New Venture Aims to Create World's First 'Hydrogen Economy'
18 February 1999
New Venture Aims to Create World's First 'Hydrogen Economy:' Joint press Release from Orkis hf., DaimlerChrysler AG, Norsk Hydro AS And the Royal Dutch/Shell Group REYKJAVIK, Iceland, Feb. 17 -- An Icelandic consortium,
Vistorka hf. (EcoEnergy Ltd.), today signed a Co-operation Agreement with
DaimlerChrysler , Norsk Hydro and the Royal Dutch/Shell Group for a
joint venture to investigate the potential for replacing fossil fuels in
Iceland with hydrogen and creating the world's first "hydrogen economy."
The joint venture, called the Icelandic Hydrogen and Fuel Cell Company
Ltd., with an equity capital of $1 million, will test various applications
using hydrogen or hydrogen carriers with fuel cells. One of the first results
could be a hydrogen/fuel cell-powered bus service in Reykjavik, with
additional projects being introduced between 2000 and 2002.
Fuel cells create their own electricity. Oxygen from the air and hydrogen
fuel are combined in a chemical reaction which produces electricity and water.
Overall vehicle efficiency can be improved by 50 percent with no exhaust
emissions.
In a ceremony in Reykjavik the Minister for environmental affairs, Mr.
Gudmundur Bjarnason, said: "The government of Iceland welcomes the
establishment of this company by these parties and considers that the choice
of location for this project an acknowledgement of Iceland's distinctive
status and long-term potential. The initiative taken by the parties involved
in this project deserves to be applauded and respected."
The majority partner, Orkis hf., is owned by a group of Icelandic
companies, led by the New Business Venture Fund. Orkis has been established
specifically to take part in the joint venture. Each of the three other
partners has equal rights and shares and already has expertise in this field.
DaimlerChrysler has been developing the fuel cell technology for automobile
applications since 1991 and intends to mass-produce fuel cell vehicles for
commercialization by the middle of the coming decade. Norsk Hydro has a long
history in the production of hydrogen and hydrogen carriers and the
development of hydrogen systems. Shell has recently set up a hydrogen
business and has developed technology which can convert liquid fuels into a
hydrogen-rich gas.
Dr. Ferdinand Panik, the head of fuel cell projects at DaimlerChrysler,
said: "We support the Icelandic vision for a fuel cell and hydrogen economy,
because this is a great opportunity for industry and government to jointly
create an innovative and future-oriented program. The Icelandic approach may
become a pioneering example of sustainable economic and industrial
development."
Norsk Hydro's head of research and development, Bjorn Sund, said: "Norsk
Hydro has a long history of production and industrial use of hydrogen. We
believe that hydrogen and fuel cells offer a great potential for future
applications in the energy markets, and that cooperation between the energy,
automotive and other industries is essential for providing solutions to the
environmental challenges related to consumption of energy. The Icelandic
initiative provides a good basis for further development of such cooperation."
Jan Smeele, acting chief executive officer of Shell Hydrogen, said: "Shell
is continually looking for opportunities to participate in new energy
solutions and the introduction of fuel cells in mobile and stationary
applications could possibly revolutionize the world's energy picture. Iceland
has shown the dedication to play a pioneering role in this process. We have
been active in Iceland for more than 70 years and are very pleased to get a
chance to participate, together with our Icelandic partner Skeljungur hf., in
this exiting new venture."
The joint venture ultimately aims to convert both the public and private
transportation sectors, including fishing vessels. Work will also be carried
out in to the effective production, storage and distribution of hydrogen and
hydrogen carriers.
Iceland has large potential for renewable energy sources which, so far,
have only been harnessed to a limited degree. Some 67 percent of its primary
energy consumption is supplied by hydro- and geothermal sources, the highest
percentage share among OECD countries. The Icelandic government has further
development of the renewable domestic energy resources on its agenda. Such
use could contribute significantly to reducing the emission of greenhouse
gases.
DaimlerChrysler is one of the world's leading automotive, transportation
and services companies. Its passenger car brands include Mercedes-Benz,
Chrysler, Dodge, Plymouth, Jeep(R), and smart. Commercial vehicles are
produced under the Mercedes-Benz, Freightliner, Sterling, and Setra brands.
The group also manufactures aircraft and equipment at DaimlerChrysler
Aerospace (Dasa) and offers financial and other services through
DaimlerChrysler Services (debis). With 430,000 employees, DaimlerChrysler
achieved 1998 revenues of approximately US$ 148 billion.
Norsk Hydro is Norway's largest publicly owned industrial company. Its
principal activities are in agriculture, oil and gas, light metals and
petrochemicals. In 1997, Hydro generated sales of approximately NOK 96
billion and had operating income of NOK 10,7 billion. The company employs
about 39,000 individuals, thereof some 18,000 in Norway.
The Royal Dutch/Shell Group operates in more than 140 countries in its
various activities, ranging from exploration and production of oil and natural
gas, power generation and gas marketing, to chemicals and the refining and
marketing of oil products. Alongside these core businesses, Shell also has an
established presence in renewable energy as part of its commitment to meet the
world's energy needs in a sustainable way.
