MC Power Seeking Strategic Partners

MC Power is quietly looking for strategic business partners to participate directly with them in the commercialization of molten carbonate fuel cells. MC Power plans to concentrate on building the fuel cell stack based on their proprietary technology, and have others do balance of plant fabrication and system assembly, and marketing, sales, distribution, and service. They’re also looking for preferred equipment and materials supplier arrangements.

The company has a detailed business plan which involves several stages leading up to operation of a number of commercial prototype generators in 2000 and 2001, and manufacturing capability for delivery on commercial orders in 2002. They believe that their extensive intellectual property (patents and know-how) puts them in a good position to provide electricity at a levelized cost of 5.5-7 cents/kwh, below the forecast average price paid by commercial users; with superior environmental performance; and with advantages for the restructured marketplace (small scale and cogeneration).

There are many attractive market segments: utilization of waste gases from industrial processes, landfill and water treatment plants; commercial and light industrial users, distributed generation on networks; and international markets.

MC Power is currently owned 51% by IGT, and 24.5% each by Bechtel and Ishikawajima-Harima Heavy Industries. Notably, the company will offer ownership positions, and the opportunity to invest at pre-IPO valuations.

A number of utilities, including one or two UFTO members, are already members of the Alliance to Commercialize Carbonate Technology, who will be notified of these developments. The company has a confidential “Partnering Opportunity” memorandum which presents a broad summary of the plan described here.

Contact: Lee Camara, President
630-986-8040 x151, fax 630-986-8072,

Ergenics Hy-Stor Battery Energy Storage

I’ve been staying in close contact with this company for a long time, and reported about them to UFTO the first time in Dec 95 and again in Oct 96, describing their Hy-Stor battery technology. They haven’t received a lot of attention in the storage/battery industry over the years, but my personal view is that they could be a major dark horse in the business.

In addition to the utility scale device, they’ve also built a “D” cell. Inherently, the technology features very high cycle life, high power and energy density, and suffers no ill effects from over charging or discharging.

They’re continuing to make major progress, and are looking for investment capital and partners.


Dave DaCosta, President
or Phil Burghart, Sr. VP

Ergenics, Inc.
247 Margaret King Ave.
Ringwood NJ 07456

(Disclosure: I do some consulting for the company,
and have a finders fee agreement with them.)

The company issued this press release this morning:
Thursday January 15, 9:30 am ET
Company Press Release SOURCE: Ergenics, Inc.

New Energy Storage Technology Leads Way to Low Cost Electric Power Supply

RINGWOOD, N.J., Jan. 15 — Ergenics announced today that it has initiated the second phase of its electric utility battery energy storage program. The program is directed at producing a long life (10 years), 25 kilowatt, 100 kWh battery module capable of daily deep discharge cycles for a variety of electric utility applications.

The initial product will be a simple peak shaving system which will be charged with low cost, “base load,” power at night and discharged during the afternoon peak load in order to reduce incremental generating capacity and its associated higher costs. This system is being developed for utility testing overseas where the differential cost between base load and peak load power is 3-5 times higher than in the U.S. The potential overseas market for the company’s battery energy storage system exceeds $30 billion. Ergenics is currently funded to build the first full scale submodule for testing based on a design previously approved by its foreign partner. The battery’s modular design allows construction of battery energy storage systems ranging in size from 100 kWh to 4,000 kWh.

Beyond the offshore project, Ergenics is exploring electric energy supply applications in the United States where electric utility deregulation is expected to create enormous opportunities for energy storage systems distributed across the power grid. Ergenics ultimately envisions household units which will provide reliable energy during power outages. These units will also store power purchased at low off-peak rates for later use in periods when energy would be more expensive.

Ergenics’ Hy-Stor(R) battery system is well suited for utility batteries. It couples the established know-how of the high energy storage density of metal hydrides with the extraordinary cycle life capabilities of nickel-hydrogen electrochemical cells which have been used in orbiting satellites for over twenty years. Half fuel cell and half battery, the only chemical reaction in the nickel-hydrogen battery is the simple oxidation and reduction of the nickel hydroxide electrode. This makes possible attainment of 10 years of life and tens of thousands of deep and shallow discharge cycles. In addition, and unlike any other battery, nickel-hydrogen batteries are tolerant of overcharge and overdischarge operation. This is especially important for higher voltage batteries where a large number of cells are connected in series. Complicated and costly electronics to balance the state-of-charge of the cells are not required.

Ergenics is a world leader in the development and commercialization of metal hydride technology. In addition to utility battery energy storage systems, Ergenics is developing hybrid electric vehicle batteries under a Defense Advanced Research Projects Agency contract, high energy, long life battery packs for electric bicycles, and hydrogen storage units for fuel cells. Privately owned, Ergenics, Inc. has its headquarters and principal manufacturing operation in northern New Jersey.

Technology Transfer Opportunities – Ontario Hydro Technologies



Final Report

Technology Transfer Opportunities in the Federal Laboratories

Ontario Hydro Technologies (OHT)

October 1997

Prepared for:

Utility Federal Technology Opportunities (UFTO)


Edward Beardsworth


This report is part of a series examining technology opportunities at National Laboratories of possible interest to electric utilities

Overview & Organization
Technologies & Programs

This report is proprietary and confidential. It is for internal use by personnel of companies that are subscribers in the UFTO multi-client program. It is not to be otherwise copied or distributed except as authorized in writing.


This report details findings about technology and technology transfer opportunities at the Ontario Hydro that might be of strategic interest to electric utilities. It is based on a visit to the lab in September 1996 and subsequent contacts, as part of the UFTO multiclient project.


Noting the tremendous scope of research underway in the research facilities of the U.S. government, and a very strong impetus on the government’s part to foster commercial partnering with industry and applications of the technology it has developed, the UFTO program has been established as a multi-client study of the opportunities thus afforded energy utilities and their many subsidiaries.


Since 1912, Ontario Hydro Technologies (OHT) has been the research and technology services arm of Ontario Hydro, one of North America’s largest utilities. OHT is one of Canada’s largest industrial research organizations, with a staff at one time of over 500 people, now at 350, and comprehensive facilities located in Toronto, Ontario. OHT has done pioneering work in the past on 500 kV transmission systems, scrubber systems for fossil generation, and zirconium metallurgy in support of the CANDU nuclear reactors. More recently, OHT has made key developments in fuel cell technology, power system stabilization, fibre optics, and customer interactions.

In the context of potential changes in Ontario’s electricity industry (and the commitment of Ontario Hydro’s owners, the Ontario Government, to opening the Ontario electricity market to competition), Ontario Hydro began to position itself more and more as a commercial player, and OHT as a competitive provider of technology products and services.

In 1993, OHT was set up as a separate subsidiary, and began adding to its portfolio by making significant investments in alternate energy including biomass, wind and solar developments. Also, OHT embarked on a developing a set of products based on its system stabilizer technology. OHT has also developed a number of other products and services that have the potential to dramatically improve utility performance. Some of these are introduced below.

In 1997, both concern about the emerging competitive environment and strong local criticism about its nuclear power program forced Ontario Hydro to re-focus its energies on the core business of generation. As a result, the scope of OHT’s programs was cut back, limiting product development efforts to those which directly serve the electricity industry, or those which could have a significant financial benefit for Ontario Hydro and similar utilities. OHT expects to continue to earn a substantial portion of its budget from outside clients, by providing expertise, consulting and services to the energy and process industries, on a fee-for-service basis.

More changes at OHT are occurring on almost a daily basis, as speculation continues about the parent utility’s future structure. (The very latest rumors suggest it will split into two crown corporations, one for generation and one for transmission.)


Currently OHT is under the leadership of Dr. Jim Brown, Vice- President Technology Services and New Product Development for Ontario Hydro. OHT is organized into two major divisions: New Product Development (NPD) headed up by Dr. Frank Chu, and Technology Services (TS) led by Mr. Dave Dodd. NPD has in it a number of product development projects, while TS has departments dealing with Power System Technologies, High Voltage and High Current Testing, Mechanical Systems Performance, Process Technologies, Environmental Technologies, Civil & Geotechnologies, Materials Technologies, Component Integrity, and Zirconium Metallurgy.

The general contact at the labs is:

Mr. Alfred Mo of the Marketing Department

416 207-6024,

All queries should be directed to either Alfred or to the individual noted for the specific item of interest.

Technologies & Programs

Covered in this report:

• Powernetics Products
Digital Power System Stabilizer (DPSS):
Programmable Synchrocheck Relay (PSR)
Microprocessor Digital Frequency Recorder (MDFR)
Power System Disturbance Recorder (PSDR)

• Maintenance Planning Advisor
• Optical Ground Wire Test facility
• Fuel Cell Testing and Development
• Real-Time Digital Simulator Services
• Gas Insulated Substation Diagnostics
• Non-destructive Evaluation
• Fall Protection Engineering
• High Current and High Voltage Facilities
• Concrete Technology

Durability Studies
Inspection of Concrete Structures, Life Cycle Management
Concrete Repair Projects (Leakage, Surface, Structural)
Development of Specialised Concrete for Specific Applications
Concrete Inspection, QA/QC System Design & Audit
Concrete Repair Materials Formulation & Testing

• Geotechnology
Specialised Drilling for Rock, Concrete or Soil
Drain, Pipe and Tunnel Inspection & Cleaning
Geological & Soils Monitoring & Assessment
Instrumentation of Rock, Concrete & Wood Structures
Risk Assessment
Geographic Information Systems

• Powernetics Products

Over thirty years of experience with Ontario Hydro’s complex power system has led to the development of the Powernetics line of products designed to increase reliability, stability, protection and control of power systems. These products have undergone extensive field testing, and are backed by training, consulting, and technical services. General contact: Mr. Mike Bell 416-207-6721,

– Digital Power System Stabilizer (DPSS): Ontario Hydro’s power system is characterized by a few large generation sources and several large sinks of power, leading to the potential of system instabilities. (About 40% of Ontario Hydro’s energy is produced by its 12 CANDU reactors located at three sites in southern Ontario.) To reduce the possibility of large system oscillations, OHT developed a digital system stabilizer that has been installed on most major Ontario Hydro generators. With this stabilizer technology, system stability has been maintained even under major system disturbances, including the sudden loss of over 10% of generation (2700MW) during a recent event.

– Programmable Synchrocheck Relay (PSR): The PSR facilitates the automatic closing of breakers at remotely controlled transformer stations. The PSR is fully programmable to match transformer station characteristics, including the presence of old and new equipment. Generally the PSR can be installed with little or no programming and minimal wiring changes.

– Microprocessor Digital Frequency Recorder (MDFR): Reliable high-resolution recordings of frequency disturbances provide a basis for better analysis and understanding of power system performance and integrity. With greater system interconnection, frequency change data is becoming more and more important. The MDFR is a micro-processor controlled desktop device which records powerline frequency swings. It can be automatically set to record frequency changes which deviate by a set amount from 60Hz. The MDFR will find application in the assessment of control and protection schemes. The data can be accessed, and the MDFR can be reprogrammed remotely.

– Power System Disturbance Recorder (PSDR): This device allows utilities to analyze system performance under major disturbance conditions, such as transmission line faults. When installed at major generating, transformer and switching stations, the collected data will provide valuable information on the performance of protection and control schemes. The PDSR will also allow the collection of data to verify operating security limits.


• Maintenance Planning Advisor

Effective management of assets provides a competitive edge, achieved by operating existing equipment to full capacity and by optimizing maintenance plans. Through rigorous analysis of specific equipment performance data, optimum maintenance schemes can be identified. Maintenance Planning Advisor is an advanced probabilistic model which takes operational information on equipment and converts that data into remaining life and life- cycle cost. It was originally developed for Ontario Hydro’s rotating equipment, but has now been extended to substation components and circuit breakers. In one application for a US client, the MPA predicted a saving of 33% if more inspections and fewer maintenance activities were carried out. This program is also supported by expert consulting services. Contact: Mr. Mark Vainberg 416-207-6451,


• Optical Ground Wire Test facility

A special facility at OHT is a long span room, which has been developed into a fibre optic cable and hardware testing facility. The facility and its services are being used both by manufacturers and utilities wanting to install fibre optic loaded cables. The facility is capable of testing a comprehensive range of mechanical, electrical and optical parameters to meet both ANSI and IEC standards. The facility includes an optical power sensor with 0.001 dB resolution and a 1550 nm laser source with high long-term and short-term stability. The comprehensive range of tests includes: aeolian vibrations, galloping, creep, fibre strain, stress-strain, strain margin, temperature cycling etc. Contact: Mr. Craig Pon 416-207-6741,


• Fuel Cell Testing and Development

Fuel cell development has been an area of expertise at OHT for many years. Most recently OHT has been involved with Westinghouse in testing their solid oxide fuel cell elements under high- pressure conditions. This fuel cell set a record at OHT for the power produced from a single oxide fuel cell. The power output was 277 watts at 10 atmospheres was about 30% greater than that achieved by Westinghouse at atmospheric pressure. OHT has considerable experience with Phosphoric Acid Fuel Cells (PAFC), having operated a 40KW grid connected cell for several years, and having supervised the operation of a 200 KW system at one of Ontario Hydro’s regional offices. OHT’s experts are available to help you with your fuel cell development needs. Contact: Mr. Chris Cheh 416-207-6159,


• Real-Time Digital Simulator Services

OHT has the experience, facilities and expertise to provide a wide range of services using the Real-Time-Digital Simulator (RTDS). This highly sophisticated modular computing system models any user defined electrical system with complex electrical components (transmission lines generators, transformers) based on an electromagnetic transient pulse type of simulation.

This allows the testing of your relay or control equipment to be tested in a closed-loop mode acting on the simulated system as it would in the actual installation. The some of the elements modeled by the RTDS include: current and power transformers with user defined saturation characteristics, circuit breakers, fault switches, synchronous machines with exciters, turbine/governor, and stabilizer models, static VAR compensators, HVDC power and control components. The RTDS system is located at OHT, but its outputs can be applied anywhere on a power system. Contact: Mr. John Kuffel 416-207-6539,


• Gas Insulated Substation Diagnostics

OHT has over two decades of R&D and development experience with GIS technology and is an acknowledged expert in the area of partial discharge (PD) analysis. In particular OHT has developed a diagnostic system that acts as an early warning system for developing problems within a GIS. This system works through the installation of specifically designed partial discharge couplers in access ports within the GIS. The high frequency PD signals are converted to slower pulses and analysed by computer to assess the state of the system.

In addition to this system OHT offers research and consulting services to assist utilities with emerging GIS problems. These services include: S2F10 gas and moisture analysis, GIS failure analysis, very fast transient analysis, on -site testing services, high sensitivity XIPD testing for GIS spacers. OHT’s services can be of value both once problems have developed and also to forestall problems. OHT’s experts are available to visit clients and do some on site investigations. The most sophisticated tools such as the x-ray induced partial discharge analyzer are however are located at OHT. Contact: Mr. John Kuffel 416-207-6539,


• Non-destructive Evaluation

OHT is an acknowledged world leader in non-destructive evaluation, having produced a number of sophisticated products for the analysis of components in the nuclear, aerospace and petroleum industries. Products include TRUSTIE (Tiny Rotating Ultrasonic Tube Inspection System), OPIT (Optical Profilometry Inspection Tool), FRILS (Flaw Replication Inspection Laser Scanner), and Winspect a sophisticated software tool for the control, interpretation and display of output from the other systems. OHT’s experts will carry out site visits with a limited set of NDE systems. In many cases NDE tools may need to be modified to meet specific client’s system requirements. Contact: Mr. Kash Mahil 416-207-6816,

– TRUSTIE: is an ultrasonic based tool to inspect steam generator and heat exchanger tubes for corrosion, cracking and deformation. TRUSTIE: is capable of inspecting tubes as small as IDs down to 0.31″ and of lengths up to 50 feet. The inspection frequencies range from 5 to 25 MHz and probe rotation speeds range up to 1000 RPM. TRUSTIE can be used to look at wall thickness and ID profilometry, as well as well as circumferencial crack and ID profilometry. – OPIT and FRILS: are optical systems designed to provide fast and precise three-dimensional information from a surface. Originally designed to support Ontario Hydro’s nuclear program, these systems have now been applied to non-nuclear systems such as steam turbine blades and cable insulation.

– Winspect: is an advanced data acquisition software package for ultrasonic testing, built on Windows. It can control the scanning rig, collect the data, and simultaneously control auxiliary instrumentation. Data and images can be transferred directly to other software packages for analysis and reporting. It can be used with existing hardware–software support is available for a broad range of acquisition and control equipment. It also has signal processing routines, such as data averaging, digital filtering, and fast fourier transforms. It is available from

UTEX Scientific Instruments, Mississauga, Ontario, Canada



• Fall Protection Engineering

OHT’s work in fall protection has saved at least 20 lives at Ontario Hydro over the past twelve years. Ontario Hydro experts are leaders in setting standards for fall protection, as well as in the development of fall protection equipment. The comprehensive fall protection centre at OHT offers advanced testing in compliance with the following standards: ANSI Z359.1- 1993, CSA Z259, as well as others from ANSI, CSA, ASTM, CGSB, UL, and UIAA. OHT’s fall protection experts offer a broad variety of testing services, fall protection training, fall protection consulting, and fall protection audits. Contact: Mr. Andrew Sulowski 416-207-6298,


• High Current and High Voltage Facilities

OHT’s high current facility is used to test the full range of components from transmission class disconnect switches to small connectors. This includes short circuit power arc or temperature rise testing. This laboratory has been operating for over 25 years and assisting Ontario Hydro and the electrical industry in Canada and the US. OHT’s 200 MVA high current facility is directly supplied by Ontario Hydro’s grid, allowing for stable long-duration tests. Of course, clients are welcome to observe tests, and multi-channel, video and high speed photography recording of all tests are available. For example, the facility has been used by safety clothing manufacturers to test the performance of clothing for use in arc-prone environments. Contact: Dr. John Kuffel, 416-207-6539


• Civil & Geotechnology Services

As a result of many years of providing expert opinion and applying leading edge technology to Ontario Hydro’s 7000 MW hydroelectric generation system, comprised of 69 generating stations and over 200 dams, as well as its fossil and nuclear facilities, OHT has developed expertise in the following areas:

• Concrete Technology
Durability Studies
Inspection of Concrete Structures, Life Cycle Management
Concrete Repair Projects (Leakage, Surface, Structural)
Development of Specialised Concrete for Specific Applications
Concrete Inspection, QA/QC System Design & Audit
Concrete Repair Materials Formulation & Testing

• Geotechnology
Specialised Drilling for Rock, Concrete or Soil
Drain, Pipe and Tunnel Inspection & Cleaning
Geological & Soils Monitoring & Assessment
Instrumentation of Rock, Concrete & Wood Structures
Risk Assessment
Geographic Information Systems

General Contact:

Mr. C W Dawson, Tel 416-207-6307, Fax 416-234-1511

Mr L E Milton, Tel 416-207-5405, Fax 416-234-1511

– Concrete Durability Studies.

An exposure facility is located at the Kipling Site in Toronto, and provides climatic conditions typical for Southern Ontario. An extensive database, going back over 30 years is available from this facility. Laboratory facilities are also available for testing concretes under a variety of temperature and humidity conditions, as well as providing standard testing services.

– Inspection of Concrete Structures.

Extensive experience in the inspection of concrete structures is available. This would normally go through the steps of visual inspection leading to non-destructive ultrasonic inspection, core drilling of suspect locations and physical testing and evaluation of the cores. Testing would normally cover, adsorption, air content, density, alkali aggregate reactivity, compressive strength and carbonation.

– Specialized Concrete & Grout Repairs

OHT can provide a comprehensive knowledge of repair products and approaches to their application. We can provide mix designs for special applications and small to large scale testing of the mixes in our laboratories prior to application. We also provide construction and repair specifications and can provide application supervision and quality management.

– Specialized Concrete Development.

OHT has been extensively involved in the development and testing of specialty concretes. This has included standards development for fly ash concretes, flowable backfills with custom designed strength characteristics, guidelines for the use of fly ash and bottom ash as structural fills and the development of high density concrete for nuclear waste containment.

– Specialised Drilling Services.

OHT has acquired and developed experience with both computerized and directional drilling technology. This technology has been used in conjunction with wire line saw cutting for stress relief of concrete structures, and investigation of problematic geological structures through the extraction of rock cores (along the axis of a tunnel for example). The technology can also be used for post tensioning cable retrofit, instrumentation installation and piping, sewer, cable installations through rock.

– Drain Inspection & Cleaning.

Considerable experience has been developed in the inspection and cleaning of drains as a result of an ongoing program in Ontario Hydro’s own hydroelectric facilities. OHT owns two sets of high pressure waterjetting equipment and a number of sets of down hole TV camera equipment.

– Geological & Soils Monitoring & Assessments.

OHT has comprehensive capability and equipment for carrying out geotechnical monitoring and assessments, including contamination assessments. This includes a mobile soils assessment rig, as well as rock coring capability. OHT also has experience in the use of instrumentation for monitoring the movement of rock and soil formations, as well as concrete and wood structures. Instrumentation has been widely deployed throughout our hydrelectric system, but especially at our Saunders plant, where problems with AAR are being experienced. OHT also has the capability to carry out hydrogeological investigations as they relate to the suitability of a given location for a structure.

– Risk Assessment.

OHT can also provide complete risk assessment services for a structure. This would include an evaluation of the condition of the structure, an assessment of the magnitudes and probabilities of hazards that may affect and threaten the structure, a complete analysis of the risks associated with those hazards and recomendations of ways in which those risks could be managed.

– Geographic Information Systems.

Ontario Hydro and OHT have considerable experience with the application of Geographic Information Systems (GIS) to utility problems, such as land use planning, infrastructure mapping, natural resource management, route and site selection etc. We are therefore in a position to provide other potential users with advice on the merits of various commercial systems, and optimal infrastructures and applications for GIS.

Ballard and GPU Joint Venture

Subject: UFTO Note – Ballard and GPU Joint Venture
Date: Fri, 20 Dec 1996 10:44:23 -0800
From: Ed Beardsworth

| ** UFTO ** Edward Beardsworth ** Consultant
| 951 Lincoln Ave. tel 415-328-5670
| Palo Alto CA 94301-3041 fax 415-328-5675

Below is a recent press release on a joint venture between Ballard and GPU. Ballard also announced receiving $30 Million from the Canadian government to support commercialization of stationary fuel cell power plants. —


Dec. 17, 1996

Ballard Power Systems and GPU International, Inc. (GPUI), a subsidiary of GPU Inc., a major international electric company based in New Jersey, announced today that they have formed a venture for the commercialization of Fuel Cell Stationary Power Plants using the Ballard Proton Exchange Membrane (PEM) Fuel Cell.

Under the terms of the agreement, which is subject to final regulatory approval, Ballard Power Systems has created a new subsidiary, Ballard Generation Systems Inc., to commercialize Fuel Cell Stationary Power Plants. Ballard Generation Systems will develop, market and manufacture Fuel Cell Stationary Power Plants worldwide and will be based in Burnaby, B.C. Ballard Power Systems, the parent company, will supply the fuel cells for these power plants. GPU International will invest US$23.25 million (Can$31.2 million) over the next two years in the subsidiary, Ballard Generation Systems, for up to a 19.3% share of Ballard Generation Systems, two 250 kW fuel cell power plants for field trials, and non-transferrable warrants to purchase 100,000 Common shares in Ballard Power Systems at a price of $27.45 per share.

In addition to GPUI’s investment in Ballard Generation Systems, it will bring to the company its considerable expertise in world energy markets and an understanding of user requirements which will contribute to the development of Ballard Fuel Cell Stationary Power Plants.

GPU International is the non-regulated arm of GPU, Inc. GPU serves a worldwide population of over 13 million people with 4.4 million customers located in 12 countries. It had 1995 revenues of over US$3.8 billion and assets of about US$10 billion. GPU, Inc. shares are on the New York Stock Exchange.

“Under growing deregulation, Ballard Fuel Cell Stationary Power Plants will become an important part of the energy market. These power plants will provide power for a broad range of market applications including Premium Power,” said Bruce L. Levy, President and CEO of GPU International. “We see that by combining Ballard’s clear lead in proton exchange membrane fuel cells and power plants with GPU’s expertise in the world energy business, we can together build a growing, successful and profitable business.”

“We are pleased to welcome GPU as a strategic partner and investor in our stationary power business,” said Firoz Rasul, President and Chief Executive Officer of Ballard. “GPU has distinguished itself as a leader in the deregulated electric power industry worldwide and has participated in the commercialization of innovative energy products and applications. Ballard Fuel Cell Power Plants will address the needs of the substantial markets that are emerging for environmentally clean, high quality power generated at the customer’s site.”

“GPU International has made investments in power-related projects throughout the world,” said GPUI’s Levy. “We feel that fuel cell power plants will open up considerable new markets in the power business within the next 5 years.”

“To marshal the resources needed to bring each of our products to market effectively, our plan is to join forces with a carefully chosen team of marketing and manufacturing partners,” said Mossadiq Umedaly, Vice President and Chief Financial Officer of Ballard Power Systems. “GPUI brings deep insight in the international electric power markets, which will contribute to the commercial success of Ballard Fuel Cell power plants. The equity participation by GPUI also enables Ballard to capitalize on the value of its stationary power plant technology beyond the fuel cell, and establishes the value for this subsidiary, before GPUI’s investment of $31.2 million at more than $130 million.”

Ballard Power Systems is the world leader in the development of proton exchange membrane fuel cell power systems. The heart of its products is the Ballard Fuel Cell, a proprietary zero-emission engine that converts natural gas, methanol, or hydrogen fuel into electricity without combustion. Ballard Fuel Cells are currently being used by leading international companies including Daimler-Benz, General Motors, Hitachi, Honda, Volkswagen and Volvo to develop zero-emission vehicles and clean stationary power plants.

Ballard’s Common shares are listed on The Toronto Stock Exchange under the trading symbol “BLD” and on the Nasdaq National Market System under the symbol “BLDPF”.

/For further information: Paul Lancaster, Ballard Power Systems Inc. (604) 454-0900, fax (604) 412-4700; Michael A. Lundy, Lundy Associates, Inc. (201) 660-1100, fax (201) 660-1104 or Patrick M. Dool, GPU International, Inc. (201) 263-6951, fax (201) 263-6977/ (BLD. BLDPF)

1996 Fuel Cell Seminar & Russian Amer. Consortium

Subject: UFTO Note — 1996 Fuel Cell Seminar & Russian Amer. Consortium
Date: Fri, 01 Nov 1996 13:21:39 -0800
From: Ed Beardsworth <>

| * UFTO * Edward Beardsworth * Consultant
| 951 Lincoln Ave. tel 415-328-5670
| Palo Alto CA 94301-3041 fax 415-328-5675

The 1996 Fuel Cell Seminar is coming up next month, Nov 17-20.


Fuel Cells — The Dawn of Commercialization
DATE: November 17-20, 1996
Kissimmee, Florida

For information, please contact:
Ms. Annmarie Pittman
655 15th Street, NW
Suite #300
Washingtion, D.C. 20005
Phone: (202) 639-4994
Fax: (202) 347-6109

On Tuesday Nov 19, there will be a special briefing about the RUSSIAN AMERICAN FUEL CELL CONSORTIUM (RAFCO). See earlier press release below.

*** UFTO members received copies of the proceedings of the US Russian workshop held in Sept. 1995 (SAND96-0945) Our contact at Sandia, Al Sylwester, is directly involved in RAFCO, and tells me he’d welcome utility involvement. ***
DOE PRESS RELEASE September 17, 1996

United States and Russia To Co-Develop Clean, Efficient Fuel Cell Technologies

The United States and Russia today announced they will pool their resources on the research and development of fuel cells, a move that is expected to help speed this highly efficient, clean energy source to commercial markets. The Russian-American Fuel Cell Consortium (RAFCO) will draw on the scientific and engineering expertise of both nations to advance the development of commercially viable fuel cell technologies and promote defense conversion goals. American industry is expected to play a pivotal role in the consortium’s projects.

U.S. Secretary of Energy Hazel R. O’Leary and Russian Minister of Atomic Energy Viktor Mikhailov signed the agreement while attending meetings of the International Atomic Energy Agency in Vienna, Austria. “This is another milestone in Russian-American cooperation and a concrete step in the Clinton administration’s commitment to diversify the world’s energy supply with clean, efficient alternative technologies,” Secretary O’Leary said.

Fuel cells are a highly energy-efficient, environmentally friendly and cost-effective power source. Originally developed by both countries for their space programs, they convert the energy released by oxidation of a fuel directly into electricity. By producing energy without combustion, they release much less carbon dioxide than conventional technologies.

Fuel cell technology is a national priority in Russia as a source of remote power for the rapidly developing oil and gas industry. In the United States, the Department of Energy supports research and development in fuel cells for power and transportation applications, including the enhanced use of natural gas, utility and other power grid applications, retail and industrial dispersed power applications, mass transportation and advanced automobile technologies. Pooling the resources of the two governments and American industry is expected to result in significant cost savings.

There is already a small, emerging U.S. and international market for fuel cell applications. International Fuel Cells, a leader in the field, is currently producing the 100th 200-kilowatt power plant using phosphoric acid fuel cell technology, which was developed largely with DOE support.

DOE’s Sandia National Laboratories first proposed a consortium in 1994 as an efficient way of combining the expertise and resources of Russian nuclear institutes, DOE national laboratories and U.S. industry. RAFCO will combine Russian and American scientists and engineers on specific projects and serve as an information clearing house. The consortium will further nonproliferation goals by helping to redirect the expertise in Russian and U.S. nuclear labs to peaceful applications.

The initial collaborations will include work on all four types of fuel cell technologies: solid oxide, molten carbonate, phosphoric acid, and polymer electrolyte membrane fuel cells. -DOE- R-96-137

Prospects for Ballard and ERC Fuel Cells

Subject: UFTO Note: Prospects for Ballard and ERC Fuel Cells
Date: Mon, 02 Sep 1996

UFTO NOTE: Stock Price Prospects for Ballard and ERC, Fuel Cell Developers

KIIS STRATEGY FOR START UPS: KEEP IT INSOLVENT, STUPID! By Robert Metz (Originally published Aug 26 in `Money Talks,` an interactive investment magazine at

Summary: Two developmental fuel cell firms that could hit home runs or go broke depending on the success of their technologies. For high share price: lose money, sell more stock: your investment banker will tout your stock.

There is an old joke about a company that loses money on every sale but makes it up in volume. Here’s a variation on that joke involving fuel cells:

Fuel cells are like batteries with this difference: when a battery runs down, you recharge it by pumping in more electricity. A fuel cell combines hydrogen and oxygen to make electricity. The exhaust: pure water, son! But fuel cells, which make electricity without combustion, are larger, less powerful and vastly more costly than internal combustion engines.

The joke: Ballard Power loses millions building fuel cells for vehicles. As a result, Ballard must raise cash through repeated equity offerings. Contrast Ballard with Energy Research Corp. which develops its non- polluting fuel cells for electric utilities. Its utility clients seek a clean means of producing electricity that will replace their dirty, coal-burning plants.

Like Ballard, Energy Research is developmental. Yet an ER cell does supply power to homes in Santa Clara. And ER earns a little money, too.

The punch line: Burnaby, Canada-based Ballard (BLDPF, Nasdq) is the preferred investment. Don’t laugh! Ballard Power has achieved a market capitalization seven times that of Energy Research (ERCC, Nasdq).

Why? Canadian bankers are almost constantly touting Ballard. They earn fees for selling each Ballard equity offering to the investing public. All this `sponsorship` as it’s called on Wall Street, creates a high share price.

They say that mutual funds are not bought, they are sold, no-load mutual funds to the contrary notwithstanding. This is true of shares in developmental firms, too. Brokers dazzle, talking of millions of family cars traveling the highways of the world powered by non-polluting fuel cells.

Get this! Energy Research needs no outside capital. So it isn’t touted. Keep in mind that my source on these two companies is admittedly long ERCC and short BLFPF. He asked me not to disclose his name. Ballard, with whom he talks, obviously would not take his calls if he were named.

Let’s look directly at the numbers. Energy Research has 4 million shares outstanding. When at 13, the shares were worth $52 million. Ballard has 15.2 million common shares out and 1.5 million warrants to buy shares at a low price. With the stock at 21, BLFPF’s market cap is roughly $340 million. Those are the key numbers for innovative developmental firms. Such companies tend either to soar or go broke. It’s either/or, as a rule.

There are other reasons why traders prefer Ballard, not the least of which is glamour. Imagine a vehicle that uses hydrogen as fuel and which dribbles onto the pavement nothing more toxic than water vapor. Is there such a vehicle? Yes, G.M. and Daimler Benz have both purchased fuel cells from Ballard. Honda and Volkswagon are also pursuing fuel cells. Ballard’s ebullient CEO, Firoz Rasul, insists the technology is ready. He says his company is banking on environmental regulations to spur demand for its fuel cells. But he admits that the the final call is the car makers’.

The public got a glimpse of Ballard’s technology in June. Daimler-Benz showed the press a working prototype powered by Ballard’s fuel cells. Except for bulky rooftop hydrogen tanks, the system fit under the hood and seats of a Vito `minivan` from Daimler’s Mercedes-Benz automobile unit.

The cell has few moving parts, no sparks or fumes. Methanol can be used to fuel the cells. Whoops! It must first be converted into hydrogen through a process that releases carbon dioxide. Is this for you? The last vehicle Germany sent us with hydrogen on board was the Hindenburg.

When is the fuel cell coming to a highway near you? Mercedes’ Chief Executive, Helmut Werner, is optimistic that fuel cell technology will find a permanent place in his company’s product line up. He crows that the work is going faster than he expected, but his on-the-road target is 12 years out. If you paid for a Mercedes Benz vehicle with Ballard Fuel Cell, it’d cost you, say, $500,000. That same sum would buy about five Rolls Royce cars.

Cost is the rub with Energy Research as well. ERCC’s fuel cells, like those of Ballard, are custom built. Both must be mass producd if the cost is to sink to a level that makes these fuel cells both practical and affordable.

It’s been a long journey just getting this far. The fuel cell was thought up in the 1830s. The fuel cell is a vastly more efficient than rival power means. Utilities produce electricity by burning coal, oil, and natural gas. The heat produced is used to super heat water, turning it to steam which turns the vanes in a turbine which spins a generator and produces electicity.

There is energy loss every step of the way. Utility power plants may extract only 25 percent of a given fuel’s energy potential. `Co-generate` the heat the process throws off and get a total of 30 percent of the energy.

Energy Research’s Santa Clara fuel cell can use kerosene, gasoline or methane, any hydrocarbon at all, to recover 50 percent of the fuel’s energy. Using the heat for co-generation may squeeze out 80 percent of potential.

Fuel cells offer far more efficiency than any other practical process. Yet fuel cells remain prohibitively expensive for most uses. Do note that NASA has used fuel cells to power manned space programs for decades.

As my source views it, Energy Research with its unglamorous partners, some 30 of the nation’s largest utilities, is more likely to win the brass ring. Keep in mind both companies are betting heavily on fuel cells. Either one or both could score. But shares of either one or both could go to zero.

Keep this in mind: there is no infrastructure to support an automobile that burns hydrogen. Gas stations don’t stock the alternative methane, either. Utilities, by contrast, have access to fuels suitable for fuel cells.

Wait! If ERCC misses the bullseye with fuel cells, it does have another arrow: batteries. So the stock may be worth more than current price. The fan says ER’s nickel zinc battery will zap nickel cadmium and nickel metal hydride batteries. Or so its `conservative` management avers. ER is supposedly negotiating with two companies to commercialize the nickel zinc battery. The first of two deals could be done in a month, the fan says.

ER could become multi billion dollar company either with its fuel cells or with its batteries. My source, who, you’ll must keep in mind, is long ERCC and short BLFPF, says ER is `a triple digit stock if it hits with both.`

But, he adds, `If we knew for sure either or both technologies would work ERCC would already be in triple digits. Maybe neither will work and the stock will go to zero.` But it seems to him ER’s goals are realistic since a 30 utility `Fuel Cell Commercialization Group` is working with ERCC.

| *** UFTO *** Edward Beardsworth * Consultant |
| 951 Lincoln Ave. tel 415-328-5670 |
| Palo Alto CA 94301-3041 fax 415-328-5675 |

News: Fuel Cell Conferences

Subject: UFTO News: Fuel Cell conferences
Date: Fri, 23 Aug 1996 13:52:57 -0700
From: Ed Beardsworth <>

Forwarding a notice from the METC fuel cell forum, FYI

| ***UFTO **** Edward Beardsworth * Consultant |
| 951 Lincoln Ave. tel 415-328-5670 |
| Palo Alto CA 94301-3041 fax 415-328-5675 |


Subject: Fuel Cell conferences
Date: Fri, 23 Aug 1996 16:00:47 -0400

Hi Group:

At the METC fuel cell review I learned of three new conferences. Two have a short time announcement. The first conference registration is due August 28. This is the “Fuel Cells for Power and Propulsion” held in London on September 24. This short program deals with fuel cells in the power plant size range for MCFC, SOFC, PAFC’s. For further information

Ellis Lloyd Payne

Conference and Events Department


1 Birdcage Walk
London, SW1H9JJ
Phone +44 (0) 171 973 1304
Fax: +44 (0) 171 233 1654
The second is a call for papers issued for the “Fifth International Symposium on Solid Oxide Fuel Cells” in Aachen, Germany June 2-5 1997. Papers are solicited on all aspects of Solid Oxide Fuel Cells. Included are; cell design, modeling, systems, chemistry, performance. A 75-word abstract should be submitted by October 1.

Secretariat-SOFC V
c/o Dr. Werner Lehnert
Institute of Energy Process Engineering (IEV)
Research Center Julich (KFA)
D-52425 Julich, Germany
phone: 49 2461 61 5147
Fax: 49 2461 61 6695

The third conference also is short notice with registration due August 30. This is “Distributed Electric Generation” in which fuel cells will play a major role. The conference will discuss economic factors and customer preferences. Fuel cells are part of the current technology. The conference will be held September 30-October 1, 1996 at the

DoubleTree Hotel
Pentagon City National Airport
Arlington, VA 22202

Further information

King Communications Group, Inc.
627 National Press Building, E-14
Washington, D.C. 20045
phone (800) 926-5464
(202) 662-9710
fax (202) 662-9719


METC Fuel Cell Conf

Subject: METC Fuel Cell Conf.

****UFTO EMAIL *******

06/19/96 11:34:00

Announcing the Fuel Cells ’96 Review Meeting held at the Morgantown Energy Technology Center, Morgantown WV on August 20-21. The conference will focus on power plant applications, however fuel cell programs in transportation and logistics fuel will also be presented. Updates on the 2 MW Santa Clara (ERC) and 250 kW Miramar (M-C POWER) molten carbonate projects will be presented. ONSI will present the Phosphoric Acid fuel cell status and Westinghouse the solid oxide status. There will be a Poster session at the end of day one.

Following the meeting on day two, a workshop on Very High Efficiency Fuel Cell/Gas Turbine Power Cycles will be conducted. Review of European and Japanese systems and potential markets. Westinghouse, ERC, Ztek, Solar Turbines, and Allison Corporation will present papers.

Early registration is $55 for the food service both days and includes continental breakfast and lunch on both days, breaks and poster session. Registration for the technical presentations which include conference materials is free. Directions and map can be found on the WWW site at

For further information:
Conference Services
Morgantown Energy Technology Center
P.O. Box 880, MS-K07
Morgantown, WV 26505-0880
Phone (304) 285-4750
Fax (304) 285-4459