The fuel cell industry asked Congress and the incoming Obama Administration today to set aside $1.2 billion in the planned stimulus package for fuel cells and their fuels.
The text of the plan, compiled by the US Fuel Cell Council, is posted below. Get involved! Send this to your congressman (learn how here). And of course, tell us what you think!
Fuel Cell Stimulus Plan Will Create US Jobs and Clean Energy Capacity, Reduce CO2
Congress can dramatically accelerate deployment of a clean, home-grown, US manufactured green energy technology, create an estimated 24,000 jobs[i] and fight back against global climate change, simply by taking advantage of federal laws already on the books. Fully funding programs of the Energy Policy Act of 2005 (EPACT) at levels Congress has already approved for FY2010, and use of other authorized funds, will invest $1.2 billion in fuel cells, hydrogen and infrastructure. This investment will put hundreds of fuel cell vehicles and up to 100 megawatts of fuel cell power into customers’ hands, reap efficiency, environmental and security benefits and create green jobs and high-tech manufacturing capacity for the American economy.
Benefits of Fuel Cells
- Fuel cells generate electricity and heat electrochemically, providing overall energy efficiencies of up to 80%, or even higher. Fuel cells produce benefits in all applications - power generation, industrial equipment, transportation, military power and consumer electronics.
- Fuel cells are essential to achieving carbon reduction goals, with CO2 reductions ranging from 40% or better using conventional fuel to nearly 100% using renewably derived hydrogen. Because fuel cells are electrochemical systems and do not rely on combustion, they are the cleanest fuel-consuming energy technology, with near-zero smog-causing emissions.
- Fuel cells can greatly simplify the sequestration of CO2 from hydrocarbon fuels, enabling the environmentally responsible use of domestic fuels like coal and biomass.
- Fuel cells and hydrogen can help provide stability and continuity to the electric grid since they can provide continuous “base load” power in parallel with or independent of the grid. In addition, they can support intermittent renewable energy. These attributes make them ideal resources for supporting critical loads for military and civilian consumers.
- Federal support will accelerate job creation and keep innovation, industrial capacity and jobs in the U.S., avoiding the fate of advanced batteries, which are made in Asia.
Steps We Can Take Now
DEPLOY Fuel Cells $100 Million[ii]
Dozens of power systems are available today for commercial and defense applications, supplying energy efficiency and secure power for critical loads. Fuel cells have shorter lead times than large generation systems and most are built in the US. Federal agencies can buy fuel cells from the GSA Schedule and directly from manufacturers. Federal policies and federal funds should support public and private sector purchases and leases of fuel cells and infrastructure for stationary, portable and micro fuel cells. Including fuel cells in federal clean energy installation requirements also would accelerate commercialization. Authority: EPACT Sec. 783, FY2010: $100 million for purchases.
STIMULATE Deployment, by Supporting a Fueling Infrastructure $65 million
Federal grants and tax credits for hydrogen and other fuel cell fueling infrastructure will dramatically accelerate activity in existing markets like industrial equipment, and prepare communities for the arrival of fuel cell passenger vehicles. Federal policy should support hydrogen infrastructure deployment via an investment tax credit and by cost sharing for fueling stations, and fully fund the current vehicle Learning Demonstration. Authority: EPACT 2005, Sec. 782, FY2010: $65 million for vehicles and infrastructure.
IMPROVE Federal Fuel Cell Investment Tax Incentives
Given the current economic climate, Congress should temporarily provide refunds for entities that can pay no taxes because they are losing money, and permanently provide payments for entities like hospitals and schools that are tax exempt. Technical changes in the language of the Investment Tax Credit for fuel cells would allow its provisions to work better together. Increasing the credit for fuel cells for homeowners to 30% or $3,000 per kilowatt would give home owners the same support already provided to businesses and industry. Provisions: IRC Sections 25D, 48.
EXPAND Learning Demonstrations $375 Million
Learning demonstrations put early commercial and advanced experimental systems in the hands of government and private sector users who help evaluate the systems even while enjoying their real-world benefits. Federal law already authorizes demonstrations and deployment in civilian and military applications. Authority: EPACT Sec. 808, FY2010: $375 million.
BUILD American Manufacturing Capacity $100 Million
Fuel cell companies and suppliers need to invest in manufacturing capacity but money from banks and investors is difficult to find. Federal grants and tax credits for investment in manufacturing infrastructure will keep jobs and industrial capability in the US, stimulate the US supply chain and reduce unit costs. US manufacturers can begin upgrading and expanding their capacity immediately. Authority: EPACT Sec. 805, FY 2010:$100 million;* EISA 2007 Sections 136; also IRC Sec. 4.
ACCELERATE Research in Partnership with Industry $350 Million
Federal research employs thousands in high-tech professions and trades. Fuel cell and hydrogen research can retain and expand jobs at universities and national laboratories and in the private sector, and can accelerate commercialization. Basic research is needed in advanced materials, catalysis and other relevant fields. Applied research should focus on improved performance and reduced costs, and on improved availability, storage and utility of hydrogen and other fuels for fuel cells. Authority: EPACT Sec. 805, FY2010: $350 million for research.*
INVEST In Fuel Cell Transit $180 Million
Fuel cell buses have proved their capability in revenue service operation and transit operators have expressed interest in additional deployments. Transit provisions in the stimulus should include the purchase of at least 100 zero emission fuel cell buses and funds for relevant infrastructure investment. Authority: SAFETEA-LU Bus and Bus Facilities Program.
INCLUDE Fuel Cells in President-Elect Obama‘s Energy Initiative
The President-Elect proposes to stimulate markets for advanced energy systems by promoting efficiency in federal buildings and by establishing a 25 percent Federal Renewable Portfolio Standard (RPS) for all electricity consumed in the U.S, and finances clean, US-made power generation via a carbon cap-and-trade auction. Fuel cells can make a huge contribution to these national programs.
Authorized Total: $1.2 Billion
Bottom Line: A limited investment now will foster green power
and keep jobs and capability at home.
[i] Derived from Green Recovery estimates
[ii] 2010 Energy Policy Act ‘05 authorized level except as noted.
* Section 805 authorizes a range of fuel cell and hydrogen research topics; total FY 2010 Sec. 805 authority is $450M. Our proposal allocates $100 million for manufacturing and $350 million for research.
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December 18, 2008 @ 6:36 pm
Sarah says...
I think it is great that this has released. Over the past few months a variety of third parties (Center for American Progress, Council on Competitiveness, the Transition to Green Report, etc.) have been announcing their suggested Energy Plans for Obama’s administration. Hopefully the transition team will take some pointers from this plan!
December 18, 2008 @ 8:15 pm
Philip A. Block says...
The way to go. Now is the time to get this out to the public, politicians, power company executives, and all the schools in the U.S. that have any type of engineering or science courses. Get it into the news. Get it onto billboards. Hold seminars locally and invite the public. Have a public relations blitz. In other words, it is time we got this nation off the nuclear mentality and installed the Fuel Cell mentality.
December 22, 2008 @ 1:58 am
David Redstone says...
This “Fuel Cell Stimulus Plan” is nothing but a special interest group (the USFCC) asking for a handout from taxpayers. The fuel cell “industry” just got an eight year investment tax credit extension - much longer than real renewable technologies like wind and geothermal. But that wasn’t enough. Now the USFCC wants $1.2B in cash, the biggest chunks to be earmarked for “learning demonstrations” and basic R&D. The promise of “hundreds of fuel cell vehicles” in a world that will soon have over a billion vehicles is pathetic.
January 5, 2009 @ 8:21 pm
Philip A. Block says...
I would like to comment on Mr Redstone’s Dec. 22, 2008 comment. First, I think a little basic education in science is needed here. People are hooked on the wind because is sounds free ( human nature such as it is, FREE always sparks the greed in us). It is by far free. The wind generators are limited as to location and the cost is high, plus the cost of long and expensive xmission lines, substations, and the subsequent thousands of acres required for the wind generators and xmission lines.Wind generators are fine, but in limited situations. The same goes for geothermal, again good in limited situations. But, the Fuel Cell does not have these limitations and what is so nice about them is they can be situated just about anywhere: shopping centers, basements, on top of buildings, etc., without the landscape being destroyed with wind generators and the associated transmission lines.Installing and servicing Fuel Cells is basically a simple matter. Yes, the Gov’t is being called upon to put up the money-sadley because the private sector in this country has not risen to the challenge. Where are the Buffets, the Soros, etc. with their billions? Do you know that the taxpayers have put up 90 billion, yes ninety billion, to dig a hole in Yucca Mt. (Nevada) to store spent fuel that has been been going on for years and they still don’t know when it will be completed. A few Fuel Cell vehicles? Sure, the auto was first proved practical in 1885 and it took till 1908 that Ford produced a car that was affordable. The American mentally of instant success does not work in the real world. It takes time. It is easy to criticize, but what is YOUR suggestion for the the energy situation.
January 7, 2009 @ 4:52 pm
David Redstone says...
The kind of thinking you express above is precisely what is wrong with fuel cell enthusiasts and the “fuel cell community”.Wind, geothermal and and nuclear are energy sources. Fuel cells are not. You seem to think that the hydrogen required to run fuel cells can be magically produced without using any energy. You are in no position to educate anyone about anything.My suggestion is to build as much renewable and nuclear generation capacity as possible (and as much methanol from waste capacity as possible for transportation fuel in ICEs) as quickly as possible and stop wasting time, money and public attention on fuel cells.
January 12, 2009 @ 4:39 pm
snbess says...
Wow, David. Those are harsh words, especially coming from The Hydrogen & Fuel Cell Investor newsletter editor. Forgive me if I got your job title wrong. You’ve been around awhile. Why the sour words now?
January 13, 2009 @ 9:05 pm
Philip A. Block says...
Well David, here we go again. From the tone of your comment, I get the feeling that you are either pulling my leg or are just emotionally wraped up in the mystical concepts of wind, solar, and nuclear power )NP) that have been fostered by the non business and engineering/scientific community on the uneducated of the worlds population (yes, companies like GE is pushing NP and wind because they have huge investiments in them, but also, look at the poor state GE is in). But, I will proceed anyhow.The whole point is not what is an energy source or not. Yes, the Fuel Cell needs an energy source to operate. Hydrogen is the best. Yes, the wind mill needs an energy source to operate.Wind., Yes, a conventional power plant needs a heat source to operate. Any hydrocarbon (methanol), geothermal and nuclear energy. Yes, solar cells need a light source to operate. In the main, light from the sun. Every system has its pros and cons. But, from an engineering and business standpoint, what is the best for a particular situation? As I mentioned previously, wind, geothermal, solar, have their places, albeit, limited. Now, for NP. Great for military propulsion systems. For civilian use? No. The NP ship Savannah proved that. For power generating plants? No. The cost factor alone has proven nuclear power a negative investment.. As mentioned earlier, 90 billion for a big hole in the ground to store nuclear waste? Electric billing in many places still carries a surcharge to pay for NP plants built 30 or more years ago. Go back and read the records about the NP plants built after the war. The people that were not afraid to speak out said they would not do it again if they knew what the results would have been. Not only NP, but the concept of the central power plant died with the ending of the 20th century. Technology has obseleted the concept of the central power plant–of any type. Distributed power is the technology of the 21st century. I am not going to say anything about Fuel Cells in this comment as I think I have covered them fairly well previoously. As I mentioned, I don’t know If you pulling my leg or what, but it appears my previous comment did not register. I would like you to show me (as they say in Missouri), business and engineering wise, the facts for your thinking (as Friday said,” only the facts ma’am”).
February 4, 2009 @ 2:10 pm
Mike Cales says...
The problem with fuel cells is that residential units are never available to Americans like myself. I need a fuel cell. I build a remote home on the promise they would be available in 2003. I then had to run a diesel generator 24 hours a day for over a year. I now have a solar electric system but it is not adequate for living a normal lifestyle. You can’t run even a singe room air conditioner at night on battery power. Thus a residential fuel cell operating on LP would be perfect for my family. I already have the inverters to make use of the DC power. Yet all effort has been on putting these test units in homes in Japan. Why can’t someone like myself be part of the development by providing a real world test?
February 5, 2009 @ 2:21 pm
Philip Block says...
Good question Mr. Cales. The UK is also going the way of Japan. I refer you to http://www.fuelcelltoday.com. A blurb on that web site will give you some insight on what is going on in the UK. You might consider starting a business doing just that. Logan Energy, located in Atlanta, GA may have some answers and suggestions. They do FC installations. Also, you have to consider what has happened in the U.S. the past 40 years or so. It has become so difficult to start and maintain a major business that most people say it isn’t worth it. How many Steve Jobs or Bill Gates types have you heard of pop up with a major business the past 20 years or so. Recently, it was reported that the founders of Home Depot were supposed to have made the comment that they could not start that same business today under prevailing conditions. Also, many of the companies that could handle a project of that type, are being led by Ivy League clones that do not have the slightest idea of what innovation is or care about it. Their goal is money and power, a 1.2 million dollar office with their name on the door and a don’t make waves philosophy. Japan basically picked up the whole electronics industry from the U.S. after WWII and ran with it. The saw the value of it. So, why do you think they are doing the same thing with the FC? They are not the 2nd largest economy in the world because they are stupid. Sure, they have made their share of mistakes. But they value individual thought and innovation. In the U.S., the socialists squash it. In fact , the whole rest of the world is going to the FC, while the U.S. is dragging its feet.
February 17, 2009 @ 3:22 pm
Jason Borune says...
The government is a joke. almost none of this is going to jobs. They need to let he corporations go bankrupt so they can pay off there debts.