AlumiFuel Power, Inc. Provides Update on Its Flameless Ration Heater Initiatives

Early production stage hydrogen generation company AlumiFuel Power, Inc. (“API”), the Philadelphia, Pennsylvania-based wholly owned operating subsidiary of AlumiFuel Power Corporation (OTCBB: AFPW  ),  announced today that it is continuing to make progress in penetrating the $70 million worldwide market for Flameless Ration Heaters (FRHs) for military and commercial markets. (See API news releases of January 4, 2010 and December 22, 2009)
API has now completed the next level of testing of its Flameless Ration Heater (FRH) product. In addition to exceeding the heat output of the existing FRH, the API product does not have the metallic smell of the present magnesium powder-based FRHs, which represent a $36 million annual market for the U.S. military. API has presented its product concept and test results to key personnel in the Department of Defense, and is actively working with them to qualify API as a subcontractor to the three Meals-Ready-to-Eat (MRE) assemblers now supplying the U.S. military market.
In addition to further optimizing its powder mixture for FRH applications, API and its world class packaging partner, ActionPak (see API news release of February 19, 2010), have begun to develop the most cost effective production packaging configuration for the FRH. The two companies are jointly working to develop a novel packaging method that will increase the product’s performance, decrease cost, and be environmentally friendly.

In addition to developing the FRH for domestic military and civilian markets, API is positioning itself to introduce the product overseas. NATO countries use approximately $20 million worth of products equivalent to MREs annually. These meals either feature no heating system or use a hexamine tablet for heating, an expensive method requiring an open flame, which releases potentially dangerous gases such as cyanides and carbon monoxide, and leaves a sticky residue.
Military units in NATO countries have become familiar with U.S. military MREs/FRHs, and have been seeking independent sources of these products directly from distributors. This has caused NATO Ministries of Defense to consider adopting the U.S.-type MRE/FRH technology/products on a contractual basis. As a result of this growing interest, API and ActionPak are exploring specific near-term FRH procurement opportunities in Europe.

API’s Director of Engineering, Mr. Sean McIntosh, said “We are looking forward to commercializing this product on a worldwide scale. Heat generation is a very important part of API’s technology, and the knowledge that we have gained during the development of this FRH will be useful in the development of related products such as personal handwarmers.”

ActionPak, Inc. Begins Production of AlumiFuel Power, Inc.'s PBIS-1000 Cartridges

Early production stage hydrogen generation company AlumiFuel Power, Inc. (“API”), the Philadelphia, Pennsylvania-based wholly owned operating subsidiary of AlumiFuel Power Corporation (OTCBB: AFPW), announced today that ActionPak Inc., a Philadelphia area world-class packaging and assembly company with a 30-year industry pedigree, has begun production of API’s AlumiFuel cartridges which provide the fuel for API’s Portable Balloon Inflation System 1000 (PBIS-1000). Three PBIS-1000 units were recently purchased by a military customer. (See API news release of February.

API’s 32-oz. cartridges, filled with aluminum powder and proprietary additives, are inserted into two reactor vessels on the PBIS-1000 to generate 1,000 liters of hydrogen in 20 minutes once water is pumped into the cartridges. API has designed the cartridge to withstand the necessary temperatures and pressures, while maintaining its integrity. API and ActionPak have devised and implemented a process to produce the cartridges efficiently and cost effectively. API’s PBIS-1000 portable hydrogen generator, along with ten cartridges, generates the same amount of hydrogen (5,000 liters) as a heavy and hard-to-handle K-Cylinder. By replacing highly pressurized K-Cylinders, API’s generator and cartridge-based system greatly reduces the cost and danger of transporting hydrogen, making the gas more readily available in remote and other inaccessible locations, as well as for portable applications.

Having the flexibility, capability, and capacity to produce the cartridges in high volumes, ActionPak agreed to manufacture API’s cartridges on an outsourcing basis. With ActionPak’s background, expertise, and versatility in military and commercial packaging, both companies are looking to create a long-term relationship and have already begun exploring options for the production of API’s Flameless Ration Heaters for military and commercial customers worldwide. (See API news releases of January 4, 2010 and December 21, 2009.)

API’s Director of Engineering, Mr. Sean McIntosh, said: “ActionPak is as excited as we are about the many new business opportunities emanating from this relationship. The proximity of their plant and their ability to quickly adapt to new requirements are an ideal match for API’s needs.”

About ActionPak, Inc.

ActionPak (www.actionpakinc.com), a premier contract packaging and assembly company for more than 30 years, is located in a suburban Philadelphia Industrial Park. ActionPak has over 250,000 square feet of production and warehouse space, and a workforce of over 200 employees. The company services many major brands and Fortune 500 companies, helping to design, assemble and package products. ActionPak’s business is diverse, and to prevent cross contamination, Food, Beverage and Over the Counter products are kept in separate buildings from its Military, Industrial and Export packing businesses. Since it executes both U.S. Military and Foreign Military sales contracts, the company is thoroughly familiar with military handling and shipping requirements, and a resident Department of Defense (DoD) Quality Assurance Representative is stationed at its facility. ActionPaks key accounts have included: General Electric, Northrop Grumman, Coca-Cola, Heinz, ConAgra, and the DoD.

About AlumiFuel Power, Inc.

API (www.alumifuelpowerinc.com) is an alternative energy company that generates hydrogen gas and superheated steam for multiple niche applications requiring on-site, on-demand fuel sources, serving National Security and commercial customers. API’s hydrogen drives fuel cells for back-up and portable power, fills inflatable devices such as weather balloons, and can replace costly, hard-to-handle and high pressure K-Cylinders. Its hydrogen/steam output is also being designed and developed to drive turbine-based underwater propulsion systems and auxiliary power systems. API 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.

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Milestone Reached.

Today's Company press release details the first successful sales of the PBIS-1000 Portable Balloon Inflation System to a unspecified Military customer. The rapid commercialization of Alumifuels technology bodes very well for investors taking part in this Ground Floor Opportunity.

Press Release 2-09-2010→

Early production stage hydrogen generation company AlumiFuel Power, Inc. (“API”), the Philadelphia, Pennsylvania-based wholly owned operating subsidiary of AlumiFuel Power Corporation (OTCBB: AFPW), (the “Company”), announced today that it has received a Purchase Order for three units of its PBIS-1000 Portable Balloon Inflation System. The Purchase Order was received from Kaymont Consolidated Industries, Inc. of Long Island, New York – the world’s largest distributor of weather balloons and API’s partner for lift-gas applications – on behalf of an unspecified military customer. Following successful delivery of this initial order, the customer is expected to place an additional Purchase Order in the Second Quarter.

The PBIS-1000 recently was displayed at the Annual Meeting of the American Meteorological Society in Atlanta, where it generated considerable interest among potential customers. The majority of the PBIS-1000 manufacturing will take place at APEX Piping Systems, Inc., a large world class welding and manufacturing facility in nearby Delaware. (See API news releases of January 20, 2010, January 15, 2010, and December 30, 2009).

The PBIS-1000 is API’s first commercially available product. Incorporating feedback from the military customer, this fourth generation PBIS-1000 unit is a significant upgrade over prototype systems previously demonstrated to the customer over an 18-month period. The production unit has a simpler design with fewer components, and is lighter, more compact, more ruggedized for military applications, more user-friendly, and more cost-effective. Using a higher grade stainless steel construction with better corrosion properties and durable fluorocarbon rubber for all seals, the upgraded unit can better withstand required pressures and temperatures over its long expected lifetime. The reactor and water tanks, as well as all plumbing lines and connectors, have been optimized for weight, simplicity, and cost, and are stamped and certified with the ASME code – a standard requirement for commercial pressure vessels. The unit meets Mil Spec requirements for vibration, environmental and drop tests, and is housed in a molded polyethylene carrying case used regularly by the military.

In addition, a more effective packaging configuration of the company’s proprietary AlumiFuel cartridges increases the speed of the reaction and the hydrogen yield, while reducing cartridge cost. The versatile PBIS-1000 unit can produce 1,000 liters of hydrogen in 20 minutes at ambient temperature and atmospheric pressure using only two 32-oz. AlumiFuel cartridges.

The PBIS-1000 man-portable reactor and launching unit uses API’s proprietary AlumiFuel technology to produce hydrogen through the powerful chemical reaction of powdered aluminum, water and proprietary additives. The device requires only a simple water hand pump and two small AlumiFuel cartridges to propagate the reaction and generate sufficient lift gas to launch a 5-foot diameter weather balloon.

This API innovation, which enables on the spot generation of hydrogen without any external energy or toxic chemicals, is easier to use and is cheaper than current lift gas solutions. Traditionally, helium has been used as the primary lift gas, but with the increasing scarcity and cost of helium, users are rapidly switching to hydrogen. The API portable launching unit is far more mobile and cost-effective than other on-site hydrogen generation systems. The global market for lift gas fuel is approximately $70 million and growing, with more than 1,000,000 weather balloons and special purpose balloons launched annually for telecom relay, cloud height measurement and military/national security applications.

API’s Chief Technology Officer, Mr. John Boyle, one of the nation’s foremost hydrogen experts, said, “We have devoted significant technical talent, expertise and perseverance to develop this one-of-a-kind lift-gas system. The production unit, which is not available anywhere else in the world, represents a remarkable integration of mechanical, chemical, fluid and gas design elements.”

API’s President and Chief Executive Officer, Mr. David Cade, said, “This Purchase Order is the most significant milestone in the history of API. This first 'sale' is important in its own right, but in addition, other potential balloon lift-gas customers, including military and environmental/weather service users, are closely following the progress of these first operational units. Along with Kaymont Consolidated, we will be scheduling near-term demonstrations for this expanded customer base. The PBIS-1000 also enables us to demonstrate the applicability of our technology to other mobile, back-up, auxiliary and remote power applications in our target markets, feeding fuel cells and driving turbine-based underwater propulsion systems and generators.”

Source- http://finance.yahoo.com/news/AlumiFuel-Power-Inc-Receives-bw-3241814322.html?x=0&.v=1