Fuji Electric’s Acquisition of N2telligence Strengthens and Expands Fuel Cell Business in Germany and Across Europe

Fuji Electric Co., Ltd. ("FE"), headquartered in Tokyo, announced that its European subsidiary, Fuji Electric Europe GmbH ("FEE") has concluded an agreement to acquire 70 percent of the shares of N2telligence GmbH ("N2"), a company headquartered in Wismar, Germany engaged in the fuel cell business, and that payment of the capital into the company has been completed.

Fuji Electric is now one of the world's leading manufacturers of industrial fuel cells with the commercialization of its 100 kW phosphoric acid fuel cell (PAFC), with fleet references in Japan, Korea, Germany, USA, and South Africa.

Because electricity can be obtained directly from fuel cells by the chemical reaction of natural gas or hydrogen, there is little energy loss in the power generation process, making highly efficient power generation possible with low noise emission and low vibration. As co-generation equipment that uses the waste heat produced during generation, fuel cells also achieve excellent energy efficiency of around 90 percent (combined electricity and heat) and the reduction of carbon dioxide emissions.

Fuel cells expel air while they are generating electricity. That exhaust air has a lower oxygen concentration than the air in the atmosphere. By pumping that reduced-oxygen air into a building, creating a low-oxygen environment (usually 15 percent oxygen content) that prevents fires from starting, so fuel cells can be used as a fire-prevention system.

In Germany, a growing number of fire prevention systems using low oxygen air are being installed in warehouses and Internet Data Centers (IDC) as part of disaster-prevention measures. Employing fuel cells or traditional compressors, these systems have the advantage of preventing damage to goods, materials, and archives from water or chemicals used in conventional fire extinguishers. Already in Germany, approximately 1,000 of such systems have been installed and annual growth of 20 percent is anticipated in this market. Fuel cells have the advantage of generating energy in addition to producing low oxygen air rather than compressors who consume energy.

N2 holds the exclusive license for the patent for this fire prevention system using exhaust air from fuel cells. Since establishing a cooperative business with FE in 2009, it has sold fuel cells made by FE to major automobile manufacturers, IDCs, and other facilities.

FE's intention with this acquisition is to strengthen and expand its fuel cell business in Germany and other parts of Europe. FE will also start local production at the new Fuji N2telligence GmbH, with the aim of reducing costs and shortening delivery times.

Keywords: Fuel Cell, Phosphoric Acid Fuel Cell (PAFC), Power Generation, Fire-Prevention, Disaster-Prevention, ARC Advisory Group.