A fuel cell company has announced it has reached an important breakthrough in reducing the cost of fuel cells, diminishing the amount of platinum needed in a move that could have significant consequences for the industry.

A new membrane which allows the substitution of at least 50 per cent of the catalytic platinum used in its previous system has been developed by German company Smart Fuel Cell (SFC).

The company says the new technology avoids the high complexity of reformers and the difficulties and safety concerns that are unavoidable with hydrogen storage.

The active system approach will also hopefully lead to higher power levels and a longer lifetime.

Most importantly, the new technology will result in less platinum catalyst being needed to set off the chemical reaction in the fuel cell, allowing the fuel cell to begin to compete with normal batteries.

"The significant cost reduction means competitive price structures when compared to batteries. In addition, all other applications for fuel cells become economically attractive," explained Dr Manfred Stefener, SFC executive director and founder.

Manufacturing costs will also be saved through the new construction, which uses a monopolar rather than bipolar stack design.

The result is a miniaturized fuel cell achieved through the 70 per cent reduction in stack parts.

The company has already been offering commercial fuel cells for two years, and has acquired important technology and marketing partners in Asia, the USA and Europe.