VelaTel and VN Tech's Hydrogen Fuel Cells Near Test Completion in China

Telecommunications carrier holding company VelaTel Global Communications, Inc. made the announcement earlier today that China's Ministry of Industry and Information Technology has granted approval of the use of hydrogen fuel cells for use in telecommunications base receiver stations (BTS). These fuel cells were developed by VN Tech – a major distributor of hydrogen fuel cells meant to be used for telecommunications – a company in which VelaTel recently acquired a 75 percent equity interest.

Third-party testing of the hydrogen fuel cells with BTS on several test sites began in March 2012, as conducted by China Mobile and China Telecom (News - Alert), and established that the functionality and dependability of the fuel cells passed a variety of test criteria – including durability, longevity and reliability in extreme climate conditions. Completion of the trials is expected in June of this year, in accordance with VelaTel's projected timeline.

These trials mark a significant milestone as they will allow for future sales of hydrogen fuel cell systems to Chinese telecommunications carriers, some of which include VelaTel's joint venture projects. Success with Chinese telecommunications carriers is then likely to lead to sales of the hydrogen fuel cell systems internationally.

"We strongly believe the market for hydrogen fuel cells is a multi-million dollar proposition," said George Alvarez, CEO of VelaTel. "For example, in China alone there are estimated to be more than 1 million BTS requiring back up power, with over 100,000 additional BTS projected to come on line each year. By leveraging VelaTel's relationships and networks, we expect that VN Tech will capture a significant share of this enormous market. Accordingly, increasing our stake in VN Tech from 51 percent to 75 percent was a no-brainer, and enables us to consolidate more revenue on VelaTel's books."

Additional updates will be released on this green telecommunications hydrogen fuel technology as the trial tests near their completion, followed by marketing materials and videos becoming available on VelaTel's Web site.