Prince Edward Island Wind - Hydrogen Village Project Backgrounder

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Background

Government of Canada Supports Development of Alternative Energy Project

The Government of Canada, through the Technology Partnerships Canada (TPC)Hydrogen Early Adopters (h2EA) program, is contributing $5.1 million in themulti-year Prince Edward Island Wind-Hydrogen Village Project. With thesupport of this contribution, Hydrogenics Corporation and the Prince EdwardIsland Energy Corporation will proceed with the $10.3-million project, whichis designed to provide energy solutions and economic growth opportunities forlocal communities.

The project will use wind energy as the primary energy source and producehydrogen to provide backup and primary electricity for industrial, farm andhousehold applications, as well as for fuel for a mix of transportation andother requirements. Using an integrated hydrogen power generation system, theproject will provide real-life demonstration opportunities, permitting theevaluation and refinement of cost-effective hydrogen solutions.

The Government of Prince Edward Island is committed to taking action toreduce its dependence on imported energy supplies derived from fossil fuels.With the highest electricity rates of any province, Prince Edward Island wantsto increase its reliance on renewable energy, such as wind, wind/hydrogen andvarious forms of biofuels. It now draws 4 percent of its electricity from theNorth Cape Wind Farm and 1 percent from the V-90. In addition, Prince EdwardIsland has legislated that utilities obtain at least 15 percent of theirelectrical energy from renewable resources by 2010.

The Government of Canada is committed to the vision of a hydrogen economy,and to ensuring that all departments and levels of government work together tomake projects like this a reality. A strong supporter of sustainable energysolutions, the Province of Prince Edward Island will be providing $2.9 millionto this project. In addition, Natural Resources Canada is contributing $115000, through the Canadian Transportation and Fuel Cell Alliance, toward anengineering study that is underway for the hydrogen fuelling stationscomponent of this project.

The Technology Partnerships Canada h2EA program encourages Canadianindustries to take the lead in demonstrating existing technologies inreal-world applications, thus accelerating the market acceptance of hydrogenand hydrogen-compatible technologies with broad environmental, economic andsocial benefits for all Canadians.

Based in Toronto, Hydrogenics Corporation is a leading global developer ofclean energy solutions, and is advancing the hydrogen economy bycommercializing hydrogen and fuel cell products to meet the energy needs ofcustomers. The company employs 325 employees worldwide, with facilities inMississauga, Vancouver and Belgium, as well as satellite operations inGermany, Japan and New York.

The Prince Edward Island Energy Corporation is a Crown corporation of theProvince of Prince Edward Island, established to develop and promote energysystems within Prince Edward Island in response to the province’sdependence on imported electricity, and thermal and transportation fossilfuels. The Atlantic Wind Test Site, one of the corporation’s currentareas of focus, was established at North Cape in 1980 as Canada’s onlynational wind energy laboratory, and has become the country’s premierresearch and development centre for wind energy.