News out today for ERC! Sounds like Daimler-Benz likes ERC's larger fuel cells. Here is the news:
Wednesday July 22, 9:25 am Eastern Time
Company Press Release
Energy Research Announces Cross-Licensing and Cross-Selling
Agreement With Daimler Benz Affiliate
DANBURY, Conn.--(BUSINESS WIRE)--July 22, 1998--Energy Research Corporation (AMEX:ERC - news) entered into
an agreement today to expand its long term partnership with MTU Friedrichshafen Gmbh, of Daimler-Benz AG (NYSE:DAI -
news). The partnership has been in place for almost 10 years and includes a license for fuel cell technology and a significant
equity position in ERC.
The agreement will allow both ERC and MTU to manufacture and sell each other's stationary power fuel cell products in their
respective regions, and as a result ERC will manufacture and sell direct carbonate fuel cell (DFC) power plants based on
MTU's 300 kW base module in North America. Also, under the agreement MTU will be allowed to manufacture and sell
ERC's larger fuel cell power plant based on ERC's 1.25 MW base module in the European market. Each company will pay the
other royalties based on sales. ERC expects for the foreseeable future to continue to produce the DFC-9000 fuel cell stacks
used in both companies' products.
''This is a major step toward developing a worldwide market for our fuel cells'' said Jerry Leitman, CEO of ERC. ''It gives us
access to the European market for our larger size plants, with the support of an aggressive marketing partner and an influential
consortium. With the high price of fuel and electricity and the strong 'green' sentiment there, we believe there are excellent
prospects for our fuel cell power plants because of their extremely high efficiency and environmental benefits.''
''Secondly, this agreement gives us a small size fuel cell power plant to sell in the US without significant development expense.
As the US electricity markets are becoming deregulated, we believe it makes sense to have a broader product line. In
particular, we have noted increasing interest from natural gas companies wanting to get into electricity generation, and from
industrial and commercial companies interested in saving on energy costs. Many of these potential customers may be interested
in a smaller size power plant designed to maximize cogeneration power. In addition, we expect this product to be available for
commercial sale earlier than our larger units, which continue on schedule.''
''Finally, to the extent that this agreement, by opening up new markets for both companies' products, increases demand for
ERC's DFC-9000 fuel cell stacks, it should help lower ERC's cost of production.''
''Today's announcement is a significant milestone in our long-term partnership with ERC and a promising message to our
customers in the US and Europe,'' said Mr. Michael Bode, Executive Vice President and Director of the New Technologies
Group of MTU Friedrichshafen. With our Hot Module, MTU has implemented a first-of-its-kind design approach for a 300 to
500 kW modular DFC building block integrating one horizontally positioned fuel cell stack with auxiliary system components
into a common containment. The Hot Module is the basis and core of our small to medium sized plants in the range of 0.3 to
2.0 MW specifically suited for cogeneration applications in the industry. To build larger size plants our friends in ERC offer their
MCFC modular building block comprising four vertical stacks generating 1.25 MW of electrical power. As ERC and MTU
combine their balance-of-plant know-how and use each other's modular building block and plant design we gain a full line of
DFC plants from 300 kW approaching 10 MW for cogeneration and distributed power generation. With the Cross-Licensing
and Cross-Selling Agreement ERC and MTU join their forces and take full advantage of complementary development and
marketing efforts to the benefit of our customers. It's our move to speed up the commercialization of the DFC technology!''
The MTU fuel cell power plant is designed to greatly reduce the cost of smaller units by an innovative integration of fuel cell
auxiliary equipment (''balance-of-plant'') into the fuel cell module itself. Balance-of-plant typically has a cost twice that of the
stack itself, and is thus a primary target for cost reduction.
ERC has focused on building large size (1MW) plants because several important balance-of-plant components become much
less expensive per kW as the power plant size increases. The MTU design attacks this problem in a different way, by radically
simplifying the design of the balance-of-plant, thus eliminating the need for many of the components. The result is a modular
product measuring just 9.0 meters in length and 2.5 meters in width, able to fit in a standard shipping container or on the back
of a truck, for easy delivery and installation.
Using fuel cell stacks manufactured by ERC, the MTU fuel cell module produces 300 kW of power with a greater efficiency
level compared to conventional means, such as gas turbines and diesel generators, as well as other types of fuel cells. The ERC
and MTU power plants both utilize pipeline gas, directly, as a fuel. These power plants have no requirement for an external
reformer system to preprocess the fuel as do other types of fuel cells. Reforming is a chemical process which adds to power
plant costs while at the same time lowering overall power plant efficiency. In addition to its electrical output, the MTU fuel cell
creates high quality heat which can be used for industrial purposes or to generate additional electricity from a steam turbine.
Low temperature fuel cells lack this capability.
MTU was aided in the development of its power plant by a consortium consisting of, Ruhrgas AG, the largest natural gas
company in Germany, RWE Energie AG, a large, diversified company with interests in electric power, engineering, and
petrochemicals, Elkraft, a Danish electric utility and Haldor Topsoe A/S, a leading Danish chemical plant engineering firm.
Energy Research Corporation, located in Danbury and Torrington, Connecticut, is an internationally recognized leader in the
field of electrochemical technology for electric power generation and storage. ERC is developing its Direct Fuel Cells and
batteries through funding from and in cooperation with government, electric utility and major international industrial
organizations.
This press release contains forward-looking statements regarding the completion of the development, potential markets and
commercialization of ERC's fuel cell products, as well as the manufacture and sale by ERC of MTU's carbonate fuel cell power
plants in the United States. The successful development and commercialization of the fuel cell power plants involve significant
risks and uncertainties. There can be no assurance that the development of ERC's fuel cells, or the manufacture and sale of
MTU's fuel cells by ERC, will be able to compete successfully in any of the targeted markets. The forward-looking statements
in this press release speak only as of this date. ERC expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statement contained herein to reflect any change in ERC's expectation with regard
thereto or any change in events, conditions or circumstances on which any such statement is based.
Contact:
The Teller Group, LLP
Rick Teller, 781/545-3600
e-mail: teller@bloomberg.net |
