US embassy cable - 05VANCOUVER1503

UNCLAS VANCOUVER 001503 
 
SIPDIS 
 
WHA/CAN 
WHA/EPSC 
EB/ESC 
 
E.O. 12958: N/A 
TAGS: ETRD, ENRG, CA, EIND, Energy 
SUBJECT: BRITISH COLUMBIA IS GLOBAL LEADER IN FUEL CELL TECHNOLOGY 
 
1. Summary.  British Columbia (BC) has the world's largest 
concentration of fuel cell and hydrogen technology research and 
expertise.  CG and DPO recently visited Ballard Power Systems, a 
private company, as well as the National Research Council Canada 
Institute for Fuel Cell Innovation, and Fuel Cells Canada, the 
industry organization.  These organizations have developed a 
hydrogen and fuel cell strategy that aims to solidify British 
Columbia's position in this sector, and that focuses efforts on 
development of a hydrogen highway by the 2010 Winter Olympic 
Games.  End summary. 
 
2. According to National Research Council Canada, roughly 88 
percent of global research and development of fuel cell and 
hydrogen technology takes place in Canada; 72 percent in British 
Columbia and 16 percent in Ontario/Quebec.  The United States 
accounts for 7 percent.  In BC, this sector employs 1800 people 
at over 40 companies, and accounts for almost 2.5 billion 
dollars in investment, expenditures, and government funding. 
While the primary focus of research is on personal vehicles 
(there are five fuel cell powered Ford vehicles in use in 
Vancouver), companies are also developing technology for home 
heating and uninterruptible power systems. 
 
3. Government and private sector efforts have crystallized 
around the concept of a hydrogen highway, linking Vancouver 
International Airport with Whistler, venue for most 2010 Olympic 
events.  Hydrogen powered buses will run this route, fueling at 
strategically located refueling facilities.  Passenger cars and 
delivery vehicles will incorporate Ballard fuel cell systems. 
Westport-Cummins engines in highway buses will be fueled with 
hythane from combined natural gas and hydrogen stations.  Fuel 
cell forklifts will provide material handling support.  Plans 
call for this hydrogen highway eventually to connect BC with 
California. 
 
4. Ballard Power Systems, which considers itself a world leader 
in hydrogen fuel cell technology, is 30 percent owned by 
Ford/Daimler and accounts for 50 percent of the total hydrogen 
fuel cell industry in Canada.  According to Ballard's VP, the US 
is its top contributor in government support and development 
spending for fuel cell technology as an alternative automotive 
energy source.  Ballard also works closely with US Department of 
Energy in developing worldwide standards.  And of the 150 fuel 
cell vehicles already on roadways around the globe, the US 
possesses 90 of them. 
 
5. Hydrogen fuel cell vehicles run on hydrogen created from 
natural gas or wind energy and they produce no emissions.  The 
challenges currently faced by this industry, however, include 
affordability, durability, and power density.  Each car still 
costs about $1 million dollars and the engines do not start at 
temperatures below 32 degrees Fahrenheit.  Ballard asserts that 
these vehicles will be commercially viable by 2010.  Ballard's 
VP would like to strengthen his company's already existing 
partnerships with the US and look to other US industries and the 
public sector to help reach Ballard's ultimate goal: to fully 
develop and market fuel cell automotive vehicles, both cars and 
buses, that will increase energy security and supply in North 
America, improve air quality and climate change conditions. 
LUKENS