2004/13 (b)

BACKGROUNDER

CANADIAN TRANSPORTATION FUEL CELL ALLIANCE (CTFCA) PROJECTS ANNOUNCED APRIL 1, 2004

The Canadian Transportation Fuel Cell Alliance (CTFCA) is a Natural Resources Canada (NRCan) initiative established in 2001 to demonstrate and evaluate various options for providing the hydrogen to power fuel-cell vehicles in Canada. Investments in hydrogen and fuel-cell technologies are helping Canada reduce greenhouse gas (GHG) emissions that cause climate change, as well as build a more innovative, efficient and sustainable economy poised for future growth.

The CTFCA was originally funded for $23 million over five years. In August 2003, the Government of Canada extended the program by two years (to March 31, 2008) and committed an additional $10 million through the Technology and Innovation component. Since 1997, the Government of Canada has invested $3.7 billion to climate change initiatives.

The CTFCA is working to evaluate and demonstrate fuelling systems for light-, medium- and heavy-duty vehicles, and to develop appropriate codes, standards and testing procedures related to hydrogen and fuel-cell technologies.

CTFCA members represent more than 50 governments, associations and businesses that play a key role in Canada's hydrogen and fuel-cell industry.

The CTFCA will contribute a total of approximately $5 million to the three projects described below.

Vancouver Fuel Cell Vehicle Project (VFCVP): Canada's first fleet demonstration of fuel-cell vehicles

Project objective: The VFCVP is a four-year demonstration initiative to test fuel-cell vehicles in the lower mainland of British Columbia. The project will determine what improvements need to be made before bringing fuel-cell vehicles to market, examine fuelling issues and solutions, assess reduction levels of GHG emissions, determine and encourage public acceptance, and provide feedback for encouraging commercial adoption.

NRCan/CTFCA contribution: $2 million

Total project cost: $7.5 million (other partners include Ford Motor Company, Government of Canada's Technology Early Action Measures, Government of British Columbia, National Research Council and Fuel Cells Canada).

Purolator Ltd.: Fuel-cell hybrid delivery van and on-site hydrogen refuelling system

Project objective: Purolator's demonstration project is the first step in an effort to replace its conventional diesel-powered vehicles with zero-emissions fuel-cell vehicles. The company is contracting Hydrogenics Corporation to develop and deploy a fuel-cell - electric hybrid vehicle and a hydrogen refuelling station, to be located at one of Purolator's depots in the Greater Toronto Area.

Hydrogenics will develop a fuel-cell - battery electric propulsion system and integrate it with a hybrid-electric vehicle for Purolator's delivery fleet. The refuelling station will use Hydrogenics' PEM electrolysis technology, which is capable of generating hydrogen from water using renewable energy, such as wind or hydro power.

The project will begin in late 2004 and extend into 2005.

NRCan/CTFCA contribution: $1.5 million

Total project cost: $3 million. Purolator will match the NRCan/CTFCA contribution.

Dynetek Industries Ltd.: Advanced hydrogen storage technology

Project objective: On-board hydrogen storage is one of the obstacles to the commercialization of fuel-cell vehicles. Dynetek Industries is developing a 10,000-psi hydrogen valve that will enhance on-board fuel and, in turn, enhance vehicle range and reduce system costs.

The 10,000-psi system builds on a CTFCA-supported project to develop and certify a 5,000-psi hydrogen valve and regulator solutions. This 5,000-psi valve will be redesigned to fit the 10,000-psi system, which will be developed, evaluated and tested by August 2005.

NRCan/CTFCA contribution: $1.5 million

Total project cost: $3 million. Dynetek Industries will match the NRCan/CTFCA contribution.

For additional information about the CTFCA, visit www.ctfca.nrcan.gc.ca.

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