SOURCE: AlumiFuel Power Corporation
CENTENNIAL, CO--(Marketwire - Nov 1, 2012) - Early production stage hydrogen generation company AlumiFuel Power Corporation (OTCBB: AFPW) (the "Company") through its operating subsidiary, AlumiFuel Power Technologies, Inc., announced today that Superstorm Sandy has validated its expanding initiatives in pursuing its AlumiFuel cartridge-based hydrogen generation technology as a fuel source for backup power fuel cell applications. (See AFPW news release of May 31, 2012). The following news article illuminates the tremendous backup power needs which became evident during Sandy:
"NEW YORK (AP) Oct. 30, 2012 - Superstorm Sandy knocked out a quarter of the cell towers in an area spreading across 10 states, and the situation could get worse, federal regulators said Tuesday. Many cell towers that are still working are doing so with the help of generators and could run out of fuel before commercial power is restored, the Federal Communications Commission said. ....As commercial power was cut to the southern tip of Manhattan on Monday, data centers and facilities of phone companies in the Wall Street area were forced to switch to diesel generators. Data centers that failed to keep running on backup power brought down various news sites. ....Verizon Communications Inc., the biggest phone company in the region, had some of its facilities in downtown Manhattan flooded, shutting down phone and Internet service."
AFPW has continued to accelerate its relationships with key industry and government players, involved in the backup power arena, including: (1) A major wireless carrier; (2) Several backup power fuel cell companies: (3) Emergency Services organizations in selected Philadelphia-area counties; and (4) the US Department of Energy. AFPW is exploring various engineering development scenarios for integrating the Company's technology into fuel cell back-up power systems. These efforts are expected to be enhanced by AFPW's strategic business development agreement with a New York investment firm. (See AFPW news release of October 16, 2012).
The large and growing U.S. back-up power market, traditionally served by lead-acid batteries and gasoline or diesel generators, is increasingly adopting hydrogen PEM fuel cell systems to replace these earlier technologies. The size of this market is enormous -- $6.4 billion for the emergency response segment (police, fire, medical, disaster preparedness) and an even larger multi-billion dollar segment for the telecom and financial services industries. All of the national wireless telecomm carriers have begun installing fuel cell back-up power systems. As of early 2012, over 1,100 fuel cells had been installed at cell phone tower sites, most of which are 5kW systems. This transition to fuel cell systems for backup power is being driven by a number of important factors: (1) Lower fuel cell prices -- 80% reduction since 2002 and 35% reduction since 2008. (2) Cheaper life-cycle costs -- 25-50% over 10-15 year period. (3) Higher power density and longer continuous runtimes. (4) Easier maintenance. (5) Remote monitoring capability. (6) Cleaner -- no dirty lead-acid batteries and no harmful emissions.
Today, most of these systems rely on K-Cylinders to provide the hydrogen for the fuel cells. Virtually all of the fuel cell companies and carriers are seeking a better hydrogen solution for back-up power systems. The use of K-Cylinders for these applications entails high logistics costs, handling difficulties, and continuous high-pressure storage risks. AFPW has developed a solution for a 5kW system which would replace 6 K-Cylinders with 6 large AlumiFuel cartridges (48"x 5" diameter). This solution results in a much cheaper logistics chain (the cartridges can be disposed of in city dumps), on-demand hydrogen under very low pressures instead of constant high pressures, twice the back-up power runtimes, and a lighter weight power cabinet.
AluniFuel Power Technologies' CEO Mr. David Cade said, "Major natural disasters such as Megastorm Sandy clearly underscore the potential capabilities of our technology to make major contributions in meeting backup power requirements in the eyes of key industry and government players."
About AlumiFuel Power Corporation
AlumiFuel Power Corporation, operating through its wholly owned subsidiary, AlumiFuel Power Technologies, Inc., is an early production stage alternative energy company that generates hydrogen gas and steam/heat through the chemical reaction of aluminum powder, water, and proprietary additives. This technology is ideally suited for multiple applications requiring on-site, on-demand fuel sources, serving National Security and commercial customers. The Company's hydrogen feeds fuel cells for backup and portable power; provides lift gas for weather balloons; and can replace costly, hard-to-handle and high pressure K-Cylinders. Its hydrogen/heat output is also being designed and developed to drive fuel cell-based and turbine-based undersea propulsion systems and auxiliary power systems. The Company 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.
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.