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Progress Energy Florida and DEP Selected for Hydrogen Project

Partnership With Ford & BP Part of U.S. Dept. of Energy Hydrogen Project

ORLANDO, Fla., April 27 -- Progress Energy Florida and the Florida Department of Environmental Protection (DEP) have been selected by Ford Motor Company and BP America to partner in a major initiative aimed at moving the United States closer to a hydrogen economy.

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"Florida is one of just a handful of states making a significant commitment to this cutting-edge 'next generation' energy technology," said Florida Governor Jeb Bush. "Today's investment in pollution-free hydrogen technology will guarantee a stronger, healthier environment and economy for future generations."

As part of the U.S. Department of Energy's "Controlled Hydrogen Fleet and Infrastructure Demonstration and Validation Project," Ford will provide up to 10 hydrogen-powered Ford Focus Fuel Cell Vehicles (FCVs), and BP will build a network of hydrogen fueling stations in the Orlando area.

Progress Energy will use the hydrogen-fueled Focus FCVs at the company's Longwood Operations Center. The vehicles will be used by meter readers and energy efficiency specialists who make home visits to advise customers in energy efficient methods.

"We are honored that Ford and BP have chosen Progress Energy as a partner in this important environmental project," Bill Habermeyer, president & CEO of Progress Energy Florida, said today at an event at Wekiwa Springs State Park to announce the partnership. "Progress Energy is committed to improving the environment and that includes support for initiatives to explore alternative fuel sources."

DEP will use its Focus FCVs at the Wekiwa Springs State Park for use by park rangers. The park rangers will use the vehicles in daily monitoring of the park as well as transporting rangers to frequent education and outreach programs conducted at local schools. DEP will also use the vehicles at its Central District staff office for general staff functions, including visits to projects within the district.

"Florida is leading the charge to find cost-effective, long-term solutions that reduce pollution and protect the environment," said Department of Environmental Protection Secretary Colleen M. Castille. "The hydrogen fuel cell cars are a welcome addition to the State's growing fleet of hybrid and alternative fuel vehicles."

The Ford Focus FCV is one of the industry's first hybridized fuel cell vehicles which combines the improved range and performance of hybrid technology with the overall benefits of a fuel cell.

The Ford Focus FCV uses an 85kW fuel cell stack supplied by Ballard Power Systems, the world leader in proton exchange membrane (PEM) technology. The FCV is hybridized with the addition of a nickel metal-hydride battery pack and a brake-by-wire electro-hydraulic series regenerative braking system.

BP will install a network of stations demonstrating state-of-the art fueling technologies to support the hydrogen fuel cell vehicles. Some BP hydrogen refueling stations will evaluate technologies that have near-term commercial feasibility such as reformation of natural gas, while others will explore more long-term technology options and assess the potential to produce renewable-based hydrogen that achieve U.S. DOE hydrogen fuel cost targets.

About Progress Energy Florida

Progress Energy Florida, a subsidiary of Progress Energy , provides electricity and related services to more than 1.5 million customers in Florida. The company is headquartered in St. Petersburg, Fla., and serves a territory encompassing over 20,000 square miles including the cities of St. Petersburg, Clearwater, as well as the Central Florida area surrounding Orlando. For more information about Progress Energy, visit the company's Web site at: http://www.progress-energy.com/ .

About DEP

DEP administers Florida's environmental regulatory and law enforcement programs, and oversees the acquisition and management of public lands -- including Florida's 158 award-winning state parks. The Department is responsible for guiding the development and regulation of Florida's water resources through the State's five water management districts.

About Ford

Ford Motor Company is the world's second largest automaker, with approximately 335,000 employees in 200 markets on six continents. With world headquarters in Dearborn, Michigan, Ford officially observed its 100th anniversary on June 16, 2003.

About BP

BP is one of the world's largest energy companies, with global interests in more than 100 countries. It is a major producer of oil and gas and has substantial refining, retail, petrochemical and solar interests. The company employs more than 110,000 people worldwide. BP produces 5000 tons of hydrogen per day and is a key player in hydrogen demonstration projects across the globe.

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