$2 Billion Investment Needed for Hydrogen Infrastructure by 2012

This conclusion is one of the key forecasts contained in ABI Research's new study, "Hydrogen Infrastructure", which evaluates the production and distribution pathways that will be essential for any major fuel cell vehicle introduction, and reviews potential fuel sources for hydrogen generation.

Oyster Bay, NY - February 16, 2005 - The embryonic automotive fuel cell industry -- whether or not aided by governments -- must invest some US$2 billion in creating a hydrogen fuelling station infrastructure by 2012 if market expectations are to be met.


This conclusion is one of the key forecasts contained in ABI Research's new study, "Hydrogen Infrastructure", which evaluates the production and distribution pathways that will be essential for any major fuel cell vehicle introduction, and reviews potential fuel sources for hydrogen generation.

Natural gas, coal, ethanol and methanol, biomass gasification, electrolysis, solar and wind energy, even nuclear reactions are all potential sources for the hydrogen needed to run fuel cells, and the study analyzes each in detail, with particular emphasis on natural gas, the most likely candidate.

"Once the hydrogen is produced, it must be distributed to a large number of fuelling stations," notes Atakan Ozbek, ABI Research's director of energy research. "That could be done via pipelines, or by trucks, or even by generating the hydrogen on-site. Then it must be stored, and a number of options are available."

Will the hydrogen supply chain be up to the task? Yes, Ozbek believes, if sufficient R&D funding is directed to two critical areas: production technologies and storage methods. "Government spending in these areas -- and in setting up more pilot projects -- will be the catalyst enabling wider commercialization."

The study forecasts the number of fuel cell-powered vehicles that will be produced in North America, the EU and Japan along with other global regions, and the number of fuelling stations that will be required. It presents a detailed matrix of hydrogen infrastructure developments by production, by distribution and by storage pathway.

This report forms part of a package of automotive fuel cell-related studies that also includes "Automotive Fuel Cell Vendors", "The Transportation Fuel Cell Supply Chain" and "Fuel Cells for Vehicles".

Founded in 1990 and headquartered in New York, ABI Research maintains global operations that support annual research programs, intelligence services and market reports in wireless, automotive, semiconductors, broadband, and energy. For more information please visit www.abiresearch.com, or call 516.624.2500.

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