Tuesday, September 9, 2008

Protonex lands $400K for more military fuel cell systems

Fuel Cell power systems company Protonex Technology Corp. has won a $400,000 contract from the U.S. Army Research Office for further development of the use of high-performance liquid fuels in its solid-oxide fuel cell power systems.

Southborough-based Protonex (LON: PTX) will modify its existing propane-fueled SOFC systems to run on fuels such as butanol, gasoline, kerosene and desulfurized JP-8, the standard military fuel for most applications. The program will run for one year, and then the hardware and test results will be delivered to the Army.

In April, Protonex received a $3.65 million contract from the Army Research Office to develop the next generation of the firm’s Pulse M250 military power system. That program was funded jointly by the Office of the Secretary of Defense, the ARO and the Army’s Communications-Electronics Research, Development and Engineering Center. The deal followed the successful completion of a previously awarded $3.5 million contract for initial development of the Pulse M250 system, originally announced in early 2007.

Protonex’s Pulse M250 is a 250-watt power system designed for a diverse set of portable military applications, including field battery charging, auxiliary power units and portable power generation. The company’s SOFC fuel cell systems operate on a variety of fuel types and are quieter than combustion-engine generators and lighter than batteries, according to company officials.

Shares of Protonex stock began trading on the London Stock Exchange’s Alternative Investment Market (AIM) last July. In its fiscal 2007, ending September 2007, the company reported a $9.4 million loss on $6 million in revenue.