ENrG Inc. received $500,000 to develop ceramic technologies that will enable the production of large area fuel cell components.

The Buffalo company supplies components to original equipment manufacturers who will apply the technology to various markets.

"By making the fuel cell components larger, this will reduce the number of components necessary for systems, reducing the cost of the overall system," said John Olenick, ENrG president.

ENrG was selected for funding as part of statewide effort involving the New York State Energy Research and Development Authority.

Based in Albany, NYSERDA supports research to develop technologies that help save energy and helps businesses develop energy and environmental products. Since 1998, the authority has invested $9 million in fuel cell research for vehicles and stationary applications.

A fuel cell is an electrochemical energy conversion device that converts hydrogen and oxygen into water, producing electricity and heat in the process. It is very much like a battery that can be recharged while power is drawn from it. Instead of recharging using electricity, a fuel cell uses hydrogen and oxygen.

ENrG was located in the Alden Scientific Corp. building before moving to its new offices in February. The new space provides the company with more office space and a separate clean room for prototyping and testing fuel cell components. Olenick said he plans on expanding the company's clean room in another year pending the receipt of a valuable contract.

ENrG will also receive $100,000 from the Western New York Business Development Fund. The fund provides seed capital to technology entrepreneurs and start-up companies in the region. Applicants receive equity investments from the fund in two phases. The first phase is $25,000; the second is $75,000.

The fund is a program funded through a partnership of Empire State Development Corp., Amherst Industrial Development Agency, Erie County Industrial Development Agency, University at Buffalo Foundation, Western New York Technology Development Center and the City of Buffalo.

"This allows companies to develop prototypes or sell products," said Ed Hutton, manager of the fund and technology business advisor with the Western New York Technology Development Center. "The funds are matched by the entrepreneurs themselves and can be the impetus for research and development of certain technologies in Western New York."

Fuel cells have provided good business opportunities for niche market applications. These niche applications are the building blocks for broad and deep market penetration, a fuel cell expert said.

"The biggest markets are commercial and residential," said Mark Williams, distributed generation technology manager at the National Energy Technology Laboratory in West Virginia. "As a society there is a constant turnover with technology. The new replaces the old. We are always looking for something better. Change is what drives the economy. If it pans out and it's low cost, it could replace almost anything."