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 January 12, 2016 - 5:20 PM EST
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Acquisition of Germany's N2telligence GmbH to Strengthen Fuel Cell Business

- Fuji Electric Co., Ltd. (TSE:6504) ("FE"), headquartered in
Tokyo, Japan
and led by President, Michihiro Kitazawa, is pleased to announce that its European subsidiary, Fuji Electric Europe GmbH ("FEE") has concluded an agreement to acquire 70% of the shares of N2telligence GmbH ("N2"), a company headquartered in Wismar,
engaged in the fuel cell business, and that payment of the capital into the company has been completed.

1. Background

Under the management policies of the "expansion of energy-related business" and "globalization," we are working on expanding our business in the area of clean & renewable energy, including geothermal, hydro, PV and others including fuel cells. In the fuel cell area, with the commercialization of our 100 kW phosphoric acid fuel cell (PAFC), we are now one of the world's leading manufacturers of industrial fuel cells, with fleet references in

, 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% (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% oxygen content) that prevents fires from starting, so fuel cells can be used as a fire-prevention system.

2. Purpose of Acquisition


, 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, etc. from water or chemicals used in conventional fire extinguishers. Already in
, approximately 1,000 of such systems have been installed and annual growth of 20% 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

and other parts of

3. Specific Efforts

? Strengthening of Engineering Capabilities

Adding to N2's exclusive patent license and its commercial distribution networks, we will use our technological capabilities to strengthen the company's engineering capabilities, from sales through to after-sales service.

? Establishment of Local Production Systems

We will inject FE's fuel cell design and manufacturing experiences and technical knowledges into the company and start local production, with the aim of reducing costs and shortening delivery times. 4. Overview of Company to be Acquired (1) Company name : N2telligence GmbH (2) Year of establishment : 2006 (3) Location : Wismar,

(4) Representative : Mr. Lars Frahm, Mr. Andreas Exler, co-CEOs (both founders) (5) Description of business : Sales and engineering of fuel cells and peripheral equipment

5. Overview of New Company

(1) Company Name : Fuji N2telligence GmbH (2) Date of Capital Payment : January 11, 2016 (3) Equity Shares : Fuji Electric Europe GmbH: 70%; Founders (2): 30% (4) Sales Target : 5 billion in FY2018

? Equity Structure After Investment

Overview of Related Subsidiary

Fuji Electric Europe GmbH (FEE) (1) Company name : Fuji Electric Europe GmbH (2) Year of establishment : 1987 (3) Location : Offenbach am Main,

(4) Representative : Peter Hermann Maier (5) Description of business : Sales of electric and electronic equipment and components (6) Equity share : Fuji Electric 100%


DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:

Source: News (January 12, 2016 - 5:20 PM EST)

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