QuantumSphere is also expected to have an impact on the battery market, which Freedonia estimates will grow to more than $5 billion by 2009. Portable fuel cells and direct hydrogen generation are markets that are growing even faster, with fuel cells estimated to top $11 billion by 2013, according to Wintergreen Research Inc. (Lexington, Mass.), and hydrogen generation to exceed $15 billion by 2016, according to Clean Edge Inc. (Portland, Ore.).
QuantumSphere was founded in 2002 with just $100,000 of private funding and still has not taken in any venture capital, although it did have a public funding round last year. The company's founding goal was to create a thimble full of the nanoparticles it invented. But now, just over five years later, it claims to have surpassed its original goal with a manufacturing plant capable of producing tons of nanoparticles per year.
QuantumSphere claims its current manufacturing capacity is enough for both the battery and electrolysis markets. With an eye on future growth, however, the company has partnered with the OM Group Inc. (Cleveland) for mass-producing nanoparticles when QuantumSphere can no longer meet demand.
After perfecting the original invention, for which QuantumSphere was awarded a patent last year, the company hired an engineering team to adapt the nanoparticles for particular applications. Leading that team was director of fuel cell research Kimberly McGrath, a protg of George Olah, the 1994 Nobel Prize winner in chemistry. Olah, inventor of the direct liquid-methanol fuel cell, serves as a scientific adviser to QuantumSphere.
"We have formulated a nanoparticle coating that has a very high surface area, enabling inexpensive coated stainless-steel electrodes to exceed the performance of the expensive platinum electrodes used today," said McGrath. "We start with raw material that covers about the size of a sheet of paper, but after converting into nanoparticles, it covers a soccer field."
The nanoparticles are perfect spheres, consisting of a couple hundred atoms measuring from 16 to 25 nanometers in diameter. They are formed by means of a vacuum-deposition process that uses vapor condensation to produce highly reactive catalytic nanoparticles, for which the engineering team has formulated several end-use applications.
"Our biggest engineering challenge was finding a way to get the nanoparticles to stick to metal electrodes," McGrath said. The company has solved that problem, she said, "enabling existing electrolysis equipment to realize a 30 percent increase in hydrogen output just by retrofitting our coated electrodes."
QuantumSphere projects that the efficiency of electrolysis using its nanoparticle-coated electrodes, now at 85 percent, can be increased to 96 percent by the time hydrogen fuel cell automobiles are in wide use. Adjusting for rising gasoline prices, QuantumSphere projects that performing electrolysis at home to power hydrogen fuel cells will then be less expensive than burning fossil fuels.
The company has also made progress in its quest to eliminate the need for expensive platinum electrodes inside the fuel cell itself, claiming that today it can replace half a fuel cell's platinum with nanoparticle-coated stainless steel. QuantumSphere hopes to demonstrate fuel cells with no platinum at all in the coming years.
