Fuel cell maker eyes state. Michigan in running for Ballard factory January 20, 2000 Detroit Free Press
BY EMILIA ASKARI FREE PRESS STAFF WRITER
As crowds flock to the North American International Auto Show to pay homage to the internal combustion engine, a handful of executives from a Canadian company are considering whether Michigan would be the best place to build the automotive power train of the future: fuel cells.
Ballard Power Systems of Vancouver, British Columbia, the leader in developing this new kind of power source, announced last week that it's checking out locations for a North American plant that would employ about 700 people.
Michigan and the rest of the Midwest are in the running. So is California, where many of the first cars powered by fuel cells are expected to be sold.
A number of factors has to go into account in locating the plant, Ballard Chairman Firoz Rasul said in an interview last week. "One is proximity to the customer. One is the cost of labor and the cost of materials. The availability of skilled labor. The automotive manufacturing base is centered around southern Ontario, Michigan, Ohio -- so the Midwest is pretty attractive. We haven't decided exactly where it's going to be. It'll depend on a whole bunch of these factors."
Rasul said he was approached by people eager to arrange a meeting between Ballard executives and Michigan state officials. He declined to discuss the kind of tax or other incentives he is seeking before breaking ground in 2002. State economic development officials also declined comment.
The new factory will produce the next generation of fuel cell, which Ballard unveiled last week during the auto show's media preview. Like many previous models of fuel cells, the design mixes air with hydrogen and feeds the mix into a thin filter that sifts out electrons and forces them into batteries for energy. The batteries power a motor that can drive a car. The only by-products are heat and water vapor.
The new Mark 900 series Ballard fuel cell improves on its predecessor, the 700 series, in several areas: size, voltage and cost to manufacture.
The 700 series requires two stacks of membranes to produce 75 kilowatts of electricity. The 900 model takes just one stack. It's smaller and uses different materials that allow cheaper manufacturing.
The new model will function at temperatures as low as 40 degrees below zero whereas its predecessor didn't function well in temperatures lower than 37 degrees Fahrenheit.
That means the new fuel cells might be marketable in Michigan and other places that experience harsh winters. The amount of water the fuel cell emits is comparable to the amount a traditional internal-combustion engine produces, Ballard executives say.
Company executives say that substituting materials helped them achieve the improvements. They won't give details for proprietary reasons. One of the significant new materials is a flexible graphite that replaces a hard graphite in the membranes. The hard graphite had to be machined in a costly process. The flexible material can be stamped in a continuous process.
Fuel cells will be about the price of internal-combustion engines when they are produced in volumes of 250,000 to 300,000 annually. Ballard executives expect to start limited production by 2003 and reach the 300,000 target well before 2010.
That goal sounds plausible to alternative-fuel experts from Ford and DaimlerChrysler. The two have formed a partnership with Ballard to develop fuel cells.
"Three hundred thousand in 2010 is possible. Sure," said Bill Powers, vice president of research for Ford Motor Co.
Chris Borroni-Bird, senior manager of technology strategy planning for DaimlerChrysler, agrees, but points out that making fuel cells cost-competitive doesn't mean that the new technology will replace the old immediately.
That may be beyond 2010. But first, the cost of other power train components associated with fuel cells must be reduced. For example, hydrogen fuel storage systems cost more than gasoline tanks. Electric motors cost more than the transmissions that accompany internal-combustion engines.
Once the oil and auto industries reach some kind of agreement on what fuel to use, a whole new fuel station infrastructure might be needed. As an interim solution, fuel cells can be powered by more readily available fuels, such as methanol, that produce air pollution.
EMILIA ASKARI can be reached at 313-222-6487 or at askari@freepress.com
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