Mechanical Technology Inc. elevated mobile electronics guru Peng Lim to chief executive Thursday, replacing Steven Fischer, an accountant and attorney who has led the company since 2004.

The shift shows how much emphasis the company is putting on developing its Mobion fuel cell technology, which is being targeted for the military and consumer electronics markets through subsidiary MTI MicroFuel Cell Inc.

Lim, a former executive with Palm Inc., Fujitsu Ltd. and Texas Instruments Inc., was named CEO of MTI Micro in May and has been pushing Mobion rapidly toward commercialization. One major accomplishment is a $1 million deal to develop a fuel cell prototype with Samsung Electronics Co. Ltd. of South Korea.

Mobion, a fuel cell that would run on methanol, is designed to replace traditional lithium ion batteries. The company believes the fuel cells can be smaller, lighter and longer-lasting than traditional batteries. They also wouldn't require electricity to be recharged.

As CEO of Mechanical Technology, effective Dec. 1, Lim will lead both MTI Micro and MTI Instruments, another subsidiary that makes highly sensitive test and measurement equipment used by the aerospace and semiconductor industries.

"Peng is the right person to lead these efforts," Fischer said.

Fischer will remain as executive chairman, a management role he said will include guiding the strategic direction of the company. He also will continue as chairman of the board.

During a conference call with analysts Thursday, Fischer also alluded to the fact that Mechanical Technology may be looking to raise additional capital as it seeks to expand its market and commercialize its fuel cell technology.

In May, the company filed a so-called shelf registration statement with the U.S. Securities and Exchange Commission, a move that will allow it to sell up to $40 million in securities in the future.

"At the right time, we are going to approach the markets (to raise capital)," Fischer said.

In reporting third-quarter results Thursday, Mechanical Technology cited expenses related to its fuel cell research and product development for a wider loss -- $3.7 million compared with $1.9 million during the 2005 quarter.

For the first nine months of the year, the company lost $10.3 million, versus $10.8 million in the same period last year.

Third-quarter revenue was $1.9 million, down from $2.2 million a year ago. Revenue for the first nine months was $5.2 million, down from $5.6 million a year ago.

During the conference call, Lim said engineers from Samsung visited the company's Colonie headquarters two weeks ago, and now MTI engineers are in South Korea at Samsung's offices showing off prototype fuel cells.

Lim said it's possible the company would have military units available commercially by 2008, but he declined to say when units designed for personal electronics, such as mobile phones, would be available commercially.

Rulison can be reached at 454-5504 or by e-mail at lrulison@timesunion.com.