by Debra Fiakas, CFA

Most investors, if they have heard of Hydrogenics Corporation (HYGS: Nasdaq) at all, consider them a fuel cell producer. However, about two-thirds of the company’s revenue comes from the design and manufacture of hydrogen generation products based on water electrolysis technology - a somewhat unique, but valuable electrochemical technology that could make important contributions to the world’s future energy base.

Electrolysis or the splitting of water molecules using an electric current produces hydrogen and oxygen - two elements that have market potential in a variety of industrial and power markets. It stands in high contrast to other producers of hydrogen that begin with natural gas and rely on the so-called steam reforming process to produce hydrogen from the natural gas components.

Hydrogenics expanded its production of hydrogen and oxygen gases with the acquisition of Stuart Energy Systems in January 2005. The company now manufactures the HyStat Electrolyser for on-site or on-demand hydrogen and oxygen supplies. Hydrogenics claims they “know hydrogen and know it well,” a talent that puts them in a good competitive position in the renewable energy field.

The company is applying that considerable knowledge to the production of fuel cells which convert hydrogen and oxygen back into water to produce energy. In 2009, power products and services accounted for about a third of the company’s revenue. We expect that portion to shift higher over time as Hydrogenics’ fuel cell products penetrate the market. So far Hydrogenics has focused on the forklift, commercial fleet and urban transit bus markets with its fuel cells.

Why all the fuss about hydrogen? First of all hydrogen is estimated to hold almost three times as much energy as natural gas per pound. Second, its only emission is pure water.

Why all the foot dragging about hydrogen? It is not really a fuel. It is just a way of storing or transporting energy and it has to be concocted in the first place, if not by braking down natural gas then the electrolysis method that Hydrogenics uses. (There are also thermolysis or photoelectrolysis technologies, but we will save those for science lessons another day.) Electrolysis has a theoretical maximum efficiency of about 80% to 94%, but practically speaking actual production can fall short of such efficiency.

Even excluding the production questions, hydrogen is a bit volatile and presents all sorts of technical challenges to transport. That is why Hydrogenics’ hydrogen generation solutions are located on customer sites.

In my view, Hydrogenics management has demonstrated strong execution skills that might be missed by some investors who do not look past the net losses over the past several years. The shift from fossil fuels puts a spotlight on their hydrogen-from-water technology. Furthermore, the use of water, which can be sourced anywhere facilitates on-site hydrogen production, removing transport challenges as an obstacle to customer adoption of hydrogen alternatives.

Debra Fiakas, CFA is the Managing Member of Crystal Equity Research, LLC, an alternative research resource on small-capitalization companies. Ms. Fiakas is a seasoned investment professional with a diversified and successful track record as a research analyst and as an investment banker. Her career includes solid experience in all aspects of the equity capital markets with particular emphasis on emerging growth companies.

DISCLOSURE: Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein. HYGS is included in Crystal Equity Research’s The Atomics Index in the Hydrogen Electrolysis group.

Posted by Debra Fiakas at 06:27 PM | Permalink | Comments (0)

John Lounsbury

With the furor over the potential for hybrid, plug-in hybrid and all-electric cars recently, one might think the hydrogen car was dead. Nothing could be further from the truth. Feasibility at an affordable price appears to be established and market availability of hydrogen powered cars may come sooner than you think.

Many issues remain to be addressed and this article will try to cover them. The problems to be overcome are not insurmountable, but are also not trivial. These problems include the economics of hydrogen production, transportation, distribution and storage systems, as well as safety issues for cars involved in collisions.

Alan Ohnsman, writing for Bloomberg, reports that GM (MTLQQ), Toyota (TM), Daimler AG (DAI) and other car makers want to start supplying car fueled by hydrogen as soon as six years from now. Quoting from the article:

"The advances that have been made by the automobile manufacturers are remarkable,” said Scott Samuelsen, director of the National Fuel Cell Research Center at the University of California, Irvine. “Infrastructure is the Achilles’ heel.”

The fuel cell center opened in 1998 and is funded mainly by the U.S. government and California Energy Commission. It has also received grants from Toyota and Royal Dutch Shell Plc’s hydrogen unit, said Kathy Haq, a spokeswoman for the center.”

Here is a picture of a Royal Dutch Shell (RDS-B) hydrogen fueling station in New York City, discussed in a Seeking Alpha Instablog in August



According to the Ohnsman article, the economic factors are starting to line up for hydrogen. He quotes a Toyota objective of a $3,600 price premium for a hydrogen fuel cell powered car. This compares to the current price premium for the Synergy Hybrid Drive system from Toyota, currently averaging around $4,000 for the Camry. This is quite a change from the $1,000,000 price tag estimated to build one of these vehicles just a few years ago.

Advantages of Hydrogen Fuel Cells over Batteries

To understand the significance of this topic, one must first recognize how the hydrogen fuel cell powers a vehicle. Hydrogen fuel cell powered vehicles are electric vehicles. Hydrogen is not burned like a hydrocarbon fuel. Hydrocarbons are storage media for thermal energy which is released for power in an internal combustion engine. The hydrogen fuel cell is a storage medium for electrical energy, which is released when hydrogen and oxygen are combined electrochemically to release electricity. The hydrogen fuel cell is conceptually a battery, providing electricity to power an electric car. Unlike other battery powered cars, the fuel cell uses an onboard source of energy (hydrogen “fuel”) to generate electricity and does not have to stop to be recharged. The advantage of hydrogen powered cars is basically a long driving range, requiring only a fuel refill like internal combustion cars do today.

The hydrogen powered car has advantages for long trips. For daily commutes under 100 miles round trip, the operational convenience of battery and fuel cell energy storage is similar. In fact, it could be argued that the convenience of plugging in within your own garage to recharge batteries is more convenient than finding a refueling station every few hundred miles. The ultimate decision for most commuters will be which power source is cheaper.

Fuel Cost

The most convenient metric to compare fuel costs across the ICE (internal combustion engine) – electric drive interface is the fuel cost per mile. Miles per gallon (mpg) becomes an awkward measurement. Consumers will be required to start thinking in cost per mile terms, because that will become the comparative price on the new car sticker. According to http://www.costpermile.org/, the electricity “fuel” cost per mile (CPM) for electric cars will be between $0.01 and $0.05. Currently electric utility charges per kWh (kilowatt hour) run between $0.10 an $0.15 in most of the U.S., so most of this large range in costs must be associated with the difference in engineering technology and size of the vehicle.

Since I like a larger car, my example will compare to a mid-size Toyota Camry Hybrid. The assumed cpm for an equivalent electric car will be $0.05. (Disclosure: I own a Camry hybrid.) At $2.50 per gallon (near the national average price as this is written), the Camry has a cpm of $0.07 at $3.50 per gallon, the cpm is $0.10. I have used 35 mpg for the Camry hybrid. This is 3% higher than the sticker and 10% lower than my actual experience.

For the standard Camry the cpm would be $0.08 and $0.11 (highway and city, respectively) at $2.50 per gallon and $0.11 and $0.16 at $3.50 per gallon. The sticker mileage numbers have been used for the ICE Camry. These fuel costs are summarized in the following table.

Estimated Cost per Mile (CPM)
Car	Gas at $2.50 per gallon		Gas at $3.50 per gallon
Design	City	Highway	City	Highway
Camry ICE	$0.11	$0.08	$0.16	$0.11
Camry Hybrid	$0.07	$0.07	$0.10	$0.10
"Camry"* Electric	$0.05	$0.05	$0.05	$0.05
*An electric car equivalent to the Toyota Camry.
Electricity cost assumption for Camry equivalent is $0.05 cpm

If the range available with an all electric car is sufficient, then customer acceptance will require that purchase costs (and maintenance costs, which will be ignored here) to be such that the purchase price difference is more than recovered in, say, 100,000 miles. The cost savings for city driving at $2.50 per gallon for gasoline is $6,000 per 100,000 miles of driving, compared to an ICE car. At $3.50 per gallon the cost savings would be $11,000. If two cars are available for our commuter and the electric car purchase cost difference is less than $5,000 more, there will be a big market. If the purchase price is $12,000 more, the market will be limited until the cost of gasoline exceeds $3.50-$4.00 per gallon.

In an August 6 press release, Toyota reported the results of a one-time driving test comparing a Toyota Hybrid Highlander with a new 4^th generation fuel cell equipped Highlander Hybrid. In that test, the cpm for the production hybrid was more than double the cost for the fuel cell equipped model. I am taking this test result with a grain of salt because it was a one time test.

The remaining comparison to be made is hydrogen fuel cells to plug-in electric vehicles. Hydrogen requires power for production by electrolysis of water. If the same power is used that is available at the residential power plug, all the added costs of handling, storing, transporting and distributing hydrogen are added to the costs that one has at his own power plug. Hydrogen is very uncompetitive on a cost basis with other sources of power in this scenario. If the cost of gasoline goes much higher than the $3.50 we have in our examples, then hydrogen might compete there. But hydrogen can never compete with electricity for local driving (right now under 100 miles per day) if the same electricity source is used for both battery recharging and fuel cell operation.

Never forget that a hydrogen fuel cell is nothing more than another form of battery, wherein a chemical reaction produces electrical current. A hydrogen fuel cell car is an electric car.

Can Hydrogen be Produced with Cheap Power?

Do sources of electrical power exist that are cheaper than what we produce (or can produce in the future) for domestic consumption? The short answer is: Yes. (Well, maybe.)

One possible source of cheap electrical energy is from ocean currents that have a large temperature differential between the surface currents and those at depths of 1000 feet or so. This process is called OTEC, Ocean Thermal Energy Conversion.



The above graphic, from The World Energy Council 2007 Survey of World Energy Resources, shows that most of the areas with the largest thermal differentials occur in areas that are too far from populated shorelines to make feasible electricity generation for transmission into a power grid. Temperature differentials of 20^o C or more are necessary for efficient power generation.

The cost estimates for power from OTEC are somewhat problematic. The World Energy Council estimates that a single 10MW demonstration plant would produce electricity at a cost somewhere between $0.14 and $0.21 per kWh, depending on factors such as recovery of potable water and marketable chemicals such as ammonia and various salts. The existence of carbon tax credits could lower the costs further by as much as $0.03.

It is only with the building of multiple plants of the same design that costs may come down below $0.12, the reference cost for existing electricity generation. For example, eight 10 MW plants could produce electricity at a cost between $0.098 and $0.119.

There is potential here, but the costs have to come down more to bring electricity from OTEC to a price to make hydrogen production economically attractive. Remember, we need to transport this hydrogen from the point of generation by ocean going tanker and distribute it by truck or rail tanker (or pipeline) to retail points.

Another potential source of electricity for hydrogen production is wave and tidal motion. To supply electricity for a power grid, the waves and tides must be close to populated shore lines. Wave motion can be used anywhere for hydrogen production, not just where is occurs close to populated shore lines. The same is true for tidal action in remote regions of the planet. The picture below, from New Scientist, shows a SeaGen tidal electricity generator, made by Sea Generation Ltd, in the tidal currents at Strangford Lough in Northern Ireland. Sea Generation is a division of privately held Marine Current Turbine Ltd.



Generation costs for electricity from capital costs alone will be about $0.07 per kWh for a 25 year depreciation. There will be additional unspecified maintenance and operation costs.

Wave action can also be used to generate electricity. The picture below (from New Scientist) shows a wave operated electrical power generator in a generation farm off the north coast of Portugal.



These generators are made by privately held Pelamis Wave Power Ltd. Each generator is a 150-meter-long steel jointed structure, which flexes to drive hydraulic generators and produce 750 kilowatts of power. The company claims electricity generation a competitive costs, but provides no specifics.

The reasons I selected these examples as potential hydrogen generation power sources are:

1. Potential for a lower electricity price point;

2. Electricity generated with plentiful raw material (water) present to produce hydrogen; and

3. With OTEC, the potential for additional revenue from side products.

Battery Costs vs. Fuel Cell Costs

The implications from currently available information are that the costs and durability will be similar. The current objective for Toyota is to have a price premium for hybrids less than the current price premium for a hybrid. The latest generation fuel cell engine is about the same size as a typical 4-cylinder ICE engine and contains about 30 grams of platinum. This is down from the previous generation fuel cell stack which was more than twice the size and contained 80 grams of platinum. The costs just for the platinum alone have been reduced from more than $4,000 in the previous generation to less than $1,500 in the current one. The final fuel cell structure is expected to use only 10 grams of platinum, the same amount as a typical catalytic converter today.

The dramatic change from the previous generation hydrogen fuel cell stack power system to the current generation is seen in the following picture from AutoBlogGreen.com, showing the latest fuel cell drive system on the left next to the drive system used in the past few years in the Chevy Equinox test vehicles that have been driven by volunteers in California, Washington, DC and New York. The power, range and performance of the two systems are the same. The horsepower rating is the equivalent of a current four-cylinder ICE.



Transportation of Fuel and Wholesale Distribution

The technology for distribution by tanker truck and railway car exists today. You can not spend a few hours on any interstate highway near a population center without seeing several pressurized gas tank transports sharing the roadway with you. Pipeline distribution for pressurized hydrogen gas may require different features than currently use for natural gas, but there is no reason to believe that the engineering and construction would present any more challenges or costs. Currently, there is no data reflecting transportation and wholesale distribution impediments to scaling up the use of hydrogen to higher volumes.

Retail Distribution

The cost to build a new gasoline station has been estimated to be in the $250,000 to $450,000, with the largest variable being land cost, using estimates obtained from national average costs at RS Means Cost Works. Obviously, where land costs are extremely dear, near the center of major cities, for example, the cost to build a gasoline station could be much higher, up to $1,000,000 or more.

The cost of building the first 32 hydrogen refueling stations in Southern California has been quoted as $32 million. As high as this cost projection is, it is less than the current cost for a hydrogen refueling pump in Los Angeles, according to Phil Baxley, President of Shell Hydrogen, quoted in the Ohnsman article. He said currently the cost is from $1 million to $5 million per pump, depending on capacity. Even the lower quoted cost, averaging $1 million each for 32 stations, seems to be more costly than all but the most expensive gasoline stations. However, there are three factors related to hydrogen refueling stations that mean this apparent current cost difference may decrease or even be reversed. These are:

1. externality cost exposures for gas stations;

2. lower costs for hydrogen stations in the future through economies of scale; and

3. lower costs to add hydrogen to existing gas stations than to build new.

There are major externality exposures for petroleum based fueling stations. The biggest exposure pertains to future liabilities for soil and ground water contamination by petroleum products and fuel additives. When these externalities are realized, they can be more than the original construction cost (even adjusted for inflation) and occasionally are many millions of dollars. Hydrogen refueling stations do not have these environmental cost exposures.

When the initial costs and the externalities are considered, the refueling stations for hydrogen have an original construction cost of the same order as petroleum fuel stations. Hydrogen refueling stations may decrease in construction costs from the estimates for the first 32 stations in Southern California when many hundreds are constructed per year. If hydrogen were to become ubiquitous, there might be a few thousand new stations per year for a couple of years. A more likely progression would be the modification of existing gas stations to also offer hydrogen refueling facilities at a fraction of the cost of building new stations.

Other countries have more advanced plans for infrastructure development.Both Japan and Germany are working to build large scale distribution networks, with over 1,000 stations on line for each county in five years.

Safety

To start with, we must recognize that hydrogen would not be replacing something that did not have an extremely high fire and explosion hazard. We have managed to live with the risks of gasoline for more than a century, with the material being stored in thin walled tanks that can easily rupture.

Hydrogen, a pressurized gas, would be stored in thick walled, virtually indestructible tanks. Pressurized gases are handled in such containers in a variety of industrial environments today and have been for most of the past 100 years. There are few examples of these tanks being breached. The risks have been associated with the pressure reduction valves (regulating the controlled release of the gas) being broken by impact damage. The major risk associated with using hydrogen will be the exposure to the fuel lines being damaged and allowing the tanks to lose pressure rapidly, turning them into jet propelled missiles.

The pressurized gas tank as a missile is the major safety hazard. It is not insignificant, but should not be an insurmountable problem.

Conclusion

There are still a lot of questions to be answered. But one thing is clear: hydrogen powered cars are not dead. In congested metropolitan areas where electrical costs are high, hydrogen may become widely utilized. The further advantage of much longer travel ranges may also give hydrogen an additional edge over plug in alternatives.

It is too early to make investment decisions trying to select eventual winners. It is not wise to assume there will not be a viable hydrogen car and hydrogen distribution systems during the next decade.

John Lounsbury, CFP, PhD is a financial planner in Clayton, NC. He has extensive experience in computer technology research and development both as an engineer/scientist and in corporate management with academic degrees in physical science. He is a regular contributor to Real Money at TheStreet.com and to Seeking Alpha. Dr. Lounsbury also has his own professional blog, PiedmontHudson. His articles are widely circulated on the internet.

Posted by Guest Contributor at 11:25 AM | Permalink | Comments (8)

The following is an interview with Ted Hollinger, President of Hydrogen Engine Center.

In a nutshell, what is Hydrogen Engine Center’s (HEC) main technology and what are its principal applications?

Development of proprietary electronic controls and other technologies to allow for the use of hydrogen and other gaseous fuels for the generation of power. These technologies have applications in many areas, including but not limited to the distributed power industry, airport ground support, co-generation with certain manufacturing processes, buses, marine engines and agricultural irrigation pump systems.

One of the main drivers you identify as necessary for strong uptake of your products is the high cost of gasoline and other fossil fuels. In the event that the energy bears are correct and that we are due for a major correction in the price of oil, how would this affect your growth prospects? Overall, how closely is demand for your products linked to the price of oil?

The main driver is air quality. We believe that the increasing interest in, and control over, air quality and emissions on the part of the EPA, Kyoto, state regulators and other regulatory bodies and sources of influence will have a material, positive and long-term effect on interest in our products. High gas prices help, but are a secondary effect.

You also mention growing worries about climate change as creating interest for your products. Have you been able to observe this, for instance in jurisdictions like California where greenhouse gases will soon be regulated?

Yes, there are tighter emission laws today than ever before. In the next few years they’ll get even tighter. Under our agreement with Sawtelle & Rosprim, Inc we expect to work with that company to design and build the world’s first ammonia-fueled irrigation pump system for the purpose of meeting California’s new emissions requirements scheduled to go into effect in 2010. Plans include integrating the Company’s ammonia-powered engines with Sawtelle’s pump technologies and expertise to complete a prototype system for testing and evaluation. We expect that the prototype system will be tested in California during the 2007 irrigation season.

In your latest Form 10-QSB, you cite a shortage of capital and problems with suppliers as reasons behind a change in your short-term focus away from developing the Oxx Power engines toward efforts to generate revenue through the sale of open power units and more conventional generator systems. When do you foresee a return to your primary strategic focus, and how will you seek to solve your capitalization and supplier
issues?

Although we cannot provide a schedule, HEC expects to get the next round of financing in the near future. Although HEC expects to be able to pursue its primary focus more aggressively after the financing is completed, it is important to note that, regardless of the status of the financing, the long-term vision of the Company has not changed

For the 9 months ended September 30, 2006, net cash /used/ in operating activities grew by about 1,400% when compared to the same period in 2005. When can investors expect positive operating cash flows?

Although we have an internal projection, we believe it is too early in our operations to share that information publicly.

Investors hear a lot about the promises of hydrogen, especially for the transportation sector. Most firms currently working on hydrogen-related technologies are, however, development-stage companies with negative earnings. What makes HEC stand out from the crowd from an investment viewpoint?

HEC has products in the field and hopes to be the first hydrogen company to reach break even. HEC’s engines and generator systems are cost effective and durable as well as easily serviced almost anywhere in the world.

I’d like to give you this opportunity to make a final comment.

HEC is leading the way in the use of hydrogen in industrial engine applications and distributed power generation. The Natural Resources Canada wind-to-hydrogen project is one of the first of its kind. We believe that airport vehicles, buses and marine engine applications are next.

DISCLOSURE: We do not have any positions in Hydrogen Engine Center.

Posted by Brian Gomes at 03:48 PM | Permalink | Comments (0)

Ballard Power Systems (NASDAQ:BLDP or TSE:BLD) was arguably the first high-profile alternative energy story to hit North American markets since the oil shock of the 1970s, at a time when investors knew much less about the promises and pitfalls of fuel cells and the so-called “hydrogen economy�? than they do today. It was also an era of general euphoria about anything tech and Ballard got caught into it all. But today I will not focus on Ballard - I’m only giving this example to highlight the fact that the idea of hydrogen powering our whole economy cleanly and renewably has been with us for some time now. Ballard’s rapid rise, especially on the Toronto Exchange, followed by its equally rapid fall and its complete lack of a recovery since, is a sobering reminder that a full-scale hydrogen-powered economy is still years away, at best.

The Hydrogen Economy Will Happen... Slowly
Last week, someone sent me an article titled The Truth About Hydrogen which was published in the November issue of Popular Mechanics, but I sat on the article for a while. I shouldn’t have. It’s a nice and concise, no-nonsense piece about what hydrogen can and can’t do (yet) for our energy-hungry economy. It confirms what most experts think – that while there will be (and has already been) good progress made on overcoming the wealth of barriers, technical and otherwise, that stand in the way of widespread adoption of hydrogen as a primary fuel source for a number of applications, we still have a long way to go before Jeremy Rifkin’s hydrogen economy vision comes to be. Nevertheless, there is a lot of interest in hydrogen from the tech community, policy-makers, investors, and, increasingly, the public at large, and hydrogen undoubtedly holds great promises in the long run.

Seek out the bridge technologies
My view, and that of many of our readers, is that the economy will eventually shift into clean mode, driven in part by a push for greater efficiency, tightening regulations, and changing customer demand. That won't, however, happen overnight, especially with the much touted "hydrogen revolution". That's why I'm a big believer in transition, or bridge, technologies. Companies that position themselves to make money along the whole spectrum of phases that will take us from where we are today to a cleaner economy will be the big winners, and so will their shareholders.

There are a number of hydrogen and fuel-cell players out there that, while undeniably sitting on promising ideas, really have no way to generate positive cash flow until their core technology is fully commercialized. That is, in principle, how most firms start out, but the caveat here is that some companies are at best a few years away from generating sustainable and healthy profits (Ballard, anyone?). This is exactly why I like QuestAir Technologies (TSE:QAR or LSE:QAR). QuestAir’s main technology is used to purify gases, mostly hydrogen, utilizing a process known as pressure swing adsorption (PSA). What I like about QuestAir is that the company’s technology has some very real applications in a range of existing industrial processes, chief among them oil refining. But what is also interesting is that it is positioning itself for the eventual setting up "hydrogen highways", or routes along which gas stations would offer hydrogen fuelling facilities. The company is also in a partnership with a leading fuel cell developer and recently got exposure to the US coal-to-liquids market through the sale of one of its units to a leading player in that space.

QuestAir finished 102nd on Deloitte's 2006 Technology Fast 500, which ranks the fastest-growing North American tech companies based on percentage revenue growth over a five-year period. The company's revenue growth over that period of time was around 2,085%.

Now the usual caveats apply here: (a) it's an emerging company that is heavily reliant on one large strategic partner for sales growth, (b) it's got negative EBITDA that exceed revenues, and (c) I only gave you a very brief snapshot of the firm, so you should definitely do your homework if I've poked your interest.

DISCLOSURE: The author is long Questair Tech.

Posted by Charles Morand at 06:00 PM | Permalink | Comments (2) | TrackBacks (0)

Hydrogenics Corp (HYGS) announced it was awarded a contract, valued at approximately $3.3 million, to supply a HySTAT(TM)-A Hydrogen Plant to a major North American oil and gas refinery for installation in 2007. The high purity hydrogen generated by the HySTAT-A Hydrogen Plant will be used by the refinery to reduce the sulfur content in diesel fuel in compliance with EPA regulations. [ more ]

Posted by Mark Anderson at 06:24 AM | Permalink | Comments (0)

Hydrogenics Corp (HYGS) announced that it has received orders to supply electrolysis-based hydrogen generator plants to two of China's largest energy companies.

China Electric Power Energy Group and China National Power have each purchased a HySTAT-A Hydrogen Plant, capable of producing 10 Nm3/h of high purity hydrogen at a pressure of 25 bar. In both cases, the hydrogen produced will be used to cool the generators in a coal-fired power plant. Delivery of both orders is expected to take place in 2006. [ more ]

Posted by Mark Anderson at 09:14 AM | Permalink | Comments (0)

Equitex, Inc. (EQTX) announced today that it has completed the acquisition of Hydrogen Power, Inc. ("HPI") through a newly formed Equitex subsidiary which will be the surviving entity and renamed Hydrogen Power, Inc. HPI is now a wholly owned subsidiary of Equitex which controls all of HPI's licensed intellectual property rights to patented hydrogen generation technology in the United States, South America, Mexico and Canada. [ more ]

Posted by Mark Anderson at 10:26 AM | Permalink | Comments (0)

Hydrogenics Corp (HYGS) announced today that it delivered a HySTAT(TM) Hydrogen Plant in December to a North American nuclear plant. The high-purity hydrogen generated is being used to prevent corrosion and extend the life of stainless steel tubes in the nuclear reactor as part of an upgrade for the purpose of renewing the plant's operating permit.

The hydrogen generator in this application consists of two HySTAT-A electrolyzer modules, each capable of producing 33Nm3/hr of hydrogen further demonstrating the scalability of Hydrogenics line of hydrogen generation products. [ more ]

Posted by Mark Anderson at 08:46 AM | Permalink | Comments (0)

Westport Innovations (WPT.TO) and Ford Motor Company today announced a project to develop and demonstrate an advanced direct injection fuel system for vehicles powered by high-efficiency, high performance engines operating on pure hydrogen.

The two-year development program will be divided into two phases. Phase one will define advanced fuel system requirements including the design of fuel injectors. Phase two will incorporate the design and manufacture of new prototype fuel systems. The Government of Canada has contributed $250,000 during phase one. [ more ]

Posted by Mark Anderson at 07:31 AM | Permalink | Comments (0)

"America is addicted to oil, which is often imported from unstable parts of the world"

Thanks to Mr. Bush's state of the union address last night, we should see some nice gains across the board in the Alternative Energy sector.

Some of the big winners may be the Ethanol companies like Archer Daniels Midland (ADM) and Pacific Ethanol, Inc. (PEIX).

The EnergyStockBlog.com has a nice write up on the potential for ADM. [ more ]

GreenCarCongress.com has a nice summary of the important parts of the speech.

In his State of the Union 2006 address, President Bush announced the Advanced Energy Initiative�?a 22% increase in clean-energy research at the Department of Energy (DOE).

The Initiative is intended to focus on providing breakthroughs in two areas: power for homes and businesses; and transportation. [ more ]

Update: Well the market is now open and shares of ADM and PEIX are trading down. But shares of Fuel Cells and Solar companies are up.

Posted by Mark Anderson at 09:12 AM | Permalink | Comments (0)

Hydrogenics Corp (HYGS) announced that they have been awarded a contract for over EUR 500,000 to deliver a hydrogen station to Gas Natural SDG, a Spanish-based energy services multinational with approximately ten million customers in Spain, Latin America, Italy and France (www.gasnatural.com).

Gas Natural will use a Hydrogenics' HySTAT(TM)-A Hydrogen Station at the Sotavento Galicia wind farm to produce up to 60 Nm3/hr of hydrogen. The hydrogen will be used to fuel an internal combustion engine generator, which in turn will supply electricity to the electric grid. [ more ]

Posted by Mark Anderson at 11:21 AM | Permalink | Comments (0)

Maxwell Technologies (MXWL) announced that General Hydrogen Corporation, a leading developer of hydrogen fuel cell-based power systems for electric forklifts, has placed a 200,000 unit, three-year, purchase order for BOOSTCAP® ultracapacitors to enhance performance and energy management in its Hydricity® Pack technology.

The purchase order is part of a strategic supply agreement through which General Hydrogen will source ultracapacitors exclusively from Maxwell and receive strategic pricing if volume thresholds specified in the purchase order are reached. [ more ]

Posted by Mark Anderson at 08:27 AM | Permalink | Comments (0)

Quantum Fuel Systems Technologies Worldwide Inc (QTWW) announced the delivery of five hydrogen-fueled Toyota Prius hybrid vehicles to the City of Santa Ana, California. This is part of a larger South Coast Air Quality Management District (AQMD) program to develop and demonstrate 30 hydrogen hybrid vehicles to fleets in Southern California. The formal delivery took place during a ceremony held today at the City of Santa Ana's vehicle fleet yard.

In March 2004, the AQMD awarded Quantum a contract to engineer a state-of-the-art OEM caliber hydrogen fuel system, perform accelerated long-term durability testing, including crash testing. The complete hydrogen internal combustion engine fuel system, including both the injection system and hydrogen storage system, was developed by Quantum at its Advanced Vehicle Concept Center in Lake Forest, CA. [ more ]

Posted by Mark Anderson at 08:20 AM | Permalink | Comments (0)

Penn State researchers are finding new ways to harness the power of the sun using highly-ordered arrays of titania nanotubes for hydrogen production and increased solar cell efficiency. [ more ]

Posted by Mark Anderson at 06:59 PM | Permalink | Comments (0)

Hydrogenics Corp (HYGS) announced that the company has supplied an onsite electrolysis-based HySTAT-A Hydrogen Plant to OAO NSCHK, a state-owned utility in Novorsibirsk, Russia. The high-purity hydrogen produced by the 240Nm3/hr hydrogen generator will be used in the chemical processes used in this nuclear power plant. Installation and commissioning is scheduled for Spring, 2006. [ more ]

Posted by Mark Anderson at 08:55 AM | Permalink | Comments (0)

One of the major movers in the Alternative Energy sector are stocks that pertain to Hydrogen production and conversion into energy. You can learn more about the Hydrogen economy at the excellent How Stuff Works website using the following link: How the Hydrogen Economy Works.

Posted by Mark Anderson at 06:32 PM | Permalink | Comments (0)