There aren't many places more useful for a small power unit than on a boat at sea. So it looks like a good move for Voller Energy to appoint somebody specifically for Marine sales.

At the moment, this market is dominated by solar panels and micro-wind turbines. In some ways, you could argue that much micro generating technology early experience prior to the recent boom was primarily in yachts. And yacht sales are rising.

Bottom line; if you can afford a yacht, you can afford a fuel cell !

We've all heard of hybrid electric vehicles, but hybrid fuel cells is admittedly a first for me. Ballard power systems has just announced a new tie-up with the Federal Transit Administration to test two types of hybrid fuel cell buses.

According to Ballard's Chief customer officer "There are 36 Ballard-powered fuel cell buses transporting people on roads around the world today" which gives you a perspective of how far this technology has to go to become mainstream. It would be great to see Ballard making more sales direct to private companies rather than profligate government agencies. Some people think this may actually start next year with Ballard fuel cells for forklift trucks. And take a look at the company's own flash roadmap - quite entertaining but not very enlightening.

So when will we all be driving fuel cell vehicles?

A good piece here from a 2004 issue of Wired - "... the price of producing a fuel-cell vehicle must be reduced by a factor of 10 before the autos will become cost-competitive. The majority of the fuel cell cost comes from the membranes (30 percent to 35 percent) and the catalyst materials (40 percent) that are stacked in layers"

Since then though, fuel cell manufacturers have been hit by the commodities boom, because the price of platinum has risen from $10,000 per pound in 2004 to about 30% higher today.

This commodity boom has hit other parts of the alternative energy boom too - like the impact of silicon prices on solar and steel on wind turbines . . . raising prices when most thought they would fall

Plug Power has just has received a follow up order of 120, for its GenCore backup fuel cell systems, from IST Holdings Ltd.

In his 2004 book, "The Hype about Hydrogen" Joseph Romm said "Price and payback trump almost everything else" - the insight I think of a true sage. In other words, while companies "... say they would like more reliable power (such as fuel cells), the vast majority are not willing to pay very much more for it".

2 years on, fuel cell sales are starting now to come through and this industry is starting to go places. Still, how many companies would choose to pay much more for fuel cells as an uniterruptible power supply over an advanced flywheel or even an off the shelf diesel generator?

Ballard Power Systems (TSX:BLD) announced Tuesday it will supply 2,900 of its Mark 9 SSL fuel cells to General Hydrogen Corp. by the end of 2008 under a US$22-million agreement.

The market liked the news and the stock closed up over 8% at 6.1. Actually, Ballard could do with quite a lot of good news - just take a look at the 12 month chart. It looks more like a seismograph with an earthquake in the middle. This is when it peaked at just over 12 before May's alternative energy fallout.

Ballard is still attracting investors.

.85M+Equity+Contribution/1226875.html">Specifically, a US$5.85 million equity investment from EBARA Corporation (EBARA). In exchange for the US$5.85 million investment by EBARA, Ballard issued 1,022,549 Ballard Common shares.

I just have my doubts about fuel cells in cars anytime soon. The mid-future however suggests that it will be in buses first in metropolitan areas where they might make their breakthrough.