$42 mn US in Fuel Cell funding promotes technologies that cut emissions (Part 3 of 3) (Funding)

Energy Secretary Steven Chu announced $41.9 million in ARRA funding for the fuel cell industry to promote solutions that lower GHG emissions and foster energy independence. This funding is expected to accelerate the commercialization and deployment of fuel cells, and create jobs in fuel cell manufacturing, installation, maintenance, and support services. The new funding will enhance the potential of fuel cells to provide power in stationary, portable and specialty vehicle applications, while cutting carbon emissions and broadening our nation's clean energy technology portfolio.

"The investments we're making today will help us build a robust fuel cell manufacturing industry in the United States," says Chu. "Developing and deploying the next generation of fuel cells will not only create jobs -- it will help our businesses become more energy efficient and productive. We are laying the foundation for a green energy economy."

The $41.9 million -- combined with $72.4 million in cost-sharing from industry -- will support immediate deployment of nearly 1,000 fuel cell systems for emergency backup power and material handling applications (e.g., forklifts) that have emerged as key early markets in which fuel cells can compete with conventional power technologies. Additional systems will be used to accelerate the demonstration of stationary fuel cells for combined heat and power (or co-generation) in the larger residential and commercial markets.

It's hoped that the increase in manufacturing volume in key early markets will bring costs down and encourage domestic supplier base growth. A variety of technologies will be developed and deployed, including polymer electrolyte, solid oxide and direct-methanol fuel cells.
The funding includes:

· Pennsylvania: GENCO -- This project will deploy 156 fuel cell systems as battery replacements for fleets of electric lift trucks at six of GENCO's existing distribution centers (South Carolina, 3 in Pennsylvania and 2 in Ohio). Success at these distribution centers will lead to further fleet conversions at some or all of GENCO's other 109 distribution centers. $6.1 million (six awards)

· Texas: Sysco of Houston -- Sysco will deploy 90 fuel cell systems as battery replacements for a fleet of pallet trucks at Sysco's new distribution center in Houston, Texas, due to open in August 2009. This installation will be the first ever green field installation in the world without battery infrastructure for a pallet truck fleet. Success at this distribution center will lead to further fleet conversions at some or all of Sysco's other 169 distribution centers. $1.2 million Contact: Richard Farmer, Acting Team Leader, Fuel Cells, Energy Efficiency and Renewable Energy, DOE, (202) 586-1623, Richard.Farmer@ee.doe.gov, www.eere.energy.gov; GENCO, www.genco.com; Neil Russell, Vice President, Investor Relations, Sysco, (281) 584-1308, www.sysco.com.