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Released: 08 June, 2003

Government of Canada Supports Innovative Hydrogen-Fuel Projects

OTTAWA - New hydrogen-fuel technologies that will be key to creating economic opportunities and addressing climate change received new support from the Government of Canada today. The Honourable Herb Dhaliwal, Minister of Natural Resources Canada (NRCan) announced a $4.5-million investment in three projects that will develop and test hydrogen fuel-cell technologies and the systems needed to put them into widespread use. On behalf of the Honourable Alan Rock, Minister of Industry Canada, Minister Dhaliwal also announced a $9.6-million investment, through Technology Partnerships Canada, in a $32-million research and development initiative by QuestAir Technologies Inc. of Burnaby, British Columbia. Minister Dhaliwal made the announcements while addressing the Hydrogen Fuel Cell Conference in Vancouver.

"We're entering a new energy era - an era in which hydrogen energy will become a key pillar of our economy," said Minister Dhaliwal. "These technologies will help us build a hydrogen economy that will be vital to our prosperity in the years and decades to come. And they will be vital to our efforts to cut down the world's greenhouse gas emissions."

"Fuel cell technology represents a tremendous opportunity for Canada," said Minister Rock. "The benefits are many. Environmental, real advantages for our economy, significant growth in knowledge-based jobs, new opportunities for other key industry sectors, and a platform for growth in high-value exports."

Among energy experts, consensus is growing that hydrogen and fuel cells will be an increasingly important part of the global energy mix in the coming decades and, as such, will be an increasingly significant part of climate change and air-quality solutions. Governments and industry around the world are recognizing that fuel cells and other hydrogen technologies have the potential for both economic growth and environmental benefits. Canada is a world leader in this field and these investments will help solidify Canada's position.

"There's no question the world is moving toward a less carbon-intensive economy, building a tremendous appetite for alternative forms of energy," said the Honourable David Anderson, Minister of the Environment. "Our investments in these projects will help to demonstrate the commercial viability of hydrogen energy systems in helping to reduce the causes of our pollution and climate change."

"We made a New Era commitment to promote clean and renewable energy sources - including fuel cell technology," said Water, Land and Air Protection Minister Joyce Murray. "We are pleased to provide $300,000 to enhance this technology, which is good for both the environment and the economy. With 87 percent of all fuel cell research and development in Canada happening right here in B.C. we are world leaders and well positioned for the coming hydrogen economy."

The Government of Canada's $14.1-million investment is divided as follows:

• $9.6 million in funding that enable QuestAir to develop advanced technologies that reduce costs, and improve the efficiencies of fuel cells and the hydrogen infrastructure
• $2 million in an IMW Industries initiative to develop an energy-efficient, lower-cost hydrogen compressor and dispenser fuelling system. This project could lower the costs associated with hydrogen refuelling, reduce capital and operating costs by 40 to 50 percent, and cut energy consumption costs by 15 to 40 percent.
• $500,000 to help Hydrogenics Corporation develop a 10-kilowatt fuel-cell power module. This technology has wide-ranging applications, including use in utility vehicles, forklifts, mining vehicles and Zamboni ice resurfacing machines.
• $2 million to the first fleet demonstration of fuel-cell vehicles in Canada. The Vancouver Fuel Cell Vehicle Project will demonstrate five third-generation Ford fuel-cell vehicles in "real-world" conditions. This three-year $5.8-million initiative will test the vehicles' performance, durability and reliability, and help accelerate the commercialization of fuel-cell vehicles.

Government of Canada funding for these projects is provided by NRCan, the Technology Early Action Measures (TEAM) component of the Climate Change Action Fund and Technology Partnerships Canada. NRCan plays a pivotal role in helping shape the important contributions of the natural resources sector to the Canadian economy, society and environment. The department conducts innovative science to generate ideas and transfer technologies, and represents Canada's international interests to meet our global commitments related to natural resources. TEAM supports investments in technology projects to reduce emissions while sustaining economic and social development.

This initiative builds on the Government of Canada's commitment to ensuring the quality of life in our communities, a healthy environment and continued economic prosperity - for the Canada we want, for ourselves, and for future generations. Funding for this project is built into the existing fiscal framework.

For more information, media may contact:

For more information on the Government of Canada’s action on climate change, please visit climatechange.gc.ca.

The following three media backgrounders are also available:

1. Hydrogenics Corporation Fuel-Cell Power Module
2. IMW Industries Hydrogen Compressor and Dispenser System
3. Vancouver Fuel Cell Vehicle Project