Brussels, 10/10/2002 (Agence Europe) - A new High Level Group advising on Hydrogen and Fuel Cells (HLG) was launched on Thursday in Brussels by European Commission President Romano Prodi, Commission Vice President, Loyola de Palacio, responsible for Energy and Transport, and Research Commissioner Philippe Busquin. The Group comprises top level representatives from major EU automotive and energy companies, public utilities, research institutes, transport companies and policy makers. They will asses the potential benefits of using hydrogen and fuel cells in EU transport, energy production and many other areas, and help pave the way for more focused EU action in this field. Initial results are expected by mid-2003: a "foresight report" will include a hydrogen and fuel cell research agenda and deployment and commercialisation actions, taking into account issues such as innovation, marketing, distribution and infrastructure, safety, public/private partnerships and investments in the hydrogen sector.
Loyola de Palacio stated that what they needed was a clean energy which responded to their goal of diversifying their energy sources. She also declared that hydrogen was a vector for energy that enabled renewable energy to be distributed, used widely and stored. The Commissioner added that the only emission it produced was water vapour but admitted that the cost was high and that it was necessary to promote research into the subject. Philippe Busquin stressed the absence of a common policy and the huge gap between the EU and the USA and Japan. The USA provides an annual budget of EUR 180 million for the development of hydrogen and fuel cells, while Japan gets EUR 2.4 billion over 28 years (1993-2020). Total European public funding for fuel cell research is estimated at some €50-60 million per year. The Fifth EU Research Framework Programme devoted €120 million to hydrogen and fuel cell research under the Sixth Framework Programme (FP6 2003-2006), but envisages a considerable increase for energy and transport with €2,120 million has been earmarked. Don Huberts director of Hydrogen section at Shell explained how hydrogen would become a universal source of energy for all cars throughout the world and could become the main energy product in 10 or 15 years, replacing all engine fuels. Nevertheless, a number of obstacles still need to be overcome. Pierre Buzit, Vice President of research at Renault pointed out that the current cost of this kind of car is 10-100 higher than ordinary cars. This includes the manufacturing cost (hydrogen produces more Co2 than oil production); storage has become very difficult because of the lightness of the molecule. However, Mr Buezit believes that around 2010-2012, there will be hydrogen cars but this will mean that the EU will have to assist its own industry because currently there is no technology in this area as everything is bought from the USA or Japan. While pointing out that hydrogen can be used in a range of applications (computers, mobile phones), Mr Beuzit calls on the EU to launch a coherent energy policy because hydrogen does not make sense unless it is used on a mass scale.
According to the Commission Independent market studies on fuel cells forecast average annual growth rates of 40-60% in fuel cell-propelled transport over the next decade. The European fuel cell vehicle market should reach €16.3 billion by 2020, and €52 billion by 2040.