BAT Subsidiary, SSPC, Forms Joint Venture with Anuvu
2 February 1999
BAT Subsidiary, SSPC, Forms Joint Venture with Anuvu to Manufacture Fuel Cell; Series of Zero Emission Runs in a Fuel Cell Powered Van Planned in Near Future
CHULA VISTA, Calif., Feb. 2 -- BAT International's
(OTC Bulletin Board: BAAT) subsidiary, Southern States Power Co.
(OTC Bulletin Board: SSPC) has formed a joint venture with Anuvu, Incorporated
to complete development and demonstration of an advanced proton exchange
membrane (PEM) fuel cell that will be demonstrated in a series of fuel cell
powered electric vehicle runs in California and other locations. SSPC and
Anuvu formed a joint venture company in September, 1998 to combine fuel cell
technology of Anuvu and electric vehicle production capabilities of SSPC. The
joint venture company, Global Fuel Cell Corporation, is owned 50% by Anuvu and
50% by SSPC. SSPC has provided funding, engineering and marketing support.
SSPC has also completed an electric mini-van with a state of the art AC drive
system that has a fully computerized monitoring system. A series of vehicle
runs are planned over the next few months with the fuel cell using a variety
of fuels including hydrogen, natural gas, propane, methanol & gasoline.
The Anuvu fuel cell technology has many advantages over major competing
fuel cells. Anuvu fuel cells require less than half the volume yet deliver
the same amount of electricity. The most important advantage is the lower
costs and rapid timeline to enter into production. The Global Fuel Cell
Carbon-X technology is sturdy and flexible and can rapidly be produced using
standard low cost equipment. This means manufacturing equipment and tooling
can be set up in a much quicker time frame with less investment and will allow
for volume production of fuel cells within one year. This has been achieved
by focusing the design process on choosing materials that would be compatible
with mass-production manufacturing techniques.
Much less volume is required for the Global Fuel Cell through the use of a
proprietary process to manufacture very thin fuel cell plates with
non-corrosive materials. This leads to a very compact, light-weight fuel
cell. The bi-polar plates are 0.1" thick, making them the most compact in the
industry for high-powered cells. This compact plate is one-third the size of
most plates in competing fuel cells, which reduces weight, volume and material
utilization. The weight is further reduced by use of a low-density material.
This contributes to reducing manufacturing costs and improves competitiveness.
Other performance benefits include very good thermal and humidity
management. Thermal management is achieved in every cell through a
proprietary cooling process for the fuel cell. This radically decreases
thermal gradients in the cell and thus optimizes fuel cell performance. The
overall reliability of the cell and its life are also increased. Humidity
management is accomplished through the use of materials that prevent product
water from forming an obstruction in any of the gas passages. This prevents
both dying out and flooding of the cells. Humidity levels can be kept on the
high end, without danger of damage from flooding.
The fuel cell is also expected to have a very long life as a result of
some unique design features. The very strong membranes in the cell can
withstand much higher pressures than the worst case operating point. This
eliminates problems from a blowout. Many competing fuel cell companies use
membranes that lack the structural integrity to avoid a blowout. Chemical
compatibility is accomplished through the use of a non-metallic structure,
except for the catalyst itself. Many competing metal fuel cells use materials
that are incompatible with the fuel cell chemistry or are poisonous to the
catalyst. This leads to pre-mature failure in some cases, and a shorter
overall life.
The Anuvu fuel cell technology originated from research being done on
technology for rocket engines. The principal research scientist, Rex Hodge,
worked for the aerospace firm Aerojet designing rocket engines, small
thrusters, heat exchangers, various cooling systems, hypersonic engines,
structural systems and other technology. Using these same principals, and
after extensive R&D efforts over the last 2 years, Anuvu has been able to
produce a fuel cell that will sharply improve performance and reduce cost of
fuel cells in mass production. Significant testing of prototype fuel cells
has confirmed performance/cost benefits detailed above.
Anuvu became interested in working with SSPC and BAT because of a
portfolio of technologies that can assist in commercialization of both fuel
cells and electric vehicles. BAT's subsidiary, Ultra-Force Battery Co., is in
the process of completing a manufacturing plant to produce a high power nickel
metal hydride battery that will have very long life, good energy density and
ideal power output to meet "acceleration" battery requirements of all types of
fuel cell powered vehicles. The NiMH battery technology originated from the
Daimler Benz/VW research group DAUG and has been licensed to Ultra Force
Battery Company for world-wide use in auto, industrial and telecom
applications. SSPC is also developing advanced composite technologies that
are now being used in two Mexican auto plants that result in a lightweight
long lasting chassis that will further improve fuel cell powered vehicle
performance and competitiveness. BAT has also developed other technologies
over the past 6 years such as electric drive systems, new transmissions and
other innovations that will result in a package of fuel cell and electric
vehicle technologies. Fuel cells are a key component to a total vehicle
technology package that will insure the commercial viability of zero emission
vehicles in the near future because the resulting fuel cell vehicle range is
equivalent to gasoline vehicles.
Seventeen months ago Daimler Benz board member was quoted as saying, "We
are determined to be the first company to offer a volume-manufactured vehicle
powered by fuel cell engines." Tremendous investments have been made since
this time by major auto companies in fuel cells because they feel it is an
ideal solution to provide adequate range for zero emission vehicles.
Companies that are on the leading edge of that investment effort have recently
announced significant delays in their fuel cell efforts. In contrast, Global
Fuel Cell Corporation and Anuvu have kept a low profile to complete
development work and are now prepared to both demonstrate fuel cells in
vehicles with a variety of fuels and quickly enter into production.
BAT International is organized as a holding company with major ownership
position in a set of subsidiary companies now commercializing advanced
automotive and energy technology products developed by BAT over the last six
years. This includes electric vehicles, super-efficient or high power
engines, advanced batteries and power electronics, lubricant additives, and
electric power generation, (for information, see http://www.baat.com).
This press release contains forward-looking statements that should not be
used to make an investment decision. Please refer to BAT International's web
site and other sources for more detailed Company information (Investor
Relations, (619) 409-8977).