Global Thermoelectric to sell SOFC to Bonneville
Global Thermoelectric Inc GLE
Shares issued 28,948,347 Jan 28 close $7.16
Tue 29 Jan 2002 News Release
Mr. Jim Perry reports
GLOBAL THERMOELECTRIC INC. AND BONNEVILLE POWER ADMINISTRATIO ...
Global Thermoelectric has signed a memorandum of understanding (MOU) with
the Bonneville Power Administration of Portland, Ore., to establish a
strategic relationship for the purpose of developing, evaluating and
distributing Global's SOFC products. Bonneville is expected to purchase
three Global SOFC systems for an anticipated total cost of $240,000 (U.S.)
for field testing in 2003. This MOU expands Global's growing network of
development and distribution partnerships in the United States. Global
previously announced that it had signed similar agreements with Suburban
Propane of New Jersey, the third-largest distributor of propane in the
U.S., and Citizens Gas of Indianapolis, Ind.
"This is a big step forward in our commercialization strategy. Bonneville
already has significant experience with fuel cells and is looking for a
product for its residential distribution channel. We believe our SOFC
approach can deliver the right solution and we expect this to be a very
synergistic working relationship," said Jim Perry, Global's president and
chief executive officer.
"We are pleased to have this exciting opportunity to augment and complement
our fuel cell program," said Mark Jackson, Bonneville's fuel cell
development manager. "We hope to expand our customers' options for meeting
off-grid power needs and by providing on-grid distributed generation
capability."
The MOU with Bonneville contemplates that the parties will compile and
share market and customer data to ensure product specifications meet the
needs of Bonneville's client base. Bonneville will undertake field testing
and has agreed to purchase three SOFC systems from Global. These systems
will be specified to produce between two kilowatts and five kilowatts, will
be natural gas or propane compatible, and are scheduled for delivery and
field testing in 2003. Under the terms of the MOU, Global and Bonneville
may also enter into a distribution agreement for any jointly developed SOFC
products.
The Bonneville Power Administration is an agency of the U.S. Department of
Energy based in Portland. Bonneville sells about 46 per cent of the
electrical power consumed in the northwestern U.S. To deliver that power,
Bonneville owns and operates one of the largest high-voltage electrical
transmission systems in the world. Bonneville's principal service territory
includes the states of Oregon, Washington, Idaho and portions of Montana,
California, Nevada, Utah and Wyoming. Bonneville has been supporting the
development and advancement of new technologies, in particular fuel cells,
to promote energy efficiency in its electricity markets.
Other developments
On Jan. 28, 2002, Enbridge Inc. announced that it has agreed to sell its
retail energy services business to Centrica North America. Notwithstanding
this initiative, Global and Enbridge will continue to pursue their alliance
and the development and marketing work already under way. Previously, in
July, 2000, Enbridge and Global entered into an agreement to develop and
distribute natural gas-compatible residential fuel cell products in Canada.
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
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