Are fuel cells catching on? Plug Power, a pioneer in the fuelcell industry incorporated in 1997 with 25 employees, now has 250.The company broke ground this week for a 50,000 square feetmanufacturing facility that will double its current space.

The new facility will enable Plug Power to begin beta unitproduction of Proton Exchange Membrane (PEM) fuel cell systems forfield testing starting next year and commercial sale beginning in2001. “We are literally bursting at the seams,” said Plug PowerPresident Gary Mittleman. “With this plant we will be able to meetall of the early commercial product on demand, for worldwidedistribution by GE Fuel Cell Systems.”

The company, based in Latham, NY, expects to employ 300 personsby the end of the year. A joint venture of DTE Energy (DetroitEdison) and Mechanical Technology, Plug Power earlier this yearsigned a memorandum of understanding with GE Power Systems to form”GE Fuel Cell Systems,” a joint venture that will sell, install andservice Plug Power-designed and manufactured fuel cell systems.

Plug Power has developed a prototype residential fuel cellsystem that produces more than enough power to meet the energyrequirements of an average-sized home. The units will operate onnatural gas, propane or methanol and can achieve 40% electricalefficiency in simple-cycle operation. When excess heat generated bythe fuel cell is captured and re-used, overall efficiency can reach70-85%.

Under the terms of the understanding, GE Fuel Cell Systems willdistribute Plug Power fuel cells for residential and smallcommercial power applications worldwide, except for Michigan,Indiana, Ohio and Illinois. As part of its fuel cellcommercialization approach, GE plans to partner with a selectnumber of gas distribution companies, electric utilities, electricservice companies and power marketers.

In mass production, a residential fuel cell system is expectedto retail for $3,000-5,000. At these prices, fuel cells cangenerate electricity at 7-10 cents per kilowatt hour, depending onthe fuel costs in a given market.

©Copyright 1999 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.