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PROTON Energy Systems Focuses on Commercializing PEM Technologies

PROTON Energy Systems, located in Rocky Hill, Connecticut, U.S.A., was founded last year to commercialize the proton exchange membrane (PEM) technology. The company will produce low cost electrolysis units to produce hydrogen. These units will efficiently convert electricity and water into pure hydrogen and oxygen using a safe, reliable, solid (Teflon-based) electrolyte.

PROTON’s design and cost structure is aimed at giving industrial gas marketers a lower-cost way to serve portions of their hydrogen markets. Because the process is most advantageous in smaller-scale distributed applications, PROTON will be positioned to be a significant player in the emerging transportation and energy markets for hydrogen.

Emerging from a Space/Military Heritage

The PEM technology was invented at General Electric 35 years ago and first developed to meet NASA program life-support needs. The Hamilton Standard division of United Technologies, Inc., acquired and has advanced the technology over the past decade. What makes PROTON unique is that four of its five founders have worked with this technology for the bulk of their careers, and know every step in the complex process of designing and building PEM systems.

Making hydrogen through electrolysis is not a new idea in and of itself. But historically, the price of electricity has limited the commercial viability of the process. It takes between 14 and 15 kilowatt-hours (kWh) to make 100 standard cubic feet (scf) of hydrogen. If delivered electricity costs 8¢/kWh, the variable cost of electrolytic hydrogen is well above US$1 per 100 scf—above its value in many markets. But deregulation of the electric utility industry is already lowering the cost of delivered power, and the downward trend is certain to continue. Marginal prices for delivered electricity in some U.S. markets is now 3-4 ¢/kWh, even to small (residential) customers. The result: an historically marginal commercial process has just become much more viable.

PROTON was formed in part to ride this favorable electricity price wave. One of PROTON’s lead investors is the AES Corporation, the world’s largest independent power company. AES sees PROTON as a way to give different (and higher) form value to surplus generating capacity. PROTON’s president and CEO, Chip Schroeder, left AES to, in his words: “move to the other side of the table. I’d rather be an electric customer than supplier over the next decade.”

The company has a two-tiered strategy for future product development. Beyond a near-term focus on supplying low-cost, PEM-based electrolyzers, PROTON in the future will look to develop fuel cells. PROTON has plans to develop unitized regenerative fuel cells, in which a single cell stack can either make hydrogen or, when reversed, use the hydrogen to make electricity. The size and weight advantages of a unitized system offers promise for many applications, including automotive.

For additional information, contact PROTON Energy Systems, Inc., 50 Inwood Rd., Rocky Hill, CT 06067, U.S.A. Phone: +1.860.571.6533.

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