Since its inception, IdaTech has developed technologies for fuel cells and
related applications. IdaTech's initial focus was on hydrogen purification
technologies and fuel reforming and the group has subsequently developed its own
fuel cell stack and expertise in systems integration. Through its technology,
IdaTech seeks to address the growing demand for clean, convenient, dependable
and scalable sources of power.
IdaTech is focused on commercial markets in which current solutions are
arguably inferior to fuel cell technology, principally industrial markets such
as the provision of backup power for wireless and wireline telecommunication
network base stations and power for materials handling vehicles such as forklift
trucks. IdaTech is also developing technology to address additional
opportunities in consumer and industrial markets, such as the provision of
backup and auxiliary power for recreational vehicles and applications in diesel
emissions reduction. The directors of IdaTech believe that this parallel
approach positions IdaTech to address both near and longer term markets for fuel
cells and related systems.
IdaTech's ElectraGenTM product, which targets the backup power
market, is commercially available and its iGenTM product, which
targets the portable and remote power markets, is at an advanced stage of
development. In addition, IdaTech is developing other products based on the same
technology to target a number of additional markets.
IdaTech's current products have been fully certified to international safety
and industry specific standards. The directors of IdaTech believe that the
certification of IdaTech's products has been central to its ability to enter
into business relationships with key end users such as Verizon Wireline,
Deutsche Telekom and Telecom Italia, OEMs or VARs such as Dantherm and
distributors such as C&D Technologies. IdaTech pursues quality assurance in
all areas of its business and has achieved ISO 9001:2000 accreditation, while
also making use of Six Sigma process defect elimination methods to improve its
processes and products.
IdaTech's development and testing facility is located at its headquarters in
Bend, Oregon. This facility also incorporates a pilot and low volume
manufacturing capability. IdaTech is currently establishing a new, higher volume
manufacturing facility in Tijuana, Mexico, which is expected to have production
capability during the second half of 2007. IdaTech has sales, service and
training operations in Bend, Oregon and in Herten, Germany. As of 20 July 2007,
IdaTech had a staff of 78 full-time employees.
Competitive strengths
The directors believe that IdaTech possesses a number of strengths that could
provide it with a competitive advantage over other fuel cell companies in
markets such as backup power and portable power.
Advanced technology and product design
The directors believe that IdaTech's proprietary technology in the generation
of greater than 99.95 percent pure hydrogen from a variety of fuels, together
with its ability to integrate this fuel reforming technology into fuel cell
systems, enables it to address a wider range of markets than its competitors. In
addition, IdaTech's technology can offer advantages over incumbent solutions,
such as, in the case of conventional lead acid batteries, in respect of
reliability, maintenance needs and performance over a wide range of
temperatures.
Applied research and development strength
The directors believe that IdaTech has a strong in-house research and
development capability in fuel reforming, hydrogen purification and fuel cell
stacks. IdaTech's research and development activities have consistently focused
on identified markets and end users, and the company continues to develop its
products with reference to input from field testing with a number of potential
customers and partners.
Quality of business relationships/development partnerships
Within the telecommunications sector, new technologies are typically only
adopted by network operators once such systems have been rigorously tested and
the companies providing them have achieved qualified vendor status. This process
can take several years. IdaTech has achieved approved vendor status with
T-Mobile USA and its products have been tested and certified for installation in
Telecom Italia's network. IdaTech has received a non-binding Letter of Intent
from one of its partners indicating the potential purchase of up to 100
ElectraGenTM systems and is also competing for the deployment of up
to an additional 100 systems to be delivered to a European telecommunications
company. In addition, IdaTech is in tests with a number of other
telecommunications companies in Europe and the United States. IdaTech has also
developed strong relationships with US governmental organisations, including the
US Department of Energy and US Department of Defence.
IdaTech has completed or is currently engaged in a number of development
programmes with various governmental agencies and private corporations. In
addition, IdaTech has completed development contracts with two major European
automobile manufacturers relating to IdaTech's diesel fuel processing unit for
auxiliary power applications and diesel emissions reduction. IdaTech has also
completed a development contract with Electricité De France for the development
of portable fuel cell systems for back up applications. IdaTech engages in such
development work where it sees potential to enhance its core technologies.
Extensive intellectual property portfolio
As at 30 April 2007, IdaTech had 134 worldwide patents granted, of which 50
were US patents, and more than 160 pending patent applications. In addition,
IdaTech possesses a number of trademarks, including ElectraGenTM,
iGenTM, IdaTechTM and HyPuriumTM and various
trade secrets and know-how.
Expanding manufacturing capabilities
As at 30 April 2007, the majority of IdaTech's manufacturing operations were
conducted in their facilities in Bend, Oregon, United States. During the second
half of 2007, IdaTech intends to commence manufacturing in its new facilities in
Tijuana, Mexico. IdaTech expects to increase its manufacturing capacity through
this additional facility and through improved equipment and to benefit from
significantly lower labour costs compared to the United States. Production
capacity in Mexico is expected to be easily scalable to meet demand for
IdaTech's products.
Strong management team
The IdaTech management team includes experienced professionals from a variety
of backgrounds, including engineers, business managers and research and
development experts. The directors believe IdaTech possesses the key skills and
experience necessary to continue to research and develop commercially relevant
technology and to continue to form the partnerships and customer relationships
necessary to generate increased revenue from its current products.
Strategy
The directors believe that adoption of IdaTech's technology will follow a
path from premium to mass applications in both industrial and consumer markets.
IdaTech's technology development programme has been driven by existing and
projected end user demand. IdaTech has undertaken extensive market research and
is focussing on what it believes are the most attractive markets for its
products and technology.
Markets on which IdaTech is or will be focussing in the short term include:
- backup or remote power in industries where continuity of power is essential
(particularly telecommunications);
- small scale and portable power for industrial applications (such as small
monitoring and telecommunications stations), high end consumer applications
(such as power for recreational vehicles and yachts) and military applications;
and
- power for industrial materials handling vehicles, such as fork lift trucks,
which currently utilise batteries.
The directors believe that IdaTech's products in each of these markets could
have advantages over the incumbent technology and that each could be capable of
being produced at a price point that would facilitate adoption.
Initially, IdaTech expects to generate the majority of its product revenue
from the telecommunications base station backup power market.
In the longer term, the directors believe that volume sales in these early
markets could allow IdaTech to reduce the production costs of its systems and
therefore offer lower priced products in existing and additional markets,
including consumer markets and auxiliary power for trucks and other vehicles in
which fuel cells could provide electrical energy when the engine is not
operating.
In addition, IdaTech continues to leverage elements of its technology
portfolio in partnership with government agencies and corporations. IdaTech
recently entered into a three year agreement with a large Japanese company with
potential revenues of up to $3 million to develop a palladium metal membrane
system based on IdaTech's patented HyPuriumTM metal membrane for
potential future applications of industrial scale hydrogen purification, and has
also signed technology development contracts with aggregate revenues of
approximately $0.7 million with a second Japanese company and a French company
so far this year.
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