Fuel Cell Works Supplemental News Page

**Canadians selling non-polluting technology find receptive audience in China**
Publication date: 31-May-2004 Source: Michael Mackey-CANADIAN PRESS
SHANGHAI, China — Chinese enterprises have shown strong interest in non-polluting technologies as they try to cope with major environmental problems at home, according to a Canadian delegation showcasing hydrogen-fuel cell products in China. The 14-company delegation, organized by the Ottawa-based National Research Council, attended the Hyforum 2004 symposium in Beijing and then came to Shanghai for business meetings. "The Chinese are very supportive, very keen," said Stephen Kukucha, 37, of Ballard Power Systems of Vancouver. The interest should come as no surprise. The World Health Organization estimates that seven of the world's 10 most polluted cities are in China, and Beijing officials have acknowledged the scale of the problem. "Two-thirds of Chinese cities have unacceptable levels of air pollution caused by soot, suspended particulates and chemicals," said Zhu Guangyao, vice-minister of the environmental protection agency, in a recent report. Leaded gasoline is prohibited, but with coal being used to fire industrial boilers and furnaces, one estimate is that some 21 million tonnes of sulphur dioxide is emitted annually, along with 13 million tonnes of suspended particulate matter. Rapid industrialization is exacerbating the problem, and rising affluence means more cars are hitting the roads. Last year, the number of new cars sold was 700,000; this year it is expected to be a million. On top of this, China is moving from being a net exporter of oil to a heavy importer. With energy prices looking to rise and supply looking wobbly, alternative sources of power look increasingly attractive. China, lacking entrenched infrastructure for delivering traditional fuels, may be in a good position for adapting and "leapfrogging" to new technologies, some members of the delegation said. "China is, A, the right place; B, the right time; and C, has the need," said Michael Raymont, acting president of the NRC. Even so, many members of the delegation are cautious in their initial approach. "We are looking to make some contact with appropriate companies," said Mark Kirby, 44, of North Vancouver-based QuestAir Technologies. Ballard's Kukucha said: "I'm here exploring the opportunities to partner with research institutes or companies to develop or demonstrate fuel-cell technology or products, including power-generation products or vehicles." One reason for the restraint are concerns over protection of intellectual property rights, especially sensitive with cutting-edge technology companies dealing with China. Raymont said the NRC "is very actively exploring creative ways" to minimize the risk. Longer-term, though, many in the delegation see China as a significant market. They said China has the economic and environmental need for non-polluting and sustainable technologies. The scale of the problem suggests the Chinese may want to acquire the know-how to make such products themselves. "There is no doubt in my mind they want it in place because they are making it; they don't want to buy it from other places," said Michael Brown, 65, chairman of Chrysalix Energy Management Inc., a venture-capital firm looking to invest in the fuel-cell sector. "China overall represents a workforce which is highly efficient, hardworking, low cost and no lack of skill," said Jeremy Tomlinson of Burnaby, B.C.-based Palcan Fuel Cell Co. Ltd. "That coupled to an absolutely committed government makes this a successful strategy.". ~

SHANGHAI, China — Chinese enterprises have shown strong interest in non-polluting technologies as they try to cope with major environmental problems at home, according to a Canadian delegation showcasing hydrogen-fuel cell products in China.

The 14-company delegation, organized by the Ottawa-based National Research Council, attended the Hyforum 2004 symposium in Beijing and then came to Shanghai for business meetings.
"The Chinese are very supportive, very keen," said Stephen Kukucha, 37, of Ballard Power Systems of Vancouver.

The interest should come as no surprise. The World Health Organization estimates that seven of the world's 10 most polluted cities are in China, and Beijing officials have acknowledged the scale of the problem.

"Two-thirds of Chinese cities have unacceptable levels of air pollution caused by soot, suspended particulates and chemicals," said Zhu Guangyao, vice-minister of the environmental protection agency, in a recent report.

Leaded gasoline is prohibited, but with coal being used to fire industrial boilers and furnaces, one estimate is that some 21 million tonnes of sulphur dioxide is emitted annually, along with 13 million tonnes of suspended particulate matter.

Rapid industrialization is exacerbating the problem, and rising affluence means more cars are hitting the roads. Last year, the number of new cars sold was 700,000; this year it is expected to be a million.

On top of this, China is moving from being a net exporter of oil to a heavy importer. With energy prices looking to rise and supply looking wobbly, alternative sources of power look increasingly attractive.
China, lacking entrenched infrastructure for delivering traditional fuels, may be in a good position for adapting and "leapfrogging" to new technologies, some members of the delegation said.

"China is, A, the right place; B, the right time; and C, has the need," said Michael Raymont, acting president of the NRC.

Even so, many members of the delegation are cautious in their initial approach.

"We are looking to make some contact with appropriate companies," said Mark Kirby, 44, of North Vancouver-based QuestAir Technologies.

Ballard's Kukucha said: "I'm here exploring the opportunities to partner with research institutes or companies to develop or demonstrate fuel-cell technology or products, including power-generation products or vehicles."

One reason for the restraint are concerns over protection of intellectual property rights, especially sensitive with cutting-edge technology companies dealing with China. Raymont said the NRC "is very actively exploring creative ways" to minimize the risk.

Longer-term, though, many in the delegation see China as a significant market.

They said China has the economic and environmental need for non-polluting and sustainable technologies. The scale of the problem suggests the Chinese may want to acquire the know-how to make such products themselves.

"There is no doubt in my mind they want it in place because they are making it; they don't want to buy it from other places," said Michael Brown, 65, chairman of Chrysalix Energy Management Inc., a venture-capital firm looking to invest in the fuel-cell sector.

"China overall represents a workforce which is highly efficient, hardworking, low cost and no lack of skill," said Jeremy Tomlinson of Burnaby, B.C.-based Palcan Fuel Cell Co. Ltd. "That coupled to an absolutely committed government makes this a successful strategy.".