HydroGen Corporation will use the funds to optimize decisions and resource allocations for its planned advanced manufacturing facility to be located in Ohio. The facility is where the company will mass produce its standard 400-kilowatt (kW) air-cooled PAFC modules, which serve as the building block of HydroGen's core product, a 2 megawatt (MW) power island. Initial production capacity will be 25 MW per year of the company's 400-kW modules, and will later be expanded to 100 MW per year capacity. The company is targeting 2008 for the construction of the facility, with the expansion to 100 MW per year capacity planned for 2010.
"With this award, we will greatly accelerate our advanced manufacturing development work, which we are undertaking in parallel with our day-to-day manufacturing operations," said Dr. Leo Blomen, Chairman and CEO of HydroGen. "The planned 25 MW per year facility is critical in achieving fuel cell module cost reductions that will allow us to become cash-flow positive while competing on a cost basis with other forms of distributed power generation using fossil and other fuels. The fuel cell modules represent the only major area for cost reduction that we require for full market penetration, since the economies of scale and standard balance-of-plant we utilize in our complete systems already give us sufficiently low system costs today."
Added Joshua Tosteson, President of HydroGen Corporation, "We are honored to receive this, our second grant from the Ohio Department of Development and the Third Frontier Project's Ohio Fuel Cell Initiative program, which will help us create approximately 200 jobs in the State when the 25 MW per year facility is fully operational. We are grateful to the State of Ohio for its continued support of our company, and for the state's unique, sustained commitment to the commercialization of fuel cells. We are proud to help lead the initiative and to partner with Ohio as we prepare for mass manufacturing of our fuel cell product."
About HydroGen Corporation and HydroGen, LLC
HydroGen Corporation, through its wholly-owned subsidiary, HydroGen, LLC, is a developer of multi-megawatt fuel cell systems utilizing its proprietary 400-kilowatt phosphoric acid fuel (PAFC) cell technology. Utilizing fuel cell technology originally developed by Westinghouse Corporation, the company targets market applications where hydrogen is currently available and other drivers favoring the adoption of fuel cells are present.
Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently unreliable and actual results may differ materially. Examples of forward-looking statements in this news release include statements regarding HydroGen's anticipated economically competitive fuel cell systems. Factors which could cause actual results to differ materially from these forward-looking statements include such factors as fluctuations in demand for HydroGen's products, HydroGen's ability to maintain strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of HydroGen's liquidity and financial strength to support its growth, and other information that may be detailed from time to time in HydroGen's filings with the United States Securities and Exchange Commission. HydroGen undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
HydroGen Corporation Joshua Tosteson, 412-405-1000 Email Contact or Makovsky + Company Investor Relations: Hulus Alpay, 212-508-9600 Email Contact