ITM Power Plc (ITMPF)

[Gerry321]

A Few speculative thoughts on a down day

In the light of all the news released since the 9 July media day it is interesting to contrast what was said with the interview given by JH to The Engineer Magazine on 3 June
See
http://www.theengineer.co.uk/Articles/306484/Power+play.htm

Talking about the HRU
“The first systems will be commercially available this year after 10 or 15 years of development. The launch model will be able to produce hydrogen with a pressure of about 75 bar, enough to fill the car tanks Heathcote envisages. 'The higher the pressure, the more expensive it becomes,' he said. 'Commercial companies may want a lower-pressure system, but a with hydrogen compressor to take it up to 300 bar.”

Later on he said

“ITM has been testing its electrolyser technology for more than 10 years. Durability and chemistry testing has already been completed, and pressure testing is under way.”

Well if you put these two comments together it suggests that
1 bar is proven for use in an HRU
75 bar is proven for use in an HRU
75bar HRUs will be available to buy this year
Commercial cos wanting 300bar HRUs this year will need to buy a hydrogen compressor and use it to get the HRU output up to 300 bar

But somewhat puzzlingly JH goes on to say that pressure testing is still continuing at ITM as late as June 2008
…. When
ITM had already announced that 75 bar had been successfully achieved 12 m earlier in June 2007

So
If 75 bar is proven why are ITM continuing to pressure test..?

The only explanation really is that ITM hope to offer an HRU at a much higher pressure than 75 bar
So what do ITM say to a co who are about to buy several 75 bar HRUs for their fleet of converted
Commercial vehicles….?
Go and buy yourself a 300bar hydrogen compressor….?..this is what JH has just said

Well
in the world of engineering business this would be a diasastrous marketing strategy

Fine for one off gov funded projects like what goes on in many Unis…

But not they way you market your product commercially
At a minimum
If ITM were genuinely intent on selling to 300 bar customers who didn’t already posses a hydrogen compressor
They would need to offer a hydrogen compressor as part of the package
So why is this such a big issue…?
Well
the real target customers for HRUs are the auto manufacturers who have a pressing need for a low cost 300 bar system to fill a 300 bar H2 tank in their nafion fuel cell vehicles which are under development
So when they heard that ITM have a 75 bar electrolyser their immediate question would be to ask if a 300 bar version was on the cards..?
And
Very likely
At least one of them would offer technical and financial help to ITM develop the 300 bar electrolyser
…. In exchange of course for an exclusive licencing deal to offer the HRU with their fuel cell vehicles..?
Why do that when a low cost ITM fuel cell may be just around the corner.?
Because here is a dire need particularly in the US to seed the market with fc cars
And this is being strangled by a lack of infrastructure which in its turn causes low interest in fc cars It’s a a vicious circle that can only be broken by the rapid spread of low cost HRUS in gas
stations
What would be the only explanation for ITM turning down a licencing offer from a mjor US auto co…?
Well
It has to be that ITM are almost there themselves and didnt like the terms of the offer
ie
They are expecting to unveil a 300bar unit later in the year
and then watch the rush for licences