Intelligent Energy (IEH) has announced a deal to supply 600 low-power 1kW fuel-cell modules to US-based Luxfer-GTM Technologies for integration into Luxfer-GTM’s Zero-Set Lite portable light towers. The contract, the value of which has not been disclosed, underpins our assumption of £5.0m product sales during FY17, so we leave our estimates unchanged.
The contract shows that fuel cells are being increasingly deployed in applications where key attributes of fuel-cell power generation (the elimination of toxic NOx, silent operation and low maintenance requirements) make them a better option than diesel generation. This encourages adoption of the newer technology without recourse to subsidies. The Zero-Set Lite towers are used to supply portable lighting for events and entertainment, roadside construction, military and disaster response situations. The need for silent, NOx-free generation at the Super Bowl is obvious; it is important for other applications too, if they take place in an urban environment.
The deal demonstrates that IEH’s stack technology, proven during deployment in the demanding environment of telecoms towers in India, is suitable for other applications. The first stacks will be supplied from stock built up for the telecoms market, with the remainder manufactured on an existing line at IEH’s headquarters in Loughborough. Current staffing levels are sufficient for this. The integration into the power generation and lighting system will be undertaken by Luxfer-GTM.
The news is also encouraging because it shows that IEH is able to compete effectively in the US, which is one of the world’s leading hydrogen economies. We note that Luxfer-GTM uses a domestic fuel-cell provider for its established portable power-generation products, but opted for IEH for its newer light-tower product.