Issue 0103    

The latest from the hydrogen and fuel cell markets

***********************************************************************

A new player in the FC heating market? Bosch buys further Buderus shares

Is Japan taking the lead? Pilot projects and commercialization in the land of the rising sun

Concept car with H2 combustion engine: Ford introduces "Model U"

Bridging the infrastructure gap: Air Products with mobile fueling system

Increasing shareholder value: Stuart Energy acquires Vandenborre Hydrogen Systems

On the road to profitability: Hydrogenics acquires competitor

American-Austrian fuel cell partnership: Nuvera and BWT to join forces

Hydrogen Expo USA and NHA Annual Meeting:
Program now online – Air Products is main sponsor – safety training for conference delegates

Hydrogen Expo in Germany remains in Hamburg!
Hamburg Messe and Freesen & Partner sign long-term cooperation

***********************************************************************

A new player in the FC heating market? Bosch buys further Buderus shares

According to an article in German daily "Die Welt", Robert Bosch GmbH from Stuttgart increased their share in Buderus AG from Wetzlar to 13.35%. This was possible because Deutsche Bank sold its shares (7.47%). Since there seem to be further shareholders ready to part with their package such as Commerzbank and Bilfinger Berger, Bosch could soon be in a position to take over Buderus. Should this happen, the company from Stuttgart would hold 53.9%. Already in the winter of 2001, Bosch indicated an interest to acquire Buderus but unexpectantly changed its mind later. One reason for the renewed interest might be a consolidation of the two companies' activities in developing fuel cell heating appliances. While Bosch has been very reluctanct so far to release anything about its R&D efforts, Buderus announced a cooperation with UTC Fuel Cells last year. Also, the latest issue of the Wetzlar manufacturer's heating technology guide picks up on FC technologies. A possible merger of Bosch and Buderus could create a strong new player in the market to compete with the current leaders Vaillant and Suluzer Hexis.

Japan has repeatedly been in the news lately with releases on fuel cell vehicle testing under day-to-day conditions. DaimlerChrysler wants to test eight of its "f-cell" cars (the A series) on Japanese roads. FedEx and GM/Opel are going to employ a FC vehicle in Tokyo. Honda and Toyota stayed true to their promise for rapid commercialization and already in December delivered the first fuel cell cars to the island nation's government. Nissan is introducing the "X-TRAIL FCD" two years earlier to the market than originally planned, that is in 2003 instead of 2005. And the city of Tokyo intends to have the first FC bus in public transport and to start operating an H2 filling station this summer. Six fueling stations are planned to be opened between Tokyo and Yokohoma until mid-2004. This has the comparatively small country take a huge leap towards the commercialization of fuel cell vehicles and the building of a hydrogen infrastructure.

Building on the heritage started with the Model T, Ford's "Model U" concept car begins the car manufacturer's second century of innovation, says a recent company press release. Powered by the world's first supercharged hydrogen internal combustion engine, equipped with a hybrid electric transmission and pioneering green materials and processes, Model U is said to be a vision for the future. The innovative vehicle was designed to explore the benefits an automobile provides to its users, the way it is manufactured and how it impacts the world, thus being the Model T of the 21st century. The car's emission of all pollutants, including carbon dioxide, are claimed to be nearly zero, and the engine was up to 25 percent more fuel-efficient than gasoline engines. The H2 ICE is joined with an advanced hybrid electric transmission technology called the Modular Hybrid Transmission System (MHTS). Further innovative features include: speech interface to operate the on-board entertainment system, navigation, cellular pohne and climate control; improved driver visibility through pre-crash sensing front headlights and advanced night-vision system; green materials designed for the optimum health of the car's occupants; and reconfigurable interior and exterior to adapt to each person's individuality.

Air Products and Chemicals, Inc. released news about its new fueling system that can easily be relocated to meet a customer's changing needs. The "Hydrogen Fueler", complete with fueling hook-ups and dispenser, is mounted to a trailer to allow for vehicle fueling at a customer site. The system is said to provide the flexibility to be easily transported to promotional events, or for remote endurance testing of H2 fueled vehicles. In December, the company delivered its first unit to Honda for their Fuel Cell Vehicle Program with the City of Los Angeles, California. "Infrastructure is most often discussed when talking about a hydrogen economy", said Tama M. Copeman, Director Fuel Cell Energy Solutions at Air Products. "This system represents a bridge in the development of hydrogen fueling infrastructure." According to Air Products, the Hydrogen Fueler features a safe, compact design, and quiet operation with no compressor. Components of the system were code compliant with the Department of Transportation, ASME (American Society of Mechanical Engineers) and SAE (Society of Automotive Engineers). The system is remotely monitored and designed to ensure daily, around-the-clock, hydrogen fast-fill vehicle fueling availability. The remote system measures the unit's H2 fuel level, and Air Products will replace or exchange it for a full unit when the storage quantity is reduced to a certain level.

Stuart Energy Systems Corporation announced that it has entered into an agreement to acquire Vandenborre Hydrogen Systems. Subject to shareholder and regulatory approvals, Stuart Energy will pay approximately 9.9 million CDN dollars in cash and 7.3 million common shares of Stuart Energy. The total value of the transaction is estimated at 28 million CDN dollars. The two companies believe that their combined leading-edge hydrogen generation technologies and global market position will make the consolidated company the undisputed world leader in the provision of onsite, electrolysis-based hydrogen infrastructure solutions for power generation, vehicle fueling and industrial markets. "This historic pairing of two of the industry’s pioneering firms creates a combined company with the breadth of technology, product offerings, global market reach and financial resources to deliver the hydrogen infrastructure for the twenty first century," said Jon Slangerup, President and CEO of Stuart Energy. Vandenborre contributes a leading pressurized hydrogen technology coupled with extensive sales channels in Europe to the marriage. According to Slangerup, this attributed an excellent strategic fit with Stuart's own proprietary technology and market position in North America and Asia. The integration is meant to deliver extraordinary shareholder value through increased revenues, reduced costs and accelerated profitability.

Hydrogenics Corporation released news that it has acquired Greenlight Power Technologies, Inc., its principal competitor in the fuel cell test business, in a transaction valued at approximately $US 19 million. The acquisition is said to enable Hydrogenics to consolidate its industry-leading position in the FC testing business. The acquisition combined the number one and number two providers of fuel cell test equipment and testing services and doubled the size of Hydrogenics' test business. "This acquisition is all about growth," said Hydrogenics President and CEO Pierre Rivard. " We are excited to start the New Year with the additional resources and capacity to execute our strategic growth plan and meet the growing demands for fuel cell test equipment and power products. In short, we expect that this acquisition will accelerate our goal to become the first profitable fuel cell company." As part of the post-closing integration Hydrogenics intends to combine the respective FC test businesses of Hydrogenics and Greenlight and to operate the combined business through Greenlight as the test equipment and services division of Hydrogenics to be managed by Greenlight's CEO, David Chapman, in Burnaby, British Columbia. Hydrogenics is based in Mississauga, Ontario. The company also has operations in New York, Tokyo and through the Enkat acquisition last year in Gelsenkirchen, Germany.

Nuvera Fuel Cells, Inc. from the U.S. and BWT (Best Water Technology) AG from Austria announced an agreement to develop a new polymeric membrane suitable for "industrial" fuel cell applications. The joint effort, which is said to commence immediately, will focus on developing and demonstrating an improved membrane to operate in a PEM (proton exchange membrane) FC at temperatures above 90 degrees centigrade. According to the agreement, Nuvera will work with FuMA-Tech, a BWT subsidiary that specialises in developing fuel cell membranes, to identify multiple prototype samples that meet the project's technical goals. A second phase of the program will involve qualifying the best performing prototypes and preparing MEA's (membrane electrode assemblies) for additional testing and analysis. The two-phased program is expected to last 15 months. In addition, the agreement outlines actions for evolving the collaboration into the commercialisation phase. Says Michele Tettamanti, Senior Vice President and Chief Operating Officer of Nuvera Europe SrL: "High-temperature membranes will foster greater integration in future fuel cell systems. Addressing this key aspect in the product development cycle supports our mission to rapidly enhance the performance of fuel cell technology and increase its value among end-users, such as providing improved co-generation features." BWT contribute its experience in the development of innovative water technologies to the cooperation, in particular in the area of central water management for the membrane.

The agenda of the 14th Annual U.S. Hydrogen Meeting organized by the National Hydrogen Assocation (NHA) can now be accessed on www.hydrogenconference.org and provides full details on the conference, registration and accommodation. One of the meeting's highlights, which is held from March 4 to 6 in collaboration with Hydrogen Expo USA, is the "Know H2ow" safety training conducted by Air Products. The one-day seminar is suited for everyone dealing with hydrogen and can be booked by conference delegates at a reduced rate of USD 200 (instead of USD 800). Air Products will also be an exhibitor at Hydrogen Expo USA, next to a number of other companies and institutions. Further sponsors include Chevron Texaco, BP and Ford. The car manufacturers will showcase their H2 vehicles outside the Capital Hilton in Washington DC, which serves as the conference and exhibition venue this year. There is still limited exhibit space available. For further information go to: www.hydrogen-expo.com

Hydrogen Expo in Germany remains in Hamburg! Hamburg Messe and Freesen & Partner sign long-term cooperation

Not only in 2003 but also in future years Hydrogen Expo (Wasserstoff Expo), Europe's largest international exhibition for hydrogen and fuel cell technologies, will be held in Hamburg, Germany. This was just announced by Hamburg Messe und Congress GmbH (HMC) and Freesen & Partner GmbH. With its subsidiary H2 Expo GmbH, Freesen & Partner was successful in establishing Hydrogen Expo as a corner stone for the new energies and alternative propulsion market in the past to years. With HMC now taking over H2 Expo GmbH and signing a long-term agreement for cooperation with Freesen, the two partners see themselves ideally positioned to grow the project. Hamburg won against a number of competitors which had also expressed an interest to acquire the show. Says Ines Freesen, Managing Director of Freesen & Partner: "Hamburg as an international venue provides the right conditions to offer our exhibitors an even better showcase and even better service. We can now focus our efforts on sales." Exhibitors still book their space with Freesen & Partner, additionally HMC employees will respond to any questions and concerns. Contact details: Freesen & Partner GmbH, Ines Freesen, Tel. +49-211-687858-11, sales@h2expo.de and Hamburg Messe und Congress GmbH, Ivonne Kislaki, Tel. +49-40-3569-2124, Heiko Heiden, Tel. +49-40-3569-2120, info@h2expo.de