CaFCP Study Lays Foundation for Commercialization Decisions on Fuel Cell Vehicles

    WEST SACRAMENTO, Calif.--Oct. 16, 2001--The California Fuel Cell Partnership today released a groundbreaking market study that creates a framework for driving development and commercialization of pollution-free fuel cell cars. The study, "Bringing Fuel Cell Vehicles to Market: Scenarios and Challenges with Fuel Alternatives," addressed challenges and potential solutions to the commercialization of fuel cell cars using several fuel options.
    Commissioned last year by the Partnership and prepared by a team of independent consultants, the study focused on issues concerning fuel infrastructure, economics and environmental benefits. Specifically, the study considered four different fuel pathways: hydrogen, methanol, gasoline and ethanol. A "success scenario" identified challenges, solutions and actions required for each fuel to succeed in the fuel cell vehicle marketplace.
    "The decision on fuels is strategically important to everyone -- countries, automotive manufacturers and energy companies," said Dr. Ferdinand Panik, chair of the Partnership and Director of the Fuel Cell Project, DaimlerChrysler AG. "This study provides a foundation upon which all Partners can make investment decisions in vehicle development and production, infrastructure, as well as fuel production and distribution."
    Key findings of the study include:

	   --  The consumer benefits of fuel cell vehicles are paramount to
        success;
	   --  All fuels face challenges, and there are relative similarities
        and differences among them;
	   --  None of the challenges identified are insurmountable, however,
        and there are many ideas on possible methods to address some
        of those challenges;
	   --  There is a need for universal codes and standards;
	   --  Success will require an unprecedented public-private
        cooperative effort;
	   --  Long-term societal benefits will be needed to justify early
        government support of transition costs; and
	   --  A successful demonstration phase and broad public education
        efforts are essential to long-term success.

    The study makes key assumptions upon which the fuel pathway projections are based. For example, it assumes volume milestones for vehicles, including a 1,000 vehicle pilot phase, followed by two commercialization targets of 40,000 and 100,000 vehicles sold per year in California. Although the study has a California focus, similar challenges and solutions exist in markets across the United States and around the world.
    The study and the CaFCP's position on the results may be viewed on the organization's website: www.fuelcellpartnership.org. For a copy of the study or more information, please contact the California Fuel Cell Partnership at 916/371-2870 or by email at info@cafcp.org. Comments and quotes about the study from some of the CaFCP organizations are also available by viewing the news release on the website and/or contacting the Partners' respective media contacts.
    The Partnership -- a pathbreaking collaboration of auto companies, fuel providers, fuel cell technology companies and government agencies -- plans to demonstrate more than 70 fuel cell-powered cars and buses in California by 2003, and seeks to demonstrate the potential of this new technology as a safe, practical, clean and efficient alternative to conventional vehicles. Currently, a dozen vehicles and a bus are part of the California demonstration program, all fueled with hydrogen and zero-polluting -- the only emission is little water and heat.