Catalytica Receives Fuel Cell Energy Research Award

    MOUNTAIN VIEW, Calif.--July 2, 2001--Catalytica Energy Systems, Inc. announced today that it has been selected by the U.S. Department of Energy (DOE) for an $11.2 million cost-shared contract to help fund research and development of fuel processing technology for use in automotive fuel cell applications.
    The 36-month program will focus on developing a compact fuel-flexible fuel processor for use with PEM fuel cells in transportation applications. The intended outcome of the program is to design a 50 kW fuel processor capable of converting gasoline and other fuels into pure hydrogen needed to power the fuel cells. The current lack of viable, lightweight fuel processing technology remains an obstacle to wide-scale commercialization of fuel cells for vehicular use. Catalytica Energy Systems anticipates combining its proprietary Xonon(TM) Cool Combustion technology and its fuel reformer technology to construct a cost-effective fuel processing system that offers low volume and weight, high efficiencies, and rapid transient response, thus facilitating the commercial use of fuel cells in transportation applications.
    In announcing the awards, DOE Secretary of Energy Spencer Abraham commented on the importance of overcoming technical barriers to introducing new fuel cell technologies to consumers. "One of the key recommendations of the National Energy Policy is to improve energy efficiency through the implementation of innovative technology," Secretary Abraham said. "Fuel cell research is very promising as a future power source for transportation and buildings but high component costs, start-up time, and size and weight remain barriers to introducing these new technologies to the public."
    "Fuel cells, hydrogen technology and advanced combustion energy engines are among the most promising areas of the department's research and development work," Secretary Abraham further stated. "By working together with partners from industry and the academic community we can make the technological advances and scientific breakthroughs needed to fully realize the potential of these technologies."
    Craig Kitchen, president and CEO of Catalytica Energy Systems, said, "We are gratified that the DOE has recognized the potential of our technology to deliver a fuel processing solution for expanded use of fuel cells. Receipt of this competitive award will enable us to build on three years of research and development of fuel reforming and processing technologies. We look forward to broadening the application of our Xonon technology to new markets and expanding our focus on exciting new product areas for the company."