| lkgeo1 2007-02-08, 1:25 pm |
| Creating jobs, alternative fuel: New plant bets on hydrogen power
Publication Date:08-February-2007
10:30 AM US Eastern Timezone
Source:Frank Norton-The News & Observer, Raleigh, N.C.
Microcell, a Raleigh company that wants to power cars, homes and
cities, will open a plant in Martin County this year and hire 100
workers by 2010. The company will initially produce demonstration
units of hydrogen fuel cells that it has been developing in
partnership with Pepco, Progress Energy and other utilities.
Progress invested $1 million in Microcell about a year ago to develop
more cost-effective hydrogen fuel cells. The Raleigh utility could
eventually configure the cells to generate backup power for its
customers and for other uses.
Microcell claims that its fuel-cells are cheaper to produce than
existing fuel cells and will have uses in industrial and consumer
applications.
"We believe our technology will have a number of benefits over
existing fuel cells," said Beth Rehbock, vice president and chief
administration officer for Microcell. She said lower production costs
will translate into lower-cost fuel cells and ultimately cheaper
prices for businesses and consumers.
Microcell, founded in 2000, has no products on the market and relies
on investments from utilities and other strategic partners to fund
operations.
The company's decision to manufacture in Robersonville, a small town
about 35 miles southeast of Rocky Mount, will bring much-needed jobs
to the eastern part of the state.
The December jobless rate in Martin County was 5.9 percent, compared
with 4.7 percent statewide.
"This type of job growth is terrific," said Nelle Hotchkiss, a
spokeswoman for the N.C. Electric Membership Corp., which represents
power companies across the state. "One, it's technology, and two, it
provides for a wide range of skill levels."
The Electric Membership Corp. gave Microcell an interest-free loan of
$350,000 to upfit the plant. The zero-percent interest rate is for the
life of the loan, and the repayment period is yet to be determined.
Microcell would not disclose the total investment, but said that
employees would be paid an average of $30,000 a year. Positions range
from design and engineering to production, Rehbock said. The company
does not plan to expand its Raleigh headquarters anytime soon, she
said.
To further encourage investment, Martin County provided a rent subsidy
worth $250,000 for the facility. The property is owned by the Martin
County Economic Development Commission. The state did not provide
incentives.
"This investment is representative of what I think we're going to see
in North Carolina," Hotchkiss said. "This is necessary to meeting our
energy needs of the future and may help reduce our reliance on
traditional power generation."
In the past three years, Progress Energy has invested millions of
dollars in cash, property and time to help companies develop and test
alternative energy sources, company spokesman Mike Hughes said. Most
of the investment has been in Florida for projects such as a hydrogen
fueling station for cars, he said.
"The reason we invested in Microcell is because they are a Raleigh-
based company and because they're working on something in which we
have a vested interest," Hughes said.
He said Microcell's fuel-cell technology is unlikely to become an
immediate phenomenon, but might be critical to serving customers' long-
term needs. "This plant is a milestone," he said.
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