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Fuel cells should be a foundation for our future

Barry R. Finegold, Massachusetts state representative

The U.S. Secretary of Energy Steven Chu recently announced that the Department of Energy reduced funding for fuel cell technology by more than $132 million and is effectively cutting the hydrogen fuel cell research and development program. Secretary Chu argues that fuel cell technology is still decades away from large-scale implementation, and so not an option in the near term. I strongly disagree.

Fuel cells have vast potential as a means of powering cars and trucks and as a technology for energy storage. In fact, the DOE’s own budget documents state that fuel cell cars have the greatest potential for reducing greenhouse gas emissions by 2020 of any advanced vehicle technology.  With over $1.4 billion in public funding and an estimated $4 billion in private investment to date, continued investment from the DOE will ensure that fuel cells play a major role in our mission to finding non-fossil-based fuels and reducing emissions.

Fuel cells have made substantial progress over the past five years. According to leading car companies, fuel cell technology has progressed at a faster rate than battery technology and offers a promising solution to our long-term energy issues. Chevrolet has 115 Equinox fuel-cell vehicles that have logged more than 750,000 miles. Other companies have spent billions of their own money and produced two generations of cars, 318 of which remain on the road. Nuvera Fuel Cells Inc. in Billerica has developed a hybrid fuel-cell bus for use at Logan Airport, as well as other hybrid fuel-cell vehicles for commercial and industrial use. These practical applications are commercial today and will have a real impact as we move toward a clean energy culture.

Fuel cells for cars have been criticized for the costs involved and the lack of hydrogen fueling stations. The federal stimulus package, however, indicates a willingness to invest in myriad projects that lay the foundation for an integrated infrastructure that bridges the gap between old, fossil-fuel powered cars and new, renewable-energy powered cars. What’s more, local governments are signing contracts with companies to build that infrastructure.
There are now 65 hydrogen fueling stations in the U.S.  With continued support from municipalities and state officials, the infrastructure will continue to grow and the economy will benefit. A Breakthrough Technologies Institute study shows that as many as 189,000 jobs may be created by 2021 as a result of the fuel cell industry. Fuel cell technology is a long-term solution, and the jobs created today will be available in the decades to come.  We cannot stymie this field and stall the research projects that are under way.

While fuel cell technology for cars is not ready for mass production, progress is made every day. In the U.K., a company is developing a prototype for a hydrogen-fueled car that could start production as early as 2013. This car is projected to get the equivalent of 360 mpg. Yes, the costs are still prohibitive and the infrastructure is not in place yet. Solar companies also faced high production costs in the 1980s and 1990s, at nearly $300 per watt; today, the cost is roughly $5 per watt. Like the solar industry, fuel cell companies need to cut production costs. In light of the challenges we face in today’s economy and energy needs, we cannot afford to choose winners and losers among these promising solutions.

In the coming weeks, the House and the Senate appropriations committees will deliberate the federal budget. I urge the members to restore the $132 million that was cut from the DOE’s budget. As we continue to commercialize this promising technology, the costs will decrease and fuel cells will be one of the solutions to reducing our carbon footprint. We have the opportunity to create, reduce the effects of our carbon consumption and  support the advancement of this innovative technology.

Barry R. Finegold is the Massachusetts state representative from the 17th Essex District and was recently appointed as House Chair of the Joint Committee on Telecommunications, Utilities and Energy.

July 11, 2009 - 11:19 AM No Comments

Hydrogenics Received Going Concern Qualification From Independent Accounting Firm

MISSISSAUGA, ONTARIO–(Marketwire – July 10, 2009) – Hydrogenics Corporation (TSX:HYG)(NASDAQ:HYGS), a leading developer and manufacturer of hydrogen generation and fuel cell products, today announced that its consolidated financial statements for the fiscal year ended December 31, 2008, dated March 24, 2009 filed on Form 6-K on March 26, 2009 and subsequently included in the Company’s Annual Report filed on Form 20-F on June 30, 2009, contain a going concern qualification from its independent accounting firm, PricewaterhouseCoopers LLP.

Management’s plans to address the going concern issues are discussed in its Management’s Discussion and Analysis included in the Company’s Annual Report on Form 20-F. In addition, as previously announced on June 12, 2009, the Company announced that it has entered into an agreement with the trustees of Algonquin Power Income Fund (TSX:APF.UN), which, subject to various conditions will result in a non-dilutive financing to Hydrogenics with gross cash proceeds of approximately C$10.8 million, or approximately C$9.3 million net of transaction related expenses. The transaction involves a Plan of Arrangement and an Exchange Offer pursuant to which, among other things, Hydrogenics will offer to acquire all of the issued and outstanding units and convertible debentures of Algonquin Power in exchange for new securities of Hydrogenics. The transaction is subject to various conditions, including the receipt of regulatory approvals, which include the approval of The Toronto Stock Exchange and Nasdaq. The transaction is also subject to approval by the Ontario Superior Court of Justice and by shareholders of Hydrogenics.

The transaction is subject to various conditions, including the receipt of regulatory approvals, which include the approval of the Toronto Stock Exchange and Nasdaq. The transaction is also subject to approval by the Ontario Superior Court of Justice and by shareholders of Hydrogenics and unitholders of Algonquin Power.

NASDAQ Marketplace Rule 5250(b)(2) requires NASDAQ-listed companies to publicly announce through the news media the receipt of an audit opinion containing a “going concern” qualification. This announcement does not represent any change or amendment to the company’s Annual Report on Form 20-F.

ABOUT HYDROGENICS

Hydrogenics Corporation (www.hydrogenics.com) is a globally recognized developer and provider of hydrogen generation and fuel cell products and services, serving the growing industrial and clean energy markets of today and tomorrow. Based in Mississauga, Ontario, Canada, Hydrogenics has operations in North America and Europe.

July 11, 2009 - 11:11 AM No Comments

Campers Get Look At Cutting Edge Hydrogen Fuel

July 11, 2009 - 10:14 AM No Comments