Sanyo, Nippon Oil setting up fuel cell venture

Moriguchi, Japan-based Sanyo Electric (OTC: SANYY) and Tokyo's Nippon Oil said today they would set up a joint venture to develop residential fuel cells.

Nippon Oil will take an 81 percent stake in the new venture, which will be capitalized with 100 million yen, or $908,100. The remaining 19 percent of the venture will be held by Sanyo.

"Having collaborated closely in the past with Nippon Oil, a major player in the industry, on developing the world's first home-use fuel cell system employing liquefied petroleum gas, we are proud to have this new opportunity to work even closer with them on the establishment of this new joint venture," said Tadao Shimada, Sr. VP at Sanyo.

"By combining the strengths of both companies, and increasing the pace of a low-cost, highly reliable stationary fuel cell system, home-use fuel cell systems will become commercialized more quickly."

The fuel cell business, which has yet to be named, is expected to be established in April 2008. Sanyo plans to handle manufacturing at its Sanyo Tokyo Manufacturing subsidiary, and Nippon Oil will be responsible for sales of the home units.