Itm Power Regulatory News (ITM)

18 Oct 2006 07:00

ITM Power PLC18 October 2006 18 October 2006 ITM Power Plc ("ITM" or "the Company") Technical Update ITM Power is pleased to announce today that it has successfully achieved thefollowing technical advances, which includes one of the new milestones set outat the time of the Company's full year results in July 2006. Fuel Cell Cost Reduction Programme: In parallel with the development of ITM's low cost electrolyser programme, theCompany announced in July 2006 that it would apply its technology to reduce thecapital cost of fuel cells operating using hydrogen. The Company has reduced the cost of fuel cells to $900/kW by increasing thepower output of its cells to 360mW/cm2. ITM materials have now beensuccessfully operated at powers in excess of this level. Consistent andrepeatable performance at these power densities has been achieved. These initial cells use a platinum catalyst and the achievement of a specificperformance cost target is therefore dependent upon the cost of platinum and thevalue of the US dollar. The Company is particularly pleased to be able toachieve this target in view of the recent increase in the cost of platinum toover $1200/troy oz averaged for the six months to end September 2006, duringwhich time the sterling/US dollar exchange rate was £0.54. For the avoidance ofdoubt, the Company will continue to use this platinum price and dollarconversion rate when calculating the costs of its fuel cells for the remainingstages of the programme. Electrolyser Longevity Testing: ITM is continuing durability testing of its unique low cost membrane technologyas applied to electrolysers. These tests continue to show good results. Thelong duration test has now achieved 6000 hours of operation on an intermittenttest cycle without external evidence of degradation or loss of performance. Thislife test represents 6000 hours of actual operation at a commerciallysignificant power density in an overall test programme which now exceeds 10000calendar hours. Jim Heathcote, CEO, ITM Power Plc, said: "One of our strategies is to be able toprovide a low-cost electrolyser and a low-cost fuel cell that could provide theessential technology necessary to convert intermittent low-value renewableenergy (wind, solar) into a reliable non-fossil energy supply. ITM haveidentified multiple applications for this technology and have entered into earlystage discussions with third parties about possible collaboration in order tobring these products to market." Ends For further information: Gemma Chandler Corporate Communications OfficerITM Power PlcTel: 01799 532 860Mob: 07921 057712 or visit www.itm-power.com This information is provided by RNS The company news service from the London Stock Exchange