The Dow Chemical Company and General Motors have reached initial understanding on the world’s largest fuel cell transaction to date. The intent of this is for GM to commercialise 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.
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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 to the end of 2005, with plans to commercialise 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.
Said Bill Jewell, Dow’s business vice president of energy,: “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, said: “While this is a milestone event 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 US and Europe.
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By GlobalData“As we reduce costs and improve durability, new applications will emerge that serve industrial, commercial and, finally, consumer power and transportation needs,” Burns said. “GM will continue to lead the development of these applications.”
