AlumiFuel Power, Inc. Announces Further Unmanned Underwater Vehicle Fuel Technology Advancements.

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 has begun design work on a hydrogen generator to power a fuel cell for Navy Unmanned Underwater Vehicle (UUV) and submersibles applications. This design work is being done in parallel to the prototype superheated steam generator for naval underwater applications which API is already working on in conjunction with selected defense contractors (see API news release of March 2, 2010).
The hydrogen generator is based on the same powerful chemical reaction currently used in the PBIS-1000 hydrogen generator (see API news release of February 9, 2010). In this application, however, the hydrogen is used to power a fuel cell instead of filling a weather balloon. The prototype steam generator will be sized very similar to the superheated steam generator, and will be used to power a 100W fuel cell for several days. It will also demonstrate the start and stop capabilities of the system, similar to the steam generator. The calculated system energy density of a hydrogen powered fuel cell system has the potential to be equivalent to or even greater than that of superheated steam-driven turbines. This improved energy density is a result of much higher efficiency fuel cells, some achieving efficiencies in excess of 50%.

API’s plan is to ultimately integrate these two generators as a hybrid power source on board an underwater platform to further advance AlumiFuel’s already high energy density – five times that of lithium batteries, which equates to significant increases in range and operating time for critical Navy missions. Each type of generator would be activated at different times, depending on the mission requirements and profile.

API’s Director of Engineering, Mr. Sean McIntosh, said, “The development of a hydrogen generator to run a fuel cell for UUV applications fits very nicely with our work on the superheated steam generators for underwater propulsion. In one case the power source comes from superheated steam and generates hydrogen as a byproduct, and in the other case, it is the exact opposite. The outcome is two very similar looking reactors, which actually doubles the return on our engineering development effort. And it should not be forgotten that both the hydrogen and the superheated steam represent a clean, safe fuel source.”

AlumiFuel Power, Inc. Highlights Size of Addressable Markets

Early production stage hydrogen generation company AlumiFuel Power, Inc. (“API”), the Philadelphia, Pennsylvania-based wholly owned operating subsidiary of AlumiFuel Power Corporation (OTCBB: AFPW)  provided additional information today on the size of the target markets for its on-site, on-demand hydrogen and superheated steam generation technology and products.
The global hydrogen market is about $2.5 billion and growing at a rate of 16% per year. The U.S. share is $1.6 billion, while Europe is at $740 million. This market includes hydrogen generation, storage, distribution and dispensing devices. However, it is important to note that these numbers do not reflect market applications presently using older technologies which could be replaced by hydrogen-based systems and products. Included in this category are the following markets which are being aggressively pursued by API:

• $8 billion market for back-up and auxiliary power consisting of fossil-fuel generators and batteries -- which are ripe for being supplanted by portable and stationary fuel cells powered by hydrogen.
• $150 million market for weather balloons, about $75 million of which is spent on the actual lift gas, now transitioning from scarce helium to abundant and lighter hydrogen.
• $75 million market for Flameless Ration Heaters (FRHs) for military and commercial Meals-Ready-to-Eat (MRE) applications which today use magnesium-based powders that are inferior to aluminum-based powders in terms of performance and cost. Moreover, this number does not include a large emerging European military market for FRHs.

In a similar category, there is a large ($3 billion) and rapidly growing maritime market for Unmanned Underwater Vehicles (UUVs) and submersibles, which presently are being served by battery technologies and products. The use of API’s superheated steam to drive turbines for underwater propulsion increases the operating time and distance over batteries by a factor of 4-5, very significant in terms of mission-critical performance. API is collaborating with several major defense industry players in developing and fielding this technology for naval and commercial customers.
API’s other target hydrogen markets include the following:

• $50 million market for K-Cylinder replacement. This entails lining up industrial gas distributors who will have customers that would prefer API’s PBIS-1000 portable hydrogen generator (see API news release of February 9, 2010) to bulky and pressurized K-Cylinders for field applications, particularly in remote and inaccessible locations. 

• $200 million market for international licensing. This entails licensing API’s intellectual property (patents and proprietary know-how) to partners in Europe and Asia for applications in those geographic regions.
• $125 million market in special defense applications. API is working with several companies in addressing new mission-critical applications which are made possible by the use of API’s unique technology as a breakthrough.

API’s President and Chief Executive Officer, Mr. David Cade, said, “We are very fortunate to have so many possible market applications for our technology and products, and the industry partners to help us penetrate these markets. However, we can’t do everything at once, so it is important for us to stay focused on those applications which have the highest likelihood of success and can have the biggest impact on shareholder value -- and we intend to continue doing just that.”

AlumiFuel Power, Inc. Announces Update of Its Unmanned Underwater Vehicle 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 has made major advances in applying its technology to U.S. Navy Unmanned Underwater Vehicle (UUV) applications, and in positioning API for specific UUV program opportunities.

API has begun advanced design work on a prototype steam generator for Navy UUV applications (see API news release of January 4, 2010). The steam generator is based on the same powerful chemical reaction currently used in the PBIS-1000 portable hydrogen generator (see API news release of February 9, 2010). In this application, however, the exothermic reaction between water and aluminum is used to superheat steam to drive a turbine providing underwater propulsion. The prototype steam generator/turbine system will be sized to generate a constant 100W for several days, and start and stop capabilities will be built into the system. The calculated system energy density of the steam generator/turbine, after taking into account the efficiency of each component, is 5-10 times greater than the lithium-ion batteries currently being used for Navy UUV and submersibles applications.
API is also exploring the use of the superheated steam/hydrogen to run thermoelectric converters/generators, and the use of the generated hydrogen to power a fuel cell during operational periods where the vehicle would have access to air.
Based on recent visits and demonstrations, API believes there is a growing recognition on the part of the Navy and several major defense prime contractors that API’s technology may be a viable replacement for (or adjunct to) batteries to power underwater vehicles. As a result, API and potential partners are exploring an increasing number of specific R&D program opportunities for 2010 and 2011 that would fund further development of this advanced fuel source technology, which would ultimately lead to procurement involving multiple Navy platforms.
API’s director of engineering, Sean McIntosh, said, “This technology is more than an incremental increase in energy density – it is a giant leap forward. With this technology, UUVs will have an enormous increase in operational range, allowing them to complete missions that are currently impossible with today’s battery solutions.”