Archive for October, 2009

Our CapWiz site (Remember, the one you used to send your Congressmen a letter? Encouraging them to include funding for fuel cells and hydrogen in the DOE’s budget? Thanks again, by the way) has been updated! Check it out.

We’d like to ask for your help again.  Please send a letter to your representative asking them to cosponsor and support H.R. 3660, the Fuel Cell Tax Parity Act of 2009, a bipartisan bill, introduced by Congressman David Wu (D-WA) and Congresswoman Bono-Mack (R-CA) to put fuel cells on equal footing for tax credits for residential installations.

Currently, our tax code treats residential and commercial fuel cell projects differently by giving a substantially larger production tax credit to commercial uses.  However, other renewable energy sources, including solar, geothermal, and wind projects, are treated the same regardless of whether they are for commercial or residential use.  Congressman Wu’s bill rectifies this disparity by making residential fuel cell installations eligible for the same tax credits as commercial fuel cells.

“As we try to ensure that America has clean and renewable sources of energy, we need to establish policies to help individuals install these technologies and support industries that are already ahead of the curve,” said Congressman Wu.  “This bill will ensure that families have the opportunity to access the same tax credits that commercial developers get for using renewable power.”

Pass it around to coworkers, colleagues and friends, we need their letters too. Thanks Insiders. Again, its www.capwiz.com/fuelcells/home.

The hydrogen car is back. On Thursday, the Senate agreed to restore nearly all the money for hydrogen car research that the administration had proposed to cut. The measure, part of an appropriations bill previously approved by the House, is expected to be signed by President Obama.

“It’s the right set of priorities,” said Sen. Byron L. Dorgan (D-N.D.), a leader in the effort to fund the technology. “If you discontinue the research, you shortchange the future.”

From the Washington Post.

I hate to break up our Autoweek streak, but this is too timely.  Don’t worry, we’ll have another post this afternoon. But first, an update from the US Fuel Cell Council.  Thanks to FuelCellToday for posting this as well.

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Yesterday the energy and water bill negotiated by the US House and Senate conferees was cleared by the Senate by a vote of 80-17.  The bill, passed by the House two weeks ago, funds the Department of Energy’s fuel cell and hydrogen programs.  The spending measure that funds the department for Fiscal Year 2010 is expected to be signed by the President shortly.

The bill approved by Congress is a significant win for fuel cells overall. The Obama administration requested $68 million for the EERE program. Under the final Congressional compromise, funding for fuel cells and hydrogen will receive $174 million, or $106 million higher than the Obama administration’s request.

Funding for Fossil Energy’s (FE) SECA program was decreased, unfortunately, from the House and Senate recommendations to $50 million for FY 2010.  Congress provided $10 million to for coal to hydrogen work, an increase from the request of $6 million; nuclear hydrogen funds were not funded.  This was consistent with the administration request.

Legislative language directs the Department to use the EERE funds to: “further program goals with new contracts and continue funding 190 contracts the Department placed at risk in fiscal year 2010 by requesting zero funding for this program. Additionally, fuel cell technology can continue to be pursued under the Hydrogen Technologies Program in fiscal year 2010 as it has been in the past.”

A number of earmarks were added, and some additional research will be funded via the Office of Science.

The USFCC led the grassroots and coalition-building effort to restore the funds, working collaboratively with a wide range of organizations and individuals.  This ambitious legislative effort has paid off handsomely overall.  But a great deal of work remains if the Obama Administration is to embrace fuel cells as part of their national energy strategy.  We have already begun that work.

Since we were talking about positive articles yesterday, I wanted to make sure you all saw the great piece posted Jim Motavalli. No? Go read it. Our next Autoweek post will wait for you…

The 41st Tokyo Motor Show opens next Sunday, and its looking like there will be a big showing of electric and fuel cell vehicles. For those lucky enough to attend, they will get a first look at many of the hottest vehicles using the bridge technologies we have been talking about this week.

I wish I could go, if only to see the fuel cell vehicles Suzuki will be displaying. Just as auto makers are investing in different types of technologies, they are also investing in different vehicle types to house these technologies. Suzuki will be showing three vastly different fuel cell vehicles: a subcompact with a GM fuel cell stack, a “personal mobility vehicle” which is basically a space-age wheel chair, and a Bergman scooter with a compact Intelligent Energy fuel cell power system.

All three vehicles show how fuel cells can be adapted for different types of mobility needs. Many people still think of fuel cells as refrigerator sized power units, but that is no longer the case. As mentioned yesterday, the price of fuel cell stacks is coming down, and the size is clearly no longer an issue. With the Los Angeles motor show opening in December, and others kicking off across America, hopefully some of us will get a chance to see these great new vehicles. Let us know if you do and what you think!

The public press seems to be revisiting hydrogen in a positive light.  We’ve seen several articles willing to take another look at hydrogen fuel cell cars, the best example of which was on CNN.com today.  So why are automakers continuing to invest? Why are reporters and the public still interested in this technology? We think it’s obvious, but here are a few solid reasons.

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For one, the Congress has reconfirmed their support.  Thanks in part to all of your supportive letters, the Senate and the House restored the DOE FY 2010 budget for hydrogen.  That commitment to hydrogen shows the industry and the public that there is interest and demand for these technologies.  Therefore, manufacturers continue to develop and invest.

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Secondly, as shown in DOE’s most recent vehicle stack cost estimate,  costs continue to significantly decrease. DOE estimates that in volume production, 2009 technology would yield a fuel cell vehicle engine at $61/Kw, within sight of the DOE 2015 cost target.  An affordable fuel cell vehicle can be built at these prices, though the auto industry now sees the path to lower precious metal loadings and other improvements sufficient to achieve the 2015 cost target of $30.

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Third, automakers see that the benefits of fuel cell technology are greater than bridge technologies, and there are fewer and fewer hurdles toward commercialization.  For example:

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“Although batteries are evolving, I don’t think they can catch up with fuel cells,” says Honda CEO Takanobu Ito.

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Toyota Executive Vice President Takeshi Uchiyamada stated at a Frankfurt Auto Show press conference, “Electric vehicles of today are less costly than in 1990s, but if you compare them with the other vehicles out there they are still too expensive.  Unless there is a very big breakthrough in battery costs I don’t think electric vehicles can take a large market share.”

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And last but certainly not least, people like them.  Fuel cell cars are easy and fun to drive.  We’ve told you all about our experiences, and those of some of GM’s Project Driveway participants.  In the aforementioned CNN article, actress Jaime Lee Curtis gushes about the Honda Clarity she leases for $600 a month.  ”I am not the most light-footed driver, and this thing is like a rocket ship,” says Curtis, who leases the car for $600 a month. When asked what she will do when her three-year lease expires, Curtis pauses a moment. “Cry,” she says. “Sob uncontrollably, and beg them to extend the lease.”

Welcome to Autoweek on the Fuel Cell Insider! All this week, we’ll be bringing you quotes from the auto folks in support of our industry. Questions? Want to know more? Let us know what else we can track down for you.

Today, we’ll start things off with a few visions.  Every automaker has at some point released a statement or quote with their idea of when their vehicles will be commercialized.  Whether they see that date as nearer or farther than their counterparts, almost all have expressed that, fuel cell vehicles are the ultimate goal.

For example, in September, eight different automakers joined together to sign a Letter of Understanding, stating their vision of increased numbers of fuel cell vehicles around 2015.  Daimler AG, Ford Motor Company, General Motors Corporation/Opel, Honda Motor Co., Ltd., Hyundai Motor Company, Kia Motors Corporation, Renault SA/Nissan Motor Corporation and Toyota Motor Corporation all signed.

  • The signing manufacturers strongly anticipate that a significant number of fuel cell vehicles will be commercialized from 2015 onwards. This number is aimed at a few hundred thousand units over life cycle on a worldwide basis. As every vehicle manufacturer will implement its own specific production and commercial strategies as well as timelines, commercialization of electric vehicles with fuel cells may occur earlier than in the above-mentioned expected year.
  • The signing manufacturers strongly support the idea of building-up a hydrogen infrastructure in Europe, with Germany as regional starting point and at the same time developing similar concepts for the market penetration of hydrogen infrastructure in other regions of the world, including the USA, Japan and Korea as further starting points.
But Nissan’s product planner, Mark Perry, summed it up best when he told HybridCars.com “Zero emission vehicles are clearly our focus and we believe it’s the future state of transportation. Some segments of the market in the near term may best be served by high efficiency internal combustion engines, diesels, hybrids or extended range electric vehicles [also known as plug-in hybrids].” He added that these technologies are “all bridge technologies to the time when battery electric vehicles and fuel cell vehicles can cover every market segment.”

In essence, the automakers have confirmed that fuel cell vehicles are the ultimate goal.  Come back tomorrow when we’ll talk about those “bridge technologies” and how the automakers feel about them in more detail.

But until then, how do you feel about the dates and projections that get tossed around? Does this help or hurt the industry?

Next week is… drumroll please… Auto Week! Next week, we’re going to be highlighting a different automaker each day.  We will be offering a few quotes/pictures/stories/whatever on each company’s fuel cell vehicles and programs.

Who should we start with on Monday? Who do you want to hear about most? Put it in the comments.

So, stay tuned!  See you here.

On Tuesday, Congressman David Wu (D-OR) and Congresswoman Mary Bono Mack introduced H.R. 3660, the “Fuel Cell Tax Parity Act of 2009.”

If passed into law, Wu/Bono-Mack bill will align the residential and the business Investment Tax Credits for fuel cell technology.  Currently, the tax code allows for business owners to claim a 30% credit, capped at $3,000 per kW for the purchase of a fuel cell.  Single family homeowners can claim a similar incentive, capped at $1,000 kW.

The bill was introduced in part after the American Recovery and Reinvestment Act, signed by President Obama in February, removed the cap for residential installations of wind, solar and geothermal technologies.

A release from Congressman Wu noted: “As we try to ensure that America has clean and renewable sources of energy, we need to establish policies to help individuals install these technologies and support industries that are already ahead of the curve,” said Congressman Wu.  “This bill will ensure that families have the opportunity to access the same tax credits that commercial developers get for using renewable power.”

Bud Deflaviis from the US Fuel Cell Council was quoted - “They understand that if we’re serious about energy independence, security, and conservation, fuel cells must be part of the equation.  Small businesses and homeowners will benefit from fuel cells, as they provide users with reliable, base load power that is efficient and clean.”

Use the “Write to Congress” graphic on our homepage to write to Congressman Wu and show your support! Just delete and write over the sample text that is given already.