Mechanical Techology, a NASDAQ listed stock who has a large subisidiary, Micro Fuel Cells, has just received funding from the US Department of Energy for $1.8m.

Good for them. But my observation is that micro fuel cells in general have been a huge disappointment. A few years ago, they were heralded as the next big thing after lithium ion batteries. Yet they have not broken into the consumer market, less still anything like as quickly as anticipated. And since the plot to blow up airliners last year using a combination of liquid concoctions over the Atlantic, now you can't take any sort of liquid except baby milk on board. So forgive me if I can't see micro fuel cells containing methanol making it - for at least a while. Quite apart from which, have you ever seen a micro fuel cell powered device or had the opportunity to buy rechargeable fuel cells for you cell phone, camera, etc. and why do you think that is?

When an alternative energy company is really going places, it's not because it is funded by the DOE. And $1.8m is not such a big amount. Perhaps I am being unfair to Mech Tech's subsidiary - see the company's technological progress timeline here. What can be said is that direct methanol fuel cells have certain advantages, namely;

i) methanol is liquid at room temperature, unlike hydrogen making storage easy
ii) methanol has a higher energy density than hydrogen at room temperature

My gut instinct though is that post all the hype, the micro fuel cell market will not emerge for mass consumers, but for niche markets who are not so risk averse, specifically;

a) the US military and b) outdoor campers/trekkers where power has to be portable or not at all.