Itm Power Regulatory News (ITM)

31 Jan 2006 07:01

ITM Power PLC31 January 2006 Embargoed, for release at 0700, 31st January 2006 ITM Power Plc ("ITM" or "the Company") New Technical Milestones ITM Power Plc, which aims to provide enabling technology for the hydrogeneconomy and maximise shareholder value by developing specific devices andintellectual property (IP) that controls important aspects of the generation andre-conversion of hydrogen, is pleased to present a new set of technicalobjectives. These new objectives build on those milestones set out, and sincesuccessfully achieved, at the time of the IPO. ITM will concentrate on those technologies which the Directors believe areneeded to underpin its route to commercialisation. The new objectives set outbelow, have therefore been selected to focus upon devices and technologies whichtarget specific commercial opportunities. Importantly, the realisation ofcommercial pre-production prototypes having the potential to produce hydrogenfrom sustainable primary energy resources at a cost which is competitive withhydrocarbons is now an integral part of the new milestones. Summary of new objectives: (1) Electrolyser: a 5kW electrolyser stack for delivery by December 2006 (2) Electrolyser: a 25kW electrolyser stack for delivery by December 2007 (3) Fuel Cell: a 20W, 2-liquid fuel cell stack engineered to pre-production standard, including fuel supply cassette and interface electronics, by December 2007 (4) Production Process: the development of 'production ready' cell modules made by a fully engineered 'one-step' production route for delivery by December 2007 Electrolysis By December 2006: A 5kW electrolyser module with a projected capital cost of less than $250/kW andsuch longevity as the data from ongoing tests justify. This unit is to bedesigned so that it can be combined into units of up to 20kW. By December 2007: A 25kW electrolyser module with a projected capital cost of less than $200/kWand such longevity as the data from ongoing tests justify, but with an objectiveof 3,000 hours of cyclic operation. This unit is to be so designed that it canbe combined into units of up to 100kW. An extensive market review of the opportunities available for electrolyser unitsof a range of ratings has suggested that units in the range 10-25kW would haveapplications in a number of 'local' scenarios (solar cells applied to individualbuildings, or small local wind machines). Units of 100kW and above would beneeded to interface with wind power or solar power systems of economic size usedin commercial energy farms. Fuel Cells ITM proposes to focus on the development of complete working, pre-productionprototype cells using the 2-liquid technology demonstrated in July 2005. It willproceed via prototype cells of low power (i.e. approx 4W) output and will incorporate all the balance of plant necessary to allow for the general acceptance of the system, i.e. rapid refuelling via replacement fuel cassettesand the electronic interface circuitry needed to operate standard electronicequipment. The overall objective is the development of a pre-productionprototype flexible 20W device (i.e. conformable, lightweight and vibrationresistant) for military or emergency services applications. By December 2006: A 4W prototype module together with the rapid refuelling cartridge and outputpower conditioning electronics necessary to operate electronic devices. Thiswill provide a working demonstration of a complete system. This is considered acost effective route to exposure to the micro fuel cell market. By December 2007: A 20W continuous output lightweight flexible fuel cell stack designed to be apre-production prototype suitable for external testing, validation andacceptance by the military and civilian emergency services. The stack will be acomplete operating system incorporating provision for rapid refuelling via acartridge, and output power conditioning electronics necessary to operateelectronic devices at voltages from 9v to 20v. Production Process ITM's core intellectual property encompasses both the materials and a novelone-step production process. The developments and achievements announced to datehave depended principally upon the use of ITM's patented materials. However, thelong term future value of ITM would be maximised if the 'one-step' manufacturingprocess can be developed so as to be 'production ready'. By December 2007: Develop the 'one step' production route through all the steps (scientific,technical and engineering) necessary to completely define the process on afull-scale production scale. This programme is required to allow accuratedefinition of the capital cost of a production facility and thus the unit costof production of any specific device. It is also envisaged that additionalvaluable IP will result from the programme. The principal 'deliverable' from this programme is expected to be the new IP,reliable costing data and a working demonstration flexible fuel cell orelectrolyser module made by the fully engineered 'one-step' process. Jim Heathcote, ITM's CEO commented: "The next phase of our development iscritical to our value in the long term. In order to maximise shareholder valueand avoid leaving ITM in the position of having to seek cross-licences to useits own technology, it is essential that the Company makes its technologyproduction ready. "I am confident that we can meet these new, challenging objectives in the nexttwo years, and in doing so I believe that this will place ITM in a position tobenefit from the impending acceleration of a global change from hydrocarbon fuel(oil and gas) to hydrogen. This transition will offer very significant businessopportunities. ITM plans to be at the heart of the developing hydrogen fueleconomy". -ends- For further information please contact: Jim Heathcote Gemma Chandler Tim LinacreITM Power Plc Tavistock Communications Panmure Gordon & CoTel: 01799 532860 Tel: 020 7920 3150 / Tel: 020 7459 3600 07787 510 630 or visit www.itm-power.com Notes to Editors About the hydrogen economy and ITM Power: ITM is a leading technical innovator of fuel cell and electrolyser technologiesfor the hydrogen economy. The future shape of the energy industry is being driven predominantly by thegrowth in the global demand for energy, the diminishing reserves of oil and bythe environmental impact of burning fossil fuels. Hydrogen Economy: * Term used to describe the use of hydrogen as a critical element in the energy economy of the future. * Benefit of hydrogen is that it has the potential to a be a totally "clean" source of fuel * The vision is that low cost electrolysers produce hydrogen from "clean" energy sources such as solar, wind and wave and fuel cells use this hydrogen to produce the electricity when it's required "If all the sunlight hitting the earth's surface in one hour was harnessed andconverted into electrical power, it would be enough to fulfil mankind's energyneeds for a complete year" - BP Solar Electrolysers, via an electrochemical process, convert electricity (fromrenewable energy inputs) and water into hydrogen (which can be stored) andoxygen and in turn fuel cells, via a similar process convert hydrogen and oxygeninto electricity and water. ITM announced in November 2004 that it had successfully produced and tested aMark III electrolyser stack, which has been operated at a power rating in excessof 200 Watts and has now achieved its milestone of 500 Watts. On the basis ofthe Mark III results, The Generics Group, an independent scientific consultancy,have estimated that in mass production it is possible to achieve US$283 per kW.This is below the 2010 US Department of Energy target of $300 for anelectrolyser stack. PEM fuel cells developed so far are currently estimated to cost several thousanddollars per output kW (for example, in February 2004, the US Department ofEnergy estimated the current cost of a fuel cell to be approximately $3,000 peroutput kW) whereas petrol engines are currently estimated at $50 per output kW. ITM's Technology: ITM Power plc believes it has developed and patented the keys to revolutionisethe hydrogen economy and is set to become one of the UK's leading innovatorswithin the alternative energy sources industry. ITM's ionically conductive polymer materials and manufacturing processes areused in the production of fuel cells and electrolysers, which are significantlycheaper than those presently used in production. The technology offers highconductivity, hydration control and has the benefit of catalyst recycling. TheCompany has the ability to produce low cost fuel cells that meet the energydemands of a wide range of industries and specialist technologies includingmilitary, automotive and stationary fuel cell markets as well as the capacity toproduce household items such as laptops, mobile phones and domestic appliances. ITM has patented a new manufacturing process that allows a fuel cell/electrolyser stack of cells to be made in a single process similar to a massproduction casting process. The process is capable of producing cells or stacksof any shape that may also be flexible so that they can be moulded into smallerproducts, such as mobile phones. The Company has applied this technology to alow cost electrolyser that can convert carbon free energy into clean hydrogenfuel on site and on demand, therefore completing the circle of the manufacturingprocess. This information is provided by RNS The company news service from the London Stock Exchange