Report Challenges Fuel Cell Integrity

For years clean-burning, hydrogen fuel cells have been touted as a reliable alternative to fossil fuels, particularly in the automotive industry. However, a new report from Atlanta-based Foster Bryan, an independent research group, discloses some of the risks inherent with fuel cells to energy traders and the investment community.

New York, New York – July 8, 2003 [] Foster Bryan’s “Fuel Cell Report” states that promoters of fuel-cell technology have long extolled the virtues of the alternative energy source without revealing some of the pitfalls, including engineering problems, market risk, revenue risk, and the amount of platinum required to manufacture fuel cells for use in vehicles. The Bush administration is promoting “the new hydrogen economy” while urging the wholesale adoption of fuel-cell technology. However, only a few industry insiders are aware of the potential costs related to the manufacturing of hydrogen for use on such a widespread basis, according to the report. While much of this information has been available in fragments and pieces this report attempts to specifically present them in a comprehensive and authoritative format. James Throckmorton Managing Director of Foster Bryan, says savvy investors and traders understand the importance of reviewing independent, non-biased research before embracing a new technology that has been depicted previously as having no downside. The report from Foster Bryan shows that widely circulated forecasts have painted too rosy a picture of fuel cells. The report provides key insights across multiple segments of the fuel cell industry. For example, an in-depth analysis on platinum in PEM fuel cells demonstrates why fuel-cell-powered vehicles are far less price competitive than manufacturers acknowledge. “The purpose of the new report is to provide unbiased and conflict-free analysis of this energy sector, which has been so superficially covered by the big sell-side firms for their own self interests,” said Throckmorton. “We uncovered facts about this industry, and provide investors with the in-depth data needed to make educated buy/sell decisions for the next five years.”