Delphi Breaks Solid Oxide Fuel Cell Cost Barrier With U.S. Department of Energy

 Delphi to show second-generation solid oxide fuel cell auxiliary power unit
                                 at DOE event

      Battenberg says continued collaboration between the auto industry
 and the U.S. government 'vital' to bring alternate energy sources to market

    WASHINGTON, Feb. 6 -- Delphi Corp. is ahead of
schedule on meeting the U.S. Department of Energy's cost and performance
criteria for solid oxide fuel cell (SOFC) auxiliary power unit technology, a
leading government official said today.
    The DOE's Solid State Energy Conversion Alliance (SECA) and Office of
Fossil Energy's National Energy Technology Laboratory (NETL) had previously
identified Delphi as a leader in this area.  In 2001, the DOE entered into a
10-year, $138-million cost-sharing program with Delphi and its partner
Battelle to develop and test a SOFC auxiliary power unit (APU) that can be
mass produced at low cost for commercial and military applications.  Delphi
and the U.S. government are sharing the cost of the program.
    A leading member of the DOE laboratory responsible for the technical
coordination of SECA said Delphi has taken a clear leadership role in SOFC
development.  "Delphi's work in this area has been critical to our national
fuel cell program," said Dr. Gary McVay, deputy associate lab director, Energy
Division, for the Pacific Northwest National Laboratory (PNNL), in Richland,
Wash.
    "Delphi has taken the lead in making solid oxide fuel cell technology
viable for the commercial market," McVay said.  "Others have attempted to
develop these kind of fuel cells in the past, but none of them have been
commercialized because of their high cost.  The major advantage of Delphi is
that their engineers live and breathe this stuff.  They have the ability and
the expertise to make low-cost, high-volume products, and that's precisely
what's needed with alternate energy sources.  While OEMs will ultimately offer
fuel cell-containing vehicles, auto suppliers are absolutely critical in
developing the technology."
    "Delphi has taken the lead here, and they deserve great credit," McVay
said.  "They've pumped new life into the national fuel cell program, and their
continued participation is vital."
    The NETL and the PNNL are the two DOE laboratories responsible for the
technical coordination of SECA.
    Delphi Chairman, Chief Executive Officer and President J.T. Battenberg III
said that if progress continues as expected, Delphi's SOFC auxiliary power
unit (APU) will be generating electricity for military applications, passenger
cars, heavy-duty trucks and homes sometime during the second half of this
decade.
    "One of the key reasons why we've made great inroads in developing this
technology is because we have a strong, collaborative partnership with the
U.S. government," Battenberg said.  "With the help of the Solid State Energy
Conversion Alliance (SECA) program, the Department of Energy's Office of
Fossil Energy, and the Pacific Northwest National Laboratory, we've greatly
accelerated the development of a solid oxide fuel cell auxiliary power unit
that's both powerful and affordable.  It's my hope that the auto industry, the
Bush administration and Congress are committed to keep working together so we
can realize President Bush's vision sooner rather than later."
    Delphi will display its second-generation SOFC auxiliary power unit during
a DOE event to be held in Washington, D.C., today.  The event will focus on
how the U.S. government and the auto industry can work more closely together
to help achieve President Bush's goal of making the United States energy
independent while protecting the environment.  Leading members of the Bush
administration, the U.S. Congress and the auto industry are expected to
attend.  Battenberg will represent Delphi.

    DELPHI'S PROGRESS IN SOFC DEVELOPMENT
    Delphi has been developing fuel cell technology for the past 10 years.
Delphi's second-generation SOFC auxiliary power unit, which will be displayed
at the DOE event, weighs 70 kilograms and displaces 44 liters of volume.
    "Our new technology represents a 75 percent reduction in mass and volume
over Delphi's first-generation unit, which makes commercial applications more
economically viable," said Rodney O'Neal, president, Delphi Dynamics,
Propulsion & Thermal sector.
    Delphi's technology is designed to generate auxiliary electric power for
passenger, commercial and military applications, as well as serving as a
stationary power unit.  The unit is designed to generate 5kW, which would be
enough to provide baseline power for many applications.
    "The potential of this technology is enormous," said Guy C. Hachey,
president, Delphi Energy & Chassis Systems.  "On passenger vehicles, it can
power a vehicle's heating, ventilation and air conditioning system, as well as
other accessories, so a smaller combustion engine can be used to propel it.
For the military, the technology can be used to help power combat and security
vehicles.  On semi trucks, it can be used to power air conditioning, heater,
TV, radio, computer and other electronic devices during the drivers' rest
periods to reduce the burning of diesel fuel, which will cut emissions.  For
homes and offices, solid oxide fuel cells can be used to generate electric
power.  This technology can be an important part in an overall plan to help
the United States become more energy independent."

    ABOUT DELPHI'S SOLID OXIDE FUEL CELL
    Delphi's solid oxide fuel cell (SOFC) is an energy conversion device that
produces electricity by the electrochemical combination of the hydrogen and
carbon monoxide from fuel with the oxygen from the air.  "The unit produces
highly efficient electrical power at near zero emissions," said Dr. Jean
Botti, chief technologist, Delphi Dynamics, Propulsion & Thermal sector.
    In more technical terms, the solid oxide fuel cell consists of anode and
cathode electrodes separated by a solid electrolyte.  The electrochemical
combination of fuel and oxygen across the ion-conducting ceramic membrane
produces the power.
    To provide consumers with an auxiliary power source, Delphi's SOFC is
designed to operate independent of the engine or power grid.  To provide
automakers with maximum flexibility, the hydrogen reformation feature of the
unit may also be integrated with internal combustion engines to reduce engine
emissions.
    Delphi is the world's largest supplier of transportation technology, with
more than $27.4 billion in annual sales.  The company has more than 16,000
engineers worldwide, with technical expertise in systems integration and
electronics.  Throughout its 100-year history, Delphi has been a recognized
leader in engine and energy management solutions.  Two of the company's
breakthrough achievements in this area include the world's first self-start
engine and the world's first catalytic converter.
    The DOE event will be held at the National Building Museum in Washington
D.C. at 401 F Street, NW St., from 1 p.m. to 2 p.m. today.
    For more information about Delphi and its operating subsidiaries, visit
Delphi's Virtual Press Room at http://www.delphi.com/vpr .