Hoku Scientific to Develop MEAs for Nissan’s Fuel Cell Cars and Trucks
Hoku Scientific Inc. has been awarded a new contract by Nissan Motor Co., Ltd. Hoku is developing advanced hydrocarbon-based membranes and membrane-electrode assemblies (MEAs) for Nissan's fuel cell cars and trucks. The companies have worked together since March 2004. Nissan is one of the leading passenger car and truck manufacturers. Hoku is a designer, developer and manufacturer of MEAs and membranes for proton exchange membrane (PEM) fuel cells.
Dustin Shindo, chairman, president and chief executive officer of Hoku Scientific said, "This new contract demonstrates the strength of our continuing relationship with Nissan. … We are excited by this next step toward integrating Hoku MEA into Nissan's fuel cell cars and trucks."
Although the contract was signed in February, Hoku and Nissan have been working together to meet the contract goals since Jan. 1, and the companies will conduct joint testing of newer versions of Hoku membranes and Hoku MEAs at Hoku's facility in Kapolei, Hawaii, and at Nissan's facility in Oppama, Japan, through Sept. 30.
In other corporate news, Hoku is working with the U.S. Navy to choose a demonstration site for 10 fuel cell systems to be field-tested over a year's span. Partner IdaTech has started manufacturing the systems for the demonstration, Shindo said.
As a result of the delay in the commencement of the Navy demonstration system installations, Hoku is revising its revenue guidance for the fourth quarter ending March 31, 2006, to $1.4 million. Fluctuations in quarterly revenue are expected to due to uncertainty regarding the level and the timing of revenue from customer contracts and achievement of contract milestones.
Under the contract, the Navy agreed to pay Hoku up to an aggregate of $2.1 million if and when the company completed specified testing and performance milestones, which it has now done.
