MTI Micro gets more DOE funds

MTI MicroFuel Cells said today the U.S. Department of Energy released an additional $500,000 under a funding program for the development of its micro fuel cell technology (see Honey, MTI shrunk the fuel cell).

The Albany, NY-based unit of Mechanical Technology (Nasdaq: MKTY) has received a total of $1 million from the government agency with today's financing.

"This program further validates our product vision including the commencement of manufacturing readiness for Mobion consumer products in 2008 and the shipment of products in the consumer market in 2009," said MTI CEO Peng Lim.

MTI Micro is working on the development and mass manufacturing of its Mobion fuel cell for handheld electronics.

The company said it expects the DOE funding program to result in up to $1.8 million in financing between 2007 and 2008.

Founded in 2001, the MTI unit has also received funding from the National Institute of Standards and Technology and other government agencies.

MTI Micro said it already has a number of system prototypes demonstrating size reductions and performance improvements in its direct methanol micro fuel cell technology.

The company has said OEMs like Samsung and Duracell, owned by Gillette, have begun to work with the prototypes, and expects to announce at least one more consumer electronic partnership by the end of the year.

MTI Micro said the Mobion's patented ability to run on 100-percent undiluted methanol is forcing competitors to use diluted methanol, which negatively affects their power output.

Some of its competitors in the tiny fuel cell field include New York-based Medis Technologies (Nasdaq: MDTL), and Neah Power Systems (OTCBB: NPWS) of Seattle (see Real laptop fuel cell power breakthrough?).

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