Terry pushes hydrogen fuel
cell tax credit
Apr 25, 2007 - Knight Ridder Tribune Business
News
Author(s): Joseph Morton
Apr. 25--WASHINGTON -- The United States should be moving much faster
to reduce its dependence on fossil fuels, and one potential solution may
lie in the muggy confines of the Lied Jungle at Omaha's Henry Doorly
Zoo.
Hydrogen fuel cell technology provides power and heats water at the
jungle, Rep. Lee Terry, R-Neb., said Tuesday at a congressional hearing.
Terry is pushing a proposal that would have the federal government do
more to promote the development and use of such technology. Hydrogen
fuel cells produce power through a chemical process without the large
emissions that come from combustion or the dangerous waste that results
from nuclear reactions. Terry was one of more than 20 lawmakers on the
witness list for the hearing by a House Ways and Means subcommittee,
which is working on a package of tax measures aimed at energy
independence.
Terry's proposal would extend existing tax credits for the purchase
of hydrogen fuel cell equipment and would create new tax credits for
using it. The new tax credits would cover 30 percent of the cost of
producing hydrogen, up to $1,500 a year. The measure also would push for
the use of the technology in new federal buildings. The zoo's hydrogen
fuel cell is part of a pilot project by the Omaha Public Power District
that started in 2001. The utility wants to learn from the experience and
is looking at more widespread uses of the devices. So far, the fuel cell
has exceeded expectations for efficiency and reliability, said OPPD
spokesman Mike Jones.
First National Bank of Omaha has been using the technology to power
its data processing operations since 1999 and is happy with the results,
said Brenda Dooley, president of First National Bank's buildings
division. No moving parts and no combustion mea fewer maintenance
problems, she said. Both OPPD and First National said the only downside
is cost. It costs about 15 cents to produce a kilowatt hour through
hydrogen fuel cells, compared with as little as 2 cents a kilowatt hour
from coal-fired power, Jones said. The extra cost is worth it to First
National, Dooley said, because the technology is more reliable for data
processing.
"For us to be down an hour is costly." Terry said he hopes the cost
will come down as the technology progresses. In the meantime, he said,
the federal government can help move the ball forward with the tax
credits and other efforts.
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