The new generation of vehicles: market opportunities for fuel cells

The Partnership for a New Generation of Vehicles (PNGV), a historic US Government-auto industry partnership initiated in 1993, is pursuing three specific, interrelated goals, including the development of the next generation of vehicles capable of achieving up to three times the fuel efficiency of todayʹs comparable vehicles. Fuel cells have been identified as one of three primary propulsion system candidates to meet this triple fuel efficiency goal, since they can dramatically increase automotive propulsion efficiency combined with very low to zero emissions. The US Government is working closely with industry and research institutions in pursuing a strategy of aggressive research and development (R&D) to accelerate the commercialization of fuel cell vehicles. The US Department of Energy has a major role in this fuel cell technology development effort. R&D activities are focused on overcoming the major technical, economic, and infrastructure-related hurdles. The high efficiency, very low emissions, and other favorable characteristics of fuel cells (such as fuel flexibility, low noise, and vibration) create significant market opportunities for fuel cells over the entire spectrum of transportation applications. While the focus of near-term markets for fuel cell vehicles will be urban areas having severe air-quality problems, long-term market prospects are encouraging since fuel cell vehicles can compete on an even ground with conventional vehicles in all key aspects, including vehicle range and refueling. This paper will discuss near- and long-term market opportunities for fuel cells in transportation and provide an update on driving regulatory developments in the USA at the federal and state level. The paper also provides an introduction to the PNGV (focusing on the role and prospects for fuel cells) and discusses the status of fuel cell vehicle development projects.