Posted on: Wednesday, September 22, 2004

Hoku Scientific, automaker in fuel-cell membrane deal

By Sean Hao
Advertiser Staff Writer

Kalihi-based Hoku Scientific Inc. said yesterday that it has agreed to sell its fuel cell membrane to an unidentified automaker researching fuel-cell powered vehicles.

Hoku said it could not provide financial terms of the deal except that it would result in sales of substantial quantities of a tissue-thin membrane that drives fuel cells. A fuel cell operates like a battery but does not run down or require recharging as long as hydrogen, hydrocarbon fuel, natural gas or other types of fuel are supplied.

Commercial availability of fuel-cell driven autos likely is two to three years away, said Dustin Shindo, Hoku co-founder and president. However, with about 16 million automobiles sold in the United States annually, the future fuel cell market for vehicles could be huge.

"Cars are a larger market," Shindo said. "It's the holy grail of fuel cell markets."

Automakers are researching the use of fuel cells as a means of increasing energy efficiency and allowing the use of alternative fuels to gasoline, Shindo said.

Because the fuel cell relies on chemistry rather than combustion, emissions are considerably less than with the cleanest fuel-combustion processes.

Last year, Hoku received $6 million via a development agreement with Japan electronics giant Sanyo Electric Co. to make fuel cells that could provide power and heat to homes. Hoku products will be integrated into 1,000-watt power units in late 2005.

The fuel cells, which give off heat, will double as water heaters and provide home electricity at cheaper rates than consumers pay now. Japan is expected to be the first market in which fuel cells are marketed to consumers.

Reach Sean Hao at 525-8093 or shao@honoluluadvertiser.com.