For Thursday, November 11, 1999 Drummer Column, Gibbs, 711 words

Fuel of the future

If feel it is my duty to tell the world -- well, at least you guys -- about the wonder of fuel cells.

I should have written about them back in May when I began exploring their potential so I'd sound even more cutting edge, but I didn't.

I will now, so that later when they are as common as alkaline batteries, personal generators, internal combustion engines, and hydroelectric plants, you'll be able to say, "Gee, I heard about fuel cells a long, long, long time ago from a sage in Benicia."

Fuel cells are environmentally friendly contraptions that make electricity out of hydrogen, which is in plentiful supply. They come in all sizes from micro for powering cell phones; to hefty portables for powering radios, lights, refrigerators and such; to refrigerator-size for powering houses; to house-size for powering hospitals, industries, skyscrapers, and small remote villages.

Fuel cells provide continuous electricity as long as the hydrogen fuel source lasts. The hydrogen can come from petroleum, natural gas, or methanol, and the best part of all -- no emissions. The only byproducts are heat and water.

It's not new technology. Fuel cells were invented back in 1839. NASA first used them heavily in space crafts, which triggered commercial interest back in the 1960s. Back then, however, gas was cheaper, air was cleaner, and the cost of research and development kept fuel cells from being economically competitive.

In 1984 the Office of Transportation Technologies and the U.S. Department of Energy began supporting the further development of fuel cells. As a result, hundreds of companies around the world began developing commercial prototypes.

Now at the end of the 1990s, global warming has increased, air pollution is at deadly levels, gas prices are ridiculously high, electrical demand is spiking upwards, and fuel cell technology has advanced to potential profitability. The companies are bringing their products to market in the next few years.

Thus, I have purchased stock in a spectrum of fuel cell companies. They make a perfect compliment to my eye laser stocks, which are also awaiting future profitability.

Manhattan Scientifics (MHTX) makes micro fuel cells and owns a lot of patents. Their focus is the cell phone industry. Recently they powered a cell phone on stand-by for 24 hours with a prototype Micro Fuel Cell. MS is a brain trust of inventors who are also designing holographic memory and refined water filtration systems. It's a penny stock that sells today for 1.22 a share. I don't own them, but I feel badly about it.

DCH Technologies (DCHT) I did buy at 87 cents in May and just last week at 62 cents a share. I have a whole bunch of it. Today it goes for $1.34. DCH is in Valencia. They make portable fuel cells. They're working with DOE to design fuel cells for boats. Pundits feel boats will get FCs before cars because there are fewer refueling stations to outfit. DCHT also makes hydrogen sensors that competing fuel cell manufacturers will need because hydrogen is explosive; and they make computerized uniforms for technicians who work with hydrogen.

Fuel Cell Energies (FCL) in October reached a milestone. They generated over 1 million kilowatt hours. They plan to build megawatt power plants. I like that idea: New-Age power plants with monster fuel cells. Remote regions of the world will finally get reliable electricity. I bought what I could at $23 in September. Today it's $31.

My sweetheart gorilla, however, is Plug Power (PLUG), a recent IPO at $15. They make cells for the home to power everything; they attach to your existing gas line; they take you off the grid. PLUG is the exclusive cell builder for none other than General Electric. Check out their product: www.gefuelcell.com It's awesome.

Ballard of Canada makes automotive fuel cells. They power Chicago busses. I don't own them, but might when the technology improves. Automotive fuel cells are the toughest to design.

I've put together some hydrogen links for the still curious at my web site.

In the meantime, imagine a green, hydrogen-powered future -- cheap, abundant energy and clean air; safer working environments and global connectivity; a retired teacher cruising around in a fuel-cell boat listening to fuel-cell music, living on fuel cell dividends, with 20-20 vision.