Inide the Fuel Cell Industry- Week of Dec01/2003

Sustainable Energy Technologies Ltd. (TSXV: STG), today announced that it has delivered the first of several grid-interactive inverters ordered by Nuvera Fuel Cells ("Nuvera") for demonstrations of its Avanti TM distributed generation fuel cell system in Japan.

"We are very excited about this delivery. It offers a superb opportunity to work with Nuvera's Japanese partners and to demonstrate the competitive advantages of Sustainable Energy's technology in what will almost certainly be the first, and most important, commercial market for stationary fuel cells," said Michael Carten, President & CEO of Sustainable Energy.

Sustainable Energy's unique bi-directional, grid-interactive fuel cell inverters are now being used by two of the world's leading developers of stationary fuel cells, and Nuvera's repeat orders are an important validation of the Company's technology in the rapidly emerging market for distributed generation.

"Nuvera has been using Sustainable Energy's inverter products for many months now, and we are very pleased with their performance," said Josh Lutton, Director, Distributed Generation. "It is a simple, robust design that offers excellent grid-interactive performance."

About Nuvera: Nuvera Fuel Cells is a leading designer and developer of fuel cell power systems, fuel processors, and fuel cell stacks for the automotive, distributed generation, commercial, and industrial markets. Since 1992, its fuel processors and PEM fuel cell stacks have been successfully tested and evaluated by major automobile and appliance manufacturers, research institutions, telecommunications organizations, and industrial and energy companies. Nuvera's fuel processors have demonstrated the ability to extract hydrogen from a number of liquid and gaseous fuels such as gasoline, ethanol, methanol, natural gas, kerosene, propane, butane, and more.

Based in Calgary, Alberta, Sustainable Energy (www.SustainableEnergy.com) is a leader in developing and manufacturing intelligent power electronics products for alternative energy technologies. Intelligent power electronics, which convert the power output of the diverse generation and storage technologies to the high quality standard and predictable character required by electrical devices and the power grid, are among the key enabling technologies behind the emergence of distributed generation.

Fuel Cell Technologies Corporation (FCT) announced that it has received proceeds of $4,238,211.63 for the issuance of an
additional 7,435,459 Common Shares, from the exercise by investors of Warrants to purchase Common Shares at a price of $0.57 per Common Share. FCT will use the net proceeds from the purchase of these Common Shares to fund
commercialization initiatives such as further product development, production expansion, marketing, and general working capital requirements.
"We are very pleased that each of FCT's largest shareholders holding Warrants, exercised their full holding, or the maximum number of Warrants permitted under their respective investment guidelines." said Dr. John Stannard, FCT's President and Chief Executive Officer. "The exercise of these Warrants and additional investment indicates a recognition of the achievements
of FCT, its technology, and the SOFC product. The financing provides for our continuing preparation and progress toward commercialization of the 5 kW SOFC."

FCT is a leading developer and producer of small-scale power systems. FCT's planned range of 1 kW to 50 kW SOFC products will operate on any one of several readily available fuels, such as natural gas, propane and biogas. The FCT products will provide on-site electricity and heat for homes, small industrial applications, small commercial enterprises, and remote locations.

Steven Norris, the newly appointed chairman of Jarvis, faces fresh controversy next week when administrators raise concerns about the conduct of ZeTek Power, a company of which he is a non-executive director.

Leonard Curtis, the company's administrator, is expected to recommend that the Official Receiver launches an investigation when it places ZeTek and two subsidiary companies into compulsory liquidation. A provisional court date for the insolvency hearing has been set for December 8.

Stephen Swaden, the administrator to ZeTek, first raised his concerns about ZeTek and the two subsidiary companies in a letter to creditors last year when he informed shareholders that he was taking legal advice.

"I have been contacted by a number of parties who have expressed concern about the conduct of the companies and certain of their past and present officers that I think should be investigated by the Official Receiver," wrote Swaden.

There is no suggestion of wrongdoing by Norris, a former Conservative government minister who joined ZeTek in March 2000 as a non-executive director. But the administrator's concerns about the conduct of a company he was involved in will nevertheless be embarrassing. A spokesman for Norris said: "As far as he is concerned the directors of ZeTek acted entirely properly."

ZeTek, which was involved in the development of fuel cell technology, was once a high flyer tipped to float on the stock market with a valuation of over $1bn (£580m). But in January 2001 PricewaterhouseCoopers, ZeTek's auditors, warned the directors of "fundamental uncertainty" when it signed off the group's accounts, arguing that the firm needed to raise additional funding.

The company set about raising $50m in January 2001, but by August ZeTek had raised just $3.8m. In October the directors of the company placed the group and two subsidiary companies into administration. Last week Norris, the Conservative candidate for London Mayor, was appointed non-executive chairman of Jarvis, the troubled engineering group. The appointment has proved controversial.

Political opponents have claimed that Norris's Jarvis appointment has created a conflict of interests. One of the major roles of the mayor is to oversee London's transport system. Jarvis is involved in the maintenance of the London Underground.

In The Telegraph today Norris defends his decision to take on the £100,000-a-year role. "I am more than able to manage my diary around campaigning and holding down a job. The vast majority of people in this life have to work. I do not think that disqualifies you or me from standing for public office," he added.

"The choice that London will have is between someone who has business experience, has ministerial experience and knows how to run London, and a couple of candidates neither of whom have had a job other than being paid as a public representative."

Pacific Fuel Cell Corp. (OTCBB:PFCE) is pleased to announce that Dr. Xin Wang has been appointed Vice President and Director of Research and Development for the company.

Dr. Wang received his Ph.D. in Electrochemical Engineering from Hong Kong University of Science and Technology where his research field was materials development and electrochemical characterization of polymer electrolyte fuel cells and direct methanol fuel cells.

As a Postdoctoral Fellow at Hong Kong University of Science and Technology, Dr. Wang investigated carbon nanotubes as support for fuel cell catalysts. He is also currently a Postdoctoral researcher at the University of California, Riverside, where he is researching nano-structured electrode development for proton exchange membrane fuel cells.

PFCE believes that Dr. Wang has the ability and experience to lead the company's research efforts to engineer a commercial prototype.

PFCE has signed a contract with the UC Riverside, to do research and build a fuel cell prototype based upon PFCE's proprietary carbon nano-technology, under the direction of Professor Yushan Yan. Professor Yan received his Ph.D. from the California Institute of Technology, and is a leading authority on proton conductive membranes and nanostructured electrodes.

UC Riverside's Center for Nanoscale Science and Engineering, headed by Robert Haddon, distinguished professor of Chemistry and Chemical & Environmental Engineering, features a research team of 25 faculty members from engineering, cell biology and neuroscience, chemistry and physics. Matching funds are being provided by the State of California.

Pacific Fuel Cell Corp. owns the worldwide rights (excluding Japan) to proprietary PEM (Proton Exchange Membrane) fuel cell technology. Using its extensive international relationships, the company plans to create joint ventures to rapidly commercialize its innovative technology.

A Carefree company has big dreams on how its hydrogen technology can change the world, but it will need more than $100 million in funding just to build a demonstration plant to showcase its hydrogen production process.

Alchemix Corp. has invented a proprietary technology called the HydroMax, which company officials say produces large quantities of hydrogen at a low cost.

The hydrogen is not necessarily intended for fuel cells in next-generation automobiles, but for the production of ammonia needed for crop fertilizer and to be used in the refining and desulfurization of oil.

Robert Horton, Alchemix chairman and chief executive, said the worldwide market for hydrogen is $60 billion, and a minute amount of that is in fuel cells for vehicles. He said his company's technology could potentially revolutionize the energy market by making hydrogen production very inexpensive -- something it's never been before.

"We have the lowest-cost means of producing hydrogen on Earth," he said. "We have the ability to make it at a negative net cost."

Alchemix's HydroMax process uses plentiful, low-value carbon feedstocks such as high sulfur coal, heavy oils and petroleum coke. By contrast, the most common production method for hydrogen today is steam methane reformation, which requires price-volatile natural gas as the feedstock, according to Horton.

"Anything made of hydrocarbons can be reduced to carbons and made into feedstock," Horton said.

That idea is at the heart of Alchemix's technology. By heating the hydrocarbons to 1,200 degrees centigrade, they can be reduced to carbons and made into the material from which hydrogen can be made.

The company has raised $16 million from private investors to pursue the technology, but to take the next step, it needs a sizable chunk of change, Horton said.

"Our next step is to build a $120 million demo plant with a two- or three-meter reactor in it," he said. "There's no doubting the technology works, but this will prove it can be made on a large scale."

Horton said the company is in talks with a number of potential strategic partners, including some of the world's largest energy companies. He's said he's hopeful an alliance will be formed by the end of first-quarter 2004.

"We're trying to find a partner in Canada because of how much crude oil they produce," Horton said. "And I expect if we find an industrial partner in Canada, we could get some government funds."

With a technology this complex, it takes quite some time for the dream to come fruition, he admitted. But if it does?

"Once hydrogen could be used for refineries here, the United States could be energy independent," Horton said. "We're talking about a world beater with this technology. It just takes time."

Proton Energy Systems, Inc. (Nasdaq: PRTN), a leader in on-site hydrogen generator products and regenerative fuel cell technology, plans to unveil its HOGEN H Series hydrogen generators at the POWER-GEN International convention in Las Vegas on December 9, 2003. The latest and most advanced of Proton's generators, the H Series provides customers with a safe, pure and reliable hydrogen supply.

Similar to its predecessors in the HOGEN product line, the H Series hydrogen generators are a proven alternative to delivered hydrogen, producing ultra-pure hydrogen 24/7 at an output capacity of 80-240 standard cubic feet per hour at a fraction of the cost of cylinder or tube trailer gas. Combining low cost on-site gas production with the elimination of time to order,
receive, move and secure delivered gas, the HOGEN H Series hydrogen generator can dramatically reduce cost and increase productivity.

Designed to meet the demands of higher volume customers in the power generation, semiconductor, electronics, and heat-treating fields, the H Series generators also offer the flexibility to incorporate additional cell stack modules, which produce hydrogen from electricity and water, to further increase hydrogen output without increasing the unit's compact footprint.

Proton plans to place four units at four different power generation plants providing hydrogen for generator cooling, starting early next year as part of its final field-testing program. Proton intends to accept orders upon launch for expected delivery in the summer of 2004.

According to Proton Energy Systems President Dr. Larry Sweet, "The H Series is a major push to widen our penetration of the on-site hydrogen generation market. Previously, there were many potential customers interested in our technology, but outside the capacity range of our existing product lines. These units offer customers exceptional value in financial payback and
safety improvements."

"The H Series will also contribute to our continuing efforts to demonstrate the game-changing concept of turning electricity into fuel for fuel cells. The increased output of the new product series makes it ideal for fueling multiple vehicles," Sweet said.

POWER-GEN International is the premier conference for power generating and electric utility companies.

Japan Steel Works (JSW), one of the world's largest metal hydride manufacturers, has awarded a contract to the Gas
Technology Institute (GTI) to conduct performance testing of several types of metal hydride alloys and to provide guidance in hydrogen storage product design. These proprietary hydrides represent a promising means to store hydrogen for energy systems of the future, including vehicles. "GTI was selected by JSW because of its extensive staff competencies and facilities,"
said Dr. Iwadate, Head of JSW's Hydrogen Energy Center. "We were most impressed with GTI's corporate commitment, as a non-profit research entity, to accelerating the development of technologies essential to a hydrogen future."

The first phase of the contract provides for performance testing of several hydrides, as well as evaluating the conformity of JSW's current storage prototype for use in the United States. Ultimately, JSW intends to develop a family of hydrogen storage solutions for all fuel cell systems: stationary, portable and vehicular applications. JSW use its experience and initial success in Japan as the basis to provide equipment to the United States and the emerging worldwide marketplace.

"GTI is pleased to be able to assist JSW in its product development and strategic marketing in the US," said Gerry Runte, GTI's Executive Director, Hydrogen and Distributed Energy Systems. "GTI believes hydride storage has an important role to play within the portfolio of enabling technologies, many of which are under development at GTI."

JSW has been a leader in the hydrogen vision and is among few ISO 9000 certified companies which are delivering hydrogen systems. Additional information on JSW is available on http://www.jsw.co.jp/. Please contact the U.S. sales office at 212-490-2631 for additional information.

The money comes from the Energy and Water Appropriations Act, and will help pay for research programs that focus on lowering the cost of hydrogen fuel cells and developing fuel cells that can act as back-up power generators for neighborhoods, businesses, recreational vehicles and tractor trailers.

EMTEC President and CEO Frank Svet said the technology used in hydrogen fuel cells was developed more than 100 years ago, but their use is restricted because of the cost. The fuel cells produce quiet, efficient, pollutant-free energy, but cost too much for most users.

The center, a Dayton-based non-profit, collaborates with private businesses, government agencies and universities on research that helps bring technologies like fuel cells to the marketplace. Svet said the federal money gives the center the opportunity to lead fuel cell development in the coming years.

‘‘It is clear that our energy initiatives enjoy the support of the U.S. Department of Energy and Congress," Svet said. "This support will lead to even greater opportunities for Ohio as fuel cell developers and stakeholders throughout Ohio recognize EMTEC's leadership as the 'go to organization' for fuel cells as the development of the hydrogen economy begins to unfold."

MTI MicroFuel Cells Inc. (MTI Micro), a subsidiary of Mechanical Technology Inc. (Nasdaq: MKTY - News), today announced the filing of its 50th U.S. patent application.

The Company's intention is to commercialize direct methanol fuel cells (DMFCs) as a future power source for portable electronics in commercial and military markets. MTI Micro has previously announced plans to ship its first product in the fourth quarter of 2004.

"These patent applications are reflective of the very significant technical progress we have made in developing our DMFC system over the past two years," said Dr. Shimshon Gottesfeld, chief technology officer of MTI Micro. "We believe that we have developed a proprietary system that is unique in the field and offers real advantages for manufacturing."

Of the 50 U.S. patent applications filed by MTI Micro to date, 6 patents already have issued. Thirteen international patent applications have also been filed. MTI Micro has developed an extensive portfolio of patent applications in areas including fuel cell systems, components, controls, manufacturing processes, system packaging, and fuel refill and packaging.

In the area of fuel cell systems, MTI Micro has filed patent applications for fuel cell systems design, modifications and improvements to the membrane electrolyte assembly, alternative diffusion layers, and materials.

In addition, MTI Micro has filed patent applications for certain components important to the overall system including a highly efficient DC-to-DC converter, the design of lightweight packaging and controls to optimize operation of the system in varying environmental conditions.

MTI Micro's technological advancements allow 100% methanol to feed directly into the anode side of the fuel cell, minimizing the need for pumps and complicated internal circulation mechanisms required by typical DMFC systems, and obtaining the maximum energy possible out of the fuel.

This summer, MTI Micro's laboratory DMFC systems, operating on 100% methanol, achieved an energy density of 250 Wh/l, which is comparable to that of a typical prismatic Lithium ion battery used to power portable electronic devices such as cell phones. The lab systems also achieved 200 Wh/kg on a weight basis, which surpasses a typical prismatic Lithium ion battery.

MTI Micro also extracted 1Wh/cc from methanol and 1.25 Wh/g on a weight basis from lab systems. To put this in perspective, MTI Micro's current technology -- at par with lithium-ion batteries on energy density -- would allow for one small methanol cartridge or fuel refill to replace two or three back-up lithium-ion batteries, saving space and weight.

MTI Micro's unique and simple system design is intended to permit a lower part count product, a more reliable system, and a less expensive product to manufacture.

"MTI Micro has always focused significant efforts on the strategic development of a sustainable IP portfolio, both to protect our technical advancements and with the intention to establish significant blocking rights with respect to competition," said Dr. William P. Acker, president and CEO of MTI Micro. "We believe our proprietary technology can provide the higher energy content necessary to operate present and future generations of the portable electronics people increasingly want and use."

Palcan Fuel Cells Ltd. (TSX Venture:PC) today announced that it has signed a joint venture agreement with Shanghai Mingliang Plastic Co. Ltd., a private manufacturing company based in the Shanghai Pundong economic region. The joint venture is to establish a commercial manufacturing facility in Shanghai using Palcan's proprietary technology, to produce PEM fuel cell stacks for the global fuel cell marketplace. Palcan will have full managerial control of the facility, which is expected to be operational within six months.

Palcan will hold a 49% share while its joint venture partner; Shanghai Mingliang Plastic Co. Ltd. will hold a 51% share in the JV. Palcan obtains its 49% share through a combination of (a) the assignment of its manufacturing technology on a non-exclusive basis representing a 30% shareholding, and (b) for a cash investment of US$450,000 for the remaining 19%, the timing of which is at Palcan's election. Palcan will appoint two of the five directors on the JV board.

When fully operational, the manufacturing facility will manufacture 20,000 PEM Fuel Cell Stacks units per year. The units will be sold at substantially less than the current world market prices. Given the cost of manufacturing in China and the economies of scale, Palcan looks forward to an excellent return on its investment.

"This joint venture is a milestone in the history of Palcan. The manufacturing of our PEM fuel cell stacks for sale worldwide places us squarely at the forefront of fuel cell stack technology for the .05 kW to 5 kW market. This joint venture is a strong beginning to our commercialization and we expect to be expanding our manufacturing output well beyond 20,000 units annually as the market develops" stated Palcan Fuel Cells President & CEO Dr. John Shen. "Our facility in China will give us a strong position to exploit the Chinese market which is potentially immense as fuel cell costs are substantially reduced."

As an environmentally responsible Company Palcan believes it has a responsibility to its local community. Therefore, Palcan is pleased to announce the Company is a proud sponsor of the Illusions, Magic and Miracles put on behalf of the Burnaby, Delta, New Westminster and Surrey Fire Fighters Charitable Fund. For more information about this charitable event, please visit www.magicnmiracles.com.

Vehicle Projects has issued a request for proposal (RFP) to provide fuelcell stacks to a project to develop and demonstrate a fuelcell locomotive for military and commercial railway applications. Full details of the RFP are available here.

The vehicle, a 109 metric-ton, 1.2 MW locomotive, is being developed by an international consortium led by Vehicle Projects LLC of Denver, Colorado, USA. The selected fuelcell stacks shall be of the PEM (Proton Exchange Membrane) type with gross electrical power of 1,200 kW operating on hydrogen (source TBD).

The expectation is that the powerplant will consist of approximately 6 to 12 modules with each module having a number of smaller fuelcell stacks. Delivery shall be in the second quarter 2005.

Bid proposals shall include the following: (a) technical data as specified in the full RFP, (b) company background and capabilities, (c) schedule of stack delivery, (d) number of modules required to provide 1,200 kW gross electrical power, (e) number of stacks per module, (f) performance test data of proposed stacks, (g) manufacturer’s warranty, and (h) price in US$ delivered to Los Angeles, CA, USA, Incoterms 2000 DDP.

The deadline for bid submission is 5:00 PM MST Monday, 15 December 2003. Consult the RFP for submission procedures. For questions, contact David L. Barnes, Vehicle Projects LLC, 621 Seventeenth Street, Suite 2131, Denver, CO 80293, USA, Tel +1 303 296 4218, Fax +1 303 296 4219.

From left: Arthur Diedrick, Jerry Leitman, Governor Rowland,
President Levin, Mayor DeStefano and Michael Donoghue

"As a leader in environmental research and education, Yale is committed to operating its campus in an environmentally sound manner," said President Richard C. Levin. "We are pleased to work with the state in adding fuel cell technology developed in Connecticut to our efforts to meet our energy needs as efficiently and cleanly as possible."

The 250 kilowatt fuel cell will provide approximately 25 percent of the building's electricity needs, with the heat being used primarily to maintain tight temperature and humidity controls at the facility.

Connecticut Governor John Rowland said that Connecticut's leadership in fuel cell technology is unsurpassed. "Fuel cells are a growing part of the industrial economy in Connecticut and projects like this help bring greater awareness of the benefits of fuel cells to our environment as well as to the stability and reliability of the electric power system here in Connecticut and the United States."

Connecticut's first high-efficiency fuel cell power plant,
at the Environmental Science Center near Yale's Peabody Museum

The Connecticut Clean Energy Fund purchased the fuel cell power plant last year for use in the state, and the Connecticut Siting Council approved the Yale University location in December 2002. The Clean Energy Fund invests in enterprises and initiatives that help promote the development, production and use of energy from clean and renewable sources.

"Connecticut's leadership role in providing for a cleaner energy future is greatly enhanced and advanced by projects such as this," said Arthur Diedrick, chairman of the Clean Energy Fund. "We are pleased we can help to provide funding that helps pushes products like fuel cells out in the commercial marketplace where they can benefit the citizens of Connecticut and beyond." "The location at the Yale Peabody Museum is very appropriate because the Environmental Science Center can effectively use both the electrical and heat output of the plant. It is further demonstration of universities as an ideal application for our Direct FuelCell products," said Jerry Leitman, chairman and CEO of FuelCell Energy. "Our fuel cells are operating all over the world and we are thrilled to have a customer site in our home state."

"We think it is extremely significant that we were able to deliver our world first F-Cell... to a leading firm in Japan, Tokyo Gas Co Ltd, which is actively promoting the use of hydrogen energy as the important social infrastructure," DaimlerChrysler Japan president Hans Tempel said in a statement.

The car, the F-Cell, based on the Mercedes-Benz A-class, follows DaimlerChrysler's release of fuel cell commercial vehicles earlier this year in its drive to explore the possibilities of the eco-friendly technology.

DaimlerChrysler will deliver a total of 60 F-Cells in Japan, Germany, the US and Singapore through 2004 to such entities as the US Environmental Protection Agency and Japanese tyremaker Bridgestone Corp.

Last year Japan's Toyota Motor and Honda Motor became the world's first automakers to begin leasing fuel cell cars powered by electricity generated from oxygen and pressurized hydrogen gas.

Tokyo Gas, which owns a hydrogen station to supply fuel to the fuel-cell vehicles, already leases another fuel-cell vehicle from Toyota.

Tokyo Gas said it will use the cars to raise the public awareness about fuel-cell technology.

Alternative energy research - Fuel cells need to store large amounts of hydrogen, which requires large amounts of surface area. Hollow carbon nanotubes have large amounts of external and internal surface area.
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