GM to Team Up With Arco, Exxon on Fuel Cell System

DETROIT — General Motors said Tuesday that it is teaming up with oil giants Arco and Exxon to develop a fuel cell system that would convert gasoline to hydrogen on board an electric-powered vehicle.

The collaboration comes as the world’s major auto makers are stepping up research into fuel cells, which combine hydrogen and oxygen in an electrochemical process to produce electricity and water.

The cost of the research program was not disclosed. It is set to run for two years and, if found to be feasible, could be extended on an annual basis.

The program will attempt to integrate GM’s auto and electric-vehicle expertise with the vast fuel-processing knowledge of Arco Products Co., a subsidiary of Los Angeles-based Atlantic Richfield, and Exxon Research & Engineering Co.

“There are tremendous technical obstacles to be overcome,” Arco spokesman Jack Segal said.

Fuel cells have been used for years to power space vehicles, but their high cost and large size have made them impractical for automobiles. Recent advancements, however, have spurred a flurry of new research.

Mercedes-Benz in April announced it is teaming up with Ballard Power Systems of Vancouver, Canada, to mass produce a fuel cell vehicle beginning in 2005. The Big Three U.S. auto makers are pursuing fuel cells as part of the Partnership for a New Generation of Vehicles, a joint industry-government effort to produce affordable vehicles that get 80 miles per gallon.

GM is developing a fuel cell system that uses methanol to produce hydrogen on board. Delphi was hired by Chrysler earlier this year to develop a fuel cell system that would convert gasoline to hydrogen on board a vehicle.

Dan Dolan, a spokesman for GM’s Delphi Energy & Engine Management Systems unit, said the project marks the first time that the auto maker has entered a joint venture with the oil industry on fuel cell research.

The use of gasoline is attractive because it allows the use of the current fuel infrastructure while improving fuel efficiency by an estimated 50% and reducing emissions by 90%. Chrysler estimates that using gasoline could bring fuel cell vehicles to market 10 years earlier than if another fuel were used.

Environmental groups support fuel cell development but favor the use of renewable fuels, such as ethanol and methanol. They distrust the oil companies, which are the most adamant opponents of California’s efforts to mandate the sale of electric vehicles.