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Stuart Energy Receives Groundbreaking Order from South Coast Air Quality Management District for Hydrogen Energy Station in California

Long Beach, California (20th Electric Vehicle Conference), November 17, 2003 - Stuart Energy Systems Corporation (TSX: HHO) announced today that it has secured a groundbreaking contract from the South Coast Air Quality Management District (AQMD), based in Diamond Bar, Calif., for a Hydrogen Energy Station with both vehicle fueling and power generation capabilities (HESfp). Using Stuart Energy’s proprietary water electrolysis technology, the HESfp will generate and dispense zero-emission hydrogen fuel to a fleet of AQMD hydrogen-powered vehicles. The AQMD also plans to evaluate and demonstrate clean hydrogen-based power applications such as peak shaving and back-up power using the same HESfp infrastructure. The station, which is expected to be delivered to AQMD’s headquarters in early 2004, will represent the first fully integrated, multi-purpose HESfp in California.

“The AQMD plays a key role in implementing Southern California’s air quality initiatives and we’re pleased to supply them with a multi-purpose HES product that supports their sustainable transportation goals while enabling them to supply clean power to their facility,” commented Jon Slangerup, President and CEO of Stuart Energy. “A compelling attribute of our HES product line is flexibility. In our view, the emerging hydrogen fuel infrastructure will not be limited to the form of conventional public gas stations. Modern hydrogen fueling stations can take a much different form offering customers both secure and clean fuel and electricity that can be generated when and where it is needed.”

”The construction of this new station is an important stepping stone in building a hydrogen fueling infrastructure in Southern California,” said Chung S. Liu, AQMD’s deputy executive officer for Science and Technology Advancement. “Southern California has the worst air quality in the nation and hydrogen vehicles will likely be an important part of the solution.”

The AQMD HESfp-12 is comprised of five modules: hydrogen generation, compression, high-pressure storage, a hydrogen fuel dispenser and a power module. The HESfp-12 is capable of producing 12 Nm3h (approximately 25 kg per day) of high-purity hydrogen, which is then compressed and stored under pressures of up to 410 bar (about 6,000 psi). The core value proposition of the HES is its ability to convert off-peak, low-value electricity into stored hydrogen, and subsequently use the hydrogen on demand for high-value hydrogen fuel and distributed power applications. When the HES is powered by renewable electricity, the HES represents an entirely zero-emission pathway for hydrogen fuel and distributed power.

To fuel a vehicle, the driver simply enters a Personal Identification Number into the security keypad system, and the dispenser module safely controls the amount and flow of hydrogen to the vehicle. The AQMD dispenser module will also be enabled with fleet management capabilities that allow a fleet operator to monitor individual vehicle fueling profiles.

The 120 kW power module is a hydrogen-powered internal combustion engine (H2ICE) generator set. The HES power module draws hydrogen from the storage module to generate electricity on demand for back-up power, peak shaving and distributed power generation. H2ICE technology is rapidly becoming accepted as a near-term bridge to building the hydrogen infrastructure necessary for the future commercialization of fuel cells.

About Stuart Energy
Stuart Energy Systems Corporation (TSX: HHO) is the world leading developer and supplier of integrated hydrogen solutions that use the Company’s proprietary hydrogen generation water electrolysis technology with products from corporate partners to serve existing and emerging markets for power generation, transportation and industry. The Company’s website address is http://www.stuartenergy.com

This release includes forward -looking statements, which are based on certain assumptions and reflect management's current expectations as contemplated under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward -looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify, develop and achieve commercial success for new products, services and technologies; the level of expenditures necessary to maintain or improve the quality of products and services; changes in technology; changes in laws and regulations, including codes and standards, intellectual property rights, and tax matters; the uncertainties of the emerging hydrogen economy, including the hydrogen economy growing at a slower pace than is anticipated; our ability to secure and maintain strategic relationships; the availability of, and ability to retain, key personnel; and the failure of the Company to effectively integrate acquisitions. Additional factors are discussed in our materials filed with the securities regulatory authorities from time to time. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

For more information, please contact:

Stuart Energy Media and Public Relations

Wanda Cutler
905.282.7769
[email protected]

Stuart Energy Investor Relations

Robert McGillivray
905.282.7727
[email protected]

 

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