ECD Awarded $3.5 Million in New DOE Cost-Shared Contracts
8 October 1998
ECD Awarded $3.5 Million in New DOE Cost-Shared Contracts
TROY, Mich., Oct. 8 -- Energy Conversion Devices, Inc. (ECD)
announced today that it has been awarded two new Department of
Energy (DOE) contracts valued at over $3.5 million: 1) a $1.7 million cost-
shared cooperative agreement to develop and demonstrate an integrated system
for the production and storage of clean, renewable hydrogen fuel for
transportation and other applications in the developing world, and 2) a
$1.9 million cost-shared contract to develop and demonstrate a high-rate
thin-film deposition process to further reduce photovoltaic (PV) manufacturing
costs. Revenues under these contracts will be recognized quarterly as the
work is performed.
The first contract calls for ECD to demonstrate the technical, commercial
and financial feasibility of using hydrogen as an alternative to gasoline to
power scooters, which are currently the primary means of personal
transportation in many developing world countries. It is a continuation of a
previous $150,000 Phase I feasibility study awarded to ECD by DOE under which
ECD, in collaboration with its subcontractors, developed a preliminary
business plan for the development and commercialization of renewable hydrogen
based on a PV-Electrolysis-Metal Hydride Storage System. The system calls for
using amorphous silicon PV modules developed by ECD and its joint venture
partner, United Solar Systems Corp. (United Solar), to produce electricity to
power an alkaline water electrolyzer developed by Stuart Energy Systems (SES).
The electrolyzer would convert water into hydrogen and oxygen. The hydrogen
would then be safely stored in ECD's metal hydride storage system (MHSS) based
on metal hydride alloys similar to those used in the company's proprietary
Ovonic metal hydride battery electrodes.
This Phase II contract calls for ECD, together with its Ovonic Battery
Company subsidiary, to perform a detailed market analysis to identify the
early markets for the hydrogen production and storage system in developing
nations, with emphasis on hydrogen fueled scooters, to identify and develop
strategic relationships with appropriate scooter manufacturers, and to further
develop its MHSS for scooter applications. A 2-kilowatt electrolyzer will be
developed and provided by SES. ECD, together with United Solar, will
integrate the PV, electrolyzer and MHSS components. The hydrogen could be
used to fuel a scooter powered by an internal combustion engine or a polymer
electrolyte membrane (PEM) fuel cell. The scooters would only emit small
amounts of water as their byproduct. The system would be totally pollution
free and emit no greenhouse gases contributing to global climate change.
"We are gratified to be able to offer cost-effective solutions to one of
the world's most pressing problems -- the need for clean transportation," said
Robert C. Stempel, ECD Chairman and Executive Director. "A viable means of
producing and storing hydrogen for scooters, together with batteries for
electric scooters, which we have already developed and are demonstrating, will
provide many developing countries excellent alternatives to their current
method of transportation, which is polluting their air, creating health
problems for their people, contributing to global climate change and is very
costly in its consumption of imported oil." ECD has worked in the field of
hydrogen for many years, promoting a hydrogen economy by means of laboratory
demonstrations of product applications.
The second contract calls for ECD to further develop and demonstrate the
use of very high frequency (VHF) plasmas to make its proprietary amorphous
silicon based triple junction solar cells at high deposition rates. The goal
of the contract is to demonstrate that high stable efficiency multi-junction
solar cells can be made at deposition rates three times faster than those
typically used in solar module production. Successful implementation of the
VHF deposition process in manufacturing lines is expected to increase
throughput and decrease costs. The process will be particularly significant
as ECD's manufacturing venture, United Solar, moves into higher volume
production.
"The ability to reduce costs is essential to retaining U.S. superiority in
the rapidly emerging, highly competitive global PV industry," said Stanford R.
Ovshinsky, President and CEO of ECD and United Solar. "We greatly appreciate
the Department of Energy's assistance in enabling us to continually refine our
technology as we move into higher volume production at lower costs."
The DOE's obligation for its approximately 50% share of the cost under
these contracts is contingent upon the amount of funding made available to the
DOE.
ECD is a leader in the synthesis of new materials and the development of
advanced production technology and innovative products. It has pioneered the
development of products and production technology based on amorphous,
disordered and related materials, with an emphasis on alternative energy and
advanced information technologies. ECD's web site is http://www.ovonic.com.
This release may contain forward-looking statements within the meaning of
the Safe Harbor Provisions of the Private Securities Litigation Reform Act of
1995. Such forward-looking statements are based on assumptions which ECD, as
of the date of this release, believes to be reasonable and appropriate. ECD
cautions, however, that the actual facts and conditions that may exist in the
future could vary materially from the assumed facts and conditions upon which
such forward-looking statements are based.