But high costs and consumer concerns likely mean it will be several years before fuel cells become a part of everyday life, Koyama said.

Instead, the company is focused on providing fuel cell solutions for industrial applications, particularly in Europe, where the technology has gained more acceptance, he said.

Fuel cells are devices that can turn fuels -- from hydrogen to natural gas to petroleum products -- into electricity by breaking down the fuel and creating an electric current in the process. They are silent, which makes them attractive in military or other applications where noise is an issue.

Koyama said the company is doing research for the military, but it's having the most success with products that provide backup power to industrial applications. Several telecommunications companies in Europe are installing IdaTech's products at cell tower sites, enabling them to run when the towers' traditional electricity supply is cut, he said.

Utilities are another sector the company targets. It also has plans to target high-end recreational users who might take an IdaTech fuel cell on their camping trip instead of a traditional generator, Koyama said.

IdaTech manufactures the majority of its fuel cells -- which have generating capacities that range between 100 watts and 15 kilowatts -- at a plant in Tijuana, Mexico, but it creates its designs and manufacturing processes at its main facility in Bend.

It employs roughly 65 people locally, many of whom are world-renowned for their work with fuel cells, Koyama said.

"We've grown a critical mass of the most technologically advanced people in the world here, all specialists in fuel cells, so we have this critical mass here in Bend that I don't see changing, and they like it here," Koyama said.

The company was founded 11 years ago as a unit of IDACORP Inc., a Boise, Idaho-based energy and technology holding company. It was purchased in 2006 by Investec Group Investments Limited, a U.K.-based specialty banking group that took the company public on the London Stock Exchange. Koyama has been with the company since 2003.

QUESTION: Why is the company listed on the London Stock Exchange rather than a U.S. exchange?

ANSWER: For three reasons: First is that it's much less expensive and less onerous than listing in the U.S. (The U.S. government) imposes Sarbanes-Oxley (a 2002 federal law requiring more rigorous standards for corporate accounting), which requires millions of dollars to comply with. It doesn't matter how small a company is and it's very time-consuming and expensive in terms of reporting requirements.

Second, lots of our business is in Europe. We are quite well-known there, and we're making progress in the U.S.

Third, we used to be owned by an Idaho utility (IDACORP Inc.) and then Investec purchased us. They are based in London, have a huge knowledge of the market there, and they owned IdaTech until we were floated on the London Stock Exchange.

Q: Why does IdaTech have more sales in Europe?

A: Part of the reason is we have lots of contacts there. We've done lots of business with RWE, a large German utility, Volkswagen and others, so we've had sales there and have a presence established. So when we started introducing products in the telecommunications industry, we had lead-ins there.

And the certification requirements in Europe are pretty unified -- in the telecommunications world, it was much easier to get our products certified in Europe versus the U.S., where some of the standards are not quite applicable to fuel cells.

Q: Does IdaTech plan to grow its U.S. market?

A: We're definitely focused on the U.S. There was a directive from the (Federal Communications Commission) after Hurricane Katrina, which would require cell phone companies to install at least eight hours of backup operating time to their cell tower sites, for emergency responders, and we think that's a very attractive catalyst for getting adoption going in the U.S.. So we're very focused on that, especially this year, to position the company to take advantage of that change.

Q: How important to your business are renewable energy tax credits?

A: In getting things started, they are very important. The industry and IdaTech are right at the starting point for these products, so anything to get consumers to adopt the products is a huge benefit for us.

Q: Do you consider your company to be a green industry?

A: Yes, we do, and most of the employees here, if you ask them why they work here, besides the excitement of being in a high-tech industry like this, is the fact that they feel like they can make a difference in the world, in providing alternative energy solutions and more environmentally sustainable solutions.
 

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