Dow, GM Make World's First Significant Fuel Cell Application a Reality

FREEPORT, Texas, Feb. 10, 2004 -- The world's largest fuel cell transaction between Dow and GM is now a reality. With the pull of a lever by Secretary of Energy, Spencer Abraham, and Texas Governor, Rick Perry, The Dow Chemical Company and General Motors Corp. began the Phase 1 installation operations of a single fuel cell that will convert hydrogen into electricity.

Dow and GM intend to prove the viability of hydrogen fuel cells for a large industrial power system. Operation of the first cell will last four to six months with more fuel cells and electrical generating capacity added during the summer months. Freeport is the home of Dow's largest chemical manufacturing installation in the world.

Fuel Cell Unit Capacity

The initial GM fuel cell will generate 75 kilowatts of power. This is enough electricity for fifty average homes. Dow and GM plan to ultimately install up to 400 fuel cells to generate 35 megawatts of electricity. That would be enough power for 25,000 average sized American homes. While this is a lot of electrical capacity, it represents two percent of the total Dow needs at its Texas Operations site.

"This is a significant milestone from a business, technology, and environmental perspective," said Theo Walthie, Business Group President, Dow Hydrocarbons & Energy and Ethylene Oxide/Ethylene Glycol. "It is an important step that will make us less dependent on fossil fuels and help usher in a more sustainable future."

Advancing Fuel Cell Technology

This transaction is important because it will provide a real-world experience that will further develop the technology and bring costs down. "People need to understand the significance of this event," said Larry Burns, GM's vice president of research and development and planning. "The pathway of getting an affordable fuel cell vehicle in your driveway sometime in the next decade runs right through Texas. What Dow is doing will directly impact the date when the hydrogen economy will become a reality."

Hydrogen At Dow

Hydrogen is a natural by-product of chemical manufacturing at Dow. Dow currently uses its excess hydrogen as fuel for boilers. Dow also sells hydrogen to industrial gas companies for re-sale to their customers.

Flowing hydrogen through a fuel cell to generate electricity is even more efficient and economically desirable than either of these applications. By efficiently consuming by-product hydrogen in a fuel cell, Dow will reduce emissions of greenhouse gases and create competitively priced electricity. The work between Dow and GM is an example of environmental stewardship making good business sense for a more sustainable future.

General Motors , the world's largest vehicle manufacturer, designs, builds and markets cars and trucks worldwide, and has been the global automotive sales leader since 1931. GM employs about 325,000 people around the world. More information on GM can be found at www.gm.com .

Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $33 billion, Dow serves customers in more than 180 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its approximately 46,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.