Representatives from four parties, including the Shanghai Science and Technology Commission and the Italian Ministry for the Environment and Territory, signed a memorandum of cooperation on hydrogen energy yesterday.

"We are planning to gradually expand the application of hydrogen energy and reduce the use of coal during our economic development," Li Yiping, director of the city's Science and Technology Commission, said in the signing ceremony.

The contract will see Shanghai and Italy agree to develop new ways of producing hydrogen from fossil fuels such as coal.

The research will eventually stop the burning of coal for power.

Hydrogen is an odorless, colorless flammable gas, which can mix with oxygen in the air to produce electricity.
In this case, water is the only byproduct.

More than 60 percent of the city's energy is provided by coal, causing fossil fuel shortages as well as various environmental problems.

"As the city's economic development soars, we feel it has become necessary to use more environmentally friendly energies, such as hydrogen," Li said.

As well as power generation, researchers have plans to equip transport tools with engines driven by hydrogen-powered fuel cells.
The commission is considering producing a blueprint on how much of the city's energy consumption will come from hydrogen by 2010 when the World Expo is held.

There are also plans to release an annual budget for research and application into the use of hydrogen power.

Officials said it was necessary for the city to conduct a safety evaluation before the hydrogen is widely adopted as a power source.

"This memorandum marks a milestone for the hydrogen-related cooperation between the China and Italy," said Corrado Clini, director general of the Italian Ministry for the Environment and Territory.

The memorandum also formalized cooperation between universities, companies and institutes from Shanghai and Italy in promoting the research and application of hydrogen energy.