IdaTech fuelcell and reformer, Orange site, Wales

First published on the Cleantech Investor website, February 2008. ©  Cleantech Investor Ltd.

 UK quoted fuel cell companies saw widely divergent share price performance during 2007. At one end of the scale, Ceres Power shares gained 41.4% - while at the other CMR Fuel Cells shares lost 75% in value during the year. Both Polyfuel and Acta shares had suffered declines of more than 50% by the end of 2007, compared to the end of 2006.

The share prices of many fell even further during January. Voller Energy was the worst performer in January, its share price losing 23%. Ceres Power shares suffered an 18% decline over the month, as did Polyfuel. ITM Power shares lost 16% and CMR Fuel Cells lost 15%.

Despite the share price declines, news flow from the sector is increasingly positive. Since the start of 2008, there has been a rash of announcements indicating that companies in the sector are approaching the commercialisation stage.

Acta has launched a prototype disposable fuel cell for use in low power applications, which it expects to be cheap enough to compete with existing battery technologies. Acta’s share price slipped 2% in January. Ceramic Fuel Cells has started shipping its NetGenPlusTM micro-CHP units in the UK and France and has signed a deal with Paloma Industries for the Japanese market. Its shares lost 13% in January.

AFC Energy announced that it has operated its first prototype system in a new generation cartridge, which will be used to form the 3.5 kW system to be delivered to Akzo Nobel in August this year. AFC Energy shares bucked the trend to gain 6.8% during January.

UK Quoted fuel cell news round-up

IdaTech

IdaTech, which listed last year, has reported an increase in demand for its reformer-based systems (of which it sold 22) and it hydrogen-based systems (ten sold), last year. IdaTech has products with ten global telecommunication clients and has progressed towards field deployment of its systems. Early this year, IdaTech received an order for ten ElectraGenTM  reformer-based systems from a Latin American telecom integrator.

Ceramic Fuel Cells

Ceramic Fuel Cells announced in early January that it has shipped NetGenPlusTM units in the UK and France for the development of micro-CHP units. NetGenPlusTM  is a micro-CHP system which generates electricity, hot water and central heating for individual homes. It is powered by Ceramic’s advanced metal-ceramic fuel cell stack, which runs on natural gas.  

These shipments follow on from agreements with utilities in the respective markets. Ceramic’s strategy is to work with utilities across northern Europe which should underpin the company’s business model. Its partners include EWE (Germany), Gaz de France (France), E.ON (UK) and Nuon (Netherlands).

Ceramic recently signed up a deal with Paloma Industries, its fifth boiler company partner, for the development of micro-CHP products for the Japanese market. Paloma is a leading international gas water heater manufacturer, with revenues of some $2.5 billion. Paloma’s strong position in the Japanese market should enable Ceramic to roll out its business in that market without a partnership with a utility company, at least in the early stages. There is considerable Japanese government support for fuel cells, which are regarded as a preferable technology to gas pipelines, because of the high risk of earthquakes in Japan. Longer term, there is also potential for the relationship between Ceramic and Paloma to be developed beyond Japan to Paloma’s operations in Asia, Australia and the US.

In late January, Ceramic announced that it has signed a high volume contract with HC Starck, for the supply of fuel cell components. HC Starck has recently commissioned two lines for the manufacture of solid oxide fuel cells, specifically for Anode Supported Cells and for Electrolyte Supported Cells, with annual capacity of about 700,000 cells each. Ceramic and Starck

ITM Power

ITM Power released results for the six months to October. The pre tax loss for the period was £1.91 million, up from £1.42 million in the previous period. However, the company has a comfortable £29.7 million of cash.

ITM has achieved a number of milestones in both fuel cells and electrolysers. The milestones included: construction of 100W fuel cell stack design; development of a hydrogen-oxygen fuel cell with estimated production costs of <$250/kW; development of a 25kW electrolyser stack at production costs of ,$200/kW; development of a one step Membrane Electrode Assembly (MEA) production process; and the further development of a hydrogen/petrol bi-fuel car.

New commercial initiatives include a programme to develop a 1kW fuel cell for commercial production in late 2009; the design of a 5kW electrolyser, which will interface with wind and solar power generation and the design of a low pressure 10kW electrolyser for domestic housing projects.

ITM has signed an agreement with Boeing to develop an Unmanned Aerial Vehicle refuelling system and has signed a co-operation agreement with the US Navy, for the development of advanced power systems for unmanned undersea vehicle (UUV) applications.

Protonex Technology

Protonext Technology reported a 159% increase in revenue to $6 million for the year ending September 2007 – of which $5.5 million was revenue from US government sponsored projects. During the period Protonex secured a $3.5 million product development programme from the US army.

Expenses rose from $8 million in the year to September 2006 to $16.7 million in the reporting period, with the result that the net loss rose from $5.2 million to $9.4 million. Financing during the year included a secondary placing, in April, which raised $26.5 million. At the end of the reporting period, Protonex had cash in the balance sheet of $33.9 million.

The period saw Protonex acquire Mesoscopic Devices, a solid oxide fuel cell and reformer technology company based in Colorado.

In terms of development, the period saw demonstration of the first commercial reformer-based product, a 25—watt power system fuelled by liquid methanol. Protonex has teamed with Cummins to develop diesel-fuelled solid oxide fuel cell systems for auxiliary power. Management expects to move to the stage of product development and delivery during 2008. Protonex aims to move beyond its core market of the US military this year.

Acta S.p.A.

Acta released a trading statement in mid January which confirmed that revenues in 2007 were eight times higher than in 2006. Acta signed its first development contract with an Asian OEM and with Sumitomo Corporation in November last year. The contract, for the development of fuel cells from both ammonia and ethanol, is expected to generate cashflow of EUR0.6 million to Acta over a four month period.

Also in January, Acta launched a prototype platinum-free disposable fuel cell for use in low power applications. Acta expects to be able to produce a product which will be cheap enough to compete with existing battery technologies; the disposable fuel cell will offer scope for repeat revenues and is expected to see progress towards commercialisation in the first half of this year. The removal of platinum from fuel cell catalysts brings the price down to a level where it becomes competitive with battery technologies.