Uncovering a Diamond in the Rough, SymPower (PINK:SYMW)

July 29, 2009

SymPowerco Corp.

(Public, PINK:SYMW)

StocksHaven Investments analyzes one of the most undervalued alternative energy plays, which in the near future may find itself alongside the predominant players within the Fuel Cell & Hybrid Power Systems Research & Development sector.  SymPowerco is an energy technology company focused on the design and development of clean and practical power and energy solutions. Their mission is to make practical Fuel Cell Hybrid Power Systems a commercial reality. The company’s unique Flowing Electrolyte Direct Methanol Fuel Cell offers a practical solution to a host of global environmental and energy challenges. Potential means profitability for investors and SymPower has plenty of it with its upcoming targeted markets involving: Small Vehicles, Motorbikes, Retrofit Markets, Stationary Power Supplies, and Other Markets.

As the world begins to take notice of the need for alternative energies, new and upcoming companies will emerge as dominant market players, and what’s most important is to recognize them before they make the transition. Since the earliest days of manned space flight, the fuel cell has provided power for space craft. On July 20, 1969, the Apollo 11 Lunar Module landed on the moon. Its Command Module was powered by fuel cells. For decades man has reliably and safely powered space craft (and submarine systems, as well) with fuel cells, but a practical fuel cell, capable of powering even a small vehicle, has yet to be brought to the consumer market.

Technology

Hybrid Power Systems

Imagine your car’s mileage suddenly increasing to over 100 mpg, without any apparent loss in performance. Imagine eliminating over 200 lbs of lead acid batteries in golf carts. Hybrid Power Systems will make these advances possible in the near future. SymPowerco intends to develop and market Hybrid Power Systems through our majority-owned (70%) subsidiary, Polygenic Power Systems. A hybrid power system has two or more power components performing cooperative power-supplying functions.

A hybrid power system is a combination of a power producer and the means to store that power in an energy storage medium such as lead-acid batteries or other battery types. In a golf cart or other such vehicle, peak power demand is satisfied with batteries while the batteries are continuously charged with a power supply such as a fuel cell.

The average power demand in most vehicles is only 25 to 35% of peak demand. For instance, an automobile with a 200 hp engine requires only 50 hp or less while cruising on flat ground. Peak power capability is only used during acceleration, climbing hills or pulling larger loads.

In a hybrid electric vehicle, the batteries store sufficient energy to supply the peak demand, however the average demand is only 25% to 30% of the peak.

Due to the fact that batteries can be charged “on the fly”, far less weight in batteries can be used and the power supply needs to produce only slightly more than the average vehicle demand, together resulting in a far lighter, economical and environmentally friendly vehicle while still maintaining superior vehicle performance.

SymPowerco, through its majority owned subsidiary Polygenic Power Systems, has acquired the rights to an advanced power producer, a Flowing Electrolyte Direct Methanol Fuel Cell and the rights to use advanced battery technologies in hybrid applications.

Fuel Cell Primer

A fuel cell is an electrochemical energy conversion device that produces electricity from hydrogen. Hydrogen is an element and has the simplest atomic structure of all elements, 1 proton and 1 electron. Electricity is the flow of electrons.

A fuel cell can be two to three times more efficient than an internal combustion engine in converting fuel to power. A fuel cell produces electricity, water and heat using fuel and oxygen in the air. Water is the only emission when hydrogen is the fuel.

Direct Methanol Fuel Cell

Researchers believe that the Direct Methanol Fuel Cell or DMFC presents the best opportunity for early commercialization of fuel cells. When a weak solution of methanol is fed to the carbon and platinum anode of a fuel cell, the methanol dissociates into H+, CO2 and electrons. The CO2 is vented off and the fuel cell is left with H+ and electrons similar to the process in hydrogen PEM fuel cells.

The advantages of the DFMC are obvious. Firstly, an expensive, complex and power hungry reformer is not required and, secondly, methanol is commonly available. Worldwide methanol production capacity in 2006 was approximately 43 million metric tonnes. DMFCs promise very simple construction, excellent power output, inexpensive and easy to handle fuel coupled with broad availability of the fuel.

Flowing Electrolyte Direct Methanol Fuel Cell

In the SymPowerco Flowing Electrolyte Direct Methanol Fuel Cell or FE DMFC, the expensive PEM is replaced by a flowing electrolyte, sulfuric acid, the same acid found in automobile batteries. A PEM is also required in the FE DMFC but it can be a far less expensive PEM with much lower resistance. This cheaper PEM allows some crossover of methanol but the flowing electrolyte removes the methanol, thus increasing fuel cell efficiency by about 30%. The result is a lower cost and more efficient DMFC and a probable smoother and cheaper route to commercialization.

Over $4,000,000 has been invested in research and development of the SymPowerco FE DMFC. The development work included the successful construction and operation of a 5 Watt multi-cell FE DMFC that supplied power to a complete hybrid power system. The 5W unit included an electronic subsystem control package of sufficient capability to handle the entire FE DMFC development process to near-commercialization.

The completion and testing of the 5W unit proved the feasibility of the Flowing Electrolyte DMFC program, answered many research and development questions and paved the way for the ramping up of the FE DMFC program now being undertaken by SymPowerco.

SymPowerco with its development partners will announce the FE DMFC development objectives and activities in the near future.

Batteries

Hybrid Power Systems typically consist of an electrical source, a charger and a battery. Although SymPowerco’s fuel cell technologies will work well with lead acid and other battery types in hybrid power applications, the company has nevertheless pursued other, more advanced, battery technologies.

The company has acquired the exclusive rights to use a new flat-plate rechargeable alkaline battery technology with our FE DMFC. The flat-plate alkaline battery technology is inexpensive, environmentally far friendlier than NiMH, NiCad and lead acid batteries and has no “memory” effects. More importantly, this battery is far less expensive than lithium batteries of comparable capability. This battery technology is inherently safer than lithium batteries that can overheat and rupture.

Although SymPowerco’s FE DMFC forms the heart of our Hybrid Power System initiatives, the company will leverage all available technological advancements in order to produce state-of-the-art power supply technologies.

Financial Analysis

According to PinkSheets.com, the world’s most trusted micro-cap financial database, the company has the following information:

• Estimated Market Cap$4,338,770 as of Jul 28, 2009

• Outstanding Shares4,820,855,284 as of Mar 31, 2009

Thus, the  Price Per Share is roughly $0.0009, calculated by $4,338,770 / 4,820,855,284 however once production and commercialization of their products begins we can expect this market cap to increase drastically.

The company also owns well over $3,160,000 in Direct Methanol Fuel Cells according to the 1st Quarter Ended March 31st, 2009 Balance Sheet.

Government Grant

CEO John Davenport today revealed details of the terms of the recently announced government grant in support of the development of the company’s unique Flowing Electrolyte Direct Methanol Fuel Cell (“FEDMFC”). Polygenic Power Systems, Inc. (“PPSI”), SymPowerco’s majority-owned subsidiary, was recently informed by the Ontario Centres of Excellence (“OCE”) that it was successful in its application for a grant from the OCE’s Centre of Excellence for Energy.The Centre of Excellence for Energy, a part of Ontario’s Centres of Excellence, was created to address the significant challenges and opportunities posed by the current energy situation in Ontario, Canada. The Centre invests in and promotes cutting-edge research collaborations between industry and colleges, universities and research hospitals. The Centre’s objective is to foster innovation in energy markets, systems and technologies. The Centre works with industry to solve problems by engaging the brightest minds at Ontario’s universities and colleges in the challenges faced by businesses.

The grant has been approved in support of the FEDMFC development project to be undertaken by the Department of Mechanical and Aerospace Engineering at Carleton University in Canada’s capital city, Ottawa, Ontario, in collaboration with PPSI, which is jointly owned by SymPowerco (70%) and Hybrid Energy Technologies of Toronto, Canada (30%). The total value of the project has a cash and “in kind” value of CDN $1,040,655.

SymPowerco CEO, John Davenport, commented, “We at SymPowerco are very excited and pleased that the lengthy application process for this grant has been so successful. Our application went through an exhaustive process of evaluation and peer review. The peer reviews were conducted by academics from various universities and research organizations and by successful business people. They were all chosen by the Ontario Centres of Excellence and were all anonymous to SymPowerco. We believe this process and the grant funding is very confirming of the importance and viability of SymPowerco’s Flowing Electrolyte Direct Methanol Fuel Cell technologies.”

Fuel Cell Industry and US Government Collaboration

In what could almost be considered a pre-emptive bailout request, the fuel cell industry asked Congress and the incumbent Obama Administration last week for a staggering $1.2 billion in the upcoming planned stimulus package.

Fuel cells create electricity and heat electrochemically, and are used in everything from industrial equipment to consumer electronics

The industry argues that the government’s investment could provide 24,000 jobs, create environmental and security benefits, and put numerous fuel cell vehicles on the road.

If fuel cell makers are given government cash, they plan on bolstering the fueling infrastructure, accelerating research, improving federal investment tax credits, and expanding manufacturing capabilities.

Many experts already agree that Methanol Energy will have a bright future

Journal of Scientific & Industrial Research

Breaking News 24/7

MC Group Co UK

Ezine Articles

Science Direct

Technology Review

Overall Sentiment

As oil quantities continue to decline around the world, thus causing the prices per barrel to shoot skywards, many companies and investors will begin to search for other ways to fuel their daily needs. Investors whom are familiar with the alternative energies sector can compare this company with Quantum Fuel Systems Technologies (Public, NASDAQ:QTWW). Both Quantum and SymPower are companies built on concepts and market potential, the true value of these businesses is derived from their future outlook . From the current projects, as well as the government grant, it is not difficult to see why SymPower has only one way to go, and that is up.  StocksHaven Investments sees this price point of $0.0015 as a strong entry point with potential exponential upside in the near and long-term future.

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Disclosure: Short-Term Position

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By reading StocksHaven Investments you agree to the disclaimer, and thereby will not hold Michael Vlaicu accountable for any transactions or decisions you make. It is up to you to do your own due diligence.

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