GM has placed a very high priority on fuel cells and hydrogen as the long-term power source and energy carrier for automobiles. We see this combination as the best way to simultaneously increase energy independence and security, remove the automobile as a source of emissions, and allow automakers to create better vehicles that customers will want to buy in high volumes.

GM’s fuel cell program is focused on four areas:

• Developing a fuel cell propulsion system that can compete head-to-head with internal combustion engine systems – on performance, durability and cost.
• Demonstrating our progress publicly to let key stakeholders experience firsthand the promise of this technology.
• Collaborating with energy companies to ensure that safe, convenient, and affordable hydrogen is available to our customers, enabling rapid transformation to fuel cell vehicles.
• Working with governments worldwide to ensure that appropriate market conditions and incentives are in place to enable a successful market introduction and subsequent sustainable market expansion.

We are targeting to design and experimentally prove a system that has the performance, durability, and cost -- assuming scale volumes -- of today’s engine systems by 2010. We have made a major commitment to this effort and have spent more than $1 billion to date. Additionally, to achieve our ultimate vision of a hydrogen economy and hydrogen fuel cell-based transportation, about 700 GM scientists and engineers are working around the world on research and development activities in places like the U.S., Germany, and Japan. As a result, we are making great progress in developing the necessary technologies and are increasingly confident we will reach our goal.

• In the last seven years, we have improved the power density of our fuel cell stack by a factor of 14.
• We have significantly improved, and will continue to improve, fuel cell durability, reliability, and cold start capability.
• We are developing safe hydrogen storage systems that approach the range levels required for customer acceptance and are exploring very promising concepts for the next generation of storage technology.
• We are making significant progress on cost reduction through technology improvement and system simplification.

Our progress has convinced us that fuel cell vehicles have the potential to be fundamentally better automobiles on nearly all attributes important to our customers. Achieving marketplace volume, however, will depend on a number of critical factors beyond GM’s, or any vehicle manufacturer’s control. One challenge to fast industry transformation is the fueling infrastructure. Ensuring that the cost of hydrogen is affordable to the general public and that refueling stations are abundant and conveniently located are major hurdles. Uniform codes and standards for both the vehicles and refueling methods will be needed as well. And of course, support and cooperation from government will be crucial to making this endeavor a reality. No single industry can accomplish this alone. That is why GM is working on these issues with a variety of partners and collaborators including governments, energy companies, and other interested parties around the world.

A major advantage of hydrogen is that it can be obtained from many pathways, including natural gas, nuclear, and a variety of renewable sources. GM is not in the energy business, so we are not experts on energy sources. However, as we work to commercialize fuel cell vehicles, we have a keen interest in the pathways to creating and distributing hydrogen, and the technologies, economics, and environmental benefits associated with each. As a result of that interest, GM is sponsoring trips to visit locations for hydrogen pathways, to provide a forum for learning. These trips will include locations to learn more about geothermal, nuclear, solar, and biomass.