Connecticut's fuel cell industry braces for potential change

The CT Mirror ^

[matt04]

Before the clean energy world knew about fuel cells, United Technologies knew about them. UTC pioneered the modern fuel cell for NASA beginning with the Apollo space program in the 1960s through the end of the shuttle program last year.

But UTC's love affair with fuel cells could be about to end. In the last several weeks UTC's CEO and CFO have made statements indicating that the sale of its storied fuel cell unit, UTC Power, is under consideration to raise capital for its purchase of Goodrich.

While UTC has declined to comment further on the subject, the situation has given rise to more than a parlor game of "will-they-or-won't-they." It magnifies issues related to the U.S. fuel cell industry as a whole. It also poses potentially serious questions for Connecticut, where the largest fuel cell supply chain in the world has grown up anchored by UTC Power based in South Windsor and FuelCell Energy with headquarters in Danbury and manufacturing in Torrington.

"What we've tried to do is not to help a particular company, but to build an industry," said Joel Rinebold, director of energy initiatives at the Connecticut Center for Advanced Technology. He said there are nearly 600 companies in Connecticut with ties to the fuel cell industry accounting for more than 2,500 jobs and nearly $500 million in total revenue. "When you build an industry companies will come to you and I believe that's happened."

...

Fuel cells use hydrogen and oxygen to make energy in a noncombustion process that also produces byproducts of water and steam that can be used for hot water and heat. This makes them extremely efficient. While they are considered "clean" energy, they are not "renewable" energy, because in most cases the hydrogen is produced using natural gas.

[the invisib1e hand]

600 companies in Connecticut with ties to the fuel cell industry accounting for more than 2,500 jobs

4 jobs per company, +/-? that doesn't sound like an "industry" so much as an outsourcing machine.

[A.A. Cunningham]

Fuel cells use hydrogen and oxygen to make energy in a noncombustion process

Depends what type of fuel cell you're using. SOFC and MCFC platforms utilize combustion.

[hinckley buzzard]

UTC has been dealing with fuel cell research for fifty years--and now they are going to ditch fuel cells and go into tire making, a good old nineteenth century industry (Charles Goodyear invented vulcanized rubber in 1844.) That ought to tell everyone everything they need to know about this "technology of the future."

[hinckley buzzard]

4 jobs per company, +/-?

Sounds about right: One president, one secretary, one janitor, one tech guy to fool around back in the lab.

[the invisib1e hand]

That ought to tell everyone everything they need to know about this "technology of the future."

is mgmt sound? It certainly is thought provoking. Seems like they'd spin it off. Could be a hottish IPO, whatwith all the requisite buzzwords and all.