STM Deploys Beta Fleet of Stirling Engine Generators

Each 25kW unit uses its own water and electricity to produce hydrogen.

Published: 14-Feb-2003

ANN ARBOR, Mich., Feb. 12 /PRNewswire/ -- STM Power, Inc. has announced completion of one of the world's most innovative applications of hydrogen-enabled technology.

With the completion of its beta product assembly, STM now has a fleet of 50 external combustion, Stirling-cycle PowerUnits in its field-testing program. This 1.2-megawatt fleet is the largest deployment to date of commercial-sized external combustion engines using STM technology.

Each of the 25-kilowatt (kWe) electricity-generating PowerUnits is powered by heat energy transferred by high-pressure hydrogen in STM's Stirling-cycle engine. This hydrogen is constantly monitored and replenished using STM's proprietary software combined with a hydrogen electrolysis unit.

"We are very pleased with the successful completion of our beta assembly program," said Thomas R. Hazlett, President and CEO of STM. "This is a major milestone in our country's development of ultra-low emission engines that produce electricity and hot water. Our products can burn any type of fuel, including hydrogen. They are in full compliance with new California standards for nitrogen oxides and unburned hydrocarbons. Particulate matter is too small to measure. Our hydrogen, heat and solar powered PowerUnits produce electricity and hot water with zero incremental emissions."

Unlike automotive fuel cells, which use hydrogen to produce electricity and water, an STM PowerUnit uses small amounts of its own electricity and water to produce hydrogen. This hydrogen serves as the working gas within the STM engine.

Commercial PowerUnits will be available for delivery starting in July 2003 in configurations from 55 kWe to multiple megawatts. Each 2003 model PowerUnit produces 55 kWe of 480-volt AC electric power and 10 gallons of hot water per minute at a 72 degree rise in water temperature. Initial marketing focus is on installations at landfills, wastewater treatment plants and agricultural digesters, which generate low quality methane. Further efforts are expected to sell PowerUnits to police and fire stations, hospitals and schools in conjunction with the infrastructure needs of the Department of Homeland Security.

STM Power, Inc. is a privately held company headquartered in Ann Arbor, Michigan and is the world's leading manufacturer of commercial and industrial sized, on-site, mechanical, electrical and cogeneration systems utilizing external combustion (Stirling-cycle) engine technology. The Company began shipping its 25 kW PowerUnits to customer sites in September 2002.

Production and shipment of STM's 55 kW commercial units will begin in mid 2003. PowerUnits absorb heat from a wide range of sources and convert it to electricity with minimal emissions and low maintenance requirements. Typical heat sources include standard gaseous and liquid fuels with options to accept low Btu landfill and digester gas, petroleum flare gas and other low-grade gaseous, liquid and solid waste fuels. Raw heat from solar concentrators or flue gas stacks can also be converted to electricity, with no fuel costs and no incremental emissions. To date, STM has approximately 60,000 operating hours on components, engines and its 25 kW PowerUnits. More information on STM Power can be found at www.stmpower.com .

This release may contain forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on assumptions which STM Power, as of the date of this release, believes to be reasonable and appropriate. STM cautions, however, that the actual facts and conditions that may exist in the future could vary materially from the assumed facts and conditions upon which such forward-looking statements are based.

Contact Information:

    Corporate Office/Sales & Service       Finance/Investor Relations &
                                            Bus. Devel.
    STM Power, Inc.                        STM Power, Inc.
    275 Metty Drive                        1655 North Fort Myer Drive,
                                            Suite 825
    Ann Arbor, MI 48103                    Arlington, VA  22209
    Tele: 734-995-1755                     Tele: 703-816-4850
    Fax: 734-995-0610                      Fax: 703-248-8124

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