Sun and his research team have joined with Shanghai Automotive Industry Corporation (SAIC) in a project to build an alternative energy vehicle.

"We will make 10 fuel-cell propelled car by the end of this year. Then we will run them in the city to test their safety and endurance," said Sun.

Fuel-cells are batteries that use fuel sources such as petrol, methanol, hydrogen, or natural gas for power. They convert the energy from that fuel source into electricity that powers the car.
Surmount III will use hydrogen as its fuel source.

"The co-operation with Tongji will spur China¡'s hunt for alternative energy sources and curb pollution as demand for cars soars in the world's seventh largest economy," said Hu Maoyuan, president of SAIC.

Hybrid cars

In addition to Tongji University, SAIC has also been co-operating with Shanghai Jiao Tong University to develop hybrid cars and fuel-cells.

SAIC¡'s venture with Volkswagen intends to make 500 hybrid Touran cars in time for the 2008 Beijing Olympics, said Hu.

"We expect that large-scale production will start before the 2010 World Expo in Shanghai," he said.

Hybrids burn less fuel by adding one or more electric motors to a standard petrol or diesel engine. The batteries help power the vehicle and recharge themselves by capturing energy during braking.
With oil prices and pollution levels soaring, China is on a mission to reduce its dependence on oil and find new energy sources for cars. The auto makers' enthusiasm for green energy has become a real factor in the country¡'s sizzling car market.

SAIC¡'s longstand rival, Dongfeng Automotive, announced that its first hybrid car would be launched late this month. The passenger car, propelled by gasoline and natural liquefied gas, has already been cleared for large-scale production.

Dongfeng will pour more than 120 million yuan (US$14.8 million) over the following two years into building a platform for alternatively powered cars, according to the China Economic Times.

GM and its main Chinese partner, SAIC, said they plan to test a hybrid bus in Shanghai later this year. The companies have also developed a fuel cell prototype, called "Phoenix".

DaimlerChrysler AG says it plans to test three hydrogen fuel-cell buses in Beijing next year.

Toyota Motor Co, world pioneer in hybrid cars, intends to assemble and sell its gasoline-electric Prius hybrid in China after it proved highly popular in Japan and North America.

Newcomer's advantage

Experts in the industry said China¡'s status as a newcomer without legacy investments in aging technology could be an advantage, letting it jump straight to a newer generation of technology.

"That is possible," said Sun Jian, a consultant with AT Kearney in Shanghai. "It is possible China will leapfrog over the fossil-fuel combustion engine and go straight for fuel-cell cars."

"One thing China has going for it is its relatively young automotive industry," said David Chen, vice-president of General Motors China. "China's automotive industry does not need to fully take the fossil fuel path. It is in an ideal position to develop alternative energy." Sun said that China¡'s auto makers can benefit from such leapfrogging and gain a greater share of the international market.

"Although China's domestic auto makers are dwarfed in the area of research and development by their international counterparts, they are bold when it comes to applying new technologies " while the international giants are concerned that new technology will make their old production lines obsolete," said Sun.

Chery, the State-owned auto maker, is expecting to launch a hybrid car model in 2006 and to win an export market in North America.

The government will pump US$289 million into the company to fund research and development into emission reductions and hybrids.

New York-based Visionary Vehicles LLC (VVLLC), headed by maverick entrepreneur Malcolm Bricklin, known for selling Yugos and importing Fiat X1/9s, told carlist.com that he expects to import Chery hybrid cars into the US by 2008.

Although renewable energy backers have hailed the alternative energy plan, most agree that it¡¯s too early to tell when or if the hybird and fuel-cell powered vehicles will replace petroleum as the predominant source of energy for transportation.

"The cost of alternative energy vehicles is the major challenge to their success,"said Sun.

He said under current conditions the cost of making a fuel-cell vehicle are 10 times the cost of making a conventional one.

"We estimate that it will take 10 years or longer for fuel-cell cars to be accessible to ordinary buyers," said Sun, adding that it could take even longer to build networks of fuelling stations.

"Fuel must be just as convenient as today's gasoline is, plentiful at pumping stations," said Sun.

"None of the alternative fuel technologies has a clear advantage," said Wang Hu, an expert from the Shanghai Academy of Social Sciences." It is hard to tell when the new energy sources will be able to compete with gasoline engines."

In addition to cost, researchers also have to work out how to significantly increase the storage capacity of fuel-cells so as to enable the vehicles to match the endurance of ordinary cars.

"Another important thing that cannot be ignored is support from the government," said Wang. "Firstly, the government should support automakers and research institutes working on alternative energy with major investment. Secondly, the government should advocate the use of new energy cars to raise public awareness."

"After all, there is good news," said Sun."There's still a long tough way to go, but we need new forms of power to carry us."