Friday, August 1, 2008

How I See It

Fuel cells and hydrogen: An agenda for local action

Technology-driven innovation fuels the Massachusetts economy. Fuel cells are the most dramatic technology shift affecting the energy industry since the dawn of the Industrial Age and the introduction of the automobile. With more than $2 billion per year being spent on fuel cell research and development in companies around the world, Massachusetts has the opportunity to create and maintain jobs in this newly emerging energy technology by choosing to become actively involved.

As we begin the 21st century, we as a society are continuing our efforts toward finding clean power sources and alternative forms of energy. Auto manufacturers and energy providers alike have begun investigating alternative technologies for propulsion and power generation. Fuel cells offer numerous advantages in these applications, including high efficiency, low emissions and reduced maintenance costs.

Because of the proximity to academic institutions, venture capital, and a highly skilled work force, this industry has experienced dramatic growth, estimated to be more than 50 percent, in the past five years. According to the Massachusetts Hydrogen Coalition, there are approximately 60 companies in the state related to the fuel cell industry, making ours one of the largest fuel cell clusters on the globe. Many of these companies plan to expand in Massachusetts over the next five years, leading to more than 1,000 new jobs.

Despite such a robust industry and its potential for growth, several surveys have found that Massachusetts may not be keeping up with other states in establishing a hydrogen commercialization pathway. Currently, 47 states and the District of Columbia have some sort of fuel cell or hydrogen legislation, demonstration or activism taking place. For example, Ohio has encouraged component suppliers to participate in product development efforts and envisions $103 million in grants, loans and guarantees to Ohio fuel cell companies. These investments have been supplemented by a concerted effort among state leaders to attract companies to their state — including firms now located in Massachusetts.

Massachusetts should pursue two fundamental goals with respect to fuel cells and related hydrogen technologies. First, it should capture a growing share of the economic activity associated with the development and commercialization of these technologies, resulting in employment gains, output and income. Second, Massachusetts should encourage the use of fuel cells and hydrogen technology to improve the environment and enhance energy security.

The fuel cell/hydrogen economy is the future for our state, and now is the time to move forward. Massachusetts can accomplish these goals by supporting initiatives such as legislation we have introduced that will provide financial and business assistance to companies in the fuel cell cluster. Our legislation would establish a fuel cell institute at Worcester Polytechnic Institute, which would lead and unite research capabilities with universities such as UMass Lowell in an effort to forge closer ties to industry, and promote early adoption of commercial and near-commercial technologies.

The U.S. spends $700 billion per year on oil and consumes an average 21 million barrels of oil a day. Massachusetts does not grow wheat or corn — our natural resource is brain power. Now more than ever, we must take advantage of our innovation economy to work toward energy independence and, in turn, a cleaner environment.

Barry R. Finegold, D-Andover, and Robert P. Spellane, D-Worcester, are Massachusetts state representatives. They can be reached at www.mass.gov/legis/memmenuh.htm.