AlumiFuel Power Expands Its Visibility in Multi-Billion Dollar Back-Up Power Market
May 31 2012 - 7:00AM
Marketwired
Early production stage hydrogen generation company AlumiFuel Power
Corporation (OTCBB: AFPW) (the "Company") through its operating
subsidiaries, announced today that it is pursuing an increasing
number of opportunities to address industry back-up power
applications with its AlumiFuel cartridge-based technology. Beyond
what was reported in the AFPW news release of May 2, 2012,
additional industry and government players have now expressed
interest in validating the Company's unique hydrogen generation
technology to provide a viable new source of hydrogen for these
applications. A Non-Disclosure Agreement has just been signed with
a major equipment supplier to the wireless telecomm industry, and
another one is in process with a major wireless telecomm carrier.
The large and growing U.S. back-up power market, traditionally
served by lead-acid batteries and gasoline or diesel generators, is
increasingly adopting hydrogen PEM fuel cell systems to replace
these earlier technologies. The size of this market is enormous --
$6.4 billion for the emergency response segment (police, fire,
medical, disaster preparedness) and an even larger multi-billion
dollar segment for the telecom and financial services industries.
All of the national wireless telecomm carriers (AT&T, Verizon,
Sprint Nextel, T-Mobile and Metro PCS) have begun installing fuel
cell back-up power systems. As of early 2012, over 1,100 fuel cells
had been installed at cell phone tower sites, most of which are 5kW
systems. In addition, the U.S. Department of Defense has embarked
on a pilot program to install fuel cell back-up power systems on 19
military installations. The principal fuel cell companies with
products in this market include Altergy, ReliOn, Plug Power, Ida
Tech, Ballard, Hydrogenics, Intelligent Energy and Nuvera. Also,
companies such as Logan Energy serve as systems integrators in this
market, matching various fuel cell products with customers'
requirements.
This transition to fuel cell systems for back-up power is being
driven by a number of important factors: (1) Lower fuel cell prices
-- 80% reduction since 2002 and 35% reduction since 2008. (2)
Cheaper life-cycle costs -- 25-50% over 10-15 year period. Verizon
reports that use of a fuel cell back-up power system at its New
York headquarters saved $680,000 over the first year of operation.
(3) Higher power density and longer continuous runtimes. (4) Easier
maintenance. (5) Remote monitoring capability. (6) Cleaner -- no
dirty lead-acid batteries and no harmful emissions.
Today, most of these systems rely on K-Cylinders to provide the
hydrogen for the fuel cells. Virtually all of the fuel cell
companies and carriers are seeking a better hydrogen solution for
back-up power systems. The use of K-Cylinders for these
applications entails high logistics costs, handling difficulties,
and continuous high-pressure storage risks. AFPW has developed a
solution for a 5kW system which would replace 6 K-Cylinders with 6
large AlumiFuel cartridges (48"x 5" diameter). This solution
results in a much cheaper logistics chain (the cartridges can be
disposed of in city dumps), on-demand hydrogen under very low
pressures instead of constant high pressures, twice the back-up
power runtimes, and a lighter weight power cabinet. In this regard,
AFPW has expanded its dialogue with key industry and federal
government players. As an increasing number of potential
collaborators become aware of the advantages of the Company's
technology, AFPW is exploring various engineering development
scenarios for integrating the Company's technology into fuel cell
back-up power cabinets -- which would put the company into this
marketplace.
The Company's Chief Technology Officer, Mr. John Boyle, said,
"Back-up power applications represent an ideal extension of our
lift gas hydrogen generation technology and products, and provide
the Company with a very large and exciting new market segment to
pursue."
About AlumiFuel Power Corporation AlumiFuel Power Corporation,
operating through its subsidiaries, is an early production stage
alternative energy company that generates hydrogen gas and
steam/heat through the chemical reaction of aluminum, water, and
proprietary additives. This technology is ideally suited for
multiple applications requiring on-site, on-demand fuel sources,
serving National Security and commercial customers. The Company's
hydrogen feeds fuel cells for portable and back-up power; fills
inflatable devices such as weather balloons; can replace costly,
hard-to-handle and high pressure K-Cylinders; and provides fuel for
flameless heater applications. Its hydrogen/heat output is also
being designed and developed to drive fuel cell-based and
turbine-based undersea propulsion systems and auxiliary power
systems. The Company has significant differentiators in
performance, adaptability, safety and cost-effectiveness in its
target market applications, with no external power required and no
toxic chemicals or by-products.
Safe Harbor for Forward-looking Statements
This news release may contain forward-looking statements that are
made pursuant to the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. While these statements
are made to convey to the public the company's progress, business
opportunities and growth prospects, they are based on management's
current beliefs and assumptions as to future events. However, since
the company's operations and business prospects are always subject
to risk and uncertainties, the forward-looking events and
circumstances discussed in this news release might not occur, and
actual results could differ materially from those described,
anticipated or implied. For a more complete discussion of such
risks and uncertainties, please refer to the company's filings with
the Securities and Exchange Commission.
CONTACTS: Investor Relations: AlumiFuel Power
Corporation Thomas B. Olson Corporate Secretary 303-796-8940
Technical Information & Marketing: Email Contact
610-660-7775
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