Fuel Cell Technologies Ltd. (FCT) fuel cell will soon provide climate control at the National Research Council's Institute for Fuel Cell Innovation (NRC-IFCI) in Vancouver.

Electricity from the recently purchased 5 kilowatt Solid Oxide Fuel Cell (SOFC) unit from FCT will be used to power a Ground Source Heat Pump to provide climate control for the new NRC-IFCI building, and the co-generated waste heat will also be utilized for building services.

FCT's planned range of 1 kW to 50 kW SOFC products will generate clean, on-site electricity and heat for homes, small industrial applications, small commercial enterprises, and remote locations. John Stannard, FCT's CEO, envisions a future in which homes are powered and heated by a fuel efficient SOFC. These units are expected to operate at greater than 90% efficiency, and provide both electrical power and heat from a single source about the size of a home furnace, greatly reducing both emissions and fuel consumption.

FCT's collaboration with NRC-IFCI also includes investigative work on the use of methanol in the 5 kW SOFC system. This takes advantage of the SOFC's ability to utilize a wide range of fuels. FCT's 5 kW fuel cell can operate on any one of several readily available fuels, such as natural gas and propane as well as biogas and methanol which can be manufactured from a wide range of sources including renewables. The collaboration with NRC-IFCI also includes Methanex, the world's largest methanol producer.

"This collaboration utilizes a trained team of fuel cell researchers at NRC-IFCI to support FCT in advancing its technology, leading to earlier commercialization", says Dave Ghosh, Director of Science and Technology at NRC- IFCI, "Through this joint collaboration between NRC, FCT and Methanex, we are helping FCT expand its market for SOFCs to remote applications where there is no natural gas grid and helping Methanex find a significant market for methanol. This is a "win-win" project for all partners. The remote unit can run on methanol which is a clean, high quality fuel, producing both power and heat. "

"We look forward to continuing our collaboration with Fuel Cell Technologies and with NRC to demonstrate the wide range of benefits of methanol as a fuel for SOFC systems," says Mark Grist, manager, Market Development for Methanex. "Methanol's high purity, ease of reforming and ease of distribution make it an ideal fuel for this type of application."

The unit is scheduled for delivery in the fourth quarter of 2004, and will operate initially on natural gas, followed by conversion to methanol. The potential exists for future programs including other alternative fuels such as propane and ethanol.

Recognized globally for research and innovation, Canada's NRC is a leader in the development of an innovative, knowledge-based economy for Canada through science and technology. NRC-IFCI does strategic research aimed at advancing fuel cell science and technology and facilitating the commercialization of fuel cells.

Methanex is the world's largest producer and marketer of methanol. Methanex shares are listed for trade on the Toronto Stock Exchange in Canada under the trading symbol "MX" and on the Nasdaq National Market in the United States under the trading symbol "MEOH." www.methanex.com

Over the last decade, FCT has designed and built custom fuel cell power systems to the technically demanding requirements of world renowned customers, and since 2000 they have brought that exacting quality of work to the development of stationary SOFCs. FCT is now a leading developer and producer of small to medium scale SOFCs, with successful installations around the world. FCT's research and production facilities are located in Kingston, Ontario, Canada, and its shares are traded on the TSX Venture exchange under the symbol "FCT". www.fct.ca