Fuel Cell Demonstration Project

Johnson,Matthey PLC
19 July 2000

Johnson Matthey Announces Major Fuel Cell Demonstration Project with TXU
Europe and Energy Partners

Johnson Matthey, the world leader in catalysts and catalysed components for
fuel cells, has entered into an agreement with TXU Europe, a leading European
energy company, and Energy Partners, a leading developer of Polymer
Electrolyte Membrane (PEM) fuel cell systems, to construct and evaluate a
micro combined heat and power (CHP) fuel cell system for residential
applications. The project is being partly supported by the UK Government
Department of Trade and Industry fuel cell programme.

The micro CHP units will produce 3kw of electrical power in addition to
useable heat and will use a PEM fuel cell based on Johnson Matthey and Energy
Partners' technologies. Hydrogen fuel will be provided by JM's award winning
HotSpot (tm) gas processors which convert natural gas or LPG (liquefied
petroleum gas) to hydrogen.   

The initial stages of the project will see the units evaluated as both stand
alone systems and connected to the grid. It will also test remote control
operation of the units, which would enable an energy provider to run the
system as part of a local area generation and distribution network. The
project will provide critical data on various novel components of the fuel
cell technology and systems implementation. It will also generate detailed
information on the unit's suitability for providing power to houses and most
importantly small offices, a sector identified by Johnson Matthey as a
promising initial market. 

Following the initial 18 month evaluation phase of the project the partners
expect to proceed with large scale demonstration programmes in Europe and the
US.

Commenting on the agreement, Neil Carson, Executive Director of Johnson
Matthey said:
'Fuel cells have the potential to provide clean, lower cost electricity,
heating and air conditioning for our homes and offices while at the same time
dramatically reducing emissions of carbon dioxide, generally thought to be a
major contributor to global warming. We are delighted to be working in
partnership with TXU Europe and Energy Partners in a project to evaluate this
exciting technology'.

Eddie Hyams, President of TXU Europe Power said:
'We see a major role for fuel cells developing in distributed generation over
the next five to ten years. This is a natural extension of our existing
involvement in small scale combined heat and power (CHP) through our
subsidiary Nedalo, the UK market leader in packaged CHP units.'

Dr George Joy, President of Energy Partners, said:
'This is an excellent application for Energy Partners' technology and a great
opportunity to demonstrate that fuel cell systems can provide important
solutions to real world power generating needs. We are very pleased to have
the opportunity to bring our ten years of fuel cell systems experience into
partnership with Johnson Matthey and TXU Europe.'


Enquiries:
Neil Carson,  Executive Director                       020 7269 8449
Jack Frost,   Director, Fuel Cell Business             0118 9242158
Ian Godwin,   Group Corporate Communications Manager   020 7269 8410