QTWW: Shares Gain on Hydrogen Fuel Deals
Submitted By Knobias ClipReport
QTWW: Shares Gain on Hydrogen Fuel Deals
Monday’s session was greeted with new regulatory actions put in place by Treasury Secretary Henry Paulson. The move would attempt to thwart another credit crisis through increased reviews by the government. Paulson noted that the plan would take two to eight years for some of the most important proposals to be implemented, but noted that the blueprint would serve as a beacon and wouldn’t be implemented while the markets remained under strain.
Monday was also the end of the first quarter with many names experiencing ‘window dressing’ as investors were locking in gains and losses and redistributing into other securities.
One name that saw increased attention was Quantum Fuel Systems Technologies Worldwide, Inc. (QTWW). The Company is involved in the development and production of advanced propulsion systems, energy storage technologies, and alternative fuel vehicles. Quantum’s portfolio of technologies includes advanced lithium-ion battery systems, electronic controls, hybrid electric drive systems, hydrogen storage and metering systems, and alternative fuel technologies that enable fuel efficient, low emission hybrid, plug-in hybrid electric, fuel cell, and alternative fuel vehicles. Quantum’s powertrain engineering, system integration, vehicle manufacturing, and assembly capabilities provide fast-to-market solutions to support the production of hybrid and plug-in hybrid, hydrogen-powered hybrid, fuel cell, alternative fuel, and specialty vehicles, as well as modular, transportable hydrogen refueling stations.
Before the bell, the Company announced that its proposal to the U.S. Department of Energy (DOE) has been selected for final negotiations for a contract to develop next-generation manufacturing technologies for hydrogen storage vessels. The total value of this project, which will be done in partnership with The Boeing Company (BA), is $5.6 million over a period of 3 years.
The goal of this project is to leverage the considerable advances in precision composite material processing technologies in the aerospace sector, to develop innovative manufacturing techniques for hydrogen storage tanks, with the intent to significantly drive down costs. The specific objective is to develop and demonstrate an innovative hybrid process which integrates the most optimal features of high precision aerospace and high-speed commercial manufacturing techniques.
Boeing has steadily established itself as a global leader in advanced composite manufacturing technologies, which utilize lightweight, high-precision composite structures for tremendous performance advantage. Quantum’s hydrogen storage systems utilize carbon-fiber reinforced composite structures for volumetric and gravimetric efficiency.
The Company also announced that it was awarded a contract from Shell Hydrogen LLC for a modular hydrogen refueling station. The unit will be sited by Shell Hydrogen at a yet to be determined location within the United States.
After the news, shares spiked to a high of $1.12 before closing at 95c, up 6.7% on the day. With Boeing as a partner, the new deal lends some serious credibility to the name and with hydrogen expected to play a significant role as the new age transportation fuel, the Company is certainly one to follow. Investors would be wise to watch.
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