EU’s Hydrogen Fuel-Cell Research Project in Danger of Sinking

The European Commission is waiting to see whether companies and research institutes respond to a call to match government funding for a high-profile European Union research and development project for hydrogen fuel-cell technology, having warned the initiative may shut down without a large cash infusion.

The EU’s executive arm issues its warning following a tepid response to its invitation for research proposals under the “The Fuel Cells and Hydrogen Joint Technology Initiative” introduced in late 2009.

Mercedes B-Class F-Cell car has 240-mile cruising range on full tank of hydrogen.

The EC’s goal is to coordinate European auto makers, parts manufacturers, energy firms, institutions and governments in commercializing hydrogen fuel-cell technologies starting sometime between 2010 and 2020.

The Commission has committed some E71 million ($102 million) for the JTI project, which was to be split into five sections. But automotive and energy companies under taking the research were to provide matching funds.

The private sector also was asked to match funding offered by universities and research institutes. But companies have shied away from getting involved in projects.

The Commission now is asking EU ministers to change the rules to require that the government body only match money offered by universities and research groups. It also would encourage national and regional governments to bankroll research by promising EU matching funds for their pledges of money.

But the EC says it may reduce financial support even more if funding from other sources falls short. And it warns that a shortfall the following year may prompt it to propose terminating the R&D project.

Claire Castel, a spokeswoman for the program, believes the private sector will embrace the proposed reforms.

More-predictable funding will encourage companies to keep their projects within EU countries, rather than move them elsewhere – to the U.S. in particular, she contends.

A spokeswoman for Daimler, a member of the JTI project, tells Ward’s the proposed EU changes would encourage cooperation among parties to hydrogen and fuel-cell research. A primary goal of the initiative, she says, is to link hydrogen manufacturers, providers and users in expanding a network of hydrogen filling stations.

The auto maker already has developed a Mercedes fuel-cell prototype car that has a 240-mile (386-km) cruising range on a full tank of hydrogen.

The JTI project was expected to result in a joint research program more tailored to the auto industry’s needs, reducing by two to five years estimates for mass production of hydrogen and fuel-cell technology.

Having an adequate budget over six years would raise confidence among public and private investors, allowing them to plan and develop long term, the EC said in 2009. It also would strengthen links between demonstration projects and fundamental or applied-research projects, speeding up the pace of learning and of gaining experience.

The program was expected to be supported with liberal amounts of government cash. But some fuel-cell advocacy groups say that has not turned out to be the case.