Itm Power Regulatory News (ITM)

19 Apr 2006 07:01

ITM Power PLC19 April 2006 19 April 2006 ITM Power Plc ("ITM" or "the Company") Technical Update ITM Power, which aims to provide all aspects of the technology necessary to makethe hydrogen economy a commercial reality, is pleased to announce today a majorstep in its objective to provide a commercial alternative to replace hydrocarbonfuels and hence society's total reliance upon their continued supply. The Company believes that a low cost durable electrolyser is the criticaltechnology necessary for the economic replacement of hydrocarbon fuels usingrenewable energy resources. An electrolyser converts water and electricity intohydrogen and oxygen. These gases can be stored and used as fuel for combustionengines, fuel cells, heating and conventional electricity generation. Forhydrogen fuel to be viable, the electrolyser will need to have longevity inexcess of 3,000 hours and a capital cost in the range $120-180/kW to be able toproduce hydrogen which is cost competitive with fossil fuels. The Company has achieved the following technical advancements, which exceed therequirements above: Longevity Testing: ITM is pleased to announce that its unique low cost membrane technology has beentested and has achieved 3,500 hours of operation without external evidence ofdegradation or loss of performance. As previously announced, the Companybelieves that longevity tests are only of practical significance if they arecarried out on an intermittent (on-off) basis. This life test represents 3,500hours of actual operation at a commercially significant power density in anoverall test programme which now exceeds 5,000 calendar hours. Cost reduction by the Replacement of Platinum: (i) As previously announced (March 2006), ITM had successfully replaced platinumas the catalyst with a nickel alloy on the hydrogen side of its electrolysers.Further tests using laser ablation of the membrane has confirmed that the nickelalloy is at least as stable as platinum in this environment. (ii) The Company has now successfully replaced the remaining platinum (i.e. atthe oxygen evolution electrode) of its electrolysers and operated thisnon-platinum system for in excess of 500 hours without external evidence ofdegradation or loss of efficiency. Because the materials now under test are lessthan 1/3 of the cost of platinum, a further cost saving is expected which shouldsignificantly reduce the cost of the Company's electrolysers below the $164 perkW level announced in April 2006. On the basis of these encouraging results, ITM is confident that it will be ableto meet and exceed its technology objectives as set out in January 2006. These objectives represent a firm basis for seeking commercially viableapplications of ITM's technology because the subsequent 'down stream' equipmentis already well established and in many cases is available 'off the shelf'. Demonstration Facility: The Company has built a demonstration facility at its Sheffield premises inwhich ITM's electrolyser technology is now being used to convert renewableelectricity into clean (carbon free) hydrogen. This hydrogen is stored andreconverted into: (a) Low voltage electricity using an ITM fuel cell equipped with a proprietary ITM electronic controller as would typically be required to drive electronic equipment. A DVD player is used in our demonstration. (b) Mains voltage electricity using a Honda motor generator (modified by ITM to run on hydrogen) which is demonstrated powering lighting, heating and refrigeration equipment and small electric motors. (c) Heat using a commercially available gas hob (modified by ITM to run on hydrogen). These basic outputs i.e. heat, light, cooling, engines, electric motors andelectronics, cover the critical functions of society's energy demand. Thisdemonstration is a justification of the Company's assertion that the hydrogeneconomy depends upon a low cost electrolyser. Jim Heathcote, CEO, ITM Power Plc, said: "During the past two years, ITM hasbeen carefully building the foundations of personnel, science and infrastructureto create a solid platform to enable genuine mass commercialisation of itsscientific advances. I have always maintained that until the Company hadestablished the fundamental strength and cost competitiveness of its technologyit should not seek commercial partners or risk depletion of valuable cashresources through non-commercially viable demonstration programs. The results we have announced today have been achieved using our patentedmaterials and processes, ITM therefore controls the technology which has brokenthrough the barriers which have prevented all previous non-hydrocarbon fuelsystems being anything more than highly subsidised 'curiosities'. The potentialcommercial significance of that fact cannot be underestimated. My objective now is to maximise shareholder value by vigorously pursuing thecommercial production and rapid deployment of our technology. The opportunities,which are immense, cover virtually all aspects of our energy intensivelifestyles and offer a real chance to simultaneously help offset Peak Oil,Climate Change and Energy Security". - Ends - For further information: For further information please contact: Gemma Chandler Tim Linacre / Katherine Roe Simon Hudson/ Clemmie CarrITM Power Plc Panmure Gordon Tavistock CommunicationsTel: 01799 531 497 Tel: 020 7459 3600 Tel: 020 7920 3150Mob: 07921 057712 Notes to Editors Electrolyser: An electrolyser converts water and electricity into hydrogen and oxygen. Thesegases can be used as fuel for combustion engines, fuel cells, heating andconventional electricity generation. Existing electrolysers cost in the region of $2,000/ kW and the US Department ofEnergy 2010 target is $300/kW for an electrolyser stack. ITM Power has identified low cost electrolysers as a vital component to replacehydrocarbon fuels with hydrogen. ITM has achieved costs as low as $164 / per kW. About the hydrogen economy and ITM Power: 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. ITM aims to provide all aspects of the technology necessary to make the hydrogeneconomy a commercial reality and replace hydrocarbon 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 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.Existing industry standard membrane material is estimated to cost $500 per sqmetre, ITM's membrane costs $5 per sq metre. The Company has the ability toproduce low cost fuel cells that meet the energy demands of a wide range ofindustries and specialist technologies including military, automotive andstationary fuel cell markets as well as the capacity to produce household itemssuch as laptops, mobile phones and domestic appliances. ITM's 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