Publication date: 23-Feb-2004
Source: Press Release: Kyodo News 

The ministry began the survey in January with an eye to the possible advent of a "hydrogen society," in which fuel cells, generating electricity using hydrogen produced from methane and oxygen in the air, will be a major commodity.

Fuel cells are already used in motor vehicles but can also be used in houses, prompting business enterprises to speed up fuel-cell development.

The fuel-cell market is estimated at several trillion yen.

These moves were triggered by a speech by U.S. President George W. Bush last year, in which he said the United States will realize a hydrogen energy society in 2020 as a national strategy.

Next year, Tokyo Gas Co. will put a co-generation system on the market to generate electricity at houses by collecting hydrogen from city gas.

Exhaust heat can be used for air-conditioning and dryers.

"Energy consumption can be cut 20%, and carbon dioxide emissions 25%," a company official said.

The company has installed trial machines at housing facilities it owns to analyze operation data.

"The fuel cell is a commodity offering a new method of using resources," said Shunichi Koike, a team leader in the technology development division.

"Users can generate the amount of electricity as needed and limit heat losses," he said, "and can possibly foster an energy-saving consciousness by reviewing their lifestyle."

The problem is how to sell it to consumers.

"There is nothing new to electricity and hot-water supplies," Koike said. "It is difficult to tell them the value of the fuel cell in easy terms and lead them to become interested in and buy it."

Nippon Oil Corp. and Idemitsu Kosan Co. are developing technologies to extract hydrogen from liquefied petroleum gas and kerosene.

In a few years, products from major enterprises are expected to be placed on the market.

But there are quite a few problems, such as the durability of fuel cells and reducing their cost.

"We don't think we can market complete products from the beginning," Koike said. "Early purchasers will be those interested in saving energy. After that, we will be gradually improving (fuel-cell) functions," he said.

"If the price falls, its popularity will gain momentum," he said, adding that the company aims at fixing the per-unit price at 500,000 yen.

For now, the main fuel cell will be one extracting hydrogen from gasses and oil products that households can easily obtain.

But the goal is to have fuel cells stock hydrogen obtained through the electrolysis of water with sunlight and other natural energy, and generate electricity by making the hydrogen react with oxygen in the air -- a reaction causing no environmental damage, industry sources said.

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