Benz, Ford in fuel-cell link for general consumption

By Neil McDonald

TWO of the world's largest carmakers, Daimler-Benz and the Ford Motor Co, have joined forces to develop fuel cell technology for everyday cars.

The pair, as well as Ballard Power Systems of Canada, hope to have a road-going fuel cell vehicle available for sale by 2004.

The three companies signed a memorandum of understanding in Stuttgart on Monday, with the expectation that final agreement will be reached within a few months.

The agreement will ally two of the world's foremost companies in automotive technology with the fuel cell industry's leading developer and manufacturer, in order to accelerate the development of fuel cell-powered components for cars and trucks.

The chief executive officer of Daimler-Benz, Jurgen Schrempp, welcomed the alliance, saying: "This cooperation is impressive evidence of the fact that the fuel cell represents a serious and promising alternative to the conventional combustion engine."

"Ford sees this partnership as a natural complement of talent, skills and technology among the three companies," said Ford chairman Sir Alex Trotman.

"We have been working on the technology to support fuel cell vehicles for several years and view them as one of the most important technologies for the early 21st century.

"With our collaborative efforts, we think we can accelerate the commercial viability and implementation of fuel cell vehicles."

The president and chief executive officer of Ballard, Firoz Rasul, said: "Through Ballard's relationship with Daimler-Benz and Ford, we have the strength, resources and commitment to bring the fuel cells to volume commercial production."

Ballard Power Systems is the world leader in the development of proton exchange membrane fuel cells.

Daimler-Benz has expertise in research into alternative drive systems and automotive fuels.

Ford is highly regarded for its advanced electric vehicle power train technology.

Fuel cells, which generate electricity from hydrogen and oxygen to power vehicles, have the potential to provide the size, range, roominess and speed of conventional cars and trucks while emitting little more than water vapor into the atmosphere.

They have three key advantages over batteries for electric vehicles.

Fuel cells should cost less -- they don't have the range limitations batteries do and don't have the durability limits and replacement costs of battery packs.

Ballard will be responsible for fuel cells with Daimler-Benz and Ford holding 20 percent and 15 percent of Ballard Power Systems Inc, respectively.

Daimler-Benz will be the majority owner of DBB Fuel Cell Engines GmbH, responsible for fuel cell systems, with Ballard and Ford holding about 26 percent and 23 percent respectively.

Ford will be the majority owner of a new company responsible for electric drivetrain systems, with Ballard and Daimler-Benz owning 19 percent each.

Ford's total investment in the partnership will be about US$646 million, comprising cash, technology and assets.

Fuel cells can be used for small, portable emergency electricity-generating power plants and engines to power cars, buses, trucks, trains, ships and even satellites and space stations.

The big advantage of this technology is that it offers low -- or even zero -- emission levels for a higher degree of efficiency.

So how do they work? A fuel cell is an electrochemical device that produces electricity silently and without combustion.

Hydrogen fuel, which can be obtained from natural gas ormethanol, and oxygen from the air are electrochemically combined in a fuel cell to produce electricity and heat with pure water as the only by product.

It is important to prevent the two gases coming into direct contact and they are therefore separated by means of an electrolyte membrane. The various types of fuel cell are identified by the different electrolytes used.