Itm Power Regulatory News (ITM)

3 Oct 2005 06:00

3 October 2005 ITM POWER PLC ("ITM" or "the Company") Technical Update * Initial Results of Longevity Testing of ITM's Electrolyser * Research Project Agreed with Heriot Watt University ITM Power, which aims to provide enabling technology for the hydrogen economy,announced at the time of its flotation in June 2004 a number of importantmilestones for the Company that, if achieved, would indicate to investors itsprogress. ITM is pleased to announce today significant progress in itsdevelopment of durable modular electrolysers. These enable the realisation ofcost competitive hydrogen fuel as an alternative to hydrocarbons.In the technical announcement dated 1st September 2004, the Company was able todemonstrate that its hydrophilic membrane technology could operate as anelectrolyser, and that, according to an independent analysis, the resultingelectrolyser would be significantly cheaper, at $283/kW, than any knowncompetitive device, if produced in commercial quantities.At that time, ITM believed that substantial longevity testing under realisticoperating conditions still needed to be carried out before establishing thecommercial potential of the technology. Longevity data was unknown in September2004 because the Company did not have the necessary test facility. The Companyhas since purchased this test equipment and is now pleased to announce that ithas operated its proprietary hydrophilic membrane in an electrolyser for aperiod in excess of 500 hours without evidence of failure or degradation of themembrane. This test is continuing and further longevity tests will be announcedin due course.The Company feels strongly that to be realistic, the test regime should involverepeated on-off load cycles (switch-on, operate, switch-off) in replication ofreal life requirements. ITM Power believe that longevity figures that are takenat a constant steady-state are not representative of the requirements involvedin many potential applications e.g. use in conjunction with renewable primaryenergy systems; wind, wave or solar, or when providing the fuel for stand-byemergency power supplies. The totaltime on-test reported here is in excess of2000 hours during which the electrolyser operated at design power for in excessof 500 hours, as stated above.In addition, ITM is pleased to announce that it has concluded an agreement withHeriot Watt University to fund a PhD student to research the production oftertiary hydrocarbons by combining electrolytic hydrogen from renewable sourcesand carbon dioxide recovered from the atmosphere. Initial results indicate thatit is possible to create hydrocarbons having molecular weights significantlygreater than alcohol, and thus the company has filed a patent applicationcovering the use of `renewable' hydrogen and `waste' carbon dioxide topermanently sequester carbon dioxide in commercially valuable products e.g.bitumen.Jim Heathcote, CEO, ITM Power said: "The 500 hours achieved so far, withoutdegradation, is highly encouraging, especially given the arduous real life testregime. The principal reasons that fuel cells and electrolysers have notachieved mass market penetration are cost and durability. We are comfortablewith our advances in cost reduction and have made establishing durability apriority."Low cost and durable electrolysers are the key technology to enable theconversion of low value, intermittent renewable energy (wind, solar) intohydrogen which can later be used to generate high value power as and when it isneeded. Combining a cost effective electrolyser with renewable energy sourceswill improve the economics of renewable energy and help replace fossil fuels.We intend to keep investors regularly updated on these important developments."-Ends-For further information please contact:Jim Heathcote Gemma Chandler / Simon Hudson Katherine Roe ITM Power Plc Tavistock Communications Panmure Gordon & Co Tel: 01780 740 574 Tel: 020 7920 3150 Tel: 020 7459 3600 Notes to EditorsAbout 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 SolarElectrolysers, 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 andoxygen into 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 inexcess of 200 Watts and are confident that the Company is well on track toachieve their milestone of 500 Watts by June 2006. On the basis of theseresults, The Generics Group, an independent scientific consultancy, haveestimated that in mass production it is possible to achieve $283 per kW. Thisclosely approaches the 2010 US Department of Energy target of $300 for anelectrolyser stack.PEM fuel cells developed so far are currently estimated to cost severalthousand dollars per output kW (for example, in February 2004, the USDepartment of Energy estimated the current cost of a fuel cell to beapproximately $3,000 per output kW) whereas petrol engines are currentlyestimated 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 capacityto produce household items such as laptops, mobile phones and domesticappliances.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 themanufacturing process.ENDITM POWER PLC