April 16, 2003

Manitoba is taking another step in promoting cleaner energy alternatives for the future with the release of a report outlining opportunities for hydrogen development in the province, Energy, Science and Technology Minister Tim Sale announced today.

"The report reinforces hydrogen as a very attractive future energy option for our province," said Sale. "With the lowest electricity rates in North America and a number of manufacturing companies that offer expertise in key hydrogen-related technologies, including bus manufacturing and refuelling systems, Manitoba is a very attractive location for the development of the hydrogen industry."

The Preliminary Hydrogen Opportunities Report examines the future use of hydrogen and provides a broad outline of possible opportunities in the area of hydrogen development for Manitoba.

The report refers to hydrogen as "the ultimate fuel for the future" because it is clean when produced from hydroelectricity and does not rely on any foreign oil imports. As a result, hydrogen development lowers emissions that contribute to climate change and smog and enhances energy self-sufficiency. If, for example, all vehicles in Manitoba were ultimately converted to hydrogen fuel cells, Manitoba has enough future hydrogen production capacity available to be self-sufficient for transportation fuel needs.

The report recommends five main priority actions to help spur the industry in the province:

• continue with the hydrogen fuel cell transit bus project, announced in December 2002;
• investigate a stationary fuel cell demonstration project to be powered by unused byproduct hydrogen from industrial production processes;
• investigate the establishment of a Hydrogen Research Centre of Excellence, to be based at the AECL Whiteshell laboratories in Pinawa, and co-ordinate the growing interest and involvement in hydrogen at Manitoba universities and colleges;
• implement a commercial electrolysis unit at the Manitoba Hydro Dorsey converter station to produce industrial grade hydrogen to be used as a specialized coolant; and
• pursue a memorandum of understanding with the Government of Iceland on hydrogen development.

The report was compiled by the Manitoba Hydrogen Steering Committee, a broad-based group of stakeholders with direct interest or involvement in hydrogen development including all three levels of government, utility, academic and industry representatives.

The steering committee based its report on the work of five working groups that examined particular areas for potential hydrogen development, hydrogen production and movement, vehicle and transportation applications, stationary and portable power applications, research and development, and non-fuel and other value-added uses of hydrogen.

Sale noted that other jurisdictions are also beginning to focus seriously on hydrogen. The United States government recently announced recommendations to allocate more than $1 billion to hydrogen fuel development. Other nations and companies are making similar commitments.

"With the establishment of a multi-stakeholder steering committee, Manitoba has taken a leadership role in examining hydrogen options for the future of the province," said Sale. "The report lays out directions of the hydrogen development pathway and provides insights regarding likely niche opportunities along the way, opportunities that are important both to grow existing Manitoba businesses and capabilities, and to attract new companies."

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