news from FUEL CELLS 2000 Fuel Cell Technology Update April 5, 2000

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1 news from FUEL CELLS 2000 Fuel Cell Technology Update April 5, 2000 To: Reporters, editors and investors following business, energy, automotive and technology news. Let us know if you would prefer to receive the full updates via , or if you wish to be removed from our list. For more information on stories, call (202) TRANSPORTATION APPLICATIONS Ballard, XCELLSIS, and CTA Conclude Successful Fuel Cell Bus Program. Ballard Power Systems, XCELLSIS Fuel Cell Engines Inc., and the Chicago Transit Authority (CTA) have successfully concluded the world s first fuel cell bus demonstration and testing program after two years of operation. The three buses have clocked more than 5,000 hours in revenue service, covered over 30,000 miles, carried more than 100,000 passengers, and emitted nothing more than water vapor. BMW Shows Hybrid Sedan With Fuel Cell APU in U.S. Electric Vehicle Today (March 16, 2000) reported that BMW introduced its hybrid CleanEnergy 750hl sedan to the United States. The vehicle, already being used as VIP shuttles at Munich Airport, operates on either gasoline or liquid hydrogen. The hydrogen-fueled internal combustion vehicles also have a small fuel cell auxiliary power unit, which is powered by liquid hydrogen and operates the onboard electrical system. Georgetown Unveils Second Fuel Cell-Powered Bus. Georgetown University unveiled its second 40- foot, fuel cell-powered transit bus on campus, made possible through a program with the Federal Transit Administration. The 40-passenger bus has a Novabus RTS platform, a Lockheed Martin Control Systems electric drive, a vehicle system controller by Booz-Allen and Hamilton and a 100-kW PEM fuel cell developed by XCELLSIS. International Fuel Cells Boosts Power for Automotive Fuel Cells. International Fuel Cells (IFC) says it has developed a way to boost the power of automotive fuel cells while also shrinking their size. The technology increases the amount of a power a fuel cell will produce per liter, to 1.5 kilowatts per liter, 15 percent more power than competitor s fuel cells. Hybrid Fuel Cell Battery Tested for Undersea Vehicles. The Office of Naval Research (ONR) has funded research at the Naval Undersea Warfare Center to test a new, high energy electric power source to propel unmanned undersea vehicles. Researcher have just conducted a continuous 37-hour demonstration of a semi-fuel cell, which combines features of a fuel cell and a standard battery, carrying a permanent internal power generator that runs on external liquid hydrogen peroxide tanks. Astris Energi Develops Alkaline Fuel Cells. Astris Energi Inc. recently developed a commercially viable alkaline fuel cell, to be used in vehicles and other applications. Astris has been concentrating on one- to five- kw systems suitable for golf carts, fork lift trucks and similar vehicles, and plans to demonstrate a viable fuel cell-powered golf car within the next year.

2 ISE Launches Fuel Cell Division. ISE Research Corp. announced a new Fuel Cell Systems Division to respond to rapidly increasing interest in fuel cell power sources for automotive applications. The division will manufacture and market ISE s fueling, power-management and accessory/control systems, which enable fuel cells to be used as power sources in hybrid-electric trucks, buses and other heavy-duty vehicles. Japanese Companies Join to Test Fuel Cells. Mitsubishi Electric Corporation is joining with Fuji Heavy Industries Subaru Research Institute to test its new flat-type polymer electrolyte fuel cell in automotive applications. The company will test the fuel cells in Subaru Samber light trucks. SatCon Delivers Motors and Controllers to Auto Manufacturer. SatCon Technology Corporation s MagMotor Division delivered an initial shipment of high-efficiency motors and controllers for use in a fuel cell vehicle being produced by a major automobile manufacturer. The high-density motors and controllers demonstrate high efficiency necessary for maintaining the fuel cell propulsion system. SunLine Transit Agency Joins California Fuel Cell Partnership. SunLine Transit Agency was named to the California Fuel Cell Partnership (CFCP) and will serve as a test site for the partnership s bus demonstration program. SunLine, based in Southern California, is already road-testing hydrogen vehicles for the U.S. Army, the Department of Energy and the Federal Transit Administration. STATIONARY POWER FuelCell Energy Selected by Department of Energy to Develop Hybrid Plant. FuelCell Energy has been selected by the Department of Energy for a $3.125 million program, including 20 percent cost sharing, to support the design of an ultra-high efficiency, fuel cell/turbine hybrid power plant. The system proposes an innovative combination of FuelCell Energy s Direct FuelCell with a turbine without requiring any combustion in the turbine, or pressurization of the fuel cell. Fuel Cell Patent Issued to Avista Labs. Avista Labs announced the issuance of U.S. Patent 6,030,718 that covers 162 claims for its modular, cartridge-based PEM fuel cell power system. The cartridge-based approach is reliable and convenient for consumers because fuel cell cartridges can be easily removed and replaced while the power system continues to operate. Additional elements of the patented system include the propriety designs that simplify the humidifying and cooling systems, resulting in lower manufacturing costs and higher efficiency. Rentech Inc. Signs MOU for Sand Creek Fuel Cell Project. Rentech Inc. has signed a memorandum of understanding with FuelCell Energy to immediately begin a feasibility study for the siting of an up to 9,000 kw commercial scale fuel cell power plant at the Sand Creek Energy, LLC location in Commerce City, Colorado. The plan is to convert the existing methanol plant into a gas-to-liquids facility to provide feedstocks for fuel cell stacks. FuelCell Energy and Marubeni Corporation Join to Market Power Plants. FuelCell Energy Inc. and the Marubeni Corporation of Japan have signed a collaborative product and market development agreement that calls for the first commercial field trials in Asia of FuelCell Energy s Direct FuelCell power plants. Marubeni will site fuel cell power plants in Japan and other Asian markets this year. FUEL CELL COMPONENTS

3 Research Team At Virginia Tech Announce Heat Tolerance Advances. A group of professors and students at Virginia Tech have tested materials that can significantly reduce the heat-tolerance limitations in existing fuel cells. The team used direct polymerization, where PEM polymers incorporate ion conductor sulfonic acid groups at the monomer level rather than during the post-reaction, after the polymer has been formed. SatCon Introduces New Industrial Fuel Cell Power Inverter Line. SatCon has introduced a new line of power inverters for fuel cell systems. The MegaVerter power inverter will be combined with other SatCon energy management products and installed on the grid-connected 250 kw Direct FuelCell power plant that is currently powering FuelCell Energy s facility in Connecticut. FUELS/REFORMERS/STORAGE UPENN Builds Fuel Cell That Runs on Available Fuels. Researchers at the University of Pennsylvania have built a fuel cell that runs efficiently on readily available forms of hydrocarbon fuels such as methane and butane, instead of pure hydrogen. The team substituted Cu-ceria for the cell s anode instead of zirconia to avoid a buildup of carbon, which was ruining the cell in testing. The research was funded by the Gas Research Institute in Chicago, Illinois. Startech Environmental Receives Contract for StarCell Demonstration. Startech Environmental Corp. has received a $265,000 contract to produce and demonstrate its full-scale StarCell hydrogen separation unit for Unistar Energy, LLC. The StarCell separates large quantities of hydrogen from waste gas to be used in fuel cells and other commercial industrial products. REPORTS AND MARKET STUDIES RDBE-99 Battery and EV Industry Review. RDBE-99 Battery and EV Industry Review shows that the total sales for the U.S. in 1999 battery and battery-related markets was $9.4 billion, with a forecast to grow to $12.5 billion by The highest growth rate should occur in fuel cells with a 30.4% per year growth rate during the 5-year forecast period. Fueling the Future: Natural Gas & New Technologies for a Cleaner 21 st Century. Fueling the Future: Natural Gas & New Technologies for a Cleaner 21 st Century, a study prepared for the American Gas Foundation, predicts that new natural gas technologies may increase consumption of natural gas by almost 60 percent over current levels. The study also found that on-site generation of electricity using natural gas fuel cells and microturbines is among the many promising technologies for the natural gas industry. BMW Presents Paper Endorsing SOFC Technology. At the Society of Automobile Engineers World Congress, engineers for BMW presented a paper endorsing Global Thermoelectric s solid oxide fuel cell (SOFC) technology for use powering auxiliary electrical systems in vehicles. The study concluded that SOFC technology holds a significant advantage over other fuel cell technologies, mainly because it can run on gasoline. Fuel Cells: Applications and Opportunities. The International Quality and Productivity Center (IQPC) and EscoVale Consulting Services recently published Fuel Cells: Applications and Opportunities, a report on the development of fuel cells. The report consists of two volumes examining fuel cell development, obstacles, maintenance cost, applications and also gives a 25-year forecast for

4 factors influencing the emergence of fuel cells. Proton Exchange Membrane Fuel Cells: Powering Future Vehicles. A new Futuretech briefing, published by Technical Insights, Proton Exchange Membrane Fuel Cells: Powering Future Vehicles, is designed to help industry executives, engineers and managers discover opportunities and exploit the PEM fuel cell as a feasible substitute for the gasoline engine. The briefing offers a timely analysis of the marketplace and an overview of the key players working on PEM cells. International Energy Outlook The Energy Information Administration s report International Energy Outlook 2000 estimates that the world s use of energy will continue its rapid growth at least to the year 2020 and overall energy will rise 60 percent from 1997 to The study has slightly more rapid growth in carbon emissions than last year s estimates. Faster than average growth is expected for the developing nations, world natural gas use, and world net electricity consumption. MISCELLANEOUS DCH Technology Unveils New Fuel Cell Corporation. At Germany s Hannover Fair, DCH Technology unveiled its new subsidiary, Enable Fuel Cell Corporation. Enable, based in Wisconsin, will focus solely on continued development and commercialization of fuel cell power products. At the fair, DCH and Enable displayed the Enable PFC (Personal Fuel Cell), a portable unit that is the size of a beverage can and weighs less than two pounds. The unit provides 12 watts of electric power at 12 volts. Plug Power Signs Agreement With Advanced Energy Systems. Plug Power Inc. has signed an agreement with Advanced Energy Systems that will enable the company to integrate Advanced Energy Systems power electronics technology into Plug Power s residential fuel cell systems over the next year. Power electronics, also known as inverters, is the third part of a three-part fuel cell system, which also includes a fuel processor and the fuel cell stack. ZeTek Plans to Expand Fuel Cell Business. ZeTek has announced an expansion program that will affect its activities in the automotive, marine and distributed power markets. The ZeTek Approved Systems Integrators (ZASI) program seeks partners for the development of specific fuel cell applications and complete fuel cell systems including pumps and valves, management systems and converters. Canada Will Spend More on Renewable Energy. The government of Canada will spend up to C$450 million on renewable energy, energy efficiency and other sustainable energy options. From this, the Sustainable Development Technology Fund will be created with initial federal funding of $100 million to stimulate new environmental technologies such as fuel cells. Energy Ventures and Northern Securities Sign Financing Agreement. Energy Ventures Inc. and Northern Securities Inc. have signed a financing agreement for a private placement and a proposed public offering. Energy Ventures will use the funds raised by Northern to accelerate its Direct Methanol Fuel Cell Program. - ### - Fuel cells generate electricity without combustion by harnessing the energy created when hydrogen and oxygen are chemically combined. Fuel Cells 2000 is an independent, nonprofit activity dedicated to the

5 commercialization of fuel cell technologies.