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Methanol Key to DaimlerChrysler's Fuel Cell Vehicle Plans

18 March 1999

Methanol Key to DaimlerChrysler's Fuel Cell Vehicle Plans

    WASHINGTON, March 17 -- Today, the DaimlerChrysler
Corporation introduced its fuel cell cars to America, and detailed plans to
bring methanol-powered fuel cell cars to the marketplace.
    "DaimlerChrysler is the pace-setter in the race to bring fuel cell
vehicles to the marketplace, a race that will be run and won using methanol
fuel," said American Methanol Institute President & CEO John Lynn.
"DaimlerChrysler is not alone in their support for methanol.  A clear
consensus has now been reached that methanol is the automotive industry's
preferred energy source for fuel cell vehicles."
    At a major press conference held today in Washington, D.C.,
DaimlerChrysler unveiled the NECAR 4, and rolled out their entire inventory of
fuel cell vehicles -- the NECAR I, NECAR II, and NECAR 3 -- for the first time
ever in the United States.
    There are 18 methanol production plants in the United States with a total
annual capacity of over 2.6 billion gallons per year.  Worldwide, 90 methanol
plants have the capacity to produce over 11 billion gallons of methanol
annually.  The global methanol industry generates $12 billion in economic
activity each year, while creating nearly 100,000 jobs.
    In California, the pump price for methanol at 38 retail stations ranges
from 87.9c to $1.10 per gallon.  According to the California Energy
Commission, the average price for unleaded gasoline for the week of March 8th
was $1.162.  Today, methanol is sold in California serving over 11,000
"flexible fuel" vehicles that use either methanol or gasoline in an internal
combustion engine.
    A study by the firm EA Engineering, Inc. conducted for the American
Methanol Institute found that refueling stations for dispensing methanol are
very similar to today's gasoline stations, and conversion capital costs are
moderate.  Converting an existing gasoline underground storage tank to
methanol costs less than $20,000, while the cost to add new methanol capacity
to an existing  station is about $62,000.
    "The global methanol industry is ready, willing and able to serve a
worldwide market for fuel cell vehicles," added Lynn.  "Our estimates show
that for about a $3 billion investment, methanol pumps could be added to one
out of every three corner 'energy' stations in the country.  This compares
quite well with the $13 billion in capital costs to produce the reformulated
gasoline now sold in one-third of the nation."