MTI MicroFuel Cells Inc. (Albany, NY), a subsidiary of Mechanical Technology Inc., announced that it has formed a strategic alliance with Gillette Co. (Boston, MA) to develop fuel cells for consumers. The agreement includes an investment by Gillette of up to $5 million in MicroFuel. Gillette made an initial $1 million investment in the company and will invest up to $4 million more upon certain milestones. Mechanical Technology agreed to ensure funding to Microfuel during the first two years of the agreement.
The company's plans are to build a fuel cell powered by alcohol, which provides more energy than traditional batteries and therefore can be smaller and last longer. MicroFuel hopes to have a version of its product ready for industrial use next year. Through its agreement with Gillette, MicroFuel will work on developing a device for general consumers. Gillette's Duracell division will work on developing the refills.
"There is a compelling need for a better power source," said Bill Acker, MicroFuel chief executive. "What we're really excited about with the deal . . . is that in order to move to the consumer market, it is important to have fuel cell cartridges ubiquitously available. And we can think of no one better than Gillette to do that."
