ITM Power has announced that it has successfully reduced the cost of generating power using fuel cell technology.

The company said that it had made the savings through refinements to the electrolyser system.

Previously ITM Power achieved costs as low as $275/per kW through the use of acid based solid polymers and platinum and nickel catalysts.

"ITM Power is pleased to announce today that it has made further significant electrolyser cost reductions through the application of new chemistries to both membranes and catalysts," the company said.

ITM Power said it had developed a 50:50 electrolyser system using a nickel catalyst on the hydrogen side and a platinum catalyst on the oxygen electrode.

Following up to 500 hours of testing the company said that the new electrolyser process could deliver power at $164/ per kW.

The announcement lifted ITM Power's stock on Friday.

"The company continues to focus on its research to further reduce the cost of electrolytic hydrogen production and on the means of reconverting hydrogen for general use," said chief executive Jim Heathcote.

"An integrated approach to both aspects of the problem is critical to the eventual economic replacement of hydrocarbons."

Fuel cell technology is seen as a potential replacement for traditional power sources in everything from laptop computers to cars.

Ÿ Adfero Ltd