Posted at 6:16 p.m., Monday, October 3, 2005
Hoku Scientific shares surge after new Navy order
Associated Press
Shares of Hoku Scientific Inc., a Kapolei-based maker of fuel cell components, jumped 15 percent today after the company said the U.S. Navy will pay it $2.5 million to develop fuel cells.Hoku Scientific climbed $1.62, or 15.14 percent, to $12.32 on volume of 3.6 million shares.
The order comes after Hoku finished an earlier job for the Navy worth $2.1 million.
Fuel cells are considered a promising energy technology because they rely on a broader range of fuels and generate fewer harmful emissions than combustion engines and small scale back up power generators.
They can produce more power than conventional batteries and can be disposed with less harm to the environment.
The Navy order calls for Hoku and Hoku's subcontractor IdaTech LLC to manufacture 11 demonstration-ready fuel cell systems and to demonstrate ten of the systems for one year.
IdaTech will supply fuel cell systems for the project, while Hoku will provide a key component it calls Hoku MEA.
The Navy's order gives Hoku its first opportunity to publicly display its product.
"This is an exciting development as we shift our focus toward the production and delivery of our Hoku MEA products," said Dustin Shindo, Hoku's chairman and co-founder, said in a statement Friday.
Founded in 2001, Hoku Scientific became the first Hawai'i company to go public in six years when it debuted on the Nasdaq market in August.
Hoku's major clients include Nissan Motor Co., Sanyo Electric Co., and the Navy.
