HiBEAM buys into
fuel cell technology

The mentoring group selects
Hoku Scientific as its next client

---

By Janis L. Magin
Associated Press

An energy company working to develop technology for fuel cells that will be able to power homes and automobiles is the latest client to benefit from a nonprofit organization that helps Hawaii entrepreneurs connect with venture capital funding.

Hawaii Business Entrepreneur and Acceleration Mentors said yesterday it has selected Hoku Scientific Inc. as its fifth client.

"Fuel cells are a rapidly developing market in the energy sector," said Leigh-Ann Miyasato, executive director of HiBEAM. "We are pleased to be helping Hoku Scientific commercialize an innovative, cost-effective fuel cell and build a global alternative energy business in Hawaii."

HiBEAM, founded in 2000 to help fledgling Hawaii high technology companies raise capital, will help the fuel cell company grow its business and secure its first round of venture funding.

Hoku Scientific has developed a proprietary fuel cell technology that could be used to generate energy for homes, businesses or automobiles.

The company, which is based at the Manoa Innovation Center, is looking to raise $5 million over the next two years, said Dustin Shindo, president and chief executive officer.

The Hilo native founded the company a year and a half ago after starting two other companies, Activitymax Inc. and the Mehana Brewing Co.

"The first year was really out of a garage," he said of the company's funding.

In the past several months, Hoku Scientific has received a $100,000 award from the National Science Foundation to test a new fuel cell membrane, a $25,000 grant from the state, and an undisclosed amount from a group of investors led by Larry Johnson, former chairman and CEO of Bank of Hawaii.

Shindo said his company's goal is to raise $1 million in venture capital in the first round, and $4 million in a second round of funding. He expects to increase the number of employees from seven to about 25 during that time.

Hoku Scientific has developed the stack which is at the heart of a fuel cell system, Shindo said.

"We don't intend to manufacture the entire system," he said. The company will instead manufacture components and partner with other companies that build fuel cell systems,.

HiBEAM already has helped four Hawaii hi-tech companies -- hotU, Hawaii Biotech, AssistGuide and Hoana Technologies -- raise more than $10 million. Hoku Scientific is HiBEAM's first fuel cell client company.

"What they do is prepare you for venture capital, make introductions, facilitate those relationships," Shindo said. "It's something that Hawaii's been lacking. They bridge the gap with experience and contacts."