Letter to the Clerk of the Committee from
Katherine Bennett, Head of Government, Affairs and Policy Issues,
Vauxhall Motors Limited
When I spoke at the select committee hearing
in March I promised to supply you with further information regarding
GM's work on hydrogen fuel cell technology and what the corporation
is looking for from Governments around the world to support the
implementation of this new technology.
To date GM's has spent over $1bn on research
and bringing fuel cell vehicles to life. We believe that whilst
technologies such as hybrids will go some way to solving environment
and fossil fuel supply problems in the short term, these changes
at the margins will not adequately address the issues of climate
change in the longer term.
Some countries around the world, notably Japan
and the USA have already started down the path and are providing
substantial funding (US Government—$1bn, Canada—CA$215m,
Australia—AU$1m). Governments are also providing opportunities
for long-term demonstration programmes. For example in Japan,
FedEx are using a fleet of hydrogen fuel cell vehicles for their
parcel delivery service, with the support of the Japanese government.
This is exactly the type of initiatives that
GM is looking for as they will result in three crucial outcomes;
1. Create a legacy i.e. leave behind infrastructure
and structures for gaining planning permission.
2. Develop customer relationships—particularly
with large fleet users
3. Enhanced reputation for the fuel and
the vehicles that use them
The European Union is undertaking several initiatives
to facilitate and accelerate Europe's transition to the hydrogen
economy. The more practical of these include the EU Lighthouse
projects (aimed at integrating the main components in the field
of hydrogen production, distribution and use, and include all
relevant actors in the field) and the CUTE project (which will
use monies from its 6th framework programme to support efforts
to overcome the barriers to production, distribution, storage
and use of hydrogen as an energy carrier.) However at present
this funding is "virtual" and these projects have not
yet begun.
UK and Europe are in competition with other
regions around the world in terms of investment flowing from the
take up of hydrogen technology. Vauxhall and our colleagues at
General Motors Europe are keen to provide support to the UK Government
and European colleagues to ensure that Europe steps up to this
challenge.
The UK could benefit significantly by being
involved in major developments in the hydrogen economy. For example,
the new technology and materials used in the production of fuel
cells is driving rapid and lucrative developments in this area.
GM is beginning to source and build relationships with new suppliers.
There are numerous ways that the Government could help UK SME's
to compete with other companies around the world and utilise the
research and development of which the UK is so proud. In addition,
government incentives to drive consumer interest (such as the
Energy Saving Trust scheme) would be looked upon favourable by
GM when, in the next decade, they introduce new cars to market.
In addition, the UK's role in the European Union
means that it has a role to play in shaping the regulatory environment
for the hydrogen economy. GM is engaged with stakeholders around
the world to ensure that as technology moves forward, global codes
and standards are developed in an orderly and harmonized way.
This will allow automotive companies to ensure consistency in
safety and cost which is important if GM is to minimise the cost
of this new technology and therefore ensure take up by fleet customers
first and then the general public. The UK should be involved in
these and other broader discussions on policy issues relating
to hydrogen. Its impact is tremendous and GM/ Vauxhall are happy
to work with civil servants and other stakeholders to ensure greater
understanding across all aspects of this change.
The UK has already made advances with the plans
to develop a Fuel Cell "Centre of Excellence" and the
demonstrations of the hydrogen buses in the London through the
Low Carbon Vehicle Partnership and we welcome these. GM hopes
that the UK Government will continues with its commitment and
will support a climate that will allow the UK and our European
partners to develop the potential of a hydrogen economy and be
a global leader in this area.
April 2004
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