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LONDON (Alliance News) - Proton Power Systems PLC Thursday said its pretax loss widened in 2014 on the back of higher costs but said it hopes to secure its first orders from Asia in 2015 whilst gaining further orders for its HyRange system on buses in Europe and in the logistics industry.
The fuel cell system developer based in Germany reported a pretax loss of GBP10.1 million compared with a GBP9.3 million loss in 2013 after its administrative expenses rose to GBP3.1 million from GBP1.3 million, partially offset by revenue climbing to GBP1.4 million from GBP1.1 million.
In 2014, the company began selling 3 kilowatt to 75 kilowatt fuel cell systems, which creates electricity from hydrogen without emitting carbon dioxide, for stationary, mobile and maritime use whilst investing in its manufacturing to increase capacity to deliver up to 200 systems per year to "meet future demand expectations".
"We see strong interest and growing demand for various applications we offer and we continue to improve the operational performance with significant reductions in cost per kilowatt. Our costs for fuel cell systems have dropped significantly and the technology and products are robust and reliable," it said.
Proton Power said the Asia-Pacific is a target market as it believes its systems can help reduce pollution as demand for clean power applications increases, adding that it will benefit from the "made in Germany" technology being regarded as "highly respected" in China specifically.
Europe is also a target market and the company is currently holding talks with several European bus manufacturers and logistic companies. Proton Power plans to launch its next electric battery fuel cell bus onto the road in the second half of 2015. The company added it has requested funding from the National Hydrogen Association for the project.
"Talks are also underway with a large international logistic company for electric battery fuel cell logistic vehicles, with a first test vehicle integration for Germany planned for 2015. Another collaboration project, funded by the Austrian Government is under progress with an Austrian based automotive supplier," said Proton Power.
"Proton Power has made great progress in 2014 and is seeing significant interest for our solutions in all of our market segments, and our objective is to expand volume manufacturing with industrial partners based on licensing agreements. The board can proudly state, that Proton Power now has technically proven products and a go to market solution portfolio," said the company.
In 2015, the company said it aims to secure its first orders from Asia-Pacific and gain orders for buses with its new HyRange system in Europe and for logistics vehicles. Proton Power will also focus on "strengthening" its product platform and "growing capability," it said.
At the end of December, the company had a cash balance of GBP180,000, but said it is confident it has secured enough financing to meet its future commitments.
Proton Power shares were up 9.6% at 3.70 pence per share Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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