As I mentioned on
The Panelist...
In order to compete with gasoline, hydrogen fuel cell technology needs $200
billion.
From now until 2023, hydrogen fuel cell technology needs $200
billion in order to become cost-competitive with gasoline, according to a study
by the Committee on Assessment of Resource Needs for Fuel Cell and Hydrogen
Technologies. (The committee's chair is Michael Ramage, retired from Exxon Mobil
Research Engineering -- XOM.)
According to the study, the needed funds would come from two main sources:
- Government: $55 billion total, spread out over the next 15 years,
in terms of incentives and subsidies.
- Private investment: $145 billion total, to build up infrastructure
and technology over the next 15 years.
Part of the problem
with the cost viability of hydrogen fuel cell cars is that platinum is an
important material in their production, and platinum prices are rising. However,
with the right investments, hydrogen fuel cell technology could compete with
gasoline technology in terms of price.
Honda (HMC) is
already releasing a hydrogen fuel cell car, but its market is rather limited,
since the infrastructure to fuel such cars doesn't exist -- and the car is a bit
on the expensive side.
But why can't we invest in the
infrastructure? The government portion is $55 billion over 15 years. If the
government continues offering tax breaks and subsidies to Big Oil at the 2006 level of $9
billion a year, that totals $135 billion over the next 15 years. That money is
going to an already-profitable industry. Would it be so bad to give less than
half that amount to develop an industry that has the potential to be cleaner,
cost less and help reduce our dependence on foreign oil?
Of course, hydrogen fuel cell technology isn't the only solution. Our
energy woes require a suite of solutions.
MarketWatch reports on what the study points out about alternative
technology:
The study concludes that a portfolio of technologies --
including hydrogen fuel-cell vehicles, improved efficiency of gasoline-powered
vehicles, hybrids and use of biofuels -- 'has the potential to nearly eliminate
oil demand from light-duty vehicles by the middle of this century, while
reducing greenhouse-gas emissions to less than 20% of current levels.'
Would you invest in a company that invests in hydrogen fuel
cell technology?
Disclosure: I do not own stock in XOM
or HMC.
ThePanelist.com is a
website that analyzes ethical investments.