Dow, General Motors Team for Landmark Fuel Cell Partnership
Dow Chemical, the world’s largest chemical manufacturer, and General Motors, the world’s largest automobile manufacturer, have reached initial understanding on the world’s largest fuel cell transaction to date.
Dow Chemical, the world’s largest chemical manufacturer, and General Motors, the world’s largest automobile manufacturer, have reached initial understanding on the world’s largest fuel cell transaction to date.
The intent of this is for GM to commercialize its hydrogen fuel cell technology to generate electricity from hydrogen created as a co-product at Dow’s operations in Freeport, Texas. The 30-square-mile complex in Freeport, 65 miles east of Houston, is Dow’s largest manufacturing facility.
If tests proceed according to plan, Dow could eventually use up to 35 megawatts of power generated by 500 GM fuel cell units on an ongoing basis. This is enough electricity to power 25,000 homes for a year and is more than 15 times bigger than any other known fuel cell transaction. The test is expected to begin during the fourth quarter of 2003 and to run through 2005, with plans to commercialize starting in 2006. Dow and GM teams are currently working to remove the final hurdles for placing the fuel cells in Dow’s chemical manufacturing facility. A final agreement between the two industrial giants is expected to be signed in the next few months.
"This is a significant milestone—not only from a technology and business perspective, but from an environmental one as well," says Bill Jewell, Dow’s business vice president of energy. If the tests are successful, Dow could become the largest user of fuel cell generated electricity in the world. "Technology moves forward in steps. This step can prove the feasibility of manufacturing and using fuel cells in significant quantities."
Larry Burns, GM vice president of research and development and planning, and Peter Molinaro, global leader of climate change for Dow, jointly announced the arrangement in the U.S. capital.
"While this is a milestone event," Burns said, "and it points to a growing interest among businesses in using fuel cells to power factories and buildings, the most compelling reason for GM to collaborate with Dow is ultimately to reduce the cost of fuel cells and improve their durability so that we may put them in cars by the end of the decade."
Though Texas is the first place where Dow and GM will test this technology, the two companies are already discussing the use of fuel cells to convert hydrogen to electricity in other Dow locations in the U.S. and Europe.
"Using hydrogen to generate electricity is no longer reserved for spacecraft," said Dow’s Molinaro. "This collaboration can place us at the threshold of common use of fuel cells to power significant portions of our economy. We are very excited about this collaboration with General Motors and about what it could mean in the pursuit of greater energy diversity, ultimately leading to a hydrogen economy."
Dow manufacturing is energy intensive and the cost of power is an important determinant of the company’s profitability. The arrangement will give Dow an additional supply of electricity. The 35 megawatts of power Dow will ultimately receive from this is about 2% of the total used at Dow’s Texas Operations
For Dow, finding renewable energy sources provides a triple advantage. Dow produces energy, relies on it for manufacturing, and uses it as a raw material in many of its products. Cogeneration based on natural gas is used to efficiently produce 95 percent of the power and steam Dow consumes in the U.S. The global competitiveness of Dow’s US operations has been negatively impacted by volatile natural gas prices as growing U.S. demand has continued to outstrip supply. Wind, fuel cells, solar and other alternative sources, combined with conservation and increased traditional energy supplies from coal, nuclear and more natural gas production, will all be needed to ensure continued economic growth.
The project will drive technological progress for fuel cell technology. To compete with the internal combustion engine, fuel cells will have to cost about $3,000.00 to $4,000.00 for 75 kilowatts of power or about $50.00 per kilowatt. The arrangement between GM and Dow will help GM drive fuel cell systems to the automotive price point by 2010 and to a competitive price point for stationary power systems by 2005. The initial field test will also greatly improve the durability and life of the fuel cell systems.
GM expects each fuel cell unit to exceed 8,000 hours of operation by 2010, which equates to more than 175,000 miles in an automobile.
The intent of this is for GM to commercialize its hydrogen fuel cell technology to generate electricity from hydrogen created as a co-product at Dow’s operations in Freeport, Texas. The 30-square-mile complex in Freeport, 65 miles east of Houston, is Dow’s largest manufacturing facility.
If tests proceed according to plan, Dow could eventually use up to 35 megawatts of power generated by 500 GM fuel cell units on an ongoing basis. This is enough electricity to power 25,000 homes for a year and is more than 15 times bigger than any other known fuel cell transaction. The test is expected to begin during the fourth quarter of 2003 and to run through 2005, with plans to commercialize starting in 2006. Dow and GM teams are currently working to remove the final hurdles for placing the fuel cells in Dow’s chemical manufacturing facility. A final agreement between the two industrial giants is expected to be signed in the next few months.
"This is a significant milestone—not only from a technology and business perspective, but from an environmental one as well," says Bill Jewell, Dow’s business vice president of energy. If the tests are successful, Dow could become the largest user of fuel cell generated electricity in the world. "Technology moves forward in steps. This step can prove the feasibility of manufacturing and using fuel cells in significant quantities."
Larry Burns, GM vice president of research and development and planning, and Peter Molinaro, global leader of climate change for Dow, jointly announced the arrangement in the U.S. capital.
"While this is a milestone event," Burns said, "and it points to a growing interest among businesses in using fuel cells to power factories and buildings, the most compelling reason for GM to collaborate with Dow is ultimately to reduce the cost of fuel cells and improve their durability so that we may put them in cars by the end of the decade."
Though Texas is the first place where Dow and GM will test this technology, the two companies are already discussing the use of fuel cells to convert hydrogen to electricity in other Dow locations in the U.S. and Europe.
"Using hydrogen to generate electricity is no longer reserved for spacecraft," said Dow’s Molinaro. "This collaboration can place us at the threshold of common use of fuel cells to power significant portions of our economy. We are very excited about this collaboration with General Motors and about what it could mean in the pursuit of greater energy diversity, ultimately leading to a hydrogen economy."
Dow manufacturing is energy intensive and the cost of power is an important determinant of the company’s profitability. The arrangement will give Dow an additional supply of electricity. The 35 megawatts of power Dow will ultimately receive from this is about 2% of the total used at Dow’s Texas Operations
For Dow, finding renewable energy sources provides a triple advantage. Dow produces energy, relies on it for manufacturing, and uses it as a raw material in many of its products. Cogeneration based on natural gas is used to efficiently produce 95 percent of the power and steam Dow consumes in the U.S. The global competitiveness of Dow’s US operations has been negatively impacted by volatile natural gas prices as growing U.S. demand has continued to outstrip supply. Wind, fuel cells, solar and other alternative sources, combined with conservation and increased traditional energy supplies from coal, nuclear and more natural gas production, will all be needed to ensure continued economic growth.
The project will drive technological progress for fuel cell technology. To compete with the internal combustion engine, fuel cells will have to cost about $3,000.00 to $4,000.00 for 75 kilowatts of power or about $50.00 per kilowatt. The arrangement between GM and Dow will help GM drive fuel cell systems to the automotive price point by 2010 and to a competitive price point for stationary power systems by 2005. The initial field test will also greatly improve the durability and life of the fuel cell systems.
GM expects each fuel cell unit to exceed 8,000 hours of operation by 2010, which equates to more than 175,000 miles in an automobile.
