Overview
Protonex is a leading provider of advanced fuel cell power solutions for portable, remote and mobile applications in the 100 to 1,000-watt range. Based on patented proton exchange membrane (PEM) and solid oxide fuel cell (SOFC) technologies, these power systems are among the industry’s smallest, lightest and highest performing fuel cell systems for portable applications. Protonex has developed several products designed for end-users in military, commercial and consumer markets that are currently underserved by batteries and small generators. Products are also being developed for OEM customers looking to integrate high-performance fuel cell power into their products and applications.
Founded in 2000, the Company completed an initial public offering on the Alternative Investment Market (AIM) of the London Stock Exchange in July 2006, and a secondary offering in April 2007, raising gross proceeds of $16.2 million and $27.7 million, respectively. To date, the Company has received contracts over $35 million* in total program value with the US military and government agencies, and has established formal strategic partnerships with Parker Hannifin, Northrop Grumman, Cummins and Raytheon.
In April 2007, Protonex acquired Mesoscopic Devices, an industry leader in SOFC technology, fuel reforming, and desulfurization systems. The Company is building on the technical and market synergies that exist between the two businesses to considerably strengthen its position as a leader in the portable fuel cell industry. Headquartered near Boston, Massachusetts, with a development facility near Denver, Colorado, Protonex now employs over 80 scientists, engineers and professional staff.
Protonex is well positioned to deliver high-performance, low-cost fuel cell products to military, commercial and consumer customers. With a wide range of technical expertise and an expanding intellectual property portfolio that covers PEM, SOFC and fuel reformering technologies, the Company is also able to offer a variety of fueling options, including hydrogen, chemical hydride, methanol, propane and hydrocarbon and renewable fuels.
Effective June 21, 2010, Protonex shareholders approved cancellation of its public listing on the AIM market of the London Stock Exchange. From this date forward, Protonex is a privately held company.
Market Overview
Fuel cells are expected to become a significant industry within the next decade, projected to generate more than $18.6 billion in global sales in 2013, according to a Research and Markets 2006 report. Portable power is considered one of the three largest areas of potential commercial adoption for fuel cells, with Darnell Group (2003 report) estimating that fuel cell portable power will produce $2 billion in annual sales by 2011.
With the growing demand for portable power and the current limitations of batteries and generators, fuel cell technology has been predicted to become a key future power source for military customers. There are 1.4 million soldiers currently on active duty in the US military and, according to Frost and Sullivan (2003), more than $1.1 billion will be spent in 2006 on batteries for US military and aerospace applications. The military is actively seeking advanced, proven technologies to better meet its needs for compact, lightweight, high-performance power. In addition, the military has a strong need for advanced portable power sources with low heat, noise and emissions to replace existing petrol and diesel generator sets.
In the commercial market, portable power represented a $4.4 billion market in 2004 in the US alone, and is estimated to increase to $6.3 billion in 2009 (Business Communications Co.). With an array of unique benefits and competitive pricing, fuel cells stand to capture a significant portion of that market. BCC also projects that hydrogen fuel cells will represent $385 million of the premium portable power sources market in 2009.
* Includes contracts awarded to Mesoscopic Devices before acquisition in April 2007.