September 2004

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On again, but then off again: A distribution agreement between Proton Energy Systems Inc and General Electric, that is. Three months ago, Wallingford, CT-based Proton announced a 36-months non-exclusive agreement with GE Supply to distribute Proton hydrogen generators and other products for the electric power generation industry (H&FCL July 04). A month later, GE called the deal off, effective late last month, August 24. Proton president Walter “Chip” Schroeder was baffled: “We are seeking an explanation of GE’s rationale,” he said in a statement. “We do not believe their termination was motivated by any actions on our part. In fact, the units that we have placed with GE, including a system delivered more than two years ago, are performing well.” Schroeder said they’ll try to resolve the matter, but “we cannot be confident of a fair and satisfactory outcome.” Things did look up for Schroeder, though with the announcement a few days later that Proton had signed a three-year cooperative r&d agreement with the U.S. Energy Department potentially worth $3.8 million under which the company will investigate prospects for a low-cost electrolysis hydrogen generation system that would deliver hydrogen gas at 5000 psi for automotive refueling. Source: PR Newswire, June 14, July 30, Aug. 4.