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California Paving the Way for Methanol Fuel Cell Vehicles

21 April 1999

California Paving the Way for Methanol Fuel Cell Vehicles

    WASHINGTON, April 20 -- California Governor Gray Davis today
announced that fuel cell vehicles will soon be appearing on the State's
streets and freeways.  Automakers DaimlerChrysler and Ford, and their fuel
cell vehicle development partner Ballard Power Systems, Inc. will demonstrate
as many as 50 fuel cell cars and buses in the State between now and 2003.
Three major oil companies also committed to working on the refueling
infrastructure needed to serve these vehicles.
    "For the past several years, fuel cell vehicles were left to white-coated,
laboratory researchers working under the hood," said American Methanol
Institute President & CEO John Lynn.  "Governor Davis is now putting fuel cell
cars on the street, and California drivers behind the wheel."
    At a press conference held today in Sacramento, Governor Davis joined with
officials from DaimlerChrysler, Ford, Ballard, several major oil companies and
several state agencies to announce the initiation of the California Fuel Cell
Partnership.  DaimlerChrysler's NECAR 4 fuel cell car, and Ford's P2000 fuel
cell vehicle were on hand at the press event.
    Both the P2000 and the NECAR 4 are fueled with liquid hydrogen, which must
be supercooled under high pressure to minus 400 degrees.  While the first
vehicles demonstrated under the California Fuel Cell Partnership will be
hydrogen fueled, by 2002 the fuel cell cars placed in service will use on-
board reformers fueled with methanol.
    Refueling stations for dispensing methanol are very similar to today's
gasoline stations, and conversion capital costs are moderate.  Many existing
gasoline underground storage tanks can be adapted to store and dispense
methanol for less than $20,000, while the capital cost for adding new methanol
capacity to an existing service station is about $60,000.
    "The methanol industry is ready, willing and able to serve a California
market for fuel cell vehicles," added Lynn.  "Our estimates show that for
about a $550 million investment, all of California's 11,700 service stations
can be adapted to serve methanol.  This compares quite well with the
$4 billion in capital costs oil refiners spent over a three-year period to
produce cleaner-burning gasoline in the State."
    In California, the pump price for methanol at 38 retail stations ranges
from 87.9 cents to $1.10 per gallon.  According to the California Energy
Commission, the average price for regular unleaded gasoline for the week of
April 12th was $1.624.  Today, methanol is sold in California to serve over
11,000 "flexible fuel" vehicles.