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U.S. & EU Micro and Small Fuel Cell R&D,
Commercial Implication and Market/Industry Trends

December 2002
English or Japanese Version $998.00
182 pages


Executive Summary

Power consumption exists as one of the most serious challenges to the continuing mobile device evolution. With advancement in processor and display technology far outpacing similar advancement in battery technology, vendors must develop careful power consumption strategies.

Significant resources are devoted to seeking out the next major battery chemistry improvement since the evolution of Lithium-ion in the early 1990s, and component vendors are striving to push the performance and power management envelope.

Power requirements for portable devices in the future are to a significant degree driven by MooreÕs law. This is because more powerful processors and chips, which will run at faster clock speeds, will be placed into these electronic devices thus enabling more features and functions. These new features and functions will require more energy.

To reach higher energy densities we need to look at newer, non-traditional sources of energy. One of the most promising approaches for providing high energy density and longer runtime to portable products resides in a class of electrochemical cells that use air-breathing electrodes. Metal-air cells and hydrogen fuel cells are two prominent examples of this air-breathing electrochemical technology. In metal-air cells the air electrode is combined with a metal anode, such as zinc or aluminum. In a fuel cell, the air electrode is combined with hydrogen as the anode to complete the electrochemical couple.

Fuel cells have the theoretical potential to increase the energy density to a higher level than most advanced battery technologies. We will be investigating fuel cells units in an electrical power output ranging from less than 1 watt to around several hundred watts and those companies that are at the forefront of research and development of this hot new technology.

Even though the fuel cell was discovered over one hundred years ago, there are few records of significant development work in portable fuel cells until the early 1990s. However to date most of companies in this market have only produced one or two prototypes.

Without fuel cells, reliance will remain upon the incremental improvements in the energy densities of batteries. Specifically, developers and consumers will be forced to either 1) carry spare batteries or 2) accept a larger battery in their device or 3) hope that electronics developers are able to reduce power consumption in their new devices. These are not attractive options.

In this report, we examine 46 fuel cell companies in the micro and small fuel cell markets:
25 research and development companies and institutes, 10 component companies, 3 nanotechnology component companies and 8 testing measurement and consulting companies.

Table of Contents

1 Overview of Current R&D Industry Trends
         Fuel Cells versus Batteries

   1.1 Micro Fuel Cells
      1.1.1 R&D Segment
      1.1.2 R&D and Industry Activities and Trends
      1.1.3 Competitive Analysis

   1.2 Small Fuel Cells
      1.2.1 R&D Segment
      1.2.2 R&D and Industry Activities and Trends
      1.2.3 Competitive Analysis

2 Major Research Findings

   2.1 Micro Fuel Cells
      2.1.1 Markets and Marketing Trends
         Marketing and Demographics
         Distribution
      2.1.2 Category and Technology Trends
         Fuel Cell Design Considerations
         Fuel Cell Design Problems
         Direct Methanol Fuel Cells Problems and Solutions
         Metal-Air Cells Problems and Solutions
      2.1.3 Product Development Trends
         Metal-air for consumer markets
      2.1.4 Commercialization Trends
         Fuel Cell Costs
         Scientific and Technical Barriers to Commercialization
         Specifications for a commercial product
      2.1.5 Patent Trends
      2.1.6 Capital Markets and Strategic Alliance Trends
         Small start up company strategies
         Financing and Venture Capital
         Government Assistance in Financing
      2.1.7 Core Strengths
      2.1.8 Strategic Conclusions
         Regulatory Issues

   2.2 Small Fuel Cell
      2.2.1 Market and Technology Opportunities
      2.2.2 Category and Technology Trends
      2.2.3 Product Development Trends
               Military Market
      2.2.4 Commercialization Trends
      2.2.5 Patent Trends
      2.2.6 Strategic Alliances and Capital Market Trends
      2.2.7 Core Strengths
      2.2.8 Strategic Conclusions

3 Global Market Opportunities and Forecasts

   3.1 Micro Fuel Cells
      3.1.1 Worldwide Micro Fuel Cell Shipment
         Researcher's Analysis and Comments
      3.1.2 Worldwide Market for Methanol Fuel Cell Cartridges
         Researcher's Analysis and Comments
      3.1.3 Worldwide Market for Micro Fuel Cells by Technology
         Researcher's Analysis and Comments

   3.2 Small Fuel Cells
      3.2.1 Worldwide Market for Small Portable Fuel Cells

4 Micro Fuel Cell Mobile Device Market
   4.1 IT Devices Market
      4.1.1 Worldwide Market for Notebook PCs
         Researcher's Analysis and Comments
      4.1.2 Worldwide Market for PDAs
         Researcher's Analysis and Comments

   4.2 Telecom Devices Market
      4.2.1 Worldwide Market for Cellular Phones
         Researcher's Analysis and Comments

   4.3 Other Mobile/Portable Devices Market
      4.3.1 Worldwide Market for Portable CD Players
      4.3.2 Worldwide Market for Video Camcorders

5 Ranking of Fuel Cell R&D Companies

   5.1 Micro Fuel Cells Ranking
   5.2 Small Fuel Cell Ranking

6 Fuel Cell Companies Status Summary

   6.1 Fuel Cell R&D Companies by Application Type
   6.2 Fuel Cell Component Companies by Application Type
   6.3 Fuel Cell R&D Companies: Technology, Application and Target Market
   6.4 Fuel Cell Companies: Status of Commercialization

7 R&D and Related Company Activities
   7.1 R&D Companies
         AER Energy
         Aluminum Power Inc. and Trimol Group
         Angstrom Power Inc.
         Astris Energi
         Ballard Power Systems Inc.
         Case Western Reserve University
         Direct Methanol Fuel Cell Corporation
         Electric Fuel Corp.
         Enable Fuel Cells Corporation
         Ener1, Inc.
         Energy Related Devices Inc.
         Energy Visions Inc.
         eVionyx
         Fraunhofer ISE
         H Power Corporation
         H2 ECOnomy
         Manhattan Scientifics, Inc.
         Mechanical technology, Inc. (MTI)
         Medis Technology Ltd.
         Motorola
         Neah Power Systems
         Palcan Fuel Cell Ltd.
         PolyFuel
         PowerZinc Electric Inc.
         Smart Fuel Cell

   7.2 Component Vendors
         BASF
         Cabot Corporation
         Celgard Inc.
         Dais-Analytic Corporation
         David Fuel Cell Components
         ElectroChem, Inc.
         Element 1 Power Systems
         Hoku Scientific
         Timcal
         TVN Systems
      7.2.1 Nanotechnology Component Companies
         Materials and Electrochemical Research (MER)
         Microcoating Technologies
         Nanoproducts

   7.3 Test Measurement and Consulting Companies
         Advanced Measurements
         American Reliance Inc.
         Arbin Instrument Corp.
         Bekk Tech LLC
         Gamry Instruments, Inc.
         Greenlight Power
         Lynntech Industries, Ltd.
         Scribner Associates

8 Market Reality and Directions
   8.1 Fuel Cell Market Reality
         What's Needed to Commercialize Fuel Cells
         The Demand for Longer Lasting Power
         Fuel Cell Development and Design

   8.2 Assessment of Different Fuel Cell Technologies
         Proton Exchange Membrane Fuel Cells
         Alkaline Fuel Cells
         Direct Methanol Fuel Cells
         Zinc-Air Fuel Cells

   8.3 Future Direction

         Appendix: Fuel Cell Primer
         Fuel Cell Types for Micro and Small Applications
         Alkaline Fuel Cells
         Proton (or Polymer) Exchange Membrane (PEM) Fuel Cells
         Direct Methanol Fuel Cells
         Metal air cells
         Zinc-Air Fuel Cells (ZAFC)
         Batteries

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