Fuel Cells companies

Ballard Power Systems (Nasdaq: BLDP)

Ballard Power Systems, based in British Columbia, Canada, can trace its history back to 1979. In 1983 the company began the design, development and manufacture of proton exchange membrane (PEM) fuel cells that use hydrogen and oxygen to produce electricity. The company is now recognized as one of the world's leading developer of fuel cells.

In January 2008 Ballard completed the sale of its automotive division to Daimler Chrysler and Ford who will operated the new company at a Ballard location with Ballard providing various services at profitable rates. Ballard will retain a 20% ownership in the new company. Ballard will be able to use any non-automotive technological developments by the new company. Ballard will also provide contract technical services to the new company and manufacture fuel cells for it on a profitable basis. The revenue from the contract services will largely offset the loss of automotive engineering development revenue.

This sale permits Ballard to concentrate on the non-automotive growth in fuel cell applications which provide clean energy solutions in existing commercial markets. It
also relieves Ballard of the high costs of long-term automotive fuel cell commercialization.

Over the past three years Ballard has developed fuel cell products for commercial markets such as materials handling, backup power, and residential cogeneration. Today, commercialization activities are progressing in each of these markets in North America, Europe, and Asia. The company had earlier reported that these product shipments in the 3Q-2007 were up 123% over the same period in 2006, providing clear evidence of the growth potential.

Medis Technologies (Nasdaq: MDTL)

Medis Technologies manufactures liquid fuel cells primarily for the portable consumer electronics market. The company's only product so far is the "24/7 Power Pack" which is a small, inexpensive and disposable portable power source for devices like mobile phones, MP3 players, and other handheld electronic devices.

The power pack has the ability to operate an electronic device whose batteries are depleted and at the same time recharge those batteries multiple times. Once the power pack is activated, it is expected to provide power for up to 30 hours of talk time to an average mobile phone or 60-80 hours of play time for an average iPod. The power is sufficient (1-watt) to operate, and charge, multiple times, a wide range of standard and advanced portable electrical devices on the market today. After the fuel is depleted the power pack has to be discarded.

As of March 2008, the company's automated production line, which is operated by a third party in Ireland, was operational. It is designed to produce 1.5 million Power Packs per month. Production levels are being coordinated with the company's distributors' roll-out plans. The company has another semi-automated production line in Israel that will be used for the foreseeable future primarily for R&D purposes. As of March 2008, purchase orders have been received but no deliveries have yet been made and thus there has been no revenue received.

The company is developing a larger (8-watt) power pack product for military operations. Also under development is the next-generation refuelable power pack which will use a gel electrolyte, as well as more powerful refuelable fuel cells for laptop computers and stationary fuel cells for backup power.

FuelCell Energy Inc (Nasdaq: FCEL)

Fuelcell Energy, tracing its history back to 1969, manufactures large-scale fuel cell power plants based on carbonate fuel cell technology.

The company's core products are currently rated in capacity at 300 kW, 1.2 MW, and 2.4 MW. They are designed to meet the needs of large-scale power plants including wastewater treatment plants, universities, and hotels, but especially industrial applications where the customers' own waste byproducts can be used as hydrogen feedstock for the fuel cell.

The company currently has it products installed in more than 40 locations around the world but their major markets are currently in California and Japan.

In fiscal 2007 (ending 10/31/07) customers ordered 14.8 MW compared to 5.05 MW in 2006. Most of those orders were for multi-unit or MW-sized products. By the end of 2007, the company had received orders for an additional 9.45 MW to end the calendar year with a backlog of 25MW.

In fiscal 2007 the company's production volume was 12 MW and the plant's capacity is currently being increased to 25 MW per year based on the growing sales backlog. The company says that when demand emerges, it can expand the existing plant's capacity to as much as 125 to 150 megawatts per year.

In 2007 the company achieved cost reductions of 14% and 24% for its DFC300 and DFC1500 products, respectively, and is targeting cost reductions of another 20% for its DFC 1500 and DFC3000 products in 2008.

PlugPower Inc (Nasdaq: PLUG)

Plug Power is a development stage company involved in the design, development, and manufacture of fuel cell systems for stationary and motive markets worldwide. The company is focused on proton exchange membrane, or PEM, fuel cell and fuel processing technologies.

The company currently has one product line in commercial production called GenCore™, a power backup system used in the telecommunications, broadband, and utility markets.

The company is developing a line of products called GenDrive™, which is a hydrogen fueled PEM fuel cell to provide motive power to light industrial vehicles like fork lifts.

The company is also developing a line of products called GenSys™, which will serve as remote power source for light commercial and residential applications. The fuel cells in this line will be fueled with hydrogen from LPG or natural gas and will be used to generate heat as well as electricity.

In partnership with Honda in Japan, the company is developing a line of products to provide electricity and heat to homes and businesses while also providing hydrogen fuel for a fuel cell vehicle.

During 2007 the company installed 208 GenCore™ fuel cell units, up from 85 units in 2006. Of those, 193 (93%) were for the telecom back-up power market and the others were for the motive market..

Hydrogenics Corp (Nasdaq: HYGS)

Hydrogenics Corp currently operates in three business units: OnSite Generation (52% of 2007 revenues), Power Systems (16%), and Test Systems (32%). The company announced in November that it is closing the Test Systems unit over the next two years.

The OnSite Generation unit manufactures products that use a proprietary water electrolysis technology using both proton exchange membrane (PEM) and alkaline technologies. The company believes that it is one of the few companies in the world with proprietary technologies using both technologies for water electrolysis.

The Power Systems unit manufactures fuel cells that use the PEM technology for use in stationary and light mobility applications. Its target markets include backup power for datacenters and telecom applications, and light mobility applications such as forklift trucks.

The Test Systems division, which provided test station
products to OEMs and fuel cell developers, is being discontinued because of low margins and slow growth. This will have no impact on the other two divisions.

The company is moving back to focusing on its core business activities. It will focus on the growing market for onsite hydrogen generation for remote power systems, grid optimization, bulk industrial hydrogen and transportation fuel, a market estimated to be $8 to $9 billion.

The company will also focus on the materials handling (forklift) market where it already has considerable traction. The company is currently providing fuel cells to the top three global EOM suppliers and it estimates the total global market at about $3.5 billion.

Mechanical Technology Inc (Nasdaq: MKTY)

Mechanical Technology Inc (MTI) manufactures test and measurement instrumentation products. All 2007 revenue was from sales of these products and the company expect sales to grow annually at double digit rates.

The company is also developing and commercializing off-the-grid rechargeable power sources for portable electronics. The company is focused on the development and commercialization of Mobion fuel cells for portable electronic devices using 100% methanol as the fuel. This fuel cell is intended to replace the lithium rechargeable batteries that are used today.

The fuel cell consists of two primary components: the Mobion chip, which is the power engine and is small enough to fit in the palm of the hand, and the methanol replacement cartridge. The company believes that is the only fuel cell of its size to generate the power needed for the portable electronics market.

The company is developing three Mobion products: (1)an external power charger which will be used to recharge the power unit in the portable electronic device, (2) a snap-on power supply that is compatible with existing portable electronic devices, and (3) a methanol fuel cell that will be embedded in the portable electronic device and can be recharged while the device is in use. The company intends to commercialize and begin delivery of the Mobion products in 2009.

Over the past few years MTI entered into two alliances. One is with Samsung to develop fuel cells for Samsung's mobile phone business. The other is with Gillette to develop a fuel-cell replacement for Gillette's Duracell division business.