Fuel cell maker MTI Micro to get up to $1.8m more from DOE

MTI MicroFuel Cells, developer of the Mobion® brand direct methanol fuel cell technology for handheld electronic devices, today announced that the U.S. Department of Energy (DOE) has reinstated funding for a cost-shared program originally awarded to the company in May 2004.

The program—temporarily suspended in 2006 awaiting federal appropriations and funding—has been extended until 2008.

The money is expected to result in up to $1.8 million from the DOE. The initial 2007 release of funds is $500,000.

The company says the money is expected to contribute to MTI Micro's planned improvements in cost reduction, reliability and performance and support MTI Micro's commercialization timeline, including the commencement of manufacturing readiness for Mobion consumer products in 2008 and the shipment of products in the consumer market in 2009.

"We are very pleased with the continuing support from the Department of Energy in bringing fuel cells to market by providing resources to help promote and develop high volume manufacturing processes and reduce per-unit fuel cell production costs," said Peng Lim, CEO of MTI Micro.

"This program will help support our product launch objectives and provide a pathway that will benefit the fuel cell industry in terms of a stronger supply base, reduction of costs and proliferation of fuel cells as an alternative source of portable power."

MTI Micro is a subsidiary of Mechanical Technology Incorporated (NASDAQ: MKTY). It competes with other handheld fuel cell developers such as Neah Power Systems and Medis Technologies.

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