SOURCE: AlumiFuel Power Corporation

AlumiFuel Power Corporation

May 31, 2011 09:00 ET

AlumiFuel Power, Inc. Announces Additional Initiatives With Its Path-to-Market Partners

PHILADELPHIA, PA--(Marketwire - May 31, 2011) - Early production stage hydrogen generation company AlumiFuel Power, Inc. ("API"), the Philadelphia, Pennsylvania-based wholly owned operating subsidiary of AlumiFuel Power Corporation (OTCBB: AFPW), (the "Company"), announced today that it is continuing to capitalize on the unique positioning and capabilities of its world class path-to-market partners.

API's novel AlumiFuel powder-based technology generates hydrogen gas and steam/heat for multiple applications aimed at large global markets: hydrogen lift gas generators fill and launch weather balloons; steam and hydrogen generators feed turbines and fuel cells for undersea vehicle power plants; and hydrogen generators drive fuel cells for a wide variety of portable and back-up electrical power applications. AlumiFuel hydrogen and steam/heat power sources provide 5-10X the energy density (runtime) of lithium batteries.

API's path-to-market partner for portable power applications is Ingenium Technologies, Inc. of Rockford, Illinois. The comprehensive, exclusive Partnership Agreement between API and Ingenium encompasses power generation and energy storage for Unmanned Undersea Vehicles (UUVs) and submersibles, as well as man-portable, back-up and Auxiliary Power Unit applications. In these applications, API's AlumiFuel technology provides the power to drive turbines, fuel cells and/or thermoelectric converters in power plants designed, engineered and/or integrated by Ingenium. In addition to its power systems and development engineering expertise, Ingenium's strengths include marketing to military and commercial customers, and a track record of program wins and successful program execution.

The global UUV market is expected to reach $12 billion over the next decade, encompassing commercial, naval and other national security applications. This number includes $1.2 billion for the power systems, with $400-$500 million related to the fuel modules. API and Ingenium are exploring a growing number of opportunities involving naval and commercial power plant applications with the U.S. Navy, allied navies, major defense contractors, and deepwater services industry players worldwide. In June 2010, the Ingenium-API team was selected for award of a U.S. Navy R&D contract for a novel new hydrogen fuel delivery system to power future fuel cell-driven UUVs, with Ingenium as the prime contractor. Based on the API-Ingenium development efforts using AlumiFuel, several major prime contractors/defense contractors have expressed keen interest in the API-Ingenium technology approach for UUV power aimed at two specific new multi-million dollar Navy program starts in 2011 for long endurance UUVs, replacing battery-based power, which does not provide sufficient mission duration, range, or safety for naval missions.

The overall global market for man portable power (generator and battery replacement) is nearly $8 billion annually, including $4.75 billion for portable systems (100W-500W) and $3 billion for mobile systems (25W-100W). The bulk of this market is in the U.S. and Europe, encompassing military applications powering battlefield electronics and munitions, first responder/emergency preparedness applications powering radios and other electronic and medical devices for homeland security& disaster relief, and commercial applications such as shoulder-mounted video cameras. API and Ingenium have successfully built a hydrogen generator capable of powering a 200W fuel cell. The generator has demonstrated eight hours of continuous operation, a very rapid start up time, and the ability to stop and restart. The generator/canister system has shown great scalability and is able to generate hydrogen flow rates suitable for fuel cells ranging from fractional kW to over 10kW. API and Ingenium are in active discussions with potential fuel cell company partners.

API's path-to-market partner for weather balloon applications is Kaymont Consolidated Industries, Inc. of Long Island, New York, the world's largest distributor of weather balloons. The global market for lift gas fuel is pegged at $150-$200 million and growing, with more than 1,000,000 weather balloons and special purpose balloons launched annually for telecom relay, cloud height measurement and special military applications. API's innovative Portable Balloon Inflation System (PBIS-1000), which was delivered to the first military customer in 2010, enables on the spot generation of hydrogen without any external energy or toxic chemicals, is easier to use and is cheaper than current lift gas solutions. Traditionally, helium has been used as the primary lift gas, but with the increasing scarcity and cost of helium, users are rapidly switching to hydrogen. The API portable launching unit is far more mobile and cost effective than other on-site hydrogen generation systems. Based on customer reaction, Kaymont believes that the PBIS-1000 hydrogen generator can become the field standard and lift gas product of choice for NATO and allied military customers, and that a scaled down version is an affordable, ideal product for global meteorological customers.

API's President & Chief Executive Officer, Mr. David Cade, said: "The domestic and international marketing opportunities for API and our world class partners are boundless, and we intend to leverage these relationships to the maximum extent possible."

About AlumiFuel Power, Inc.
API (www.alumifuelpowerinc.com), the Philadelphia, Pennsylvania-based wholly owned operating subsidiary of AlumiFuel Power Corporation, is an early production stage alternative energy company that generates hydrogen gas and steam/heat through the chemical reaction of aluminum, water, and proprietary additives. API has significant differentiators in performance, adaptability, safety and cost-effectiveness in its target market applications, with no external power required and no toxic chemicals or by-products.

About AlumiFuel Power Corporation
AlumiFuel Power Corporation operates through its wholly owned subsidiary, AlumiFuel Power, Inc., a Philadelphia-based early production stage alternative energy company that generates hydrogen gas and steam for multiple applications requiring on-site, on-demand fuel sources.

Safe Harbor for Forward-looking Statements

This news release may contain forward-looking statements that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey to the public the company's progress, business opportunities and growth prospects, they are based on management's current beliefs and assumptions as to future events. However, since the company's operations and business prospects are always subject to risk and uncertainties, the forward-looking events and circumstances discussed in this news release might not occur, and actual results could differ materially from those described, anticipated or implied. For a more complete discussion of such risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission.

Contact Information

  • CONTACTS:
    Investor Relations:
    AlumiFuel Power, Inc.
    Thomas B. Olson
    Corporate Secretary
    303-796-8940

    Technical Information & Marketing:
    API Laboratories
    3711 Market Street, Suite 950
    Philadelphia, PA 19104
    215-921-9203
    Email Contact