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 HYDG Stock Market Investment Discussion Forum
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.
The HydroGen Corporation logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3977
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.
CONTACT: HydroGen Corporation
Scott Schecter, Chief Financial Officer
(212) 672-0382
sschecter@hydrogenllc.com
Makovsky + Company
Investor Relations:
Hulus Alpay
(212) 508-9600
halpay@makovsky.com