DCHT Chairman Sees Hydrogen, Fuel Cell Opportunities in China

In just a few years, a small hydrogen sensor start up with the motto—Hydrogen is the future. We can sense it—has made some significant waves in the fuel cell and hydrogen technology markets. As David Haberman, chairman of DCH Technology (DCHT), spoke at this year's World Hydrogen Conference and traveled throughout China, he saw a similar entrepreneurial spirit starting to break through the state-owned and -operated surface to address the nation's growing environmental concerns and its need for power.

During his remarks, Haberman said he lauded the strength of small cottage industries in China and encouraged them to take the lead in addressing its needs for energy and preserving environmental quality through the use of hydrogen and fuel cells. Haberman said he found the response to these remarks in both his address before the conference and in meetings with government and business officials to be extremely encouraging.

"I spoke at length with Dr. Zong Qiang MAO, the chairman of the country's association for hydrogen energy, and he confirmed for me the environmental imperative is gaining strength in China," Haberman said. "Top-level government interest was overtly expressed from the opening remarks onward and the presence of many technical people and grad students from the local universities was overwhelming."

DCHT develops and manufactures hydrogen-enabling technologies, including the Enable PEM Fuel Cell product family and the Robust Hydrogen Sensor. The company maintains its headquarters and sensor facilities in Valencia, CA, fuel cell development and fabrication facilities in Madison, WI, and a communications office in Washington, D.C.

Haberman said he emphasized the idea of starting small projects with local orientations and a clear understanding of the need to share revenues throughout "a chain of value-added participants," including hydrogen (H2) generator, H2 transporter, H2 fuel cell vendor, and customer service provider. "All those involved must be assured a percentage of the available revenues."

DCHT certainly seems to serve as a good example of this model in action, with several recent deals reflecting this desire to share the wealth. In June, for example, DCHT purchased 110 fuel flexible reformers from Hydrogen Burner Technology (HBT) of Long Beach, CA. The company plans to integrate them into Enable's larger fuel cell energy systems. Enable is DCHT's fuel cell development subsidiary.

HBT reformers operate on gasoline, diesel, natural gas, propane, kerosene or methanol to deliver hydrogen for fuel cells. "This purchase represents a solid alliance of hydrogen specialists that offers a cost competitive, high reliability power system configured for a variety of electrical loads and adaptable to the logistical fuel available to the customer," said Stephanie Hoffman, Enable's vice president and general manager.

DCHT also recently acquired the exclusive rights and associated technology of a hydrogen-PEM fuel cell that lends itself to high-volume manufacturing and assembly and the use of a packaged solid fuel. And in May, the company acquired a new building dedicated to advanced sensor development and full-scale manufacturing operations, representing DCHT's second expansion of the sensor division and the addition of on-site hydrogen production capability.

Although DCHT appears focused on the American market for the time being, Haberman obviously sees opportunities in China's growing energy needs.

"I traveled a little in China during this meeting and witnessed extraordinary adaptability in how they address needs," he said. "But one theme was apparent—the juggernaut of growth in electrical demand. The current system is not postured to meet the current and future needs."

Haberman said that those he spoke with seem eager to explore hydrogen-fueled alternatives and felt China could quickly embark on a hydrogen future. Although "awe inspiring," Haberman continued to stress private development over the status quo in China.

"I spent time emphasizing that international strength was growing to help developing markets with potential," he said. "It should be emphasized that any H2 solution in China will happen entrepreneurially, not because of massive government subsidies."

For more information about DCHT, contact invest@dcht.com, 661-775-8120, ext. 11.

By April C. Murelio
editor@poweronline.com