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Cleantech magazine, a Cleantech Investor publication

FREE CONTENT: FUEL CELL FOCUS, MARCH 2007 - Results Round-Up

With most companies still at the pre revenue stage,results in the fuel cell sector focus on cash burn rates and news on commercialisation.

First published in Cleantech magazine. March 2007 © Cleantech Investor Ltd. 2007

Ceramic Fuel Cells (45p)

Ceramic Fuel Cells reported interim results for 2006. The company, which has developed fuel cell technology for micro Combined Heat & Power (m-CHP), had revenue of A$2.5 million. Research and development expenditure was A$5.8
million and Ceramic reported a net loss of A$7.9 million. At the end of the period, net cash stood at A$75.1 million or £30 million. Ceramic plans to start volume manufacturing in Germany and is working on commercialization in the German market. The company recently signed an agreement with Gaz de France and De Dietrich, through which it will address the French residential market.

CMR Fuel Cells (151p)

CMR Fuel Cells reported 2006 results for showing a loss before tax of £1.3 million, compared to a loss of £0.5
million in 2005. CMR is the only UK based developer of direct methanol fuel cell stacks, for applications in the consumer electronics market. The company aims to tap into the embryonic market for fuel cells for portable electronic products, ranging from lap top computers to electric scooters. Cash burn has been contained so far
and cash stood at £10.6 million at the end ofthe year, compared to £12.6 million at end 2005. However, CMR has more than doubled staff numbers to 27 in December 2006 from 11 at the end of 2005 and costs are inevitably set to rise.
CMR has signed co-operation agreements with Solvay SA and Xaar and expects to sign a Korean partner to develop a ‘CMR stack’.

ITM Power (123p)

ITM Power, the first AIM listed fuel cell company, develops electrolyser and fuel cell technology. The company reported interim results on 31 January 2007. Pre tax losses increased to £14.2 million for the six months to October
2006 compared to £0.91 million in the previous year – and compared to a full year loss of £1.86 million for the year ending April 2006. The higher pre tax losses came despite a £0.75 million boost to results from interest income on
the cash raised in May last year. During the reporting period, ITM announced its first commercial agreements which include: A joint venture with Hydrogen Engine Centre Inc (HEC) to develop grid independent and back-up electricity generators combining ITM’s electrolyser technology with HEC’s engine technology; And a joint venture with ABRO, the Ministry of Defence company which maintains the vehicles and equipment owned by the British Armed Forces. The ABRO joint venture aims to develop equipment which improves the capability of diesel engines in terms of both fuel efficiency and pollutioncontrol. The deal with ABRO opens up a potential market of not just the 95,000 British army vehicles, but also some 700,000 public service vehicles( ABRO provides vehicle maintenance services to the emergency services, local authorities and airports). Field trials with ABRO are set to commence in Q1 but ITM does not anticipate product orders or revenues until early 2008 and management anticipate increased capital expenditure during the second half of the financial year. Last year’s £29.41 million fund raising has improved the balance sheet. ITM had net cash of £32.7 million at the end of the reporting period. ITM has made important scientific advances, including the successful construction of a platinum free – low cost – electrolyser stack. However, the commercial viability of many of its products remains unclear and profitability remains a distant prospect.

Protonex Technology Corp (92.5p)

US based Protonex, which listed on AIM in July 2006, is already generating revenues. The company reported revenues of $2.3 million ($1.7 million) for the year to September 2006 – but $1.8 million came from US government
development grants. This was an improvement from the previous year when virtually all revenue was from government development contracts. Protonex reported a net loss of $5.2 million, compared to $2.2 million in 2005. The company had cash of more than $18.7 million in the bank at the end of September 2006. Protonex focuses onthe portable power market, with fuel cells of a range of between 10 watt and 1 kilowatt for both military applications
(GPS systems, wireless network command centres) and commercial
markets (power tool rechargers and marine applications).

Voller Energy Group (28.5p)

Voller Energy Group reported interim results for the six months to December showing losses at the operating level of £1.31 million. Voller ended the period with a cash balance of £5.7 million. The company’s Auxiliary Power Unit (APU) systems work from fuels such as Calor Gas, Propane or LPG. Used in a fuel cell, these fuels produce lower emissions than in a conventional generator.During the six month period, Voller introduced the Fuel Cell ABC (Automatic Battery Charger) and Fuel Cell RBC (Remote Battery Charger) products. Voller’s Porta charger, designed as a 300w cordless tool battery charger, is now included in the Speedy Hire catalogue.