Ford Fuel Cell Partnership Praised by Methanol Industry

ORLANDO, FL (December 15, 1997) — The Methanol Institute (MI) offered its praise for today's announcement that the Ford Motor Company has entered into a partnership with Ballard Power Systems of Canada and Daimler-Benz of Germany to produce fuel cell vehicles.

"For more than a decade, Ford has been a key ally of the methanol industry with the production of flexible fuel vehicles that run on methanol fuel," said MI Chairman W. Mark Rosenbury of Terra Industries. "We stand ready to work with this strong partnership to ensure that methanol remains the hydrogen carrier of choice for fuel cell vehicles."

The alliance has targeted commercial production of fuel cell vehicles by 2004. Previously, Daimler-Benz announced production plans for methanol fuel cell vehicles that include an on-board reformer or "chemical plant" to produce hydrogen gas from liquid methanol. Many expect that the methanol fuel cell will power the next generation of fuel cell vehicles.

Methanol is a clean transportation fuel made from domestic natural gas. One-quarter of the world's supply of methanol is produced at 18 U.S. plants in eight states with a total capacity exceeding 2.5 billion gallons per year.

Attending the 14^th International Electric Vehicle Symposium (EVS 14) in Orlando, Florida, MI Senior Consultant for Market Development Raymond Lewis stated that: "Liquid methanol packs a lot of hydrogen at ambient temperature and pressure, while pure cryogenic hydrogen must be held at minus 423 degrees. With the ease and convenience of a liquid fuel and the ability to use the existing gasoline distribution infrastructure, methanol is an ideal hydrogen carrier."

The existing gasoline infrastructure can be modified to supply methanol, at a cost of about $30,000 per station to convert underground storage tanks and fuel pumps to methanol operation. The cost to make methanol available conveniently at one-in-ten gasoline stations nationwide is only about $600 million. It has been estimated that creating a hydrogen infrastructure to serve fuel cell vehicles could cost as much as $1 trillion.

The Methanol Institute (MI) serves as the voice of the methanol industry in Washington and across the country. MI works to support the use of clean reformulated and oxygenated gasolines, promote the use of methanol as an alternative fuel, and encourage the development of emerging methanol-powered fuel cells.

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