FuelCellsWorks

The Inorganic Solid State & Materials Research Group is using nanotechnology to try to find a way of turning the universe’s most abundant element, Hydrogen, into a viable source of energy.

When hydrogen is combusted in air, it binds with oxygen to create energy alongside a solitary byproduct: water. Being a relatively cheap and very green source of power, hydrogen is an attractive proposition for companies who are keen to support research into the next generation of fuels and, as a result, the Glasgow researchers have the backing of a consortium of major companies. Indeed, EADS Innovation Works, of which Airbus is a subsidiary, are testing the technology in aeroplanes, with plans in place to build and test a hydrogen fuel cell system in an unmanned aircraft in 2014.

‘The technology that we’re working on at Glasgow is at the forefront of research into sustainable fuels,’ says Glasgow Professor of Inorganic Materials Duncan Gregory, who is head of the research group which is working on hydrogen storage and sustainable energy materials. ‘We are the only group in Scotland working in this area and we have been awarded an Engineering & Physical Sciences Research Council grant of over £3 million to work with the Universities of St Andrews, Strathclyde and Newcastle on a four-year project to develop a new hybrid system combining hydrogen storage, fuel cells and lithium batteries.

‘This is an exciting time to be working in this area, but it is very challenging work.’

Trying to store hydrogen is notoriously difficult; problems can occur in attempting to keep the substance in a manageable form useful in applications such as cars or aeroplanes. In order for hydrogen to be a feasible fuel source for a vehicle, it needs to be stored safely, occupy a relatively small volume and present a minimal burden in terms of weight. Finding a way of storing hydrogen that fulfils all these necessary requirements has so far proved so difficult that using hydrogen as a fuel might still seem a long way off.

The most feasible option is storing hydrogen as a solid; this involves binding the hydrogen atoms to another substance that would act like a sponge, soaking it up; the hydrogen could then be safely stored until it was needed. Until now the problem with this method was that existing materials either bonded to the hydrogen too strongly or not strongly enough.

To overcome this problem, the team at Glasgow are using nanotechnology to build a new substance to their own specifications, which is capable of trapping and releasing hydrogen only under the right conditions.

‘We’re approaching this by trying to develop some kind of nanomaterial that fits our purpose,’ says Professor Gregory. ‘The reason that we are doing this is that when it comes to solid-state storage there are two extremes; on the one hand you can have porous, spongelike solids that are easy to get hydrogen to bind to, but they also release it too easily; on the other hand, you can have materials that hold the hydrogen too well, meaning that you have to heat the material up to get it to release again and this requires energy.

‘So what we need is some kind of solution that’s in the middle of these two extremes and we think nanofabrication is the way to do this.’

Using the state-of-the-art synthesis techniques and facilities at the University’s Kelvin Nanocharacterisation Centre, the group can begin to build compounds to meet their needs and make the reactions that bind hydrogen to solids in a fuel cell much easier to control.

‘We have a patent on a nanostructured material, based on lithium nitride, and when you react this with hydrogen it goes through two stages whereupon hydrogen becomes bonded in the structure,’ says Professor Gregory.

‘There are several ways in which making a nanostructured version of this material improves its performance: for example, we can get reactions to happen faster because the nanomaterials have a high surface area. However, we also want to see if we can apply our techniques to create other materials that may have different and useful properties, and there are companies backing us who are interested in the work we are doing here at the University.’

Indeed, the work done by university research groups such as Glasgow’s are opening the gates to a new world of energy production. Although we are only at the research stage, the potential of this technology is huge, as harnessing the potential of hydrogen may be the beginning of the end of our reliance on fossil fuels and a step towards a cleaner and greener future.

Gérard Planche (Opel Fuel Cell Vehicle Market Test Manager) and Volker Hoff (Opel Vice President Government Relations) hand over a HydroGen4 fuel cell vehicle to Dr. Manfred A. Körtgen (General Manager BBI Berlin Airports) and Jochen Heimberg (Head of Environmental Department Berlin Airports).

Rüsselsheim/Berlin.–Opel is further expanding its market trial with fuel cell vehicles. The Opel Vice President of Government Relations, Volker Hoff, has now handed over a HydroGen4 vehicle to the Berlin Airports. “The vehicle which has an emission free hydrogen propulsion is supposed to give valuable further insights into the everyday suitability of this futuristic technology as part of the Clean Energy Partnership,” says Hoff. “BER is an ideal partner as it possesses the world’s first CO₂ neutral gas station. The Total gas station provides green hydrogen produced from wind energy by Enertrag. Both firms, Total and Enertrag, are also partners of our market trial. Now that we have signed up BER as a new partner, we have closed the circle of sustainable mobility.” The Opel market trial with fuel cell vehicles has been underway since 2008.

The general manager for BBI, the company that operates Berlin’s airports, Dr Manfred A. Körtgen, says energy efficiency and sustainability are the environmental goals of the Berlin airports. “We fully intend to develop the new Berlin Brandenburg Airport into the most modern airport in Europe with a leadership role in environmental and resources protection. Of course the same is true for the use of alternative propulsion in the airport vehicle fleet. Our cooperation with Opel and the long term trial of the hydrogen vehicle HydroGen4 give us a great opportunity to test this modern and environmentally-friendly form of propulsion for its everyday suitability at the airport.”

The new Berlin Brandenburg Airport will become fully operational on June 3, 2012 and will replace the old airports of Tegel and Schönefeld. Apart from BER a string of companies including the ADAC, Allianz, Axel Springer AG/Bild, Coca-Cola, Hilton, Linde, Pace, Schindler, Veolia and the NH Hotel Friedrichstrasse have been testing hydrogen as a futuristic and clean form of fuel in conjunction with the Opel HydroGen4. Public institutions such as the Berlin office of the state of Hesse have also been involved. The CEP is a project that is promoted by Germany’s Federal Minister of Transport, Building and Urban Affairs in which the everyday suitability of hydrogen as a fuel in daily traffic is shown. It constitutes the largest such developmental program in Europe.

The Opel HydroGen4 is the latest milestone of Opel and General Motors’ research in the field of fuel cell propulsion. Its fuel cell stack consists of 440 series-connected cells that produce the electrical output to power the synchronous electric motor. The 73kW/100hp engine unit delivers an acceleration rate of 0 to 100 km/h in twelve seconds with a top speed is 160 km/h. Three high pressure tanks made from carbon-fiber composite material can hold up to 4.2 kg of hydrogen. This provides an operating range of up to 320 kilometers. Filling up with hydrogen only takes three minutes because of the 700-bar pressure technology. Opel was one of the main developers of the technology.

Topsoe Fuel Cell's production facilities are located in Lyngby, Denmark.

Lyngby–On 9 December Topsoe Fuel Cell’s management system within quality, environment and working environment was certified according to the ISO 9001, ISO 14001 and OHSAS 18001 standards.

The certification is the result of 1½ years of focused effort defining working and quality control procedures, goals and standards which tie in to Topsoe Fuel Cell’s stakeholder values and performance indicators. Thus it is a central tool in Topsoe Fuel Cell’s effort to meet goals and requirements relating to users, owners, employees and the surrounding world.

The management system is assembled in one comprehensive IT platform allowing all employees to access knowledge and procedures.

”With this management system and the mapping of procedures and quality control which lies behind, Topsoe Fuel Cell prepared for the further efforts towards commercialize fuel cells which lies ahead,” says Jens Ulrik Jensen, QSHE Manager at Topsoe Fuel Cell.

The certification was completed by Norwegian Veritas.

Contact

Jens Ulrik Jensen, QSHE Manager
Tlf. +45 2275 4321, e-mail jeuj@topsoe.dk

• Second sale to Van Hool, strengthening relationship with one of Europe’s largest original equipment manufacturers of buses
• 21 FCvelocity^TM-HD6 modules to power zero-emission buses

VANCOUVER– Ballard Power Systems (TSX: BLD) (NASDAQ: BLDP) announced that it has signed an equipment supply agreement with Van Hool NV, Europe’s fourth largest bus manufacturer, for 21 of the company’s latest-generation FCvelocity^TM-HD6 fuel cell power modules.

The 21 FCvelocity^TM-HD6 modules will power zero-emission buses to be deployed in several European cities, which will be named following completion of the associated contracts between Van Hool and public transit authorities in these cities. It is expected that the majority of the modules will be shipped in 2012.

Van Hool is a Belgian-based independent bus, coach and industrial vehicle OEM with a long history of innovation in bus manufacturing. The company previously engineered and produced five hybrid fuel cell buses, using Ballard power modules, for deployment in Oslo, Norway.

Mr. Leopold Van Hool, Managing Director of the company said, “We are very pleased to be utilizing Ballard fuel cell modules, building on its proven track record of reliability and durability. These modules are compact and offer integration flexibility, while delivering the high performance required for heavy duty city buses. Ballard’s commitment to the European fuel cell bus market is second to none.”

These bus deployments are being supported by European Joint Technology Initiative (JTI) funding provided under the Fuel Cells and Hydrogen Joint Undertaking (FCHJU) program, which is a part of Europe’s Sustainable Energy Technology (SET) Plan. The SET Plan provides a framework to accelerate development and deployment of cost-effective low carbon and zero-emission technologies.

John Sheridan, Ballard’s President and CEO added, “This agreement represents an important step toward fuel cell bus commercialization and strengthens our position with Van Hool in the fuel cell bus market. Moreover, it is a strong indicator of positive growth potential for clean fuel cell-powered buses within the larger global transit marketplace.”

Ballard’s sixth generation FCvelocity^TM-HD6 fuel cell module features a control unit which interfaces with a system controller to make this a “plug-and-play” product for any fuel cell or hybrid fuel cell bus platform. The module also offers significant advances in durability, power density and fuel efficiency compared to earlier generation products. Ballard has actively participated in previous successful European fuel cell hybrid bus field tests, including the CUTE (Clean Urban Transport for Europe) and HyFLEET:CUTE projects.

About Ballard Power Systems

Ballard Power Systems (TSX: BLD) (NASDAQ: BLDP) provides clean energy fuel cell products enabling optimized power systems for a range of applications. Products are based on proprietary esencia™ technology, ensuring incomparable performance, durability and versatility. To learn more about Ballard, please visit www.ballard.com.

Acta S.p.A. (AIM: ACTA), the clean energy products company, is pleased to announce that it has signed a Development and Commercial Supply Agreement (“the Agreement“) with Asia Pacific Fuel Cell Technologies Ltd (“APFCT“) for the development and supply of light electric vehicle refuelling stations using Acta‘s award-winning hydrogen generating technology.

Under the Agreement Acta will support APFCT to integrate Acta‘s hydrogen generation stack technology into APFCT‘s current electrolyser-based refuelling system for light electric vehicles including fuel cell scooters. Thereafter, Acta will supply the stacks and related control electronics to APFCT for the production of refuelling systems.

APFCT has selected Acta‘s stack technology after successful evaluation tests were completed over the last few months and following the supply of the electrolyser and stack units by Acta earlier in the year.  APFCT plans to expand its production rapidly within the global scooter market, where currently over 50 million units are produced per annum of which 75% are sold in China, India and South East Asia.

The parties have already begun the joint commercialisation of the system, and under the terms of the Agreement, APFCT has committed to the purchase of a minimum of 375 stack units over the first eighteen months from certification, which is expected to be completed within the first quarter of 2012, to maintain exclusivity for the application.  Based upon the size of stack units to be purchased and the current product pricing, the purchase commitment is expected to have a minimum revenue value to Acta of €700,000 to €900,000 during 2012 through to the end of 2013, with strongly positive gross margins.

APFCT is a Taiwanese fuel cell product manufacturer and system developer, with further offices in California, USA.  Founded in March 2000 and with over 120 patents granted worldwide, APFCT is one of the most advanced and recognised world leaders in the application of PEM fuel cell power generators to 2-wheel and 4-wheel light electric vehicles (“LEVs“).  Their product range includes a low pressure hydrogen storage canister system that allows users to swap used for full canisters through a refill “vending“system, in use for example, at the National Tsing-Hua University in Taiwan, one of the most prestigious universities in the country.  The company‘s fuel cell scooters have a maximum speed of up to 60 km/hr and provide 50-90km driving range on each fuel charge, with a refuelling time of less than one minute.  The company plans to produce 1,000 fuel cell scooters during 2012.

Paolo Bert, Chief Executive Officer of Acta, said, “Scooters and other LEVs make for an ideal application of fuel cell technologies, and APFCT’s hydrogen canister vending system overcomes the barrier of a local consumer hydrogen infrastructure.  Acta’s aim is to bring hydrogen generation and fuel cell technology to the mass market by making these systems cost effective and compatible with each other.  We are delighted to be partnering with this exciting company, and look forward to supporting them to achieve their ambitious growth targets over the coming years.”

Jefferson Yang, Chairman of APFCT, said, “Acta’s unique hydrogen generation technology is an ideal fit for our own fuel cell refuelling system using low pressure hydrogen exchange canisters and we are excited about the commercialization enabling hydrogen generation technology that we expect to realise through this Agreement.  We can see the potential for Acta becoming a strategic partner as we move into commercial volumes beginning next year.”

San Francisco State University and Pacific Gas and Electric on Thursday dedicated a new fuel cell plant that will generate clean power for the utility’s electricity grid — and lower the University’s heating costs.

SF State is working collaboratively with PG&E, which will own and operate the plant. The demonstration project was approved by the California Public Utilities Commission and includes the construction of fuel cell facilities on several California State University and University of California campuses.

“For SF State, this fuel cell plant represents the latest step in our longstanding and comprehensive commitment to sustainability,” President Robert A. Corrigan said at Thursday’s dedication ceremony. “Four years ago, when the American College and University Presidents’ Climate Commitment was launched, this campus was one of the first to sign on. I knew that we were being asked to set ambitious goals for ourselves, but I had no doubt that we had the heart and the talent to do it.”

The plant consists of two fuel cell systems and technologies that generate a total of 1,600 kilowatts or 1.6 megawatts of electrical power connected directly to PG&E’s local distribution grid — enough to power about 1,200 homes. SF State invested $550,000 to connect the fuel cell plant with the campus’s heating infrastructure. The waste heat captured from the fuel cell system is used to heat campus buildings. The University will earn back its investment through an estimated $250,000 in annual savings from lower heating costs.

There are educational benefits as well. Corrigan noted the University has built sustainability into its academic life and a growing number of classes from a wide range of disciplines focus on the topic.

“Appropriately, this fuel cell plant will itself become a research and learning center for our faculty and students,” Corrigan said.

For more information about the fuel cell project, visit http://www.sfsu.edu/~build/construct/fuelcell.htm.

The dedication of the new fuel cell plant at SF State on Dec. 8. From left: Wes Morgan, energy programs manager for the CSU, Timothy Alan Simon, California PUC commissioner, Scott Loveless, manager of renewable resource development at PG&E, and SF State President Robert A. Corrigan. Credit: Gino DeGrandis.

Front view of the fuel cell plant, located north of the Gymnasium.

Students from the Engineering Department demonstrate the educational touch-screen kiosk outside the fuel cell plant. The audio-visual presentation explains how fuel cells generate electricity.

A staff member from PG&E shows visitors the inside of the fuel cell plant during a dedication ceremony on Dec. 8.

– Jonathan Morales

Over the past two weeks, Vodacom used a base-station powered by renewable energy and fuel-cells to provide cellphone service to over 15 000 delegates at the COP17 conference in Durban.

The hybrid-energy base-station uses wind, solar and fuel-cell energy to operate.

Vodacom developed a hybrid energy system which gets 30 percent of its energy from solar and wind power, and 70 percent from fuel-cell technology. The fuel cells used to power the tower are quiet, produce no particulate matter and produce very little emissions of carbon monoxide and nitrogen oxide.

When used in combination with renewable energy, the hybrid system produces only 35 percent of the carbon dioxide a diesel generator would – or about 55 percent of the carbon dioxide that an average South African power grid typically produces.

The service available at COP17 included both GSM and HSDPA, which delivered voice and mobile broadband coverage to delegates and visitors.  The company also provided UN officials with 500 handsets and SIM cards to ensure that they stayed connected during the conference.

This recent trial of going “green” follows similar tests by Vodafone, Vodacom’s parent company, at the GSMA Mobile World Congress in Barcelona earlier this year.

 Record quarterly revenue, up 76 percent from one year ago
          --  $63 million of cash and investments in U.S Treasuries at October 31,
              2011
          --  Executing global growth strategy with markets in Asia, Europe, and Latin
              America

DANBURY, Conn.– FuelCell Energy, Inc. FCEL , the world’s leading manufacturer of ultra-clean, efficient and reliable fuel cell power plants, today reported results for its fourth quarter and fiscal year ended October 31, 2011 along with its latest accomplishments.

Financial Results

Fourth Quarter 2011

FuelCell Energy (the Company) reported total revenues for the fourth quarter of 2011 of $34.7 million compared to $19.7 million in the same period last year. Product sales and revenues in the fourth quarter increased 94 percent to $33.3 million compared to $17.2 million in the prior year quarter, reflecting higher demand for megawatt-class Direct FuelCell(R) (DFC(R)) power plants. Fourth quarter product revenue included $25.1 million of power plants and fuel cell kits, revenue from power plant component sales and installation services of $4.8 million, and revenue from service and power purchase agreements of $3.4 million. Product sales and service backlog totaled $209.9 million as of October 31, 2011 compared to $154.3 million as of October 31, 2010. Product backlog was $131.8 million and $87.2 million as of October 31, 2011 and 2010, respectively. Service agreement backlog was $78.1 million and $67.1 million as of October 31, 2011 and 2010, respectively.

Research and development contract revenue was $1.4 million for the fourth quarter of 2011 compared to $2.5 million for the fourth quarter of 2010, decreasing due to lower activity under the solid oxide fuel cell development contract with the U.S. Department of Energy compared to the prior year period. The Company’s research and development contract backlog totaled $15.8 million as of October 31, 2011 compared to $9.7 million as of October 31, 2010 with the increase due to the awarding of two contracts by the U.S. Department of Energy during the fourth quarter of 2011, including a $3.0 million carbon capture contract and a $1.0 million contract to further research on hydrogen separation and compression.

Total gross profit was $0.4 million in the fourth quarter of 2011, compared to a gross loss of $3.6 million in the fourth quarter of 2010. The product cost-to-revenue ratio was 0.98-to-1.00 for the fourth quarter of 2011 compared to 1.21-to-1.00 for the fourth quarter of 2010. Margins for product sales and revenues improved $4.3 million compared to the fourth quarter of 2010. Improvements in cost ratio and margin compared to the prior year period are primarily attributable to higher production volume and lower product costs.

Loss from operations for the fourth quarter of 2011 decreased to $7.9 million compared to $12.1 million for the comparable prior year period as higher sales volume drove cost improvements. Net loss to common shareholders for the fourth quarter of 2011 decreased to $7.9 million, or $0.06 per basic and diluted share, compared to $12.9 million or $0.11 per basic and diluted share in the fourth quarter of 2010. The year-over-year improvements are primarily the result of increasing volumes of commercial product sales and lower product costs.

Full Year 2011

For the fiscal year ended October 31, 2011, FuelCell Energy reported revenue of $122.6 million compared to $69.8 million for the fiscal year ended October 31, 2010, an increase of 76 percent. Product sales and revenues were $115.1 million compared to $59.2 million for the prior year period. Research and development contract revenue was $7.5 million compared to $10.6 million for the prior year period.

The product cost-to-revenue ratio improved to 1.11-to-1.00 compared to 1.32-to-1.00 for the same period one year ago due to sales of higher margin products and improved absorption of fixed overhead costs from increased volume. Cost of product sales and revenues for the fiscal year ended October 31, 2011 exceeded product sales and revenues by $12.2 million, compared to $18.8 million for the comparable prior year period as a result of higher sales volume and lower product costs. Cost of product sales and revenues for the fiscal year ended October 31, 2011 included a charge of $8.3 million recorded in fiscal 2011 related to a repair and upgrade program.

Loss from operations for the fiscal year ended October 31, 2011 was $45.7 million, compared to $54.4 million for the fiscal year ended October 31, 2010. Excluding the charges incurred in 2011 related to the repair and upgrade program, adjusted loss from operations for the fiscal year ended October 31, 2011 was $37.4 million, an improvement of 31 percent compared to the prior year period. The year-over-year improvement is the result of increasing volumes of commercial product sales, lower product costs and lower operating expenses.

Net loss to common shareholders for the fiscal year ended October 31, 2011 was $57.9 million or $0.47 per basic and diluted share compared to $58.9 million or $0.63 per basic and diluted share for the fiscal year ended October 31, 2010. Excluding the charges incurred in 2011 related to the repair and upgrade program and the modification and revaluation of the Series 1 Preferred Shares (as explained in our reconciliation of GAAP to non-GAAP information), net loss to common shareholders for the fiscal year ended October 31, 2011 was $40.6 million or $0.33 per basic and diluted share.

Cash and investments in U.S. Treasuries

Total cash, cash equivalents and investments in U.S. Treasuries were $63.4 million as of October 31, 2011. Net cash, cash equivalents and investments generated in the fourth quarter of 2011 was $13.9 million, consisting of $9.5 million net cash generated from operating activities reflecting milestone payments from contracts in backlog, $2.2 million net cash used in investing activities, and $6.6 million net cash generated from financing activities. Financing activities in the fourth quarter included net proceeds of approximately $8.7 million from the issuance of 10 million shares under the Put instrument associated with the January 2011 Registered Direct common stock offering transaction, common stock sales of $1.7 million, borrowings on the revolving line of credit of $1.4 million, partially offset by preferred stock dividends, repayment of debt and return of capital payments totaling $5.2 million. Capital spending for the fourth quarter of 2011 was $2.2 million and depreciation expense was $1.6 million.

Net use of cash, cash equivalents and investments for the fiscal year ended October 31, 2011 was $21.6 million, excluding revolver borrowings of $4.0 million and net proceeds of $26.5 million from the registered direct offering of common stock, compared to $42.4 million for the prior year, excluding net proceeds of $32.1 million from the public offering of common stock. Capital spending for fiscal year 2011 was $3.4 million and depreciation expense was $6.4 million.

Forward-Looking 2012 Financial Guidance

The Company expects to continue the current annual production run-rate of 56 MW in the first quarter of 2012 and adjust production during the fiscal year as order flow warrants. At this annual run-rate, product sales and revenues are expected to be in the range of approximately $31 million to $34 million per quarter. Fuel cell kits are being produced at a rate of 2.8 MW per month through October 2013 to fulfill the previously announced 70 MW order from POSCO Power. Planned production in fiscal 2012 includes 33.6 MW of fuel cell kits, 10 MW for other backlog and scheduled re-stacks under long-term service agreements and the balance reserved for projected new orders requiring delivery in 2012.

Fiscal 2012 operating cash utilization, based on the current production run-rate and projected order flow, is forecasted to be approximately $17 million to $22 million. Cash used in financing activities in fiscal year 2012 will include approximately $7 million to $8 million of scheduled cash payments to preferred stockholders. Capital expenditures, primarily to enable capacity expansion, are estimated to be $3 million to $5 million for fiscal year 2012 and depreciation expense is estimated to be approximately $7 million to $9 million.

Corporate and Market Highlights

“Our business model is well suited for global expansion as the attributes of our power plants provide financially attractive solutions for customers and we are able to offer localization of certain aspects of the power plants, providing sustainable local job creation,” said Chip Bottone, President and CEO of FuelCell Energy, Inc. “We continue to align ourselves with a select group of partners that understand the power industry and are well positioned to drive market growth. This is illustrated by our recent partnership announcement with Abengoa to build a market for renewable biogas and liquid biofuels in Europe and Latin America and our announcement that POSCO Power is expanding in Southeast Asia.”

“Our installed base has recently grown by more than 19 MW at nine different sites, including eight installations in the USA, with our installation services and service agreements diversifying our revenue sources,” continued Mr. Bottone.

In the United States during the fourth quarter of 2011, we received an order for a 1.4 MW power plant from a renewable energy investor for installation at a university. The University will reduce its operating costs and the investor earns attractive returns, partially driven by the ability of the power plant to provide both electricity and steam from the same unit of fuel.

In Asia, POSCO Power continues to expand the fuel cell market in South Korea as they grow utility-scale installations, pursue commercial building opportunities with a demonstration 100 kilowatt (kW) unit, and develop export opportunities in Southeast Asia, beginning with Indonesia. As the South Korean government implements a compulsory mandate for fuel cell power plants in the new construction of government, office and apartment buildings in excess of 1,000 square meters (about 11,000 square feet), the market potential for a small scale power plant is significant. The Company completed and shipped the two demonstration 100 kW fuel cell modules under the joint development agreement with POSCO Power. One plant was installed at a hospital and the second plant is being installed at a public park.

The European power generation market values efficiency and low emissions, and represents an untapped market for ultra-clean baseload distributed generation fuel cell power plants. Abengoa is an attractive partner as they understand the power industry, possess sufficient scale and reach to develop and grow a fuel cell market in the targeted geographies, and have the appropriate relationships to help educate regulatory bodies on the advantages of ultra-clean baseload distributed generation.

Production and Installation Updates

The Company continued production levels at an annual run-rate of 56 MW during the fourth quarter of 2011, consistent with production levels at the end of the prior quarter. In total, the Company produced 46 MW in fiscal year 2011 compared to 22 MW in fiscal year 2010.

Fuel cell kit shipments commenced during the fourth quarter of 2011 to begin fulfilling the 70 MW order from POSCO Power and shipments are on schedule at a rate of 2.8 MW per month.

The Company has completed approximately 50 percent of the repairs related to the previously announced repair and upgrade program for a select group of fuel cell stacks produced between 2007 and early 2009. The program is on schedule and the Company has reduced its estimate of remaining costs by $0.5 million based on actual costs incurred through the end of fiscal year 2011.

FuelCell Energy has recently completed installation and commissioning of a number of DFC plants including:

          --  2.8 MW of plants sold to Pacific Gas & Electric are installed and
              operating including 1.4 MW at California State University, East Bay and
              1.4 MW at San Francisco State University
          --  4.5 MW of plants sold to a project investor are undergoing commissioning
              including two plants located at municipal locations in San Diego, CA and
              the third at the University of California -- San Diego
          --  Two 300 kW plants sold to Eastern Municipal Water District, CA are
              installed and operating
          --  300 kW plant installed and operating at U.S. Army Base Camp Parks, in
              San Jose, CA
          --  300 kW plant installed at Carla's Pasta, a frozen food processor in CT,
              is undergoing commissioning

POSCO Power completed installation of DFC power plants at two fuel cell parks during the fourth quarter of 2011, using fuel cell modules provided by FuelCell Energy including:

          --  5.6 MW installed and commissioned in Daegu City, South Korea to complete
              an 11.2 MW fuel cell park, owned by an investor that sells the power to
              the Korea Electric Power Corporation (KEPCO) and the heat to a
              neighboring municipal wastewater treatment facility
          --  5.6 MW project in Busan, South Korea, owned by the same investor with
              power sold to KEPCO

Advanced Technology Programs

During the fourth quarter of 2011, the Company received two awards from the U.S. Department of Energy (DOE) including a $3.0 million award to evaluate the use of Direct FuelCell technology to efficiently and cost effectively separate carbon dioxide (CO2) from the emissions of existing coal fired power plants. Coal is an abundant, low cost, domestic resource which is widely used to generate electricity, but with a large carbon footprint. Cost effective and efficient carbon capture from coal-fired power plants potentially represents a large global market as it could enable clean use of this domestic fuel.

The second award for approximately $1.0 million is to further develop and demonstrate existing solid-state electrochemical hydrogen separation and compression (EHSC) technology. The Company is developing a modification of the DFC power plant system to allow separation and purification of excess hydrogen as a means of distributed hydrogen production. The EHSC technology advances the concept of using DFC power plants to co-produce hydrogen as well as electricity and heat more cost effectively than conventional hydrogen separation, purification, and compression equipment.

Hydrogen is an energy carrier that can be produced from clean, diverse, and abundant domestic energy resources. Fuel cells use this energy in a highly efficient way—with only water and heat as byproducts.

The U.S. Department of Energy today announced more than $7 million to fund four projects in California, Washington, and Oregon to advance hydrogen storage technologies to be used in fuel cell electric vehicles. The 3-year projects will help lower the costs and increase the performance of hydrogen storage systems by developing innovative materials and advanced tanks for efficient and safe transportation. These investments are a part of the Department’s commitment to U.S. leadership in advanced fuel cell technology research to help domestic automakers bring more fuel cell electric vehicles into the mainstream market.

“Targeted investments in cutting-edge hydrogen storage technologies will spur American ingenuity, accelerate breakthroughs, and increase our competitiveness in the global clean energy economy,” said Energy Secretary Steven Chu. “As we focus on energy security, strengthening our portfolio to include domestically-produced hydrogen and American-made fuel cells for transportation and energy storage applications will create new jobs and reduce carbon pollution.”

The Energy Department’s Office of Energy Efficiency and Renewable Energy is providing more than $7 million to the selected organizations, which are in turn providing close to $2 million in cost share. The projects focus on lowering the cost of compressed hydrogen storage systems and developing advanced materials for hydrogen storage. Compressed hydrogen storage provides a near-term pathway to commercialization, and reducing the costs of compressed tank systems will accelerate their market availability and adoption. Advanced materials-based hydrogen storage technologies will enable more efficient storage at lower pressures than current compressed hydrogen tanks.

As part of DOE’s portfolio of zero-emission electric vehicle technologies that reduce dependence on foreign oil, the innovations achieved through these projects will address technical barriers to storing hydrogen onboard fuel cell electric vehicles. The research may also advance energy storage applications that could enable more efficient use of renewable energy sources like wind and solar power.

The four projects selected for award are:

Pacific Northwest National Laboratory – Richland, Washington – Up to $2.1 million

DOE’s Pacific Northwest National Laboratory, in collaboration with Ford Motor Company, Lincoln Composites, Toray Carbon Fibers America, Inc. and AOC Inc., will use a coordinated approach to reduce the costs associated with compressed hydrogen storage systems. The project will focus on improving carbon fiber composite materials and the design and manufacture of hydrogen storage tanks. Through these advances, the team expects to lower the cost of manufacturing high-pressure hydrogen storage vessels by more than a third relative to current projections.

HRL Laboratories, LLC – Malibu, California – Up to $1.2 million

HRL Laboratories will investigate an innovative approach to hydrogen storage using engineered liquids that can efficiently absorb and release hydrogen gas. Liquids confined in porous structures have been shown to absorb significantly more gas and could create sites for hydrogen molecules that did not exist in the bulk liquid alone. HRL will use this concept to develop composite materials capable of dissolving up to 50 times greater quantities of hydrogen than in the bulk liquid, with the goal of enabling a high density, compact hydrogen storage option.

Lawrence Berkeley National Laboratory – Berkeley, California – Up to $2.1 million

DOE’s Lawrence Berkeley National Laboratory, partnering with the National Institute of Standards and Technology and General Motors, will use a theory-guided approach to synthesize novel materials with high hydrogen adsorption capacities. The team will develop and test “metal-organic framework” materials that have surfaces allowing high density of hydrogen, as well as materials with pores engineered to enable hydrogen storage at near-ambient temperatures.

University of Oregon – Eugene, Oregon – Up to $2.0 million

The University of Oregon, along with The University of Alabama, DOE’s Pacific Northwest National Laboratory, and Protonex Technology Corporation, will develop and test promising new materials for hydrogen storage. The proposed chemical hydrogen storage materials could enable liquid refueling, and regeneration of the hydrogen storage material, within temperature and pressure ranges suitable for both onboard mobile and stationary fuel cell applications.

DOE’s Office of Energy Efficiency and Renewable Energy invests in clean energy technologies that strengthen the economy, protect the environment, and reduce dependence on foreign oil. Find out more about DOE’s support of research, development and deployment of hydrogen and fuel cell technologies.

Targeting Renewable Biogas and Bioethanol Market Opportunities in Europe and Latin America

300 Kilowatt Pilot Project to be Installed at Abengoa Headquarters in Seville, Spain

DANBURY, Conn.-- FuelCell Energy, Inc. FCEL a leading manufacturer of ultra-clean, efficient and reliable power plants, today announced a partnership agreement with Abengoa S.A. to develop localized stationary fuel cell power plants for markets in Europe and Latin America. Abengoa will develop, manufacture and market stationary fuel cell power plants using fuel cell modules provided by FuelCell Energy. The initial pilot installation will be at the Abengoa headquarters in Palmas Campus Palmas Altas, Spain using a 300 kilowatt proprietary Direct FuelCell(R) (DFC(R)) module supplied by FuelCell Energy and balance of plant designed and manufactured by Abengoa. Renewable biogas markets will be targeted and the parties will cooperate to enhance the capability and market opportunities for DFC power plants operating on liquid biofuels.

“FuelCell Energy has developed leading edge carbonate fuel cell technology that is unsurpassed for meeting utility-scale power needs for ultra-clean baseload distributed generation” said Javier Brey, General Manager of Abengoa Hidrógeno. “The fit is natural between our organizations and we look forward to growing the market for ultra-clean and efficient distributed generation fuel cell power plants in Spain as well as in Europe and Latin America, where we already have a presence. We will develop and manufacture in Spain stationary carbonate fuel cell plants by starting from FCE technology, and it will increase also the value of our partnership. In the short term, we plan to develop technology together.”

The partners will target markets in Europe and Latin America for megawatt-class DFC power plants, focusing on municipalities, large industrial power users and facilities that generate renewable biogas. These markets value high efficiency, distributed generation and the ability to generate virtually emission-free clean power from renewable fuels, all attributes of DFC power plants. DFC power plants are fuel flexible, capable of operating on clean natural gas or renewable biogas.

Under the partnership, Abengoa will use its experience with biofuels to develop a fuel processing system that will support the use of liquid biofuels as a fuel source for DFC power plants. Ultra-clean, efficient and reliable fuel cell power plants that can operate on liquid biofuels are attractive in Latin American markets such as Brazil where sugar cane is widely used as a feedstock to create ethanol.

“Abengoa has experience developing fuel cell systems with value added capabilities” said Chip Bottone, President and Chief Executive Officer for FuelCell Energy, Inc. “When combined with their European and Latin American business and marketing reach through the Abengoa organization, we see excellent prospects for market expansion in Europe as well as developing the Latin American market for ultra-clean baseload distributed generation fuel cell power plants.”

Fuel cells generate power through an electrochemical reaction that does not require combustion. Due to this lack of combustion, fuel cells emit virtually no pollutants, resulting in the generation of ultra-clean electricity. Fuel cells can achieve up to 90 percent efficiency when configured to use the high quality heat generated by the power plant in a combined heat & power (CHP) mode. High efficiency reduces fuel costs and carbon emissions and producing both electricity and heat from the same unit of fuel drives economics while simultaneously promoting sustainability. Biogas producers require heat in their processes so the ability for DFC plants to use biogas as a fuel and produce both ultra-clean power and usable heat helps convert a waste disposal challenge into an economical and environmentally friendly power generation solution.

The world-class Direct FuelCell technology of FuelCell Energy will be combined with the extensive customer network and service expertise of Abengoa to sell DFC fuel cells in the target geographies. FuelCell Energy will export fuel cell modules manufactured at the Company’s production facility in the USA and Abengoa will supply Spanish designed and built balance of plant to complete the fuel cell power plant. Completion of a distribution agreement is expected to follow this announcement within the next six months.

Abengoa (mce:ABG) is an international company that applies innovative technology solutions for sustainable development in the energy and environment sectors, generating electricity from the sun, producing biofuels, desalinating sea water and recycling industrial waste. For further information: www.abengoa.com

About FuelCell Energy

Direct FuelCell(R) power plants are generating ultra-clean, efficient and reliable power at more than 50 locations worldwide. With over 180 megawatts of power generation capacity installed or in backlog, FuelCell Energy is a global leader in providing ultra-clean baseload distributed generation to utilities, industrial operations, universities, municipal water treatment facilities, government installations and other customers around the world. The Company’s power plants have generated over 900 million kWh of power using a variety of fuels including renewable biogas from wastewater treatment and food processing, as well as clean natural gas. For more information please visit our website at www.fuelcellenergy.com

Chris Reiter -Bloomberg

Bayerische Motoren Werke AG, the world’s largest maker of luxury cars, says it’s in talks with General Motors Co. about cooperating on fuel-cell technology.

“We are exploring various topics related to future technologies such as fuel cells,” Mathias Schmidt, a spokesman for the Munich-based carmaker, said today by phone. He declined to comment on the timing of an agreement.

Fuel cells generate electricity in the chemical reaction that combines hydrogen and oxygen to create water. BMW has largely ignored the technology in the past, focusing research on burning liquid hydrogen in a combustion engine. Daimler AG, the world’s third-biggest luxury-vehicle manufacturer, plans to introduce a fuel-cell-powered version of the Mercedes-Benz B- Class compact by 2014.

The talks between BMW and Detroit-based GM were reported Dec. 10 by Germany’s WirtschaftsWoche magazine, which said the carmakers are close to signing a deal as early as January.

JANICE PODSADA– The Hartford Courant

Carla Squatrito’s recipe for ravioli includes flour, eggs, ricotta cheese, basil and a 300 kilowatt hydrogen fuel cell made by FuelCell Energy Inc. of Danbury.

Squatrito, the founder and owner of Carla’s Pasta Inc., which produces frozen pasta and pesto products for national distribution, took delivery of a DFC300-model fuel cell power plant this week.

The new fuel cell, a combined heat and power generator that generate electricity on site, was unveiled Friday during a ceremony at the company’s 60,000 square-foot South Windsor plant at 50 Talbot Lane.

The company was approved for a bridge loan for up to $2.2 million by the Connecticut Development Authority and a $750,000 grant from the Connecticut Clean Energy Fund enabling it to purchase the fuel cell, which could supply up to 60 percent of the plant’s electricity.

The fuel cell had to be installed by the end of the month in order to qualify for federal tax credits, due to expire Dec. 31.

“Those programs require the fuel cell be installed,” said Marie O’ Brien, CDA’s president. “In June our board approved a bridge loan. We’re very familiar with Carla’s Pasta because some years ago when they were expanding, we gave them a loan — that’s what we do help commercial development in the state.”

Squatrito is well aware that typical businesses her size don’t have fuel cells. “We would not have been able to buy this without the help of the CDA and Tony Roberto, CDA’s executive director…we are very grateful.”

How did Squatrito conclude that the pasta factory could use a hydrogen fuel cell? The deal happened before the recent power outage, so that wasn’t the deciding factor.

“By paying the electric bill!” said Squatrito, who founded the company in 1978 from a 1,200 square-foot Manchester storefront. The company employs more than 100 people, and with the launch of a new product line plans hopes to add to its payroll.

The pasta-making process requires a tremendous amount of energy, and the plant runs three shifts a day, two devoted to manufacturing and one shift for cleaning, she said.

Squatrito declined to say how much the fuel cell cost, and could not say how much money it would save.

“It’s going to save a lot of energy and also prevent power interruption and protect the environment,” Squatrito said.

LOGANEnergy, a fuel cell energy services company, installed the fuel cell.

Squatrito said she hoped the fuel cell would generate up to 50 percent of the factory’s electricity need, but would not know until it is fully operational. Its by-product — steam — will be used to cook the pasta and heat the hot water to clean the plant.

“The high efficiency of the fuel cell power plant decreases our fuel and electrical costs, and it lowers our carbon footprint,” said Sergio Squatrito, vice president of operations at Carla’s. “Our environmental stewardship is further enhanced with the installation of these fuel cells, as the energy-generation process emits virtually zero harmful pollutants.”

Carla Squatrito started Carla’s Pasta in 1978, 10 years after immigrating to the United States from Italy.

“A friend was moving to Florida and she was selling a piece of equipment, a ravioli machine,” Squatrito said. “It sounded like a fun thing to do. I bought it on a whim and discovered I really liked making ravioli.”

This image depicts the series of reactions by which water is separated into hydrogen molecules and hydroxide (OH-) ions. The process is initiated by nickel-hydroxide clusters (green) embedded on a platinum framework (gray).

When it comes to the industrial production of chemicals, often the most indispensable element is one that you can’t see, smell, or even taste. It’s hydrogen, the lightest element of all.

Researchers at the U.S. Department of Energy’s (DOE) Argonne National Laboratory have developed an extraordinarily efficient two-step process that electrolyzes, or separates, hydrogen atoms from water molecules before combining them to make molecular hydrogen (H₂), which can be used in any number of applications from fuel cells to industrial processing.

Easier routes to the generation of hydrogen have long been a target of scientists and engineers, principally because the process to create the gas requires a great deal of energy. Approximately 2 percent of all electric power generated in the United States is dedicated to the production of molecular hydrogen, so scientists and engineers are searching for any way to cut that figure. “People understand that once you have hydrogen you can extract a lot of energy from it, but they don’t realize just how hard it is to generate that hydrogen in the first place,” said Nenad Markovic, an Argonne senior chemist who led the research.

While a great deal of hydrogen is created by reforming natural gas at high temperatures, that process creates carbon-dioxide emissions. “Water electrolyzers are by far the cleanest way of producing hydrogen,” Markovic said. ”The method we’ve devised combines the capabilities of two of the best materials known for water-based electrolysis.”

Most previous experiments in water-based electrolysis rely on special metals, like platinum, to adsorb and recombine reactive hydrogen intermediates into stable molecular hydrogen. Markovic’s research focuses on the previous step, which involves improving the efficiency by which an incoming water molecule would disassociate into its fundamental components. To do this, Markovic and his colleagues added clusters of a metallic complex known as nickel-hydroxide—Ni(OH)₂. Attached to a platinum framework, the clusters tore apart the water molecules, allowing for the freed hydrogen to be catalyzed by the platinum.

“One of the most important points of this experiment is that we’re combining two materials with very different benefits,” said Markovic. “The advantage of using both oxides and metals in conjunction dramatically improves the catalytic efficiency of the whole system.”

According to Argonne materials scientist George Crabtree, who helped to initiate the establishment of Argonne’s energy conversion program, the researchers’ success is attributable to their ability to work on what are known as “single-crystal” systems—defect-free materials that allow scientists to accurately predict how certain materials will behave at the atomic level. “We have not only increased catalytic activity by a factor of 10, but also now understand how each part of the system works. By scaling up from the single crystal to a real-world catalyst, this work illustrates how fundamental understanding leads quickly to innovative new technologies.”

This work, supported by the DOE Office of Science, is reported in the December 2 issue of Science.

Argonne National Laboratory seeks solutions to pressing national problems in science and technology. The nation’s first national laboratory, Argonne conducts leading-edge basic and applied scientific research in virtually every scientific discipline. Argonne researchers work closely with researchers from hundreds of companies, universities, and federal, state and municipal agencies to help them solve their specific problems, advance America’s scientific leadership and prepare the nation for a better future. With employees from more than 60 nations, Argonne is managed by UChicago Argonne, LLC for the U.S. Department of Energy’s Office of Science.

By Jared Sagoff

By Katherine H. Crawford, Office of Naval Research

ARLINGTON, Va.—Underscoring the importance of alternative energy for the military, Secretary of the Navy Ray Mabus visited Marine Corps Base Hawaii on Dec. 7 to learn about possible Department of the Navy-wide applications for Office of Naval Research (ONR)-funded fuel cell vehicles (FCV) and high-efficiency trash disposal technology.

Mabus, who also attended events marking the 70th anniversary of the Pearl Harbor attack, was updated on progress with General Motors Equinox FCVs sponsored by ONR, five of which are located in Hawaii. The vehicles are being tested for possible use at DON installations, and fuel cell technology is being considered as a potential power source for unmanned undersea vehicles (UUV), auxiliary power units, pier-side generators and other applications.

“To meet the secretary’s energy goals, we need alternative, clean and reliable energy sources,” said Dr. Richard Carlin, director of ONR’s Sea Warfare and Weapons Department, which has a focus area on alternative fuels. “Fuel cells provide a means to reduce our dependence on fossil fuels by using sustainable alternative fuels and by increasing energy efficiency. They also provide advantages to tactical platforms, including ships and unmanned vehicles, by increasing platform ranges and reducing detectable heat and acoustic signatures.”

The FCV program at Marine Corps Base Hawaii has increased the percentage of “green” vehicles at the base to 30. It is anticipated that by the end of 2012, more than 50 percent of the base vehicle fleet will use alternative fuels, with that number increasing to 70 percent by 2015.

A significant hurdle to making fuel cells widely available is the difficulty of cost-effectively producing and delivering hydrogen in large quantities. ONR is working with researchers at the University of Hawaii at Manoa’s Hawaii Natural Energy Institute, the Department of Energy and other public and private organizations to tackle this challenge.

Once solved, FCV deployment could be part of the answer to replacing gasoline-powered vehicles in on-base transportation fleets. This would help achieve the secretary’s goal of reducing fossil fuel use in DON’s commercial vehicle fleet.

Hydrogen fuel cells create electricity through a chemical reaction between hydrogen and an oxidizing agent, typically oxygen from the air, or a stored oxygen source when air is not available. The byproduct, or emission, is water. Because of their fuel efficiencies, fuel cells offer an attractive alternative to gasoline and other fossil fuels.

Other ONR-funded research efforts with fuel cells include the Naval Research Laboratory (NRL)-developed Ion Tiger unmanned aerial vehicle, which set an endurance record for a fuel cell-powered aircraft after more than 24 continuous hours of flight. NRL is also testing this technology as a potential power source for long-endurance UUVs.

Future ONR research will test the viability of using fuel cells—as well as alternative fuels, including biofuels—as a stationary source of off-board power. Fuel cell technology is just one component of ONR’s energy research portfolio aimed at helping DON meet its goal of generating 50 percent of shore energy—land-based power used for docked vessels—from alternative sources by 2020.

About the Office of Naval Research

The Department of the Navy’s Office of Naval Research (ONR) provides the science and technology necessary to maintain the Navy and Marine Corps’ technological advantage. Through its affiliates, ONR is a leader in science and technology with engagement in 50 states, 70 countries, 1,035 institutions of higher learning and 914 industry partners. ONR employs approximately 1,400 people, comprising uniformed, civilian and contract personnel, with additional employees at the Naval Research Lab in Washington, D.C.

SHE helps the environment more than HE

The concept of the hydrogen economy (HE), in which hydrogen would replace the carbon-based fossil fuels of the twentieth century was first mooted in the 1970s. Today, HE is seen as a potential solution to the dual global crises of climate change and dwindling oil reserves. A research paper to be published in the International Journal of Sustainable Design suggests that HE is wrong and SHE has the answer in the sustainable hydrogen economy.

John Andrews of the School of Aerospace, Mechanical and Manufacturing Engineering, at RMIT University, in Bundoora, Victoria, Australia, explains how rather than there being a straight choice between hydrogen fuel cells and battery electric vehicles, it is time to accept that horsepower is a matter of “horses for courses”. He adds that hydrogen can be produced using renewables – water as the material source and wind power or solar as the energy supply for conversion. It thus offers a zero-emissions approach to fuel production for power generation using fuel cells to convert the hydrogen into electricity for all modes of transport as an alternative to petroleum fuels. Hydrogen generated by via wind power can also act as an energy-storage medium for times when wind and sun are unable to fulfill power requirements.

Andrews suggests that complementary deployment of both technologies depending on the transport service to be supplied is much more appropriate. Off-road, the concept of SHE can be applied just as well to allow the distribution of bulk hydrogen storages for season-to-season storage on electricity grids, and as a strategic energy reserve. Andrews adds that it is time to carry out detailed energy-economic-environmental modeling in order to evaluate the SHE vision for national and regional contexts with a global view to addressing the dual issues of climate change and oil depletion.

“It is generally accepted that energy efficiency and renewable energy sources have a key role to play in this imminent historic technological revolution,” says Andrews, “Yet increasing reliance on inherently intermittent and variable renewables will intensify the need for some kind of energy storage to ensure continuity of supply.”

Andrews, in suggesting that HE pass the energy baton to SHE is opening up the debate by keeping the parameters of his analysis of current technologies and infrastructure as broad and as general as possible at this point. As the threats of catastrophic climate change and oil supply deficits and disruptions intensify, governments and the private sector around the world must support the research and development needed to compare SHE with whatever alternatives exist. “We just cannot let such a potentially attractive solution remain relatively unexplored,” concludes Andrews.

“Designing a sustainable hydrogen energy economy” in Int. J. Sustainable Design, 2011, 1, 361-380

Demonstration project supports Boeing’s strategy to reduce aircraft emissions

Vancouver, British Columbia–In an effort to reduce greenhouse gas emissions, the National Research Council of Canada (NRC) has partnered with Boeing Commercial Airplanes to address the safe utilization of hydrogen in a custom-designed fuel cell system, which could provide reliable auxiliary power as a targeted concept for future commercial aircraft.

“This demonstration project creates new commercial opportunities for Canadian hydrogen and fuel cell solutions as well as for technology developers, manufacturers and suppliers along the aerospace supply chain,” said Maja Veljkovic, Director General at the NRC Institute for Fuel Cell Innovation. “NRC looks forward to continuing its work with Boeing and other companies to de-risk complex technology solutions.”

The NRC oversees this research being carried onboard a grounded Boeing 737 at the British Columbia Institute of Technology (BCIT) Aerospace Technology Campus. NRC researchers have helped successfully transfer a new fuel cell system to the commercial aerospace sector, while addressing very rigorous integration and safety requirements. This involved transferring compressed hydrogen from a mobile fuelling cart to a storage cylinder onboard the aircraft and then operating the system to power the rear galley and brew coffee. Building on experiences gained in ground transport and mobile applications, technology readiness demos are key to advancing fuel cells for aviation use.

To optimize the system, NRC and Boeing worked together with multiple Canadian suppliers to integrate the fuel cell, hydrogen storage tank, safety devices, and power conditioning equipment to overcome various airplane limitations, including runtime, temperature, weight, volume and access. The newly developed system fits into the aircraft cargo hold. The next step in this NRC-Boeing collaboration will be to refine the system, modifying components for size, weight and suitability for flight.

“Fuel cell technology applications are a key element of aviation’s longer term environmental strategy, but they must be developed with safety and efficiency as top priorities,” said Joe Breit of Boeing Commercial Airplanes. “The technology is not without its challenges, but it’s very promising and this demonstration is an important step in better understanding the airplane interface and integration challenges.”

While the scale of power generation demonstrated was relatively small, it confirms the feasibility of using fuel cells to help reduce environmental impacts from aviation. A fuel cell is around 60 percent efficient at converting fuel to power, double that of an internal combustion engine, resulting in greater energy efficiency and reduced CO₂ emissions.

LONDON–The Global Energy Prize, one of the world’s most respected awards in energy science, is now accepting nominations for its over $1 million 2012 award. The Prize will be given to the winner by the President of Russia in an official ceremony which will take place as part of the St Petersburg International Economic Forum, in June 2012.

The Global Energy Prize annually rewards innovation and solutions in global energy research and its concurrent environmental challenges. The degree to which a development contributes to the benefit of humanity is a key driver in deciding the recipient of the prize. The Prize has become increasingly important as governments, energy companies and consumers all seek to address existing and projected energy shortfalls.

Dr. Arthur Rosenfeld, Laureate of the Global Energy Prize 2011, comments:

“My reaction to the news that I had received the Global Energy Prize was a mixture of delight and complete surprise.  My reputation among Americans and other Westerners is fairly well established, but I am almost unknown among Russians who have, until President Medvedev, not paid much attention to my chosen field of efficient use of energy. Thus my selection suggests to me a very flexible process in which Russians are putting a new emphasis on modern energy and environmental policies.”

Applications open in November 2011 and will be accepted through February 29^th, 2011. Candidates can be nominated only by the highest-rated scientists, such as Nobel Prize Laureates for physics or chemistry, past Laureates of the Global Energy Prize, and Laureates of the Kyoto, Max Planck, Wolf and Balzan prizes.

The winner of the 2012 Prize will be selected by an International Prize Award Committee, which includes 37 internationally-based scientists and specialists, as well as representatives of international research organisations. The award will be given for outstanding achievement in the field of energy, including:

• discoveries, inventions and fundamental research providing new opportunities for energy industry development;
• development projects, engineering improvements and application-oriented innovations which create new ways of using energy more efficiently;
• discoveries, inventions and theoretical R&D projects opening up new energy sources as well as opportunities for using them;
• discoveries, inventions and research which have resulted in finding breakthrough approaches to addressing energy transmission and energy saving challenges;
• discoveries, inventions and research which have materially contributed to the solution of environment protection and development problems as well as opened up new and feasible ways of using innovative energy conversion method.

Since its inception in 2002, The Global Energy Prize has been granted to 24 scientists from around the globe, including past Laureates from the US, Great Britain, Canada, France, Germany, Iceland, Russia, and Japan. The President of the Russian Federation participates in each year’s award ceremony held at the conclusion of a week-long celebration of the awardees’ work, Laureates’ Week.  Other world leaders who have supported the prize include the former US President George W. Bush, former British Prime Ministers Tony Blair and Gordon Brown, former French President Jacques Chirac and current Canadian Prime Minister, Steven Harper.

Fuel Cells to Power Lift Trucks at Three P&G Manufacturing Facilities

LATHAM, N.Y. — Plug Power Inc. (Nasdaq:PLUG), a leader in providing clean, reliable energy solutions, today announced that Procter & Gamble Co. (P&G) has selected its GenDrive^® fuel cell products to power lift trucks at three P&G manufacturing facilities across the United States. Plug Power will supply P&G facilities in California, Louisiana and North Carolina with more than 200 GenDrive fuel cell units combined for its electric lift truck fleet, helping to drive down operating costs and improve process efficiencies.

Plug Power’s GenDrive fuel cell products directly address lead-acid battery degradation and operating efficiency issues. Over a shift, lead-acid batteries quickly lose charge, resulting in decreased lift truck performance. Plug Power GenDrive fuel cells provide material handling facilities with a constant and reliable power source, ensuring that lift trucks run at full speed for the entire work period. On average, GenDrive customers increase productivity by up to 15 percent and lower operational costs by up to 30 percent.

GenDrive fuel cells are powered by hydrogen and can be re-fueled in two to three minutes – minimizing down time for the truck and its operator. Lead-acid batteries need to be changed, charged, stored and maintained, a process that is timely, involves costly infrastructure, occupies valuable floor space and taxes an already inefficient electric grid.

Finally, because GenDrive is fueled by hydrogen, only heat and water are generated as byproducts of electricity creation. P&G estimates greenhouse gas emission reductions of up to 60 percent.

“Plug Power’s GenDrive product is delivering increased fleet productivity, decreased facility operating costs and reduced greenhouse gas emissions at customer sites throughout North America,” said Andy Marsh, CEO at Plug Power. “By deploying GenDrive fuel cell products at multiple facilities, P&G will lessen its environmental impact while realizing increased productivity, reduced operating costs and better predictability of its fleet performance.”

About Plug Power Inc.

The architects of modern fuel cell technology, Plug Power revolutionized the industry with cost-effective power solutions that increase productivity, lower operating costs and reduce carbon footprints. Long-standing relationships with industry leaders forged the path for Plug Power’s key accounts, including Wegmans, Whole Foods, and FedEx Freight. With more than 1,500 GenDrive units shipped to material handling customers, accumulating over 5 million hours of runtime, Plug Power manufactures tomorrow’s incumbent power solutions today. Additional information about Plug Power is available at www.plugpower.com.

“This is a unique project both for Germany and Europe as a whole. It combines the generation of renewable electricity, heat and hydrogen,” says Oliver Weinmann, Head of Vattenfall Innovation in Germany.

Renewable energy is gaining ground, but the challenge is to store it. A wind farm generates electricity for direct input to the power grid, but when supply exceeds demand, the current problem is to find a way to store the energy.

“There is currently no system designed to compensate for the differences between supply and demand within the sector of renewable energy. But this project allows us to find a balance in the system and it’s also good business,” adds Oliver Weinmann.

Vattenfall is now participating together with its partners in a project that uses a hybrid power plant to convert wind energy to hydrogen, which can then be used to co-fire the power plant and also as fuel for cars.

In Prenzlau, 75 miles north of Berlin, Vattenfall is seeking new solutions for the future. The project consists of a biogas unit, three wind turbines of 2 MW each, two combined heat and power plants and an electrolysis unit that generates the hydrogen.

Together with its partners, Vattenfall is now planning to expand its pilot activities for generating hydrogen to store wind energy in several major projects, including one in the state of Brandenburg.

The project brings together energy supplier Enertrag, French oil and gas company Total and Siemens, as well as research institutions and environmental organisations. The initiative is supported by several German states and the German Ministry of Transport and is known as the Performing Energy Alliance for Hydrogen from Wind.

Vattenfall is the global number two in generating offshore wind power. The company is now planning to build two large wind farms off the German coast that will supply up to 800,000 German residents with power. Vattenfall’s extensive wind energy investment fits well with efforts to store wind energy in different ways.

Innovative New Product on Track for On-Time Delivery

PHILADELPHIA, PA– Early production stage hydrogen generation company AlumiFuel Power, Inc. (”API”), the Philadelphia, Pennsylvania-based wholly owned operating subsidiary of AlumiFuel Power Corporation AFPW (the “Company”), announced today that it has made significant progress towards fulfilling the Air Force Special Operations Command (AFSOC) contract to develop and deliver a Portable Balloon Inflation System (PBIS-2000) by the end of February, 2012. API has built and tested a number of prototypes validating the system’s design parameters, and has lined up the various vendors and manufacturers necessary to complete the system construction.

The contract also calls for delivery of 360 cartridges as well as a spare parts kit, a tool kit and two days of training by API engineers at the customer’s site. The PBIS-2000 makes significant advances in API’s lift gas generation technology. The latest prototyping and testing prove that the system is capable of generating the necessary amount of hydrogen to launch a 200g weather balloon and special instrumentation payload within 20 minutes, using up to 6 AlumiFuel cartridges contained in a single reactor vessel. The final design is now being fine-tuned, and construction is slated to begin shortly, with an expected completion date on or before the target deadline.

The PBIS-2000 expands the capability of API’s current family of hydrogen generators, which includes the PBIS-1000 (developed for a military customer to launch 100g weather balloons), and the PBIS-lite (designed for 30g pilot balloons). While the footprint, weight and safety features of the new PBIS-2000 are similar to the PBIS-1000, the configuration has been modified such that the system operates at ambient pressure (below 10 psig) so that users never have to deal with the high pressures of the industry standard K-Cylinders (2265 psig).

The current weather balloon lift gas market is pegged at $150-$200 million per year, and encompasses military as well as civil government meteorological users worldwide. Traditionally, helium has been used as the primary lift gas for weather balloons, but with the increasing scarcity and cost of helium, users are rapidly switching to hydrogen and API’s PBIS family is far more mobile, safe, and cost effective than other on-site hydrogen generation systems. Based on customer feedback, API believes the PBIS family can become field standard and lift gas product of choice for NATO military users and meteorological customers worldwide. After purchasing any unit of the PBIS family, typical customers continue to purchase replacement cartridges to launch up to 700 balloons per unit each year (up to 4,200 cartridges). API believes that this initial purchase will lead to additional units for operations throughout the world. In addition, API has been approached by other military and meteorological users from the US, NATO, and around the world interested in the Portable Balloon Inflation System technology and products.

API’s Director of Engineering, Mr. Sean McIntosh, said, “We are very pleased with the testing to date and the current state of the design. We believe we are on track to deliver this new system to the Air Force on time and on spec, and have it become a standard piece of equipment.”

About AlumiFuel Power, Inc. API ( www.alumifuelpowerinc.com ), the Philadelphia, Pennsylvania-based wholly owned operating subsidiary of AlumiFuel Power Corporation, is an early production stage alternative energy company that generates hydrogen gas and steam/heat through the chemical reaction of aluminum, water, and proprietary additives. This technology is ideally suited for multiple applications requiring on-site, on-demand fuel sources, serving National Security and commercial customers. API’s hydrogen feeds fuel cells for portable and back-up power; fills inflatable devices such as weather balloons; can replace costly, hard-to-handle and high pressure K-Cylinders; and provides fuel for flameless heater applications. Its hydrogen/heat output is also being designed and developed to drive fuel cell-based and turbine-based undersea propulsion systems and auxiliary power systems. API has significant differentiators in performance, adaptability, safety and cost-effectiveness in its target market applications, with no external power required and no toxic chemicals or by-products.

About AlumiFuel Power Corporation AlumiFuel Power Corporation operates through its wholly owned operating subsidiary, AlumiFuel Power, Inc., a Philadelphia-based early production stage alternative energy company that generates hydrogen gas and heat for multiple applications requiring on-site, on-demand fuel sources.

The U.S. Department of Energy’s Fuel Cell Technologies Program, the Clean Energy States Alliance, and the Technology Transition Corp. will be hosting a webinar titled “Fuel Cells and Telecom—Reports from the Field” as part of their Learning From Local Leaders Webinar Series on Wednesday, December 7 from 12:00 to 1:15 p.m. EST. The webinar will focus on fuel cell applications for primary or backup power for telecommications switch nodes, cell towers, and other electronic systems that benefit from onsite power.

Fuel cells currently power over 1,000 cellular and other telecommunications installations across the country. Fuel cells provide portable and stable power and are a natural choice for supporting the critical needs of the telecommunications infrastructure. Fuel cells can provide power for 1kW to 5kW telecommunication sites without noise or emissions. They are also durable and provide reliable power in sites that are either hard to access or are subject to inclement weather.

Speakers:

• Ronda Mosley: Senior Director for Research & Government Services, Public Technology Institute (moderator)
• James Kerr: Product Marketing Manager, IdaTech
• Thomas Browning: Regional Director of Field Operations, MetroPCS

Get more information and register.

This series of webinars is designed to increase knowledge of fuel cell technologies and applications, identify best practices for state hydrogen and fuel cell programs and policies, and provide information and technical assistance to state policy leaders, state renewable energy programs, fuel cell organizations, and others involved in the development of effective hydrogen and fuel cell programs and policies.

DOE’s Office of Energy Efficiency and Renewable Energy invests in clean energy technologies that strengthen the economy, protect the environment, and reduce dependence on foreign oil. Find out more about DOE’s support of research, development, and deployment of hydrogen and fuel cell technologies.

By Robert Schoenberger, The Plain Dealer

INDEPENDENCE, Ohio — Today, James Doherty will probably blow something up.

One of the hydrogen fuel tanks or valves that he is working on may explode, and the blast could send shrapnel flying around his work station.

To protect his 156 co-workers at CSA International’s testing laboratory in Independence, the senior project engineer will use the “boom room,” a metal box the size of a walk-in closet designed to catch flying bits of metal if a pressurized tank explodes.

“We test the hoses, the tanks and the valves to 15,000 [pounds per square inch] of pressure. If something were to rupture, the chamber would suppress the blast,” Doherty said.

Pushing pressurized tanks far beyond their limits is just part of what CSA does. For decades the labs have been testing gas grills, water heaters, ovens and other appliances that use natural gas for home use. This summer, CSA upgraded its labs to test equipment for hydrogen fuel cell vehicles.

After decades of promising hydrogen-powered cars, Honda or General Motors say they’re ready to start shipping vehicles by 2015. But before that happens, tank makers, gas stations, regulators and parts companies have to agree on a set of standards on how to fill those tanks, what materials they will use and how to make the whole process safe. That’s where CSA’s upgrades come into play.

George Gruss, CSA’s director of U.S. operation, said as different groups propose different materials or connectors, labs such as CSA’s Independence facility will test them.

“Every thing that we use on the car, from the receptacle where the gas enters the vehicle to the engine or fuel cell where it gets used, we’re going to test,” Gruss said.

Doherty called the testing that CSA is doing the first step in creating an infrastructure for hydrogen powered vehicles, an issue the auto industry has struggled with for decades.

Since the late 1960s, automakers have promoted hydrogen fuel cell cars as the transportation choice of the future – vehicles that would go 300 miles on a tank of fuel, would not be dependent on foreign oil and would produce only water vapor in emissions.

And since the 1960s, engineers have promised that those cars are about 10-15 years away.

“That’s the running joke for anything that will replace petroleum in cars,” said Marc Melaina, project manager for hydrogen infrastructure at the National Renewable Energy Laboratory in Golden, Colo. For decades, he said, alternative fuels were always 10-15 years away.

But he said he feels more confident now that hydrogen cars could be on the road later this decade. Fork lifts powered by fuel cells have performed well in factories and warehouses, and decisions by companies such as CSA to invest in upgrades shows that the technology is no longer a futuristic dream.

“The message that the automakers have been sending lately is that the vehicles are ready, that they’re just waiting on the infrastructure,” Melaina said.

The country already has a network of gas stations for fueling cars with petroleum, and buyers of electric cars can charge their vehicles at home.

Generating the hydrogen, he said, isn’t an issue. Companies are already pulling hydrogen out of natural gas at oil refineries across the country. Refineries use the hydrogen to convert crude oil into gasoline or diesel. Melaina said those oil refineries have plenty of excess capacity that they could use to make more hydrogen for cars.

He added that the technology exists to either transport that hydrogen to fuel stations to set up miniature refineries at fueling stations that would convert natural gas to hydrogen on site.

Francis Vanek, a civil and environmental engineering professor at Cornell University in Ithaca, N.Y., said he sees the biggest roadblocks to hydrogen-powered vehicles as economic, not technical.

General Motors and Honda have been testing fleets of fuel cell vehicles for several years, but he said in both cases, the vehicles cost well over $100,000. The price would probably fall as the automakers get closer to launch, but he expects them to remain high.

In addition, GM expects hydrogen to cost the equivalent of about $4 per gallon, making it more expensive than gasoline.

Without high gasoline prices or some sort of incentive plan to encourage consumers to buy the vehicles, Vanek said, “I don’t see how hydrogen can deeply penetrate the market.”

Still, he added that he expects to see some vehicles available for consumers within the next few years, and they could be popular with environmentalists who want clean-running vehicles. If those perform well or if gasoline prices spike, Vanek said fuel cells could become a viable alternative.

Melaina said the auto and fueling industries need to be ready if that happens. Agreeing on a set of standards is a critical step in getting ready.

Doherty said using hydrogen as a fuel has its challenges. The biggest problem is pressure. Natural gas gets stored at 3,500 pounds per square inch. Hydrogen gets stored at 10,000 psi. CSA will test fittings to 15,000 psi to measure how they perform when pushed beyond their normal capabilities.

Hydrogen also requires a cleaner environment than natural gas. While the valves and fittings for gas equipment can be made out of brass, hydrogen fittings need to be stainless steel. Doherty said CSA will test various nozzles and fittings to make sure they don’t degrade over 100,000 cycles of filling and emptying. He expects the industry to rule out some stainless steel formulas over that time before settling on a standard.

In its lab, Gruss said CSA had to install equipment to ramp up the pressure at several test stations that had been built to test natural gas cars and appliances. It also had to install more high-tech sensors to detect any hydrogen leakage.

“We’ll probably see a huge bump in testing and interest as these vehicles get commercialized,” Gruss said.

Cheryl Brink -STANDARD-FREEHOLDER.COM

CORNWALL — A Walmart official held up the future of Cornwall’s distribution centre as an example of sustainability in the shipping sector.

The Supply Chain Management warehouse will soon undergo a shift to vehicles with hydrogen fuel cells rather than regular batteries, following the model of a Walmart centre in Alberta that is fully serviced by renewable energy.

Virginia Garbutt, logistics director for Walmart, explained the new technology during a meeting with local businesses and industry officials at Cornwall’s Nav Centre on Thursday.

“The results have been so phenomenal,” she said.

She said over the coming weeks, the entire fleet that flows in and out of the SCM centre in the city’s industrial park will be replaced by hydrogen-powered trucks. The change is expected to reduce carbon emissions and improve efficiencies.

Garbutt was one of three experts in the shipping and logistics field who spoke during the morning panel, covering topics such as employee engagement and improving competitiveness.

Paul Cooper, president of SHL Trucking, said his company has jumped into new methods to make their fleet more efficient. But he said it’s not always an easy sell when they are investing in new technology rather than workers’ raises.

“We’re doing it for the right reasons,” he said. “We have customers who otherwise wouldn’t have done business with us.”

The panel, which included Bob Armstrong, president of the non-profit Supply Chain and Logistics Association Canada, urged local companies to move to more sustainable practices as a way to remain competitive.

Cornwall’s industrial park already houses SCM and a Shopper’s Drug Mart distribution centre, while Target and another company are currently building massive warehouses as well.

Armstrong said it’s crucial that the region trains the next generation for the jobs on the way.

“They’re not here just looking for bodies, they’re looking for skill,” he said, adding that St. Lawrence College should consider new programs to educate supply chain workers.

He said technology changes quickly, and both companies and their workforces need to keep up to stay in the game, as it’s often the shipping industry that makes or breaks a business.

“It’s not companies that complete, it’s the supply chain,” said Armstrong.