In an energy market that is competing more than ever under deregulation,  power producers are measured by output and financial health. Typically, the survival of a power plant depends on sound planning and aggressive expense management.

It can be particularly challenging when a power plant is located far from the transportation or service infrastructure that supports it. When  critical  production items can't be delivered, the plant risks not only short-term  losses, it also flirts with reduced market confidence, increased regulatory scrutiny, loss of solvency, acquisition, sale or liquidation.

One strategy that power plants may consider to boost productivity, save on materials costs, and eliminate outside expenses is to take a phased, modular approach to capital acquisition. By selecting the right equipment on an as-needed basis, facilities don't buy what they won't immediately use. If needs grow, additional components may be added.  

Hydrogen gas‹as an essential coolant for electric generator windings‹is an example of a critical production item that is available in modular equipment. Instead of relying on hydrogen gas delivery in cylinders or tube trailers, dozens of power plants have installed, or are considering the use of, onsite hydrogen generators.

Proton Energy Systems' new HOGEN® H Series hydrogen generator offers modular flexibility and savings opportunities to power producers using hydrogen as a generator coolant. About the size of a large wall bookshelf (78" x 32" x 78"; 2m x 0.8m x 2m), the automated, site-ready generator features a load-following system which automatically adjusts hydrogen output to match the amount of hydrogen gas required to meet generators' cooling demand.

Designed based on feedback from power plant operations managers worldwide, the H Series systems build on the success of Proton's field-proven HOGEN® 20  and HOGEN 40® generators, which employ the company's unique proton exchange membrane (PEM) electrolysis cell stacks. Proton's PEM technology uses electricity and deionized water, which pass through the cell stacks to produce 99.999% pure hydrogen gas for dozens of industrial applications. More than four million cell hours have been logged on 
Proton's PEM cell stacks in over 350 installed HOGEN® units worldwide. 

Proton's engineers and product specialists have taken a building-block approach to the H Series hydrogen generator's design. The system can be configured in five ways based on a power plant's requirements. An H Series generator can be built with one, two or three cell stacks, offering a hydrogen production rate starting at 76 SCF/hr (2Nmh3/hr) and up to 228 SCF/hr 6Nm3/hr). The H Seriesgenerator can be easily upgraded in the field for additional capacity within hours simply by adding cell stacks within the unit.

H Series hydrogen generators are built to save power producers money. They offer 60-90 percent savings on a plant's hydrogen operating costs compared to deliveries of tank or tube based hydrogen, with a rapid payback on investment. Like Proton's HOGEN20 and 40 models, the H Series generator's easily installed, low maintenance, quiet system produces hydrogen at up to 218 psig (15 bar) without use of oil-based compressors which may contaminate the gas product.

The H Series hydrogen generator offers fast installation (may be completed in a day); full hydrogen production in seconds, and safe operation (more than 15 parameters are monitored). Optional features include an integrated gas purity instrumentation system and 
optional remote monitoring controls that may be accessed virtually through the Internet. The H Series generator's enclosure and ventilation systems are weatherproofed for outdoor installation. Built under Proton's ISO 
9001:2000 system, the units are Nationally Recognized Testing Laboratory (NRTL) approved for use within U.S. and Canada, and CE approved for use within the European Union.

HOGEN H Series hydrogen generators were unveiled at the POWER-GEN International convention in Las Vegas in December. In February, Proton installed the first H Series generator at Mirant Corporation's Zeeland, Michigan power plant. Production of H-Series units is sold out through mid-2004. 

For more information on the H Series hydrogen generator, contact Proton Energy Systems at 203.678.2000; fax 203.949.8016; email pes@protonenergy.com.

Proton Energy Systems (http://www.protonenergy.com), a subsidiary of Distributed Energy Systems Corp. (NASDAQ: DESC) designs, develops and manufactures Proton Exchange Membrane, or PEM, electrochemical products that it employs in hydrogen generating devices and in regenerative fuel cell systems that function as power generating and energy storage devices. 
Proton¹s HOGEN® and FuelGen? hydrogen generators produce hydrogen from electricity and water in a clean and efficient process using its proprietary PEM technology. Proton is currently manufacturing and delivering HOGEN® hydrogen generators to customers for use in commercial applications. Proton¹s UNIGEN® regenerative fuel cell systems, which it is developing, will combine Proton¹s hydrogen generation technology with a fuel cell power generator to create an energy device that is able to produce and store the 
hydrogen fuel it can later use to generate electricity.

Proton Energy Systems
10 Technology Drive
Wallingford, CT 06492
(NASDAQ: DESC)
www.protonenergy.com

Contact:
At Proton Energy Systems:
David Wolff  Vice President , Marketing and Communictions, 203.678.2349

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Jenny Smith, 860.293.0157 ext. 15