Ford Unveils Hydrogen-Fueled Generator - But doesn't see mass sales for 10-15 years.

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DEARBORN, Mich. Reuters reported that Ford Motor Co. and Canadian fuel cell developer Ballard Power Systems Inc. jointly unveiled on Wednesday a hydrogen-fueled internal combustion engine-driven generator they said could help pave the way toward the commercialization of fuel cell technology.

Ballard plans to begin producing the stationary generators, powered by a Ford 6.8 liter V10 truck engine, in the fourth quarter of this year, officials said at a news conference at Ballard's Dearborn, Michigan facility.

The initial customers for the engine are expected to be public utilities, which could use the generators during peak power demand.

The Ballard Ecostar hydrogen generator, able to produce 114 kilovolt-amperes (kVA) of power, will be the cleanest combustion generator on the market, with no carbon dioxide emissions and almost no smog-creating nitrogen oxide produced, officials said. The hydrogen generator will be part of Ballard's foray into the market for generators, tens of thousands of which are sold each year, officials said.

"This product will provide Ballard with early revenue opportunities, will increase public awareness of alternative fuels and power solutions and assist in the development of hydrogen infrastructure," said Ross Witschonke, head of Ballard's electric drives and power conversion division.

The generator will also help it cut costs and create sales channels as it drives toward its target of generating profits by 2006 at the latest, said Ballard Chairman and Chief Executive Officer Firoz Rasul. Three weeks ago, Ballard introduced a natural gas-burning generator powered by a Ford 4.2 liter V6 engine.

Ford shares were down 11 cents at $12.05 in mid-afternoon trading on the New York Stock Exchange. Shares of British Columbia-based Ballard were down 47 cents or 3.7 percent on the Nasdaq at $12.21, retreating partly from the strong gains on Tuesday in anticipation of Wednesday's news.

General Motors Corp. announced late last month that it will enter the multibillion-dollar market for backup power generator systems by 2004 by selling stationary fuel cells to businesses that are highly dependent on reliable energy supplies.

Ballard and GM are among the world leaders in developing proton exchange membrane fuel cells, which create electricity through an electrochemical process using hydrogen and oxygen.

Ballard, which formed an alliance in 1997 with Ford and DaimlerChrysler AG to create fuel cells, ultimately for use in cars and trucks. Fuel cells offer the promise of zero-emission vehicles, which auto officials say will take them out of the environmental debate.

But Ford Chief of Staff John Rintamaki said that he doesn't expect to see fuel cell-powered vehicles in any significant numbers for another 10 to 15 years.