SymPowerco CEO Reaffirms Positive Future Outlook for Practical Fuel Cell Hybrid Power Systems

Prediction: Mass-produced hydrogen fuel cell cars will cost $30,000 without subsidies in 2015

SymPowerco is an energy technology company focused on the design and development of clean and practical power and energy solutions. Their mission is to make practical Fuel Cell Hybrid Power Systems a commercial reality. The company´s unique Flowing Electrolyte Direct Methanol Fuel Cell offers a practical solution to a host of global environmental and energy challenges. Potential means profitability for investors and SymPower has plenty of it with its upcoming targeted markets involving: Small Vehicles, Motorbikes, Retrofit Markets, Stationary Power Supplies, and Other Markets.

The following topics were discussed and answered:

We know that SymPower Co and HMSI are going to open a factory in Dumas

Arkansas shortly, can you give us a brief outlook of this venture, as what

are the near term and long term goals for this plant ?

He stated, "We have not yet completed the acquisition, however we are working diligently on it and cannot comment on HMSI and HHHI as of now. However, he confirmed that there is some work going on right now at Dumas AR by HHHI and HHHI will soon establish their efforts at the new plant in September and HMSI will join the plant later in the Fall. HMSI and HGSI will mainly produce internal combustion engines initially for their off road, sports and rescue vehicle prototypes along with using HHHI technology."

The picture to the right is the new 380,000 square foot building on 30 acres in Dumas that expects to turn a profit within the first 30 to 60 days of moving in and stabilizing the functionality of the equipment.

What is the current target time line? When do you expect to actually begin production and market a product or products? How soon do you plan to become profitable or have a flowing Revenue?

"There is a very good future for the company to grow and there by giving out a good return on investment (ROI) for all shareholders (though warned us that its still a pink sheet stock), however have plans to move to OTC in the future." He then continued by stating, SYMW has successful prototypes (working with University of Carleton in Ottawa, Canada) with Methanol hydrogen fuel cells which it plans to use commercially soon." He wasn´t sure about the timeline on the Methanol hydrogen fuel cell commercialization but said soon as soon as possible, but they are totally focusing on the HMSI and HHHI integration at this point.

As far as HMSI goes, they are projecting revenue of $8,400,000 over the next 12-18 months and expects to be profitable within the first 90 days of moving to its new operations in Dumas, Arkansas. [ source ]

The SymPowerco Commercial Design Project (SCDP). The multiphase project is expected to encompass all facets of the design of various commercial products for the anticipated markets of the company´s Flowing Electrolyte Direct Methanol Fuel Cell (FEDMFC) and Hybrid Power Systems. The project is intended to run concurrently with SymPowerco´s FEDMFC development program at Carleton University´s Department of Mechanical and Aerospace Engineering in Ottawa, Canada. Phase I of the SCDP is expected to include a study of the ancillary equipment and ´balance of plant´ requirements of the FEDMFC as they relate to commercial requirements, manufacturability, scalability and industrial design elements of the FEDMFC and Hybrid Power Systems. Future phases of the SCDP will include engineering and design elements including hybrid power system layout designs, power interfaces, branding, packaging and the design of a flexible component regime to satisfy broad OEM requirements.

What key markets are you targeting initially? It sounds like automotive is the first. If so, are there any partnerships with automotive companies

already established or in the works ?

"We are mainly off road vehicles, sports, etc initaially, this is where

our Hoss Motorsports Inc. acquisition comes into play."

Have you applied for any HEV grants or expecting any funding from the US Government ?

"We haven´t applied for any grants yet, to qualify for a grant we need to have the manufacturing facility in Dumas, Arkansas up and running. We see September as the likely time frame for this which would allow us to apply. We are also in the process of hiring the consultants to apply for government grants.

It is important, however, to note that SYMW is well versed with government grant applications. Polygenic Power Systems, Inc. ("PPSI"), SymPowerco´s majority-owned subsidiary, was recently informed by the Ontario Centres of Excellence ("OCE") that it was successful in its application for a grant from the OCE´s Centre of Excellence for Energy.

The Centre of Excellence for Energy, a part of Ontario´s Centres of Excellence, was created to address the significant challenges and opportunities posed by the current energy situation in Ontario, Canada. The Centre invests in and promotes cutting-edge research collaborations between industry and colleges, universities and research hospitals. The Centre´s objective is to foster innovation in energy markets, systems

and technologies. The Centre works with industry to solve problems by engaging the brightest minds at Ontario´s universities and colleges in the challenges faced by businesses. [ Source ]

Background Information

Hoss Motor Sports Inc. has designed several types of Off Road Utility Vehicles including vehicles designed specifically for Search and Rescue,

Construction Sites and for Sport Utility and Off Road Enthusiast markets. Under the SymPowerco umbrella, HMSI will manufacture its advanced vehicles at HMSI´s new facility in Dumas, Arkansas.

Highline Hydrogen Hybrids Inc. has developed a unique supplemental hydrogen fuel system for Internal Combustion Engines that reduces dangerous emissions, enhances fuel efficiency by as much as 25% and increases horsepower by an average of 10%. HHHI plans to release a version of its supplemental fuel system for use on Over-The-Road commercial vehicles. The HHHI products will also be produced in the company´s new facility in Dumas, Arizona.

Source: Hydrogen Car Revolution

It has been widely reported that hydrogen fuel cell vehicles will be arriving at dealerships in large numbers by 2015 (and in much more limited numbers in 2012). However, how much will these vehicles cost?

My prediction is that mass-produced hydrogen fuel cell cars will cost $30,000 without subsidies in 2015.

I fully understand that this is quite a claim to make, because many, many millions of people in the U.S. would line up to buy a hydrogen fuel cell car in 2015 for that amount if the hydrogen fueling infrastructure were in place.

But here is evidence to back it up.

Byung Ki-Ahn from Hyundai/Kia said last month that hydrogen fuel cell cars would cost $50,000 each right now if 50,000 cars were produced each year. Since 2015 is six years away, isn't it quite reasonable to think that Hyundai could get the cost down from $50,000 each to $30,000 each by that time?

Furthermore, Hyundai/Kia did not start researching hydrogen fuel cell vehicles until 2000.

On the other hand, Toyota started their in-house hydrogen fuel cell vehicle program back in 1992! Moreover, as of last year, Toyota was investing nearly $1 million PER HOUR on R&D. This is almost certainly more than Hyundai/Kia.

This is probably why Justin Ward, advanced powertrain program manager at the Toyota Technical Center, told Ward's Automotive last month that:

"We have some confidence the vehicle released around 2015 is going to have costs that are going to be shocking for most of the people in the industry. They are going to be very surprised we were able to achieve such an impressive cost reduction."

Moreover, Irv Miller, TMS group vice president, environmental and public affairs, made the following comment on August 6th:

"In 2015, our plan is to bring to market a reliable and durable fuel cell vehicle with exceptional fuel economy and zero emissions, at an affordable price."

What does Toyota mean when the company says the costs of their hydrogen fuel cell vehicles will be "shocking" to the auto industry? What does "affordable" mean?

Nobody outside of Toyota knows for sure. But my guess is that this means something along the lines of a vehicle that will cost $30,000 (in 2009 dollars).

For reference, the 2010 Toyota Prius starts at $22,000. I could see Toyota possibly coming out with something along the lines of a hydrogen fuel cell Prius starting at around $30,000 in 2015. This would allow the vehicle to cost $8000 more than the gasoline-powered version.

Furthermore, here is an excerpt from a Spiegel (Germany) article published on March 26th that discusses Daimler's hydrogen fuel cell program:

"But the question remains: When will hydrogen-fueled cars be mass-produced and affordable? (Daimler CEO Dieter) Zetsche says that annual production of the new vehicles would have to reach 100,000 and that by around 2015, the vehicle prices could match those of conventional cars."

How much might a Mercedes hydrogen fuel cell vehicle cost in 2015?

Here is a quote from Daimler CEO Dieter Zetsche that was part of the company's fourth quarter 2008 earnings conference call on February 17, 2009:

"We will also produce a small volume of Mercedes-Benz B-Class models equipped with a fuel cell drive this year."

Here is a YouTube video of a Mercedes B-Class car. If you live in the U.S. like me, you might notice that you have never seen a Mercedes like this on the road. It turns out that Mercedes does not yet sell the B-Class car in the U.S. Though, the company might do so in 2011.

The reason is that the B-Class is a more economical Mercedes car. And the company did not want to "tarnish the brand's prestigious image" in the U.S. Currently sold in Canada, the Mercedes B-Class starts at (Canadian)$29,900.

Based on the Yahoo! finance currency converter, this is equivalent today to US$27,479.

Therefore, once a few thousand dollars is added for the hybrid system in the hydrogen fuel cell version, the mass-produced cost would only be slightly above the US$30,000 level.

While all of this is very exciting, the key is making sure that lots of hydrogen fueling stations are in place by 2015.

Here are two ways to build the initial hydrogen fueling infrastructure.