Itm Power Regulatory News (ITM)

6 Feb 2006 07:00

ITM Power PLC06 February 2006 Embargoed, for release at 0700, 6th February 2006 ITM Power Plc ("ITM" or "the Company") Technical Update- Longevity Testing of ITM's Electrolyser Materials ITM Power is pleased to announce that it has tested its membrane material in anelectrolyser for a period in excess of 1500 hours without any external evidenceof failure. ITM's technology is based upon the use of its proprietary hydrophilic ionicmaterials and in October 2005 it announced that it had 'operated its hydrophilicmembrane in an electrolyser for a period in excess of 500 hours' while inJanuary 2006 a further announcement increased this to 1000 hours. In order to be able to produce hydrogen cost competitive with hydrocarbon fuels,the 'cost over life' of the electrolyser is a critical factor. Thus it is acombination of the initial capital cost and longevity (measured under realisticoperating conditions) which combine to determine the cost of electrolytic energyproduction. These tests are ongoing and, as before, are continuing on the basis of therepeated on-off load cycles which the Company considers essential in order toreplicate real life requirements. The quoted figure of 1500 hours thusrepresents time 'on load' in a longer total period 'on test'. ITM Power aims to provide the necessary technology to enable the hydrogeneconomy to become economically and technically successful as an energy system incompetition with and ultimately as the replacement of hydrocarbons. Jim Heathcote ITM's CEO commented 'the continuing excellent performance of ITM'smembrane materials when used in an electrolyser is very encouraging, and bodeswell for the Company being able to meet its long term commercial objectives; theeconomic replacement of hydrocarbon fuels using electrolytic hydrogen producedfrom low carbon primary energy supplies (wind wave solar or nuclear). I believe it is excellent news for our shareholders and justifies our confidencein setting the new technical milestones announced 4 days ago'. -ends- For further information please contact: Jim Heathcote Simon Hudson 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