BMW H7 exhausts green car doubters
Palm Beach Post Staff Writer
Thursday, September 13, 2007
Aside from a couple of special nameplates and the "Clean Energy" appliqués affixed to the side panels, it looks like a normal BMW 7 series sedan. And that, BMW frontman Andreas Klugescheid says, is what impresses him most about this particular car: "It's so damned normal."
It hits 143 mph, turns as if on rails and stops on a silver dollar - just what the "Ultimate Driving Machine" is supposed to do, he says. In BMW's world, that's normal.
In the larger world, where the automotive buzz is about hybrids and fuel cells, greenhouse gases and green cars, fuel from corn and sugar, the Hydrogen 7 - which runs on hydrogen - is anything but normal.
Beneath the hood purrs a typical BMW 12-cylinder engine. Lots of horsepower, smooth as silk, no different from its gasoline-powered siblings, except that it burns hydrogen.
Why? Because hydrogen combustion produces no carbon, just good old H2O, water. Thus, no greenhouse gases.
Hydrogen technology is nothing new for BMW. The German automaker has been developing hydrogen cars for more than 30 years, but the H7 is the first production model. BMW ran 100 of them through the normal assembly line, then outfitted them with a few extras to make them work like "normal" cars: an extra intake manifold, special fuel injectors, and an insulated, double-walled tank in the trunk to store the liquid hydrogen at minus 423 degrees Fahrenheit.
The gasoline option compensates for the dearth of hydrogen filling stations. The closest permanent station is in Orlando, which has a small fleet of hydrogen-powered buses. Kennedy Space Center also has one: the space shuttle burns hydrogen.
But BMW is patient. A century ago, gasoline was sold at drugstores. Today gas stations sell drugs, food, newspapers, telephones and lottery tickets.
The technology to break water into oxygen and hydrogen - the universe's most abundant element - is still being perfected. Naysayers maintain that hydrogen production requires more energy than it produces, but Klugescheid, corporate communications manager for BMW North America, says efficiency will come eventually, from the wind, the sun, maybe even from energy in the Gulf Stream.
Meanwhile BMW wants people to start thinking about the possibilities: hence, the H7. Actually it's a hybrid, because it runs on hydrogen or gasoline.
"I was behind a Toyota Prius hybrid the other day," Klugesheid said, "and I kept thinking, you gas-guzzler, because compared to the Hydrogen 7, the Prius is a guzzler, and a polluter. When it's perfected, the hydrogen car won't need any gasoline. And the world will be a much different place."
Let's clear the air
The dual-fuel demonstrator, powered by a 6-liter, 12-cylinder engine, develops a modest 260 horsepower. That's 43 horses per liter, typical of most modern gasoline engines.
A new 6-cylinder Toyota Camry claims 76 horsepower per liter and Ford's supercharged Mustang Shelby GT cranks out 92.6. But back in Munich, says Klugescheid, engineers are working with hydrogen-only engines that already produce a stupefying 134 horsepower per liter.
Hydrogen's energy potential will allow automakers to build smaller, lighter engines that produce lots of power, lots of speed and also lots of economy, Klugescheid said. The hydrogen fuel tank that takes up half the trunk and provides only 120 miles per fill-up, will shrink yet offer more range.
And, he says emphatically, they will be safer.
"This is not the Hindenburg," he said, referring to the legendary airship filled with hydrogen that met a flaming end in New Jersey in 1937.
"Static electricity ignited the coating on the outside," said Klugescheid, a historian by education.
"Most of the people who died were those who jumped."
Regardless, technology has changed considerably in 70 years. The tank is double-walled and the filler port has multiple safeguards. Germany's standards bureau declared the system at least as safe as gasoline systems.
"In a crash, if the tank were to rupture, the hydrogen would just vent into the air," Klugesheid said. "Gasoline on the other hand could pour onto the ground or possibly pool inside the car - a much greater chance of fire."
Klugescheid drove the Hydrogen 7 to West Palm Beach from the Kennedy Space Center where BMW tested the cars with NASA for eight weeks. Soon the cars will be loaned or leased to a variety of movers and shakers.
A few weeks ago, BMW announced its first hydrogen "pioneer": comic actor Will Ferrell. Others recently in the H7 driver's seats: Fox Entertainment Chairman Peter Liguori at the FOX All-Star Party in Santa Monica; Richard Gere and Sharon Stone at the Cinema for Peace Gala in Berlin; Brad Pitt at the premiere of Oceans 11. Klugescheid also says that California Gov. Arnold Schwarzenegger and his Florida pal Charlie Crist also want to drive them.
The test drive
So I am in select company as I buckle in, grip the leather-wrapped wheel and study the controls and instruments. Looks like an ordinary BMW. Except for one teeny tiny difference, a small button on the wheel - H2.
It switches between gasoline and the H2 hydrogen seamlessly, no clink, no sputter, nothing, as we roll across the Southern Boulevard bridge into Palm Beach, past Mar-a-Lago and the home once owned by John Lennon, down Worth Avenue and past The Breakers to the old Kennedy house.
I think to myself that President Kennedy would have embraced this concept: "If we can put a man on the moon in a decade, we should be able to develop clean energy sources that eliminate the need for foreign fuel and won't harm the earth."
I push the H2 button again and again. Klugescheid chuckles. The car doesn't flinch. The only noticeable difference is from a stop as the dual-fuel motor develops less take-off power in the hydrogen mode. Zero to 60 in 9 seconds instead of 6.
As we cruise along, heads don't turn. Palm Beachers are blasé about big Bimmers, even those that run on hydrogen.
But on Forest Hill, a driver in a pickup does notice. He pulls alongside, rolls down his window, smiles, gives a thumbs-up and yells: "It's about time."
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Mercedes to sell fuel-cell car from 2010
Wed Sep 12, 2007 10:14 AM BST
FRANKFURT
(Reuters) -
Mercedes-Benz will begin serial production within three years of a small car powered by a hydrogen fuel cell, the premium brand of DaimlerChrysler said on Tuesday.
"The small-scale series production of the B-Class F-Cell will begin in early 2010," the carmaker said in a statement at the Frankfurt International Motor Show.
"The engine for this innovative vehicle will be a new generation of fuel-cell engine that is much more compact and yet at the same time more powerful and completely practicable for everyday use."
It did not say how much the car will cost or how many it intended to sell.
Fuel cells use the interaction between hydrogen and oxygen to generate electricity that powers the car while emitting only water. They have not yet become commercially viable because of their high cost and limited durability.
The new B-Class car's electric engine will generate top output of 136 horsepower and perform on par with a two-litre petrol engine, the company said. It will consume the equivalent of 2.9 litres of diesel fuel per 100 kilometres driven.
©
Reuters 2007. All rights reserved. Republication or redistribution of
Reuters content, including by caching, framing or similar means, is
expressly prohibited without the prior written consent of Reuters.
Reuters and the Reuters sphere logo are registered trademarks and
trademarks of the Reuters group of companies around the world.
============
Hydrogen in the Home
Sheffield-based ITM Power has developed an electrolyser that will generate hydrogen for domestic energy use and will be put into production next year.
ITM's electrolyser uses new low cost materials, which significantly outperform and undercut those previously used and was developed and patented by the company's research centre.
An electrolyser converts water and electricity into hydrogen and oxygen. These gases can be used as fuel for combustion engines, fuel cells, heating and conventional electricty generation. Existing units cost in the region of $2,000/kW, but ITM has achieved stack costs as low as $164/kW.
'ITM power is developing products which will not only revolutionise energy sources for the home, but make a significant contribution to cutting CO2 emissions.' said company CEO Jim Heathcote. 'Hydrogen has an important role to play in bringing 'green' technology to the housing market and our development work, which will reach the production stage next year, has ensured it will arrive much sooner than many dreamed possible.'
The
development is a major advance towards the government's goal of
achieving a zero carbon housing market by 2016. Currently domestic
consumers account for over 20 per cent of the
UK
's CO2 emissions.
Electricity from renewable sources, which is becoming increasingly available, could be used to run the electrolyser. reducing the CO2 emissions to almost nothing. Alternatively customers could use low cost off-peak electricity or choose a green tariff from their existing supplier.
The hydrogen generated by the machine could be burned in a new or converted boiler, converted back into electricity using domestic fuel-cells or even be used to run a car.
ITM will unveil plans for a hydrogen refueling station later this year and a converted bi-fuel petrol/hydrogen cat based on the Ford Focus.
'With stored hydrogen's ability to provide not only fuel for heating and cooking but power, either through a conventional generator or a fuel cell,' Heathcote added. 'The prospect of energy self-sufficiency without the dependence on fossil fuels has moved dramatically closer.'
You’ve read it. Now review it.
Date Published: September 12, 2007
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Quantum to supply mobile hydrogen filling stations to GM
Quantum Fuel Systems Technologies is one of the largest suppliers of fuel storage systems for compressed gas fuels like natural gas and hydrogen. Now they are supplying three mobile hydrogen filling stations to General Motors for refueling fuel cell vehicles. The rigs will be used by GM for refueling vehicles at various locations like proving grounds, off-site tests, public demonstrations and fleet tests.
[Source: Quantum]Quantum to Supply Transportable Hydrogen Refueling Stations to General Motors
IRVINE, Calif., July 23 /PRNewswire-FirstCall/ -- Quantum Fuel Systems Technologies Worldwide, Inc., (NASDAQ:QTWW) today announced that it is supplying three transportable hydrogen refueling stations to General Motors. These units will be used to refuel GM's fuel cell vehicles, which are equipped with Quantum hydrogen fuel systems, at various locations, from vehicle proving grounds and public ride-and-drive events to fleet demonstrations.
"Our transportable hydrogen refueling stations are designed to support our customers as they advance their hydrogen fuel cell vehicle initiatives and are helping to establish the foundation of a hydrogen refueling network," stated Alan P. Niedzwiecki, President and CEO. "The high pressure storage systems developed by Quantum, which these new refueling stations support, translate directly into a greater vehicle driving range for hydrogen fueled vehicles, a critical factor for the commercialization of fuel cell vehicles."
"Quantum's hydrogen refueling stations, integral elements of our alternative energy product portfolio, are cost-effective, just-in-time modular solutions to deliver hydrogen to hydrogen powered vehicles as their demand continues to grow around the world," added Mr. Niedzwiecki.
Related News:
Recently, GM announced that their Chevrolet Sequel fuel cell vehicle successfully drove a distance of 300 miles on one fill of hydrogen, from General Motors' Fuel Cell Activity Center in Honeoye Falls to Tarrytown, New York, becoming the world's first fuel cell vehicle to achieve that milestone. The Sequel is equipped with Quantum's integrated hydrogen storage system, comprised of Quantum's ultra-lightweight 10,000 psi (70 MPa) hydrogen tanks and related hydrogen regulation, metering, and safety systems.
About Quantum:
Quantum, a fully integrated alternative energy company, is a leader in powertrain engineering, system integration and manufacturing of packaged fuel systems and accessories for specialty vehicles and applications including fuel cells, hybrids, alternative fuels, hydrogen refueling, new body styles, mid-cycle vehicle product enhancements and high performance engines and drive trains for OEMs and consumers of aftermarket parts and accessories. Quantum also designs and manufactures hybrid and fuel cell vehicles. Quantum also develops and manufacturers advanced lithium-ion batteries through its partner, Advanced Lithium Power.
Quantum has product commercialization alliances with General Motors, AM General and Sumitomo. Quantum's customer base includes General Motors, Toyota, Opel, Hyundai, Suzuki, Ford, DaimlerChrysler, SunLine, Yamaha, AeroVironment, and the U.S. Army.
More information can be found about Quantum's products and services at
http://www.qtww.com/.
----
2 weeks a go, I posted on alternative investment opportunities that dealt primarily with alternative energy. In a related note, earlier today VeraSun, who happens to be the U.S.'s 2nd
largest producer of ethanol, announced they would be boosting their
annual ethanol production capacity by 330 million gallons through the
acquisition of 3 plants in Nebraska, Ohio, and Indiana. To fund the
transaction, they'll be giving the purchasee, ASAlliances BioFuels LLC,
a $200 million equity stake, and chipping in $250 million in cash to go
with $275 million in project financing.
The
3 ethanol plants are yet to be on-line, but by the time all three are
producing at full capacity, projected to be early in Q1, 2008,
VeraSun's total ethanol production should be about 1 billion gallons
per year. The news of the acquisition comes soon after VeraSun's (VSE)
52 week low, reached on Friday, July 20th . The news rallied
the stock from the low of $13.01 at Friday's close, to the upper $13's
at the time of this post. Time will tell if the rally continues. After
peaking at almost $27 in November, VeraSun has been on a downward
slide. Will this deal arrest the plunge?
In a press release this morning from Quantum's Irvine, CA offices, Alan P. Niedzwiecki, President and CEO said the following: "Our transportable hydrogen refueling stations are designed to support our customers as they advance their hydrogen fuel cell vehicle initiatives and are helping to establish the foundation of a hydrogen refueling network. The high pressure storage systems developed by Quantum, which these new refueling stations support, translate directly into a greater vehicle driving range for hydrogen fueled vehicles, a critical factor for the commercialization of fuel cell vehicles." Since a close of $3.29 a year ago, Quantum has been slowly regaining ground, with a nice 40% spike last month that's mostly been given back. At the market's close on Friday, it's stock sat at $1.42, up from a $1.06 close in late April.
GM has also recently demonstrated a hydrogen fuel cell vehicle that has a 300 mile range. With the clamoring to free the U.S. and other countries from foreign oil dependence, this technology is just another promising development. For years, hydrogen fuel cell technology has held promise, but only recently has it shown the capability to offer both the range and power demanded by consumers in an actual vehicle. We'll see if the new developments in this field continue. GM plans on introducing production fuel cell vehicles in the future. Earlier this month at the Berlin Auto Show, the General showed its new HydroGen4 concept vehicle. In 2008 they will test 10 of the cars in Europe.
Last month at an event in Canada, Nick Zielinski, Chief Engineer of Advanced Vehicle Development for General Motors, showed several advanced fuel vehicles, including a version of GM's Volt electric hybrid concept that uses GMs 5th generation fuel cell instead of a conventional, internal combustion power plant. In a heads up, GM has also announced the award of battery development contracts for it's next generation of hybrid vehicles. The two competing teams are from Compact Power Inc. and LG Chem, and a team from tire manufacturer Continental and A123. In addition, GM moved 500 engineers from advanced vehicle R&D to advanced vehicle production and engineering. Design targets include an advanced power train with a life cycle of greater than 150,000 miles in real world use.
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Ford’s new alternative fuel land speed record car – the Fusion Hydrogen 999
23rd July 2007 |
How
about this for a mean but green machine? It’s Ford’s new alternative
fuel land speed record car – the Fusion Hydrogen 999. As the name
suggests, it’s powered by a bank of hydrogen fuel cells which, together
with an electric motor, produce 770bhp.
These are packed inside
the US-only Fusion saloon – which features special aerodynamic tweaks
to its bodyshell – and it’s expected that a top speed of more than
250mph will be reached on the Bonneville Salt Flats in the US early
next month, setting a new world record for alternative fuelled vehicles.
The
car has been designed in partnership with tuning company Roush and the
Ohio State University. It will be driven by Rick Byrnes, a veteran of
speed racing at Bonneville.
----
Ford confident that its hydrogen engine is almost consumer ready
By William Atkins
Friday, 13 July 2007
The Ford Motor Company is testing its internal combustion hydrogen
engine around the United States and Canada in the form of shuttle
buses. They produce only small amounts of harmful emissions and get
better mileage than their older gasoline counterparts
About thirty of the 12-passenger E-450 Hydrogen shuttle buses are being
used at airports, convention centers, and other such public facilities.
The Ford hydrogen buses cost about $250,000, which is about 3.5 times
the price of equivalent gasoline powered buses. They get about 150 to
200 miles (240 to 320 kilometers) between hydrogen fill-ups.
The 6.8-liter internal combustion hydrogen engine is considered a
connecting technology between the old gasoline combustion hydrogen
engine and the future hydrogen fuel cell technology.
Internal combustion hydrogen engines and hydrogen fuel cells are a way
to reduce greenhouse gas emissions around the world, along with helping
the United States and other countries to reduce its dependence on
foreign oil, much of it in countries with unstable governments and in
areas of military conflicts.
Ford hopes to begin mass production of these vehicles for the U.S.
driving public. Other automobile companies are also performing research
and development in the renewable hydrogen technology for transportation
needs.
More information about Ford hydrogen technology appears at: http://media.ford.com/newsroom/feature_display.cfm?release=18794.
----
Hydrogen power on the go
develops a portable hydrogen-powered generator. It's not enough to
power your house, but it can recharge power tools or run a laptop.
Photo: Trulite's generator
Staff Writer, CNET News.com
Think of it as a briefcase for electricity.
Houston-based Trulite is developing a portable hydrogen-powered generator, the KH4. Pour water into the unit, and it will crank out 150 watts of power, and 200 watts at its peak. While that won't run your house, it's enough to recharge power tools or a laptop or run a small appliance, according to company CEO John Goodshall.
A target audience for the device will be contractors, particularly ones who work on downtown skyscrapers. Power tools regularly sap their batteries. (That's why Powergenix and other start-ups are trying to market new types of batteries for them.)
To get around the problem, contractors either carry spare batteries, which can be expensive, or recharge them with gas generators. The fumes and noise of the gas generators, however, are often incompatible with downtown building requirements. Thus, Trulite hopes that contractors will opt to carry its unit instead.
And for those people who bring a generator to a campsite to watch TV? A portable hydrogen generator will eliminate the noise.
The active ingredient in the fuel cell is sodium hydride. The material splits water molecules into hydrogen and oxygen. The hydrogen is then pushed through a membrane that extracts electrons. The sodium hydride also stores hydrogen safely. Others are also working on similar solid storage systems for hydrogen.
"We control the flow of hydrogen," Goodshall said.
Once the fuel of the future, hydrogen now gets regularly panned by critics as being expensive and impractical. Advocates, however, say it could become an important green fuel when batteries or solar electricity aren't practical.
Hydrogen may be a niche, but its advocates aren't giving up. Horizon Fuel Cell Technologies, for instance, is promoting hydrogen fuel cells as a way to power boats on Swiss lakes.
Others have speculated that offshore platforms--decades from
now--could harvest wave and tidal energy, turn it into hydrogen, and
then ship it to shore. Offshore hydrogen would be used in those
situations where it is impractical to connect a distant ocean platform
to the grid. Toyota and Daimler-Chrysler continue to research hydrogen
cars.
Trulite will release beta units soon, and the company hopes to start selling the KH4 in the second quarter of next year. The unit will cost about $2,000, which is far more expensive than a gas generator. A more powerful gas generator can be bought for $300.
Trulite's chairman is John Berger, a former Enron executive who is also behind Standard Renewable Energy, which sells energy-efficiency services and biodiesel.
----
Ballard Announces Second Quarter 2007 Results
Ballard Power Systems (TSX: BLD)(NASDAQ: BLDP), a world leader in the development, manufacture and sale of hydrogen fuel cells, announced its operating and financial results for the quarter ended June 30, 2007 today. All amounts are in U.S. dollars, unless otherwise noted.
"We continued to grow revenues and reduce cash burn in the second
quarter, consistent with our full-year guidance," said John Sheridan,
Ballard's President and Chief Executive Officer. "Year-to-date revenues
were 27% higher than the same period last year. Ballard has shipped a
total of 297 fuel cell products in our near term markets so far this
year - growth of 52% over the first half of 2006."
Financial Highlights: Second Quarter 2007
- Revenue growth of 15% to $14.3 million (2006Q2: $12.5 million).
- Product and service revenue grew 7% to $10.5 million (2006Q2: $9.8 million), driven by higher non-recurring engineering services for backup power and materials handling customers and material products shipments.
- Engineering development revenue grew 43% to $3.8 million (2006Q2: $2.7 million).
- Reduction in loss from continuing operations to $10.8 million (2006Q2: $13.6 million). This 21% improvement was primarily due to higher engineering development revenues, gross margins and foreign exchange gains, partially offset by increased operating expenses, largely for research and development for fuel cell bus programs and power generation products.
- Reduction in operating cash consumption (Endnote 1) to $3.8 million (2006Q2: $8.1 million). This 54% decrease was primarily due to higher gross margins, engineering development revenues and foreign exchange gains, partially offset by increased research and development, along with the timing of customer collections. For the six months ended June 30, 2007, operating cash consumption of $19.9 million was comparable to 2006.
- Cash reserves of $167.6 million (2007Q1: $174.8 million).
Financial results are on track for the year and full-year financial guidance for 2007 is reconfirmed:
- Revenue from continuing operations is expected to be in the range of $55-65 million, growth of up to 30% over 2006; and
- Operating cash consumption (Endnote 1) is expected to be in the range of $40-50 million, a reduction of up to 20% over 2006.
Operational Highlights: Second Quarter 2007
Residential Cogeneration
Ballard shipped 119 fuel cell products this quarter, for a total of 190 units year-to-date. This compares with 102 units shipped in the second quarter of 2006. The company expects to meet or exceed its shipment goal of 400 units in 2007.
Product development activities for the next generation Mark1030 V3 product are on track for delivery of this lower-cost cogeneration system with a 40,000-hour lifetime in 2008.
Prototype assembly operations for the new Mark1030 V3 product are also well underway at EBARA BALLARD, the company's joint venture in Japan. Ballard is on track to meet its goal of completing this transfer by the end of the year. The Japanese facility doubles the company's assembly space and expands Mark1030 production capacity.
Materials Handling
Ballard shipped 51 fuel cell products this quarter, for a total of 54 units year-to-date. This is an increase over the 36 units shipped in the second quarter of 2006. The company has previously indicated that acquisition and subsequent integration activities related to Plug Power's purchase of Cellex Power and General Hydrogen, as well as a longer-than-expected sales cycle, would reduce its materials handling sales for the year. During the quarter, Ballard signed an initial two-year agreement with Plug Power to supply fuel cell stacks for all its commercial sales in the materials handling market through April 2009. Plug has not released any specific forecasts at this early stage. As a result, Ballard is not in a position to indicate a shipment target for the remainder of 2007.
Ballard is on track to meet its goal of reducing Mark9 SSL(TM) product costs by 25% in 2007.
Backup Power
Ballard shipped 46 fuel cell products in the second quarter, for a total of 53 units year-to-date. Shipments in the quarter were primarily to the company's lead customer, Dantherm Air Handling.
Automotive Programs
Ballard's Mark1100 automotive fuel cell stack development program and its next generation automotive development program progressed on schedule. The related $1.8 million of engineering development revenue reflected the company's achievements in the second quarter. Ballard also surpassed its outstanding durability goal for 2006 of 2,300 hours.
Financial Results: Second Quarter 2007
Ballard's revenues for the three months ended June 30, 2007 increased 15% to $14.3 million, compared to $12.5 million for the same period in 2006. During the second quarter of 2007, product and service revenues increased $0.7 million, or 7%, and engineering development revenue increased $1.2 million, or 43%, compared to the same quarter last year. Product and service revenues totaled $10.5 million for the current year quarter with product revenues of $7.1 million and service revenues of $3.4 million, compared to product revenues of $6.1 million and service revenues of $3.7 million in the second quarter of 2006. The increase in product revenues is driven by higher shipments of automotive fuel cell products and material products. This was offset by lower revenues for 1kW residential cogeneration fuel cell product reflecting lower pricing but on higher volumes. Service revenues decreased as increases in non-recurring engineering services for power generation customers were offset by a decline in automotive service revenue. The increase in engineering development revenue resulted from work performed and achievement of the milestones under the automotive fuel cell and 1kW residential cogeneration fuel cell development programs.
Ballard's net loss for the three months ended June 30, 2007 decreased 36% to $11.1 million, or ($0.10) per share, compared with a net loss of $17.3 million, or ($0.15) per share, for the corresponding period in 2006. The loss from discontinued operations decreased $3.4 million and reflects the sale of Ballard's electric drive operations in early 2007.
Ballard's loss from continuing operations for the three months ended June 30, 2007 was $10.8 million, or ($0.10) per share, compared to $13.6 million, or ($0.12) per share, for the corresponding period in 2006. For the second quarter of 2007 compared to 2006, increased engineering development revenues, gross margins and foreign exchange gains were partially offset by an increase in operating expenses. The increase in operating expenses was primarily as a result of increased research and development activities, reflecting increased investment to build capability and capacity for growth in such areas as Ballard's fuel cell bus and power generation programs. Ballard's gross margins for the three months ended June 30, 2007 improved over the same period in 2006 due to positive warranty adjustments and increased margins on Ballard's power generation non-recurring engineering services and carbon fiber products.
Operating cash consumption (Endnote 1) for the three months ended June 30, 2007 decreased 54% to $3.8 million, compared to $8.1 million in 2006. The decrease in operating cash consumption over the prior year was driven by the sale of Ballard's electric drive operations in the first quarter of 2007, higher gross margins, engineering development revenue and foreign exchange gains along with lower working capital requirements, partially offset by an increase in research and development costs.
The operating cash consumption for the second quarter of 2007, $3.8 million, was significantly lower than the first quarter of 2007, $16.1 million, as the second quarter was positively impacted by foreign exchange gains and the timing of collections from customers, whereas the first quarter of 2007 was higher due to the annual payment of 2006 employee bonuses and cash requirements related to the company's electric drive operations. For the six months ended June 30, 2007, operating cash consumption of $19.9 million was comparable to 2006.
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By LARRY RULISON, Business writer
Click byline for more stories by writer.
First published: Thursday, July 26, 2007
COLONIE -- Plug Power Inc. has installed 104 of its GenCore fuel-cell systems at customer locations so far this year -- more than in all of 2006 -- on its way to a goal of 400 by the end of December.
Plug executives made the announcement Wednesday morning during a quarterly conference call with analysts. The company also reported it lost $16.7 million in the quarter, up from $13 million for the same quarter last year.
The larger loss was due in part to operating results of two Canadian fuel-cell manufacturers acquired in the spring, along with $2 million in service and warranty costs for Plug's GenCore product.
GenCore is a fuel-cell system that traditionally has been used by telecommunications companies to provide backup power to cellphone towers.
In the spring, Plug acquired Cellex Power and General Hydrogen, both in the Vancouver, British Columbia, area that make fuel cells used in forklifts and similar types of vehicles. Those products, which will now be made at Plug's Latham headquarters, have been branded as GenDrive fuel cells.
Plug also said it is planning to consolidate the two Canadian companies' operations into one that will be in Richmond, British Columbia. About 70 people will work there, although more staff may be added over time. Plug employs about 380 people worldwide.
The pace of GenCore installations is much quicker than last year. During the second quarter, 41 systems were installed, compared with 17 during the same period in 2006.
Although Plug is nearly 300 installations away from meeting its year-end goal, company officials sounded optimistic that the number would be achieved. CEO Roger Saillant said installations typically pick up in the second half of the year.
"We continue to aggressively pursue this milestone," he said.
Saillant also said the company has made GenCore sales to the National Guard in New Mexico, a relationship that could expand next year.
"We're already leveraging this program for a wider rollout in the military," Saillant said.
Plug shares (Nasdaq: PLUG) ended trading Wednesday at $3.16, up 16 cents, or 5.33 percent.
----
Millennium Cell, Dow achieve power systems milestone
Author: RP news wire
Lean Manufacturing 2007
Millennium Cell Inc., a leading developer of hydrogen battery technology, on July 26 announced that Milestone 2 of the joint development program with The Dow Chemical Company has been achieved. This milestone was accomplished through the delivery to the U.S. Air Force of Protonex Technology Corporation’s ProCore C50 and C720 fuel cell power products which utilize Millennium Cell’s Hydrogen on Demand technology. These 50-watt power systems are currently being tested at the U.S. Department of Defense Fuel Cell Test and Evaluation Center which is operated by Concurrent Technologies Corporation in Johnstown, Pa.
“An important focus of this three-year joint development program with Dow was to move Millennium Cell’s Hydrogen on Demand liquid fuel technology from the lab into commercially viable products,” said H. David Ramm, Millennium Cell’s chief executive officer. “The achievement of the second milestone marks an important step in the maturation of our hydrogen storage technology which we will continue to advance toward commercialization. Additionally, through this collaboration with Dow, we have identified a new hydrogen fuel technology that is especially well-suited for the consumer electronics market. As a result, we will focus our third and final milestone of this joint development agreement on the advancement of this new technology, Solid State HOD.”
Millennium Cell and Dow have been collaborating on an innovative hydrogen storage technology (Solid State HOD) which has unlimited shelf life, no moving parts, and can significantly extend the runtime of fuel cell powered consumer electronics devices. Based on the results to date, the companies have modified their joint development program in which the final milestone (Milestone 3) will focus exclusively on Solid State HOD for consumer electronics applications. Further details about the milestone change and other program modifications are included in Millennium Cell’s Current Report on Form 8-K which is being filed today with the Securities and Exchange Commission.
Milestone 3 calls for the development of a pre-production hydrogen storage cartridge capable of addressing energy storage needs for a portable consumer application for a large volume market such as mobile phone handsets, chargers, two-way radios and laptop computers. Simultaneous with the development of this cartridge, Millennium Cell will focus on securing a commercialization partner, such as a major consumer electronics original equipment manufacturer (OEM), capable of designing this new technology into products. Securing this commercialization partner would mark a successful end to the joint development program between the two parties.
“We are very excited about the results and pace of progress on our Solid State HOD technology since its conception approximately two years ago. Dow’s expertise in materials, chemistry, and thermodynamics has been instrumental in the development of this exciting technological advancement,” said Ramm.
“Millennium Cell’s Solid State HOD technology has the potential to exceed current and forecasted battery performance. Consumer electronics markets can benefit from a better power source and we believe that fuel cells can play a significant role in the future of portable power. Dow is pleased to continue our relationship with Millennium Cell and we look forward to delivering a proven technology to a commercialization partner at the end of the joint development program in 2008," said James H. Plonka, Dow vice president for corporate venture capital.
In April 2005, Millennium Cell and Dow entered into a three-year, milestone-driven joint development program to collaborate on the development and commercialization of portable fuel cell systems for use in consumer electronics and military applications. These hydrogen batteries are based on Millennium Cell’s patented Hydrogen on Demand technology and proton exchange membrane fuel cells to convert hydrogen and oxygen to electricity. Since the program’s inception, Dow has been providing a combination of business and technical resources to aid in the achievement of these milestones.
