CLEVELAND, Sept. 6, 2007 (PRIME NEWSWIRE) -- HydroGen Corporation (Nasdaq:HYDG), a manufacturer of multi-megawatt fuel cell power plants based on the Company's proprietary, air-cooled 400 kW phosphoric acid fuel cell (PAFC) technology, today announced a number of operational updates.
Operations
The Company's Operations business unit, with principal locations in Versailles, PA and Cleveland, OH, has made substantial progress toward the unit's principal goals for 2007. These goals include:
* Recapture of the former Westinghouse PAFC production processes, and testing and validation of the Company's PAFC technology in sub-scale and full-scale test facilities. -- Operational update: As noted in prior releases, the Company has achieved full recapture of the Westinghouse production processes, and successfully validated its production of the PAFC technology in its 2.5 kW sub-scale test plant. This sub-scale plant replicates principally all operating conditions seen in the Company's planned full-scale commercial plants and hence is the final step of testing prior to using the manufactured components in the Company's 400 kW modules. On August 25, the Company achieved 1,500 hours of continuous run time on a 2.5 kW PAFC stack produced completely by HydroGen. The stable operating performance of the unit confirms that the Company has fully recaptured the fuel cell and manufacturing technology originally developed by the Westinghouse Corporation. -- Additionally, the Company on August 29 achieved mechanical completion of its second 2.5 kW, transportable PAFC test plant. This test plant will be used to test the technology with a variety of gas streams at potential customer sites, as well as to validate new components and designs provided by outsource suppliers. * Operation of the Company's Versailles PAFC manufacturing facility at 4 MW/year capacity. -- Operational update: The Company has achieved full capacity at our manufacturing facility, and is focused on streamlining present production techniques for delivery of the Company's early commercial units. All production lines are operating at full capacity. The Company is poised to expand production capacity in 2008. * Production and delivery of a PAFC module to the Company's 400 kW commercial demonstration power plant at a chlor-alkali manufacturing plant owned and operated by ASHTA Chemicals, Inc. -- Operational update: As of August 27, all of the individual components required for assembly of the Company's first complete new 400 kW PAFC module have been manufactured. -- One final step remains before the module can be assembled and delivered to the field: Machining of the flow field channels in the graphite plates for distribution of process and cooling gases. The Company's primary plate machining partner has been experiencing higher than anticipated wearing on its machine tooling, resulting in delays in the delivery of finished plates with a moderate impact on the delivery of the module to the ASHTA Chemicals site. Management has been and is taking measures to step up production rates to higher levels. * Preparation of an advanced manufacturing facility, targeted for end 2008-early 2009 in the state of Ohio, with initial capacity of 25 MW/year. -- Operational update: The Ohio-based advanced manufacturing team has made substantial progress in the planning and early site selection for this facility. In particular, the team -- a group recruited primarily from the automotive manufacturing industry, with lean manufacturing experience -- has made strong headway in its interaction with supply chain partners and automated production equipment vendors. The Company expects to initiate formal site selection, state fundraising, and planning activities in the Fall of 2007.
Sales and Projects
The Company believes that it is on target to achieve its sales and projects goals for the year, which include:
* Unconditional sales of 2 * 2 MW fuel cell power plants, as well as conditional sales of aggregate capacity between 20-50 MW. -- Operational update: * In the past quarter we have received numerous requests, many unsolicited, for formal bid quotations and letters of intent from customers in the chlor-alkali and sodium chlorate, coke oven gas, and industrial/utility distributed energy market segments. The Company is presently in active discussions or negotiations with these and other prospective customers, and has delivered a number of commercial proposals. The Company's active prospective sales pipeline represents up to 200 MW of potential demand. * In association with these sales efforts, we have initiated technical feasibility analyses for a number of potential project sites. These include a gas clean up project at a large facility producing coke oven gas, as well as general engineering/ feasibility analyses of other sites. * Although the Company remains focused on the extensive market opportunities present in North America, we are finding that the international markets for our product are considerably stronger and more aggressive than we had initially projected. A number of the bid requests we are responding to -- as well as additional strategic dialogue -- originates from overseas, including Western Europe, the Middle East, and Asia. The global markets for HydroGen's product appear very healthy. * Successfully construct and operate a commercial demonstration fuel cell power plant at a chlor-alkali manufacturing facility owned and operated by ASHTA Chemicals, Inc. -- Operational update: The Company's first 400 kW commercial demonstration power plant installed at a chlor-alkali manufacturing plant owned and operated by ASHTA Chemicals, Inc. is now 100% mechanically complete with all equipment installed and tested. Once machining of all plates is complete, the 400 kW fuel cell module will be assembled in Versailles, PA, then delivered and installed in the power plant at ASHTA Chemicals, Inc. All other components for assembly are ready. Due to the delay in plate machining, as discussed above, the Company expects this plant to be fully operational sometime in late November or December of this year.
"Overall, I am pleased with HydroGen's technical and commercial progress. We are working diligently to achieve the objectives of our strategic plan and corporate goals, and continue to make substantial progress in line with our overall business plan. The plate machining issues that we are currently working through are illustrative of other 'first article' production challenges that we have faced and resolved as we have recaptured and advanced the original Westinghouse technology to meet our commercial targets," said Dr. Leo Blomen, HydroGen Chairman and CEO. "Given our exacting standards and specifications it is not surprising that there would be some delays, particularly in the early stages of the manufacturing process. However, we believe that the major first article production challenges are behind us. We look forward to the completion and successful operation of our first commercial demonstration plant at ASHTA Chemicals, and to further strong progress in the remainder of the year."
About HydroGen Corporation
HydroGen Corporation, through its wholly-owned subsidiary, HydroGen, LLC, is a developer of multi-megawatt fuel cell systems utilizing its proprietary 400 kW phosphoric acid fuel cell (PAFC) technology. Advancing fuel cell technology originally developed by Westinghouse Corporation, the Company targets market applications where hydrogen is currently available and other drivers favoring the adoption of fuel cells are present.
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Forward-Looking Statements
Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently unreliable and actual results may differ materially. Examples of forward-looking statements in this news release include statements regarding HydroGen's anticipated economically competitive fuel cell systems. Factors which could cause actual results to differ materially from these forward-looking statements include such factors as fluctuations in demand for HydroGen's products, HydroGen's ability to maintain strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of HydroGen's liquidity and financial strength to support its growth, and other information that may be detailed from time to time in HydroGen's filings with the United States Securities and Exchange Commission. HydroGen undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.