Itm Power Regulatory News (ITM)

17 Mar 2006 07:02

ITM Power PLC17 March 2006 Embargoed until, 0700 hrs, 17 March 2006 ITM Power Plc ("ITM" or "the Company") Technical Update Electrolyser Chemistry Advances Lead to Important Cost Reductions ITM Power aims to provide all aspects of the technology necessary to make thehydrogen economy a commercial reality and facilitate the replacement ofhydrocarbon fuels. The Company has identified low cost electrolysers as a vitalcomponent of this development and to date ITM has achieved costs as low as $275/per kW through the use of acid based solid polymers and platinum catalysts. ITMPower is pleased to announce today that it has made further significantelectrolyser cost reductions through the application of new chemistries to bothmembranes and catalysts. ITM Power has developed a "50/50" electrolyser system employing Nickel catalyston one side (the hydrogen electrode) and Platinum catalyst on the oxygenelectrode. This system has been operated successfully for 500 hours withoutexternal evidence of degradation. The system has been independently costed at$164/ per kW, notwithstanding an additional allowance for increased cost of theITM HPE(TM) (hydro-polymer-electrolyte) membrane structure. This represents asignificant advance in ITM's progress to reduce electrolyser *cost-over-life;capital cost is an important component of this calculation. In accordance withits normal policy of increasing its intellectual property portfolio, ITM hasfiled patents covering the membrane technology essential to this development. Key points on introducing Nickel in partial replacement of Platinum: * Historically, alkaline circulating liquid electrolyser systems have been made which have successfully used Nickel catalysts, but there is no generally available industry standard alkaline membrane. * The Nickel material used in the catalyst-electrode is a commercially available low cost alloy (non-proprietary). * There is no obvious performance penalty involved in the use of a Nickel catalyst when used in conjunction with the ITM HPE(TM)membrane. The operating characteristics of the 50/50 system have proved to be closely similar to those of the 'pure' Platinum system used in the Company's Mk 4 electrolyser which was costed at $275/ per kW. * The costing given here assumes a product run of 100,000 kW to amortise the set up costs, but no allowance has been made for Platinum recovery at the end of life. ITM is unique in having a patented technology which allows a wide range ofmaterial properties to be engineered into its ionomeric polymers. Thesematerials can be made with either acid or alkaline properties. The cost ofconventional PEM (Proton Exchange Membrane) electrolysers is high, due to costlyacidic membranes which use Platinum catalysts. In addition, ITM has used its alkaline solid hydro-polymer technology to makeand operate an electrolyser using a Nickel catalyst on both sides of themembrane. However, following stringent testing, ITM discovered that the Nickelproducts used in the system did in fact break down (in respect of efficiency andlongevity because of degradation of the Nickel material on the oxygen side ofthe electrolyser). ITM is continuing to research this area and will keep themarket informed of developments. Jim Heathcote, CEO, ITM Power said: "The Company continues to focus on itsresearch to further reduce the cost of electrolytic hydrogen production and onthe means of reconverting hydrogen for general use. An integrated approach toboth aspects of the problem is critical to the eventual economic replacement ofhydrocarbons. ITM has stated that the critical element required to enable the production ofhydrogen, which is cost competitive with hydrocarbon fuels, is a low cost anddurable electrolyser. Our cost reduction programmes are being conducted inparallel with our separate and ongoing durability testing. This developmentincreases the likelihood that ITM will be able to produce cost competitivehydrogen. We believe that further cost reductions are possible." Ends For further information, please contact: Gemma Chandler Lulu Bridges / Simon Hudson Tim Linacre/ Katherine RoeITM Power Plc Tavistock Communications Panmure Gordon & CoTel: 01799 532 860 Tel: 020 7920 3150 Tel: 020 7459 3600Mob: 07921 057712 Notes to editors: *cost-over-life is the fully amortised cost of the electrolyser divided by itsworking lifespan to give a cost of conversion of a unit of energy. This information is provided by RNS The company news service from the London Stock Exchange