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Hello All,
This is my first time posting here although I have been lurking for awhile.
I knew nothing about this company until 3 weeks ago when I was sent on assignment by WIRED magazine to photograph the co. for a feature. Yes, WIRED is doing a story on them for the Oct. issue, which is quite favorable, I might add.
I got a tour of the plant by Paul Lancaster, who happens to be head of investor relations. Although there has been an emphasis by the press, and this thread, on the use of hydrogen fuel cells in autos and buses, I was most impressed by their stationary power plants.
The prototype I viewed was the size of normal water heater and was designed to convert natural gas for use in the fuel cell. It could provide all the heat and electric for a normal sized house at 60% better efficiency than burning the fossil fuel. I am not an engineer and do not remember the exact outputs etc. According to Paul this particular unit would not be ready for market for 7 to 10 years. He said the current emphasis will be on larger plants that could power a small housing development or a factory.
Considering the coming deregulation of many utilities, future shortages, and rising electric prices. I could see how many communitues and business's would love to find a way to jump off the power grid. Also, think of all the 3rd world countries where ther are constant blackouts and power surges. I think it might be worth alot to get some clean juice.
Sid, you maintain the cost of removing the carbon monoxide from the hydrogen stream will be too high. What do you base this on? Is this not just a matter of R&D to find more efficient ways of doing so.
Check out this paragraph in the next post:
{The agreement calls for Westinghouse to develop further
improvements to its "tubular" solid oxide design. The improvements
are intended to reduce costs and improve reliability -- two factors
critical to future commercial acceptance. Engineers will work on
improving the technology itself, focusing largely on the development
of a pressurized solid-oxide fuel cell generator that can achieve
the ultra-high fuel-to-energy efficiencies, and on improved
manufacturing techniques that will lower production costs.}
Some other tidbits I learned from Paul: Most institutional investors in Ballard are European mutual funds that tend to make long term investments, and are willing to wait for returns. Most domestic investments (US & Canada) are made by individuals. Could this be why I noticed a recent stock price increase on a day when the dollar was down? Perhaps I'm just imagining things.
I am looking at this stock as a long hold. Just not sure the price is right at the moment. I am not a genius at FA. Would love some input on this.
P.S. Got to see the Chicago buses drive around. They are really cool . Just a little steam puffs out the pipe at the back. They should be in Chicago by now.
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