THE first products to hit the market containing technology developed by Ceramic Fuel Cells will not be fuel cells but underarm deodorants and bulletproof vests.

The Noble Park-based technology company will complete a plant to manufacture its patented super-fine zirconia powder by early next year, according to chief executive Brendan Dow.

High-tech: chairman Julian Dinsdale with a fuel cell, one of whose first products will be underarm deodorants.
Photo: Rebecca Hallas

Ceramic will only need about five tonnes of zirconia in the first year, leaving the company with about 15 tonnes of the finest, most consistent powder available.

"We'll sell it for advanced ceramics, but zirconia is also used in oxygen sensors and catalytic converters for cars," Mr Dow said at a briefing for brokers.

"It's used in hip joints, bulletproof vests and even underarm deodorant."

Mr Dow said zirconia powder cost $140 a kilogram but that Ceramic's patented production system was not only cheaper and cleaner than existing processes but also produced a superior powder.

While selling excess powder might be a nice little business, Mr Dow said this was not a key part of the business plan.

"It's not a show-stopper if we don't sell any powder," he said.

The company has just raised $80 million in a second-board listing in Britain, sufficient to carry the company through to the completion of its first fuel cell plant.

Mr Dow said Ceramic was talking to regional development authorities in Europe about the site for the fuel cell plant, which will use the zirconia to make individual fuel cells that are then assembled into "stacks".

Chairman Julian Dinsdale and board directors expect to make a decision by next February and have the plant operating by the second half of 2008.

Mr Dow said European governments were encouraging development of micro-generation units. The German Government has committed €50 million ($A85 million) a year for a decade to foster development of hydrogen and fuel cell technologies. The British Government has budgeted £50 million ($A125 million) for micro-generation technology.

Ceramic was conducting field trials with several utility companies and would soon start to negotiate with various appliance manufacturers, Mr Dow said.