Fuel Cell is all the Rage for Toyota Motor Corp (ADR) (NYSE:TM) and Ballard Power Systems Inc. (USA) (NASDAQ:BLDP)

488

By Mark Michaels on July 15, 2014 Energy & Solar

The government of Japan has joined hands with the giant car making companies, including Toyota Motor Corp (ADR) (NYSE:TM). The purpose of this alliance is to struggle to bring the fuel cell era quickly. Fuel cell is still a very complex and very expensive technology. It is basically a zero emission cell that runs on hydrogen gas and produces water. Since its only by-product is water, therefore its arrival and spread will almost end automotive pollution. Imagine how wonderful the environment would be without exhaust fumes heating and dirtying it up? This would also put the environmentalists at ease.

It has been reported that Toyota Motor Corp (ADR) (NYSE:TM) made a request of the National Highway Traffic Safety Administration to relieve Toyota’s new vehicle, with fuel cell, of the safety guidelines as described by the federal government. The rules or guidelines that currently exist require that the car makers separate the high-voltage parts of the electric vehicles, or to reduce voltage below a certain level so that the passengers of the vehicle are protected. This also protects the first-responders against electric shock if any of the systems face damage during an accident. Toyota’s new vehicle with fuel cell will probably not be in complete compliance with these safety rules, being in the trial phase and also because of another reason. Federal Register has reported that Toyota has stated that a new fuel cell vehicle, or FCV, will not be able to satisfy the federal safety requirements as the design characteristics of such a vehicle will pose a hindrance.

Toyota Motor Corp (ADR) (NYSE:TM) is the world’s biggest car manufacturing company. It recently revealed its first ever commercial car that runs on fuel cell. By the end of March in 2015, Toyota will make its car available in the market in Japan. The price of the car will be approximately 7 million yen. This will be closely followed by a launch in the U.S. and Europe in the proceeding summer.

The day before, Shinzo Abe, the Prime Minister, introduced his growth strategy for promotion of Hydrogen Energy. The strategy included tax breaks on the purchasers of FCV and calls for subsidies. The strategy also reduces curbs over the fuel stations for hydrogen and considers several other steps.

This will support the companies Honda Motor Co and Toyota Motor Corp (ADR) (NYSE:TM)’S plans for mass production and marketing of the FCV in 2015. Mitsuhisa Kato, the Executive Vice President of Toyota Motor Corp (ADR) (NYSE:TM) said in a news conference that they have finally received a start in the way of making hydrogen fuel a standard part of the society, and of marketing and using FCV as any ordinary vehicle.

Soon after this news the three companies that faced a quick rally in their current day-trades are Plug Power Inc (NASDAQ:PLUG), FuelCell Energy Inc (NASDAQ:FCEL) and ZBB Energy Corporation (NYSEMKT:ZBB). It seems as if the news of marketing and producing FCV has proved lucky for all.

Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) claimed that they have closed a deal worth $1 million with M-Field Energy Corp. The deal gave Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) license to manufacture and engineer fuel cell. Consequently, Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) has also met with an increase in its stock.