Deloitte has today forecast that over the course of the year there will be a significant number of commercial launches of ethanol-based fuel cells - both as standalone products and as the integrated power source for leading-edge consumer products. One of the first examples of this has been the recent announcement by IBM and Sanyo that they are working together on a hybrid power system for portable computers that combines batteries with a methanol fuel cell.

Nick Griffin, technology partner at Deloitte, comments: “Fuel cells will provide enough power for several days of continuous use and many weeks of stand-by time, transforming the way we use mobile phones, laptop computers, portable music players and PDAs – and enabling other portable devices and applications that have yet to be invented. Small, low-power devices such as Bluetooth headsets could incorporate months of built-in power, eliminating the need for consumers to travel with multiple chargers and adapters.

“Unlike lithium ion batteries, fuels cells can be made in a variety of shapes and forms. This removes one of today’s biggest design constraints and opens up a whole new world of design possibilities. And because fuel cells are refilled, not recharged, they should also create a global business opportunity for fuel sales.

“There are still some significant challenges to fuel cell adoption, including restrictions on fuel cell use in airplanes. But these barriers are steadily being overcome. The market in 2005 will be small, probably measured in tens of millions of dollars, but is likely to grow vigorously once consumer electronics manufacturers get on board.

“Refuelling will be the industry’s biggest challenge. For consumers to adopt fuel cells en masse, fuel must be as readily available as batteries, thereby making the decision to adopt fuel cell technology positive, not problematic. This massive logistical challenge will require unprecedented cooperation between competing manufacturers, distributors and retailers.

“For fuel cells to reach their maximum potential, all members of the value chain must quickly focus on creating a distribution network that is manageable, practical and ultimately profitable. Manufacturers should also re-examine their development pipeline, accelerating development of devices that could benefit from fuel cell technology,” concludes Griffin.

Ends

Notes to Editors
About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP.

Deloitte & Touche LLP is the UK's fastest growing major professional services firm based in 21 UK locations, with over 10,000 staff nationwide and fee income of £1,246 million in 2003/2004. It is a member firm of Deloitte Touche Tohmatsu, a leading professional services organisation, delivering world class audit, tax, consulting and corporate finance services, with around 120,000 people in over 140 countries. Deloitte Touche Tohmatsu is a Swiss Verein, and each of its national practices is a separate and independent legal entity.

Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.

The information contained in this press release is correct at the time of going to press.