Rolls-Royce Grows Global Fuel Cells Capability With US Acquisition

    CANTON, Ohio, April 2 /PRNewswire/ -- Rolls-Royce, a world leading
 provider of power systems and services for use on land, at sea and in the
 air, today announced it has enhanced its global fuel cell capability with a
 strategic acquisition in the US.
     Rolls-Royce Fuel Cell Systems (US) Inc. has acquired the assets of
 Ohio- based SOFCo-EFS Holdings LLC from McDermott International Inc.
 Founded in 2003, the SOFCo-EFS' research and development team has proven
 expertise in fuel processing technologies, advanced research and
 development in Solid Oxide Fuel Cell (SOFC) materials and stacks, and
 advanced system integration capabilities.
     The acquisition underscores the commitment Rolls-Royce is making in
 developing SOFC systems for megawatt-scale, stationary power applications
 with the business goal of introducing a competitive product in this decade.
     Rolls-Royce began research into fuel cell technology in 1992 and in
 2003 established Rolls-Royce Fuel Cell Systems Ltd. In 2005 Rolls-Royce
 partnered with Singaporean consortium EnerTek to jointly invest $100
 million toward developing a commercially-viable power system based on fuel
 cell technology. Last year the company announced the formation of its US
 subsidiary, Rolls- Royce Fuel Cell Systems (US) Inc. located on the campus
 of Stark State College of Technology, Canton, OH.
     The company has also opened a new facility at Loughborough University
 in the UK to pilot the production of ceramic components for use in fuel
 cell systems.
     Mark Fleiner, President of Rolls-Royce Fuel Cell Systems (US) Inc.
 said: "We are aggressively growing our global fuel cell capability, and the
 acquisition of the SOFCo assets aligns with our strategy. From the
 beginning, our strategy has been to engage the best skills and technology
 around the world to create the first cost-competitive, highly-efficient
 fuel cell systems. This acquisition is a critical step on our journey."
     Corporate note to editors:
 
     1. Fuel cells generate electricity by combining fuel and air in an
        electrochemical reaction. They were first demonstrated in the 19th
        century, but to date have always been relatively large and expensive to
        manufacture, depriving them of any real commercial applications.
 
     2. By utilizing its aerospace technology skills, Rolls Royce has designed
        an electrical power system that integrates a solid oxide fuel cell with
        a micro turbine. This power system promises to be significantly more
        efficient than any conventional gas turbine or reciprocating engine,
        with far less impact on the environment. The current objective is a
        stationary power-generation system providing around 1 megawatt of
        electricity, for market delivery some time before the end of the
        decade.
 
     3. Rolls-Royce operates in four global markets -- civil aerospace, defence
        aerospace, marine and energy and is a significant industry player in
        North America. The company employs some 8,000 people at more than 64 US
        locations in 26 states and eight Canadian sites in six provinces.
 
     4. In the energy sector, Rolls-Royce provides highly efficient
        aeroderivative gas turbine driven compression, oil pumping and power
        generation packages for on- and off-shore applications worldwide. To
        meet society's increasing energy needs, Rolls Royce is investing in
        next-generation products and capabilities for the oil & gas and power
        generation industries.
 
     5. Rolls-Royce annual sales in North America are more than $3 billion and
        the company's total U.S. investment stands at $1 billion and growing.
        U.S. interests hold more than 30 per cent of Rolls-Royce shares. More
        Rolls-Royce engines are built in the United States than anywhere else
        in the world.
 
     6. Rolls-Royce is a socially responsible corporate citizen and a good
        neighbor. The company and its employees in North America actively
        support their local communities. In 2006, the organization contributed
        more than $1 million to philanthropic causes and efforts across the
        region.
 
     7. Rolls-Royce Fuel Cell Systems (US) Inc. has teamed with AEP to test and
        evaluate prototype fuel cell systems at the Dolan Technology Center and
        Walnut Test Facility located near Columbus, OH.
 
     Web: http://www.rolls-royce.com
 
 

SOURCE Rolls-Royce