The company has developed a high-performance electrolyte membrane that blocks the passage of methanol while allowing hydrogen ions to cross. It will use this new membrane to mass-produce membrane electrode assemblies (MEAs) for direct-methanol fuel cells in 2008. The MEA for a fuel cell for a notebook computer will be around the size of a cigarette lighter.

Kuraray's new electrolyte membrane is processed to have a more uniform set of narrow channels that allow hydrogen ions to pass but obstruct the passage of the larger methanol molecule.

This structure increases the ability of hydrogen ions to pass by 50 per cent while reducing the passage of methanol by 40 per cent. The result is a 160 per cent increase in the energy efficiency of the fuel cell.

The high-performance electrolyte membrane gives Kuraray an edge over companies like Toray Industries Inc. (TSE:3402) and Sony Corp. (TSE:6758), which are also working to boost the efficiency of direct-methanol fuel cells by blocking the passage of methanol.

The growing market for tiny fuel cells for portable digital devices is expected to be worth 60 billion yen in 2010. Kuraray hopes to generate sales of nearly 10 billion yen with its MEAs in that year.