PRESS RELEASE

Ion Power Installs First Commercial Fuel Cell Application in Delaware

January 5, 2006, New Castle, DE - Ion Power unveils the first commercial fuel cell installation in the state of Delaware at its headquarters.  The 5 kW Plug Power GENCORE® is integrated into the building heating system such that all the waste heat from the fuel cell is recovered for the heating demand of the building.  The electricity is used to power a heat-pump which delivers an additional 15 kW of heat into the building under typical winter conditions found in northern Delaware.  Thus the overall efficiency of the system is approximately 200%. The project is funded by a cooperative agreement with the Department of Energy and the Green Energy Fund of the State of Delaware as a Technology Demonstration Project.  One of the key goals of the project is to demonstrate the cost reduction that can be achieved by recycling end-of-life fuel cell components.  Dr. Stephen Grot, President of Ion Power comments that the “catalyst coated membrane, the heart of the fuel cell, is the key component that contributes costs to these systems, and also longevity challenges; we plan to demonstrate our Patent-Pending re-manufacturing process for these components as outlined in our funded programs with the DOE and the State of Delaware.”

The unveiling was witnessed by Governor Ruth Ann Minner who commented “This is our most successful example of our effort to establish clean energy centers in our state.”  Senator Tom Carper and Congressman Michael Castle also spoke in support of the project at the event. Partners in the project also in attendance were; Urie Blanton for the hydrogen supply, Plug Power for the Fuel Cell System, Quantum Controls for the electrical installation, York International and H&R Heating for the heat pump.

Ion Power’s new headquarters is located in close proximity to several large-scale hydrogen producers. In particular, a neighboring Chlor-Alkali installation is currently not recovering the waste hydrogen it is producing at a rate of 1000 kg/day.  A hydrogen pipeline exists along side Ion Power property so easy access to cost-effective hydrogen could be realized.  “At this time we are actively searching for additional users of the available low cost hydrogen in our vicinity”, says Dr. Grot.