The project also supports Gov. Arnold Schwarzenegger's plan for a hydrogen highway in California. The station will also use excess hydrogen production to generate high quality electrical power from a stationary fuel cell, Donald Paul, ChevronTexaco's chief technology officer, said in a keynote speech at the National Hydrogen Association's annual conference in Los Angeles.

AC Transit is building three 40-foot fuel cell buses -- to debut in the fall of 2005 -- and anticipates running a light-duty fleet of cars, trucks and sports utility vehicles that run on hydrogen.

The station is under development and slated for completion by August 2005. The facility will be located at AC Transit's Seminary bus-maintenance division in Oakland, and will be able to dispense up to 150 kilograms of hydrogen per day. ChevronTexaco will provide oversight through its subsidiaries Chevron Energy Solutions and ChevronTexaco Technology Ventures LLC.

Gov. Schwarzenegger kicked off the Hydrogen Highway Network earlier this month at the University of California, Davis, the site of the state's first publicly accessible fuel-cell station. He has signed an executive order to create a hydrogen transportation network throughout California by 2010.