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Fuel cell vehicles down the road as Dayton heads pack

High cost may come down as production ramps up here, paving the way for consumer applications.

By Bob Keefe

Cox News Service

Sunday, September 09, 2007

— The idea behind fuel cells has been around for decades, but only recently have technology advances made them more feasible.

Fuel cells are a power source like batteries, but they're really more like miniature power plants. Typically, they generate energy by stripping hydrogen electrons from a fuel source — either pure hydrogen or something containing hydrogen, like methanol, ethanol or natural gas — and then using those electrons as electricity.

Since the only by-product of the conversion is water, fuel cells have been considered an ideal way to eliminate smog-belching cars.

But as much as people wanted to see hydrogen cars and fueling stations across the country, "there's an awful lot of infrastructure necessary to make that happen," said Mark Henwood, managing director of Camino Energy in California, which tracks "clean energy" companies.

Already, makers of portable fuel cell makers have more than 30 products on the market today, according to the U.S. Fuel Cell Council. Carmakers have only prototypes.

"You can buy a fuel cell today in a small size," said Bob Rose, executive director of the U.S. Fuel Cell Council, an industry trade group. "But you can't buy a fuel cell vehicle today."

Many portable fuel cell makers admit it will still be a few years before they have products cheap enough and small enough to appeal to most consumers.

At fuelcellstore.com, for instance, you can buy a portable hydrogen fuel cell-powered battery charger today — for $7,300.

While declining to give specifics, UltraCell officials say their fuel cells currently cost thousands of dollars.

That's too expensive for most consumers. But the company claims their product is well worth the price right now for military and industrial applications because they're lighter and can last longer than conventional batteries. The Army, Air Force and other agencies both in United States and elsewhere are currently testing UltraCell's fuel cells, according to the company.

As production ramps up in Dayton, UltraCell CEO Jim Kaschmitter said, prices should come down.

"We'd like to see them in the hundreds (of dollars) range," he said.

The potential of the portable fuel cell industry certainly has charged up government leaders, especially in places that missed out on the last technology boom.

In 2002, the state created the Ohio Fuel Cell Initiative and earmarked more than $100 million in economic development funds to attract the industry.

To lure UltraCell to the Dayton area, state and local economic development agencies in Ohio anted up more than $5 million in grants and other incentives. Officials as high up as former Gov. Bob Taft personally lobbied the company.

Other states are jockeying to get in the game, too. In South Carolina, lawmakers last month set aside $15 million to entice fuel cell companies.

Elsewhere, universities are taking the lead.

The Texas State Technology College in Waco started a first-of-its-kind fuel cell curriculum in 2002 that now offers a two-year associate degree.

So far, Ohio is shaping up as a leader in the fuel cell industry, said Rose of the fuel cell council. "You've got to give Ohio credit for being a pioneer in both this technology and putting out the welcome mat and also some money," he said. "They've emboldened other states to follow."

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