The first fuel cell developed by Eletrocell, a company that integrates the incubator Cietec of the Sao Paulo University USP, has started to operate. 

Part of Cietec's facilities is being supplied by the new electric power generating equipment, which owns a capacity of 50 MW. Fuel cell converts chemical energy into electric power energy, uses hydrogen and can be powered by ethyl alcohol, biodiesel, natural gas and other fuels. 

The project was funded by the Brazilian government and the private enterprise. 

The distributor AES Eletropaulo has invested R$1.75mil resources in development, expecting that this technology will be available in the market within five years. 

The research institutes Ipen (Instituto de Pesquisas Energeticas e Nucleares), Cepel (Centro de Pesquisas de Energia Eletrica) and Coppe (Coordenacao dos Programas de Pos-Graduacao de Engenharia) supported this venture as well, allowing a rate of nationalization in equipment of 80%. According to the director of Eletrocell, Mr. Gerhard Ett, the fuel cell, which operates at modules of 10 KW, will have a capacity of 30 KW in a first stage, to reach 50 KW, enough to supply 1,250 incandescent lamps of 40W each. 

Meanwhile the government of Brazil intends to invest R$8mil resources in research projects for the use of hydrogen in electric power generation in 2004-2005. 

Around R$4.5mil resources of which will be directed at training programs to professionals and R$3.5mil at equipment. 

The government will outline tax incentive programs for companies that invest in innovative projects.