Jul. 3, 2009 (The Yomiuri Shimbun) -- Eight companies have agreed to launch a joint effort to develop equipment and facilities to supply hydrogen to fuel-cell vehicles, The Yomiuri Shimbun has learned.
Hydrogen fuel-cell vehicles are regarded as highly eco-friendly because they emit no carbon dioxide.
The group comprises Nippon Oil Corp., Showa Shell Sekiyu K.K., Idemitsu Kosan Co. (OOTC:IDKOF) , Cosmo Oil Co., Japan Energy Corp., Tokyo Gas Co. (OOTC:TKGSY) , Osaka Gas Co. (OOTC:OSGSY) and Toho Gas Co. (OOTC:THOGF) , according to sources. They plan to invite auto manufacturers involved in the development of fuel-cell vehicles to take part in the energy-supply project.
The group aims to commercialize the supply of hydrogen to fuel battery-powered vehicles before 2015. The eight companies have been working on developing technologies to extract, transport and fill hydrogen in fuel-cell vehicles.
However, they have decided to jointly start a research association, which is eligible for preferential tax treatment, in the near future.
A fuel-cell vehicle is powered by electricity obtained through the chemical reaction of hydrogen and oxygen.
It is regarded as a future green car, following the development of a gas-and-electric-powered hybrid vehicle and an electric car with a chargeable battery.
Honda Motor Co., General Motors Corp. (OOTC:GMGMQ) and other auto manufacturers have been working on the development of fuel-cell vehicles. However, fuel-cell vehicles remain very expensive, as are the costs automakers would incur to independently construct networks of hydrogen-supply facilities.
As a result, the number of fuel-cell vehicles in use in the country had not reached 50 as of the end of 2007.
The eight companies are looking to reduce costs of constructing a network of hydrogen supply facilities by unifying standards and systems.
When the group launches its joint venture to operate a network of hydrogen supply stations, it may seek investment from the Industry Innovation Organization, a semipublic investment fund. The start-up costs of the group's joint business may be as much as several tens of billions of yen, the sources said.
