Alternative Energy

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DESC NEWS - signed a contract with Shell Hydrogen LLC !!!!!!! (Not rated) 5 minutes ago Station to Use Advanced Electrolysis Technology for Onsite Hydrogen Generation

WALLINGFORD, Conn., Oct 16, 2006 /PRNewswire-FirstCall via COMTEX/ -- Proton Energy Systems Inc., a subsidiary of Distributed Energy Systems Corp. (DESC), announced today that its hydrogen technology group has signed a contract with Shell Hydrogen LLC, part of Royal Dutch Shell plc (NYSE: RDS-B) to install a hydrogen fueling system in the New York City metropolitan area. The contract will showcase Proton's onsite hydrogen generation technology for vehicle fueling.

The fueling system, based on proton exchange membrane electrolysis technology, converts electrical energy and water into hydrogen fuel, to then be stored on-site and safely dispensed into clean and efficient hydrogen- fueled automobiles.

The installation of this system represents another opportunity for Proton to demonstrate the performance of its technology in harsher winter climates. By carefully monitoring this system, the companies will be able to compare the New York area installation's performance against several similar Proton installations located in warmer and colder climates.

As the prime contractor to Shell for this installation, Proton will be responsible for project design, equipment procurement, site preparation, and installation and commissioning. Air Products (APD) will be a major subcontractor on the project and supply the compression, storage and dispensing equipment.

"Working with organizations such as Shell and Air Products to showcase our hydrogen fueling technology is the right kind of collaboration," says Rob Friedland, senior vice president of Proton's Hydrogen Technology Group. "The station will support ongoing efforts to demonstrate the technology in challenging environments, enhance efficiencies and improve the engineering of an integrated system design."

Proton Energy Systems is providing its hydrogen experience and expertise to the project and will supply the fueling system with a Proton Exchange Membrane (PEM) electrolyzer capable of producing 12 kilograms of hydrogen per day. The electrolyzer is expected to represent in part the future of on-site hydrogen generation for fueling stations with a retail-centric focus.

About Proton/HTG

Proton Energy's Hydrogen Technology Group is part of Distributed Energy Systems Corp. (DESC) . Proton Energy offers state-of-the-art PEM electrolysis-based fueling stations for light and heavy duty vehicles, including automobiles, forklifts, and buses. These stations are simple to install and operate, deliver high purity hydrogen, and can be integrated with renewable power sources to offer a zero emissions transportation fuel. Please contact our fueling team at 203.678.2351 and online at http://www.protonenergy.com/company/hyd-... to learn more.