This project analyzes the potential markets, manufacture and cost of fuel cells for portable power applications. An analysis of fuel cell development for portable power, including a competitive overview of major fuel cell developers and suppliers; a look at batteries versus fuel cells; technology assessment; and cost reduction opportunities. The competitive section breaks down the major fuel cell developers by (1) those companies focused on portable fuel cell applications; and (2) companies focused on developing fuel cell materials, components and fuels. Fuel cells are assessed relative to the battery (or battery charger) technologies they are expected to replace, specifically Li-on and Li-polymer. Since pricing is a critical factor in whether fuel cells can displace current battery technologies or wall-plug chargers, an historical perspective is given for both Li-ion and Li-polymer batteries. Polymer, in particular, is a recent example of a new technology expected to replace Li-ion, as well, so particular attention is given to this chemistry. System technologies and electronics are also discussed, since advanced systems with “power-hungry” features are expected to drive the need for advanced energy storage solutions. Materials availability and cost, system needs, and applications are discussed. An assessment of fuel cell system architectures is presented – in particular, looking at “hybrid” systems such as ultracapacitors and fuel cells, along with fuel considerations. The fundamental purpose of this research study is to provide Breakthrough Technologies and the U.S. Fuel Cell Council with an evaluation of portable power markets for fuel cells. The study identifies and quantifies selected portable power markets for fuel cells under 1kW, evaluates the potential of fuel cells to compete in these markets, suggests high-priority market areas for fuel cell developers, evaluates market sensitivity to cost and identifies cost reduction pathways likely to result from successful pursuit of portable power markets. The ultimate goal of this independent project is to pinpoint the areas of greatest market potential and evaluate the impact of successful market penetration on fuel cell stack and system design, cost and consumer acceptance. Most fuel cell companies are not true “manufacturers” in the sense of developing, manufacturing and selling commercial products. At this stage, companies have prototypes, limited manufacturing, or partnerships with the government or companies to provide fuel cells for their products. Other companies are larger OEMs who are already in the portable device or battery business.