Early production stage hydrogen generation company AlumiFuel Power Corporation, through its US operating subsidiary, announced it has received a purchase order/contract from the US Air Force Special Operations Command.

The order is to make certain modifications to the Portable Balloon Inflation System (PBIS)-2000 prototype unit which was delivered and paid for under contract in late April, 2012.

Following on-site training in Florida by AlumiFuel Power engineers, Air Force Special Operations users conducted additional testing of the prototype unit. These Air Force operations personnel, in close collaboration with the company, identified 14 items to improve and upgrade the functionality and user-friendliness of the unit in the field.

The unit has been shipped back to the company for the modifications. Upon completion of the modifications in 4Q 2012, this prototype unit will be returned to the Air Force customer for further testing and deployment for field trials in an overseas environment. Once the field trials are completed, the company anticipates orders for production versions of the PBIS-2000 hydrogen lift gas generator and AlumiFuel cartridges from the Air Force and other potential customers worldwide. AlumiFuel Power’s PBIS marketing lead, Mr. Ed Figelman has received numerous queries about the PBIS-2000 from potential customers around the world.

The current weather balloon lift gas market is estimated to be $200 million per year, and encompasses military as well as civil government meteorological users worldwide. Traditionally, helium has been used as the primary lift gas for weather balloons, but with the increasing scarcity and cost of helium, users are rapidly switching to hydrogen and the Company’s PBIS family is far more mobile, safe, and cost effective than other on-site hydrogen generation systems. After purchasing any unit of the PBIS family, typical customers would continue to purchase replacement cartridges to launch up to 700 balloons per unit each year (up to 4,200 cartridges).

Mr. David Cade, The President and CEO of AlumiFuel Power Technologies, AFPW’s operating subsidiary, said, “Testing of the PBIS-2000 prototype by Air Force Special Operations, and their identified improvements to the unit, confirm the uniqueness of AlumiFuel Power’s technology and the superiority of PBIS lift gas systems solutions compared to other hydrogen lift gas methods and products.”