion of fuel cell companies operational costs. Overall, R&D spending increased by US$42 million or 19% between 2001 and 2002 and for most companies this spending outweighed revenue. 

Shareholder Value
Across the companies surveyed, share prices tended to decline between 2001 and 2002. Overall, the market capitalization of these companies fell by 70%. 

Cash Flow
Cash flows for the companies surveyed were negative in 2002 compared to positive in 2001. A major factor in this change was the significant decline in cash flow from financing — from US$612 million in 2001 from US$159 million in 2002 — accompanied by an increase in the negative cash flow from operations — from US$200 million in 2001 to US$338 million in 2002.

Sources of Capital
In 2002, the money raised from the issuance of common shares for these companies dramatically decreased. 

Fuel cell companies will require additional financing if they are to grow and move toward product commercialization. Most companies in the group went through their last round of financing by public offering in 2000-2001.

On their own, public capital markets may be insufficient to fund the sustained level of R&D spending required to achieve full-scale commercialization of fuel cell technology.

Private equity placements also featured prominently in the industry and are a major source of funding for these companies.

During 2002, public companies and their private counterparts benefited from government programs and incentives promoting the development and commercialization of fuel cell technology.

UltraGuard Water Systems Corp. (OTC BB: UGRD), headquartered in Vancouver, British Columbia, is a public company emerging as a provider of ultra-violet drinking water purification and filtration systems for the global multibillion-dollar residential marketplace. 
On an 8-K filed with the Securities and Exchange Commission on January 14, 2003, UltraGuard acquired by share exchange all the issued and outstanding shares of Innovative Fuel Cell Technology Inc., the holder of an option to acquire the world rights to a Magnesium-Air Fuel Cell developed by MagPower Systems Inc. 

On January 14, 2003, UltraGuard and MagPower performed testing of the Magnesium-Air Fuel Cell using a prototype Fuel Cell to power UltraGuard's Point of Use water purification unit. On January 22, 2003, in a news release issued by MagPower, its President, Bruce Downing, stated, and we quote, "This was the first direct use of our fuel cell on a specific application and we are extremely pleased with the results." 

On March 14, 2003, UltraGuard completed an agreement with MagPower to purchase the worldwide rights to manufacture and market the Magnesium-Air Fuel Cell. 

UltraGuard's interest in this technology stems from its desire to reach new and virtually untouched marketplaces. With a desperate need of clean drinking water in many parts of the world where electrical power is not available, the marriage of these two products will permit UltraGuard to enter a market where few if any competitors can enter. With the affordable fuel cell used to pump the water and to power UltraGuard's UV unit, thousands of liters of clean and safe drinking water are available to even the most remote village or residence. Additionally, the fuel cell is available to power basic lighting needs, radios and televisions. To replenish the battery's power, a simple and inexpensive exchange of magnesium plates, hydrogen inhibitor and the addition of salt water have the fuel cell up to full power instantly. 

With product available in early 2004, UltraGuard will actively pursue international interest in representation and sublicensing of these products 

Forward-Looking Statements: Certain of the foregoing information are forward-looking statements regarding future events or the future financial performance of the company and are subject to a number of risks and other factors, which could cause the actual results to differ materially from those contained in the forward-looking statements. Among such factors are: general business and economic conditions, customer acceptance of and demand for the Company's products, the Company's overall ability to design, test and introduce new and improved products on a timely basis, regulatory constraints, and the risk factors listed from time to time in documents filed by the company with the SEC. 
 

 On 26 September 2003, at the Grove Fuel Cell Conference at ExCeL in London's Docklands, the UK Fuel Cell Vision was 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 (see fact sheet below) 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."

Prof. Morinobu Endo, Faculty of Engineering, Shinshu University, and Showa Denko K.K. (SDK; TSE: 4004) have agreed to establish a joint venture for research of advanced carbon materials and their application to energy devices. The new company, MEFS Co., Ltd., will focus on R&D of carbon nanofiber in the category of "multi-walled carbon nanotube" (MWCNT) that has great potential for wide-ranging applications.

Prof. Endo discovered carbon nanotube while he was a researcher at the University of Orleans, France (in around 1975). Since then, he has been engaged in the study of the basic science of a wide variety of advanced carbon materials, including carbon fiber and carbon cluster, as well as application of these materials to high-performance batteries for portable electronic equipment and electric vehicles, and power source systems.

In 1982, Prof. Endo and SDK started joint researches into VGCF (vapor-grown carbon fiber), a typical MWCNT. While promoting application of VGCF as high-performance additive in lithium-ion secondary batteries, the two parties established the world's first volume production technology of very fine VGCF products.

Based on this achievement, SDK has become the sole producer/marketer of carbon nanofiber in Japan, operating a 40-ton-per-year commercial plant.

In addition to carbon nanofiber, MEFS Co., Ltd. will promote R&D of advanced carbon materials for use in fuel cells and capacitors. Through speedy and strategic R&D efforts, the company will acquire intellectual property for its achievements.

Under the ongoing medium-term consolidated business plan (the Sprout Project), SDK is expanding the fine carbon business as one of its "strategic growth businesses" and developing battery materials based on the "strategic market unit" (SMU) concept. From now on, SDK will step up expansions in this field by commercializing R&D accomplishments of MEFS Co., Ltd.

British innovation drew inspiration from observing how animals and plants 'breathe'. Boosts power output of fuel cells by 16 percent, with the promise of more to come.

A British technology innovation promises to boost the power available from fuel cells, and bring down the manufacturing costs. Power increases of 16 percent have already been achieved, and the research team say there is more to come. The development brings forward the day when fuel cells will be commercially viable for mass-market automotive and general power applications, say the developers, Morgan Fuel Cells (MFC).

The breakthrough is in the design of the bipolar plates that are a key component in fuel cells. The patented 'Biomimetic' bipolar plate technology developed by MFC drew its inspiration from the natural world. It mimics the structure seen in animal lungs and plant tissues to allow the gases to flow through the plate in a far more efficient way than has ever been achieved before. The Biomimetic plates also have the added advantage of being produced using MFC's patented ElectroEtch system, which allows them to be manufactured at a fraction of the time and cost of conventional methods.

Dr Mark Turpin, Global Director of Technology for MFC, explains: "We realised by looking at how animal lungs and plant leaves 'breathe', that a structure consisting of large distribution channels feeding progressively smaller capillaries is the most efficient way to distribute reactants.
"So we mimicked this approach in the Biomimetic plate, with a highly branched flow field that distributes gas through a fine system of capillaries. This structure reduces the pressure drop found in the industry-standard serpentine design of flow field and ensures a more even delivery of gas across the bipolar plate, so that more power can be extracted from the fuel cell. Initial results are very promising, with tests already confirming a 16 percent increase in peak power, and we are certain that even more significant improvements can be made."

Using a Biomimetic flow field pattern also offers the possibility of significant indirect performance and cost benefits. These include improved water management (water being a by-product of the fuel cell process) and reduced overall pressure requirements.

MFC has focused mainly on the graphite bipolar plates featured in PEM (proton exchange membrane) type fuel cells used typically in automotive and general power replacement applications. However, Biomimetic flow field designs are potentially applicable to ceramic and metal bipolar plates and the core design has been adapted for use in direct methanol fuel cells and may find application within solid oxide fuel cell systems.

ElectroEtch manufacturing technology

Key to the creation of the Biomimetic plate design is MFC's patented ElectroEtch manufacturing technology, which uses a high-precision grit blasting technique to produce a plate in a matter of minutes.
This offers a rapid prototyping capability, from drawing to finished plate in about two hours, which enables many different plate designs to be evaluated. And there is no extra cost for complexity, as it takes the same time to etch a complex pattern as a simple one. In the long term ElectroEtch offers the prospect of a low-cost, scalable route for the production of the large volumes of high-performance bipolar plates that will be needed if fuel cells are to succeed in mass-market applications.

Cumulatively, Greenlight is providing seven Fuel Cell Advanced Test Stations (FCATS) to two major customers. The first order is for three 3 kW PEM FCATS L-Series test systems.  The second is for three 12 kW PEM FCATS H-Series
test systems and one 60 kW PEM FCATS HX-Series testing station.  The stations are expected to be delivered over the next two quarters.
    
"Our decision to open an office in Tokyo, Japan over three years ago continues to pay dividends," said Pierre Rivard, President and CEO of Hydrogenics.  "The Japanese market is advancing quite aggressively towards the commercialization of fuel cell technology, as evidenced by our growth in test equipment sales to the region over the past three years.  We are delighted to secure these major contracts with customers who are clearly setting the pace in fuel cell development."
    
Greenlight fuel cell testing systems provide high precision instrumentation, combined with full-featured software.  They deliver fuel cell testing results that prove the reliability, repeatability and versatility required for world-leading fuel cell development programs.
    

Millennium Cell Inc. (NASDAQ: MCEL), a technology development company that has created a proprietary technology to safely store, generate and deliver pure hydrogen, today joined U.S. Energy Secretary Spencer Abraham, Chicago Mayor Richard M. Daley and Chicago Climate Exchange (CCX) Chairman and CEO Richard Sandor at the official opening of the Exchange. Millennium Cell is a Charter associate member of CCX, a voluntary pilot greenhouse gas reduction and trading program formed to demonstrate the feasibility of cost-effectively reducing greenhouse gas emissions. There are 22 founding and charter members, representing approximately half the annual carbon dioxide emissions in the United Kingdom. The members of the Exchange have made a legally binding commitment to reduce their emissions of greenhouse gases by four percent below the average of their 1998-2001 baseline by 2006.

Dr. Richard Sandor, who is also on the Board of Directors of Millennium Cell commented. "We welcome Millennium Cell as one of our charter members," he said. "I am very excited about the next 20 years in the environmental and social arena and I applaud Millennium Cell's desire to be part of this positive change. They join American Electric Power, the City of Chicago, DuPont, Ford Motor, and Motorola as examples of member companies who have made a commitment to unambiguously prove that market-based solutions can be used to solve environmental concerns."

"We are very pleased to be able to participate in the founding of what we are sure will be a landmark development in environmental progress," said Dr. Stephen S. Tang, Millennium Cell President and CEO. "The Chicago Climate Exchange is an innovative and exciting way for companies to make a real difference. The advantages of participation in the Exchange are great - from the opportunity to help design workable rules and protocols for the trading system to enjoying financial benefits from environmentally sustainable practices. As a small company engaged in energy technology development to enable the use of hydrogen as a means of eventually reducing carbon emissions in our country and the world, we are deeply supportive of the vision of the Exchange and proud to be a part of this historic day." 

Casio Computer Co, Ltd forecasted enabling technologies over the next decade of power sources for mobile apparatuses, and the coexistence of fuel cells and others in each type of market from a device manufacturer's viewpoint in a seminar on fuel cells for mobile devices, held together with "WPC EXPO 2003," which ended Setpember 20, 2003.

The company predicts that for PCs, the current rechargeable batteries will be replaced with fuel cells to become the mainstream. As for digital cameras and PDAs, it is presumed that fuel cells, lithium manganese primary batteries, and the next generation lithium-ion batteries will coexist.

For the low-output field, such as Walkmans and radios, it predicts that in addition to fuel cells' primary batteries including alkaline manganese batteries, and rechargeable batteries including electric double layer capacitor, solar batteries, and energy sources using natural energies, such as human body temperature and movement, will be introduced.

In the field, such as in a laptop, where high density energy of 1,000Whr/L or higher is required, it predicts that among fuel cells, direct methanol fuel cells (DMFC) will be insufficient in generating enough output density, and a modified type that supplies hydrogen from methanol will be in use. At present, the output density of DMFC is 50mW/cm2. The company says "DMFC cannot be used until it reaches 100mW/cm2."

At present, the top data is 50mW/cm2, and has reached the limit with the conventional material. It is believed that unless a new material is developed, making further progress seems unlikely. On the other hand, the modified type, whose development is underway by Casio, can increase the output density by the use of pure hydrogen, and can reduce the size. However, at present, it is "like a handcrafted work of art." How it can be developed into a mass-production line, and the cost can be reduced are the key factors, the company said.

In the field where a medium level of energy density of 800-500Whr/L or more is required, such as digital cameras and PDAs, it is predicted that while modified fuel cells or DMFC will be used, the mainstream will still be the next-generation, lithium-ion batteries.

In the field, such as Walkmans, radios, and electronic dictionaries, where the energy density of 300Whr/L or less is enough for operation, among fuel cells DMFC will presumably be the mainstream. The company is already investigating DMFC that is replaceable for AA batteries. 

Medis Technologies Ltd. (NASDAQ:MDTL) today announced that it extended its offer to exchange loyalty program warrants for a corresponding number of new warrants (the "Exchange Offer").

The original Exchange Offer was scheduled to expire at midnight, New York City time, on September 30, 2003. At such time, approximately 806,000 loyalty program warrants out of approximately 848,000 loyalty program warrants had been confirmed as tendered by 243 persons for a like number of new warrants. The exercise of such new warrants would result in Medis Technologies receiving approximately $3,573,000 had the Exchange Offer expired on September 30, 2003, inclusive of over $1,200,000 attributable to loyalty program warrants that had been tendered by the chairman and chief executive officer and the president of Medis Technologies and their affiliate.

The new expiration date for the Exchange Offer is midnight, New York City time, on October 28, 2003, unless extended. Any person who tendered loyalty program warrants may withdraw such tendered warrants upon delivery to Medis Technologies of a properly completed withdrawal form no later than midnight, New York City time, on October 28, 2003 (or such later date and time if such Exchange Offer is extended).

The Exchange Offer is being extended in order to file a registration statement on Form S-4 with the Securities and Exchange Commission in lieu of the registration statement on Form S-3 that had been previously filed.

Medis Technologies is involved in the development of highly advanced proprietary technology products primarily related to sources of clean energy for the 21st Century. Medis' primary focus is on direct liquid fuel cell technology. Its business strategy is to license or sell its technologies to, or enter into joint ventures with, large international corporations or sell its products to end users through retail outlets and service providers. In addition to its fuel cell technology, Medis' product pipeline, in varying stages of development, includes highly conductive polymers, the toroidal engine and compressor and stirling cycle system. Medis has also developed the CellScan with many potential applications relating to disease diagnostics and chemo sensitivity.

This press release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risk and uncertainties, including, but not limited to, the successful completion of product development, the success of product tests, commercialization risks, availability of financing and results of financing efforts. Further information regarding these and other risks is described from time to time in the Company's filings with the SEC. 

Alternate Energy Corporation (OTCBB:ARGY - News) announced today that the company has signed an agreement with Taurus Global, LLC to procure future funding. Once secured, these funds will be immediately put to work bringing AEC's low-cost hydrogen production system into the next phase of deployment. AEC's hydrogen fuel process will help enable residential and commercial customers to generate their own electricity off-grid at on-grid competitive prices. 

Franco Scalamandre, President of Taurus Global commented, "We sift through literally hundreds of companies on a monthly basis and decide to support only the ones that make good business sense.  When AEC was presented to us we knew that we had found an opportunity with enormous potential." 

Taurus Global is a recognized investment banking group operating out of New York City and Los Angeles with a specialty in the funding of emerging, privately-held and/or publicly traded companies.  Under the provisions of the contract, Taurus will 
provide financing to AEC by introducing them to potential private investors as well as other public and/or private companies for the purposes of potential merger, acquisition, and/or financing transactions. 

According to AEC chairman Blaine Froats, "We have entered into an agreement with Taurus Global to secure intermediate and senior stage funding for our Company.  Though the contract was just signed yesterday, Taurus has been working on the first round of funding over the past number of weeks. We are very pleased with Taurus thus far and are looking forward to future funding that will take our company to the next level.  Further announcements regarding funding will be made as they occur." 

The Grove Fuel Cell Symposium is one of the longest established and most important events in the fuel cell industry calendar. The 2003 event, the eighth in the series, delivered even more: it was the largest fuel cell event that has ever taken place in the United Kingdom, and featured live demonstrations of working fuel cells as well as an extensive seminar programme and static exhibition.

 The hydrogen fuel cell busses have arrived in Reykjavik, Iceland. At 10 o'clock the 30th of September a little happy crowd of people were to be found at the cargo-harbour in Reykjavik, welcoming two out of three H2 FC buses from EvoBus (DaimlerChrysler).

Hjalmar Arnason MP commented that 5 years had passed since this idea was first mentioned between an Icelandic delegation and DaimlerChrysler. Until the 5th of October the buses will be used to train the conductors and go through scrutinising checkups and installations.

The busses have been transported across half of the Atlantic Ocean. They will be tested for the first time on the 5th of October, when the public of Reykjavik is invited to have a short ride between the hydrogen fuel station and the Straeto headquarters (the municipal bus company).

The busses will eventually go into normal operation and will refuel at the Shell hydrogen station located in Vesturlandsvegur in the east of the Icelandic capital.

The Reykjavik hydrogen station incorporates machinery, supplied by Norsk Hydro, to produce hydrogen from water by electrolysis. All of Iceland’s electricity is generated from hydroelectric and geothermal sources.

GenCell Corporation (GenCell) has recently been selected to enter contract negotiations for a fuel cell project with the Connecticut Clean Energy Fund (CEF). 

The project’s objective is to demonstrate GenCell’s commercial-scale prototype 40 kW fuel cell system. The demonstration is expected to be conducted at the Connecticut Global Fuel Cell Center (CGFCC) at the University of Connecticut’s campus in Storrs, Connecticut. The fuel cell will be manufactured at GenCell’s Southbury, CT facility. The development and manufacture of GenCell fuel cells have been supported by Connecticut’s electrical ratepayers through the Conservation & Load Management Fund (C&LM) as well as previous contribution from the CEF.  

Jeffrey Allen, GenCell's founder and president stated, "We are very excited that our proposal to the Clean Energy Fund has received this distinction. We believe CEF’s involvement further attests to the value that our products and technologies provide”.  

GenCell Corporation, a privately held Connecticut based corporation, is involved in the design and manufacture of advanced, next-generation, fuel cell components and systems. GenCell strives to reduce the cost of key fuel cell components such as electrodes, bipolar separator plates, and fuel cell stack hardware while improving performance and life through the introduction of innovative design. By using proprietary design and manufacturing technology, GenCell is on the cutting edge of fuel cell technology with plans to commercialize its technology next year.  

GenCell's goal is to create a universal hardware package to support all leading fuel cell technologies for small-scale power plant applications of both stationary and automotive fuel cell systems. GenCell's competitive advantages originate from its patented fuel cell designs that provide for high-speed, low-cost manufacturing. GenCell will use these advantages to drive fuel cell capital costs down and accelerate commercialization of the company’s products.  

A Japanese government affiliate said Wednesday it will provide Hitachi Ltd. , two of its group firms and NEC Corp. with subsidies to help them develop fuel cell technologies for cellular phones and computers.

The combined subsidies will amount to 204 million yen for the current fiscal year to March 2004. The four firms will have a development period of three years, said the New Energy and Industrial Technology Development Organization, or NEDO.

NEDO hopes that the four firms will be the first to develop fuel cell batteries for practical use in mobile products.

NEDO is affiliated with the Ministry of Economy, Trade and Industry. 

Honda R&D Co., Ltd., Honda's subsidiary responsible for research and development activities has established an experimental Home Energy Station (HES) that generates hydrogen from natural gas for use in fuel cell vehicles while supplying electricity and hot water to the home.
    
The new HES system that has been jointly developed with strategic fuel cell partner Plug Power Inc. (Nasdaq: PLUG) is located on the grounds of Honda R&D Americas in Torrance, California, and will undergo experiments in hydrogen production, storage and fueling, as part of ongoing research into hydrogen energy sources.
    
The new HES system, which can currently produce enough hydrogen to refill the tank of a Honda FCX hydrogen fuel cell vehicle taking just a few minutes once a day, consists of the following major processes and components:

     *  a reformer to extract hydrogen from natural gas;

     *  a fuel cell unit to provide power for the overall system that utilizes
        some of the extracted hydrogen;

     *  a refiner to purify the hydrogen;

     *  a compressor for pressurizing the extracted hydrogen; and

     *  a high pressure tank unit to store the pressurized hydrogen.

Honda also announced the development of next-generation solar cell panels made by Honda Engineering, a Honda subsidiary. The new solar panels feature a light-absorbing layer formed by a compound made of copper, indium, gallium and
selenium (CIGS) which lowers the amount of electricity required for production process of solar cells, compared with ordinary silicone-crystal type solar cells. The electrolysis unit, which generates hydrogen from water, has been replaced with a new Honda-developed compact unit that achieves higher efficiency using a new Ruthenium based catalyst. Both the new solar cells and the new electrolysis unit are mounted on the Honda solar-cell powered hydrogen refueling station in Torrance, California to improve the total efficiency.
    
Honda has long held the view that hydrogen fuel cell power has the potential to be the next-generation power plant needed to overcome problems related to the development of alternative fuels, reducing exhaust gas emissions, and reducing the effects of global warming.  Honda is researching ways to improve the energy efficiency of the hydrogen fuel production process
and vehicle efficiency.

             Features of the Home Energy Station (HES) Prototype

     Location:                          Hydrogen production capacity:
     Honda R&D Americas, Inc.           Maximum 2Nm3/hour, Purity of 99.99%
     Torrance, California, U.S.A.        or higher
                                        Hydrogen storage capacity 400 liters
                                         @ 420 atmospheres

     System configuration:
     Reformer
     Fuel cells
     Refiner
     Compressor
     High-pressure storage tank

FuelCell Energy, Inc. (Nasdaq: FCEL - News) announced today that it has received a new $954,000 contract award for participation in the U.S. Navy Marine Fuel Cell Technology Verification - Trainer Program. The objective of the program, anticipated to last 16 months, is to accelerate introduction of fuel cell power plants to U.S. naval ships and facilities.

Specific tasks of this new program include engineering and development for installing diesel-fueled Direct FuelCell® (DFC®) power plants at naval facilities and on ships, operational testing of a DFC300A power plant in Danbury from a control center in Maine, and development of a marine fuel cell simulator for use as an operator training aid.

"This project demonstrates the Navy's continued commitment to introduce clean, efficient and reliable stationary fuel cells for base and ship service power," said Hans Maru, Chief Technology Officer of FuelCell Energy. "This will advance the development of our U.S. Navy-sponsored program that will design, build and operate a land based DFC power plant using marine diesel fuel."

The Company's contract award is part of a larger, $2.6 million project awarded by the Office of Naval Research (contract number N00014-03-C-0442). The University of Maine and Maine Maritime Academy will also participate in the program to obtain real-world experience with fuel cell operations and to gain a better understanding of the installation and operating characteristics of ship service fuel cell power plants.

FuelCell Energy is currently working on the second phase of a contract with the Office of Naval Research to deliver a 500-kilowatt ship service fuel cell power plant for land-based demonstration at the Naval Sea Systems Command in Philadelphia in 2004. This $21.6 million cost-shared project started in 2000 and is a continuation of an earlier $4.6 million contract that completed the conceptual design and testing of the critical components for the marine fuel cell module. The Company expects that successful demonstration of this project can lead to additional diesel fuel cell power plant applications for commercial ships and island power generation.

Fuel cell driven fork lift truck presented by PROTON MOTOR Fuel Cell GmbH, Still GmbH and Linde AG On 1st October 2003 the fuel cell fork lift truck was presented at the Munich airport during the "Mediumforum Deutscher Wasserstofftag", a hydrogen event for the German press initiated by Linde AG.

PROTON MOTOR, as project leader, together with their partners Linde AG and Still GmbH, have replaced the battery in an electric fork lift truck with an equivalent fuel cell system. The same power density was achieved in the same volume including all necessary peripheral equipment and the gas tanks. The end user will not perceive any restrictions of operation in terms of power performance and operation time. However, there is a decisive advantage of the fuel cell system: the refilling of the tanks is done within minutes instead of hours for reloading the battery.

In the framework of the hydrogen project on the Munich Airport, the fork lift truck will be the first fuel cell driven vehicle at the airport. The fork lift truck will be operated under realistic conditions in the cargo area of the Munich Airport by the cargo logistic company. The experiences of drivability, ease of use and lifetime will be the base for the follow-up vehicles. The demonstration is embedded into the existing hydrogen infrastructure at Munich Airport and offers the opportunity for first experiences for working in the future world of hydrogen economy.

The fork lift truck will also be shown at the H2Expo, the international trade fair for hydrogen and fuel cell technologies in Hamburg, Germany (Oct 9 - 11, 2003). 

According to an article in the Nihon Keizai Shimbun, the Nippon Steel Corporation and Sumitomo Corporation will jointly develop a 10kW small stationary fuel cell system, using SOFC stacks developed by Acumentrics. The companies aim to put the system on market by 2005. Furthermore, the companies intend to develop a 100kW system which would eventually extend their customer base.

In September, Sumitomo an Acumentrics formed the Acumentrics Japan Corp. which aims to market and sell Acumentrics' proprietary tubular solid oxide fuel cell power systems throughout Japan. The companies have installed a SOFC unit at Acumentrics Yawata Works and started the test operation using LNG fuel. 

Toshiba Corp. will unveil next week a prototype handheld fuel cell unit that it expects to have on the market in 2005 and which will act as a stepping stone to the day when fuel cells can be directly integrated into mobile electronics products.

The device, which will be unveiled at the Ceatec Japan 2003 exhibition, contains a Direct Methanol Fuel Cell (DMFC) and is intended to be used as a charger for the batteries in portable devices such as cellular telephones and digital still cameras, Toshiba said in a statement on Friday. At present research has not progressed to the stage where a fuel cell small enough to fit into a portable device is within grasp so Toshiba hopes its charger will be the next best thing.

"To make it integrated (into a product) there is still a technical barrier to make the DMFC small enough," said Junichi Nagaki, a spokesman for Toshiba in Tokyo. "This is one milestone that shows we are getting closer to such a product."

The prototype measures 100 millimeters high by 60 millimeters wide by 30 millimeters deep and weighs 130 grams with a fuel cartridge inserted, said the statement.

A fuel cell of this type mixes methanol in a 3 percent to 6 percent concentration with air and water to produce power. The DMFC in the Toshiba prototype can produce one watt of power for around 20 hours with a 25 cubic centimeter cartridge of methanol. Put another way, that's enough power to charge a cellular telephone battery around six times, said Nagaki.

Earlier this year the company announced development of a DMFC for use with notebook computers. The larger fuel cell can power an average computer for around five hours and Toshiba hopes to have that product on the market sometime in 2004, Nagaki said.

Toshiba's competitors are also working on similar technology.

In September NEC Corp. unveiled its latest prototype fuel cell for notebook computers. That device, which was also larger than the prototype portable unit Toshiba will show next week, could power a computer for five hours on around 300 cubic centimeters of methanol, said NEC. The Tokyo company also hopes to commercialize its technology in 2004 and has a goal of development of a 40-hour fuel cell by 2005.

Other companies are also working on the technology although have not shown prototype units. They include Casio Computer Co. Ltd., which said last year that it is looking to commercialization in 2004, and Intel Corp., which said at the recent Intel Developer Forum event in San Jose, California, that it is also pursuing fuel cell technology.

Ceatec Japan 2003 takes place between Oct. 7 and Oct. 11 and Makuhari Messe in Chiba, Japan. 

Dynetek Industries Ltd. ("Dynetek"), a leader in developing, producing and marketing lightweight compressed natural gas (CNG) storage cylinders and compressed hydrogen storage cylinders, announced today it has delivered an on-board hydrogen fuel storage system to Mitsubishi Motor Corporation for use in its MITSUBISHI FCV, test vehicle. Dynetek is providing the fuel storage solution using its certified 350 bar (5000 psi) hydrogen fuel storage system. The storage system has been certified in Japan to Reijikiun Betlan-9 standard with approval by KHK and in Germany under TUV. The vehicle is on display at the head office of Mitsubishi Motors Corporation.
   
"We are honored to be working with Mitsubishi Motors and their zero-emission fuel cell technology," said Robb Thompson, Dynetek's President and CEO. "This introduction of their first fuel cell vehicle demonstrates their commitment to environmentally friendly cars."

Chipmaker STMicroelectronics is joining in the race to develop fuel cells for portable equipment. Its Geneva, Switzerland, research center has developed a 3D technique for making the membranes found in fuel cells. Using nanoporous layers made from silicon provides millions of pores that measure only a few nanometers in diameter, yielding more surface area for chemical reactions to take place. No commercialization date has been sent.

Related Link: Micro Fuel Cells May Replace Batteries in Mobile Phones

At a two-day Workshop on Carbon C&S and Hydrogen held by the Brussels-based Climate Action Network, or CAN Europe, to bring European NGOs into the discussion, Bellona Foundation President Fredric Hauge called the gathering a step in the right direction.

The workshop—which was held on September 23rd and 24th—materialised at Bellona’s prodding during a hearing in the European Parliament in March, at which Bellona urged CAN Europe to consider these important issues and gather several NGOs together to elaborate on them.

Hauge, who was present both days of the conference, told Bellona Web that he was very pleased that European environmental NGOs were now determined to assess the important potential that lies in the fields of C&S and hydrogen.

Carbon Capture and Storage
It cannot be said that any common positions emerged from the event, though that was not its goal. Rather the workshop was planned as "an informative event for NGOs." Accordingly, industry and academia specialists, who participated in the workshop, aired their views in presentations, while general discussion included a broader audience of the workshop’s attendees. During the discussions, opinions were expressed and differences became apparent.

Carbon capture and storage is a field in which Bellona has taken particular interest over the past several years. Like Professor Philippe Mathieu from the University of Liège, Belgium, said in his presentation, "the idea [of carbon C&S] is basically to take the pipe from which the CO2 is today released into the atmosphere, turn it around, and put it into the ground."

It is Bellona’s mission, as a primary advocate of carbon C&S, to ensure this is done in an environmentally sound way.

As one of the most damaging "green house" gases, CO2 emerges from the combustion of fossil fuel. There are today two options for CO2 capture in order to prevent it from hurting the ozone layer, namely post- and pre-combustion CO2 arrest.

Neither of these proposes a zero-emission solution. The first occurs outside the power cycle, and can achieve a 90 percent CO2 retention rate, while the second can retain up to 95 percent of the CO2. The pre-combustion option also saves energy when compared to post-combustion capture, but it is more expensive. Mathieu stressed that zero-emission capture is feasible within 20 years, as there are no real technological barriers to putting this idea to work, only high costs.

C&S as a Possible Bridge
Two conclusions emerged from Mathieu's presentation. The first was that the emissions are reduced by carbon C&S more with coal and oil than with natural gases. The second—and this underscores Bellona's view—is that renewable energy sources and fossil fuels are not necessarily opposites and can both play a part in developing the same energy strategy. Bellona, which strongly supports the prospect of a Hydrogen society, views Carbon C&S as a key measure for creating a bridge to a society powered by hydrogen from renewable energy sources. Today, this is impossible due to the lack of these renewables, which is why Bellona asserts that fossil fuels used in conjunction with CO2 capture can fill the current energy gap. This will allow for more time to produce enough hydrogen to boost an upcoming market, initially in the transport sector.

But Where to Put It?
The second part of the discussion at the workshop focused on the question of where to store the captured CO2. Two solutions were discussed: geological sequestration and ocean sequestration.

Geological sequestration offers three possibilities for storage, said Sam Holloway of the British Geological Survey. These are: oil and gas wells; coal seams and saline aquifers, which are underground deposits of saline bearing water. Paul Johnston of Greenpeace’s Research Laboratory at the University of Exeter spoke very critically of ocean sequestration, which consists of dumping the CO2 directly into the sea, an option that raises obvious problems for ocean ecosystems and that can only be considered after further research is done on how precisely it may affect the deep-sea environment. Bellona entirely shares this view.

In Bellona’s opinion, the best option for CO2 storage is oil and gas wells, a point of view shared by the British Geological Survey’s Holloway. There is broad capacity and demand in the North Sea area for CO2 sequestration. Today, oil companies utilise natural gas for enhanced oil recovery, or EOR, which consists of creating pressure in the wells to extract more oil. This could easily be replaced by CO2 that could be sold at prices from EUR15 to 18 per tonne.

WWF against C&S and Hydrogen
The well-respected and internationally renowned World Wildlife Foundation, represented by Stefan Singer, voiced two concerns against this method of C&S storage. The first concern, said Singer, is the possibility of leakages when it comes to storage. His second worry was that C&S could develop into more than a bridge to a cleaner power system, and become ensconced as a permanent means of energy production with a dubious “green” alibi.

European Commission representative Pierre Deschamps took issue with Singer and said that fossil fuels, by their very definition, are finite. Furthermore, Deschamps argued that to reject fossil fuels altogether—and thus carbon C&S, whether based on oil or coal—isn't feasible.

"There is a global dimension to this," said Deschamps. "Enormous coal resources still exist that might eventually be used, for example in China. To say "No coal!" is a rich country attitude."

Holloway commented that he is not aware of any enhanced oil recovery activity involving leakages as of yet, while underscoring that 100 percent safety can never be guaranteed, and that every potential site would have to be evaluated separately. He asserts, like Bellona, that the North Sea would be a good "target" for carbon C&S projects because the infrastructure and documentation on the underground sequestration points are already available.

The WWF’s Singer, however, remained unmoved. "If you can't convince the public and the NGOs about the [lack of] leakage problems, carbon capture and storage is dead," he said. He compared CO2 storage to the nuclear threat: "Ten to 15 years ago, people were killed because no one could say: 'this is being stored safely,'" he said. Holloway, however, countered that the two threats are hardly comparable. The dangers of underground storage of CO2 at sea cannot be compared to the dangers of nuclear power plants in populated areas and the enormous risks of slight irradiation, he said. Many of the delegates agreed with Holloway.

"I could worry about leakages," Bellona’s Hauge said. "But natural gas that is more dangerous than CO2 is already being used in enhanced oil recovery. Because of the lack of renewables and the enormous input of energy needed to produce the renewables to get to the hydrogen society, we are absolutely dependent, today, on carbon capture and storage."

Singer expressed doubts as to whether the hydrogen economy was something to wish for, labelling hydrogen "a red herring," and adding that the WWF might not approve of it.

Bellona's Hydrogen Report
This report is a survey of the state of hydrogen technology and technological possibilities. It is Bellona's hope that it will stimulate decision-makers to focus their thinking on challenges and solutions as opposed to problems and obstacles.
 Jump to report »
 
The Wonders of Hydrogen
Hydrogen is colourless, odourless, non-toxic, and lighter than air. It is also the most abundant element in the universe and is locked in compounds on the Earth. Hydrogen as an energy carrier for fuel cells in the transport sector and in the power production markets could revolutionise both. The combustion of hydrogen produces only water and excess air.

The workshop's discussions of fuel cells focused mainly on their possible applications—mobile applications like cars, planes, boats, and stationary ones like residential and industrial applications. Fuel cells have a high electric power-to-heat ratio, extremely low emissions—none for low-temperature applications—and are less noisy and vibrate less than traditional energy sources. On the downside, they have a limited lifetime, are still costly, and not as efficient as they should be.

As Matthias Altman from L. B. Systemtechnik, a Munich-based energy consulting firm, said in his presentation, there are 17 traditional paths to obtain hydrogen, but these can easily be increased to 300. Many are explained in Bellona's Hydrogen Report. But what needs to be clear about hydrogen, CAN's Matthias Duwe said, is that it "is only as green as its source."

Basically, hydrogen can be produced from almost any source of energy. That is why, before a comprehensive infrastructure of renewables is in place, Bellona prefers to produce hydrogen from de-carbonated fossil fuels during the transitional phase to renewables.

Launching the Hydrogen Age
Altman backed Bellona's views, asserting that hydrogen could make a significant, long-term difference in the transport sector. However, society needs to undertake efforts now to realise that future.

As Bellona, L. B. Systemtechnik’s Altman is of the opinion that hydrogen-powered cars can be competitive after a period on the environmental niche market—an unavoidable precursor to mass distribution. He also said that the problem of rapid degradation of fuel cells has been resolved.

A survey in Germany shows that the public is ready for a change to hydrogen vehicles and might even be willing to accept higher costs at the beginning. A more acute problem is the need for a hydrogen filling station infrastructure. Altman estimates the costs of supplying 20 percent of all gas stations in Germany with a small hydrogen pump to be approximately EUR2.5 billion. That equals the annual cost of Germany’s windmill power programme.

As could have been predicted, the workshop wrapped up with a debate about possible corporate conspiracies, perhaps propelled by the keen interest US President George W. Bush and the European Commission have shown in hydrogen.

Could it be, asked many of the participants, that this hydrogen drive is just a political distraction from other potential solutions to the Earth's worsening ills? Aren't car manufacturers—who would have to deal with retooling to produce hydrogen vehicles—on the other side of the moral and practical schism?

In reality, noted Altman, the environmental movement has to acknowledge that it does have allies in the industry as well, and that profit-seeking and fighting for a clean environment are not necessarily mutually exclusive in this case. As Bellona’s Hauge said towards the end of the second day as he recapitulated his arguments for hydrogen production from de-carbonated fossil fuels, "there are things we have to fight for, instead of always fighting against."