Digital Gas in Venture with ShenLi and Goeta Technology

August 28, 2005 by Jeff Shepard

Digital Gas Inc. (Dallas, TX) announced that its Digital Sofcell solid-oxide fuel cell (SOFC) subsidiary will participate in a joint venture with Shanghai ShenLi High Tech Co. and Goeta Technology Developer International. Digital Gas anticipates that the fuel cell technology will be used in various business areas, especially for fuel cell cars and buses. The joint venture will be formed based on contributions and a combination of advantages from both sides.

Digital Sofcell and Goeta, the developer of a low-temperature SOFC technology, will contribute SOFC technology, patented SOFC material production, and fabrication and manufacture facilities. Shanghai ShenLi, a developer and manufacturer of fuel cells, will contribute the facilities, engineering team, and equipment, as well as its expertise in fuel cell systems, installation of fuel cell products, and other technical resources and capabilities. Digital Sofcell will also join with Digital Ultracap to produce integrated systems that will bring distributed generation to homes, small businesses, industrial firms, shopping centers and malls, hospitals, residential and commercial real estate, and the hospitality industry.

Digital Sofcell is currently negotiating with investment banking firms to fund the $250 million that it is seeking to raise to establish the new SOFC technology. A management consultant firm recently retained by the company is currently contacting potential strategic partners among end users, and may raise the $250 million in this manner.