Fuel Cells Promise New U.S. Jobs

Commercializing fuel cells and shifting from gasoline to hydrogen could generate 675,000 new jobs over the next 25 years, concludes a Department of Energy study sent to Congress today. Commercialization would create jobs in manufacturing, assembly, fuel production, repair, recycling, construction, and at auto shops and dealerships nationwide.

“This analysis confirms the economic potential of fuel cells for our nation,” said Robert Rose, Executive Director of the U.S. Fuel Cell Council, the industry trade association. “It also confirms the stimulus effect — the faster the transition, the faster jobs are created. Government support really does translate into American jobs.”

The study evaluated a scenario in which 89% of new vehicle sales are fuel cell vehicles and 5% of US power is fuel cell generated by 2035, and a scenario in which fuel cells account for 20% of vehicle sales and 2% of power generation. More than three times as many jobs are created in the more aggressive scenario. The study evaluated transportation, stationary and portable power sectors.

“This is an opportunity for the U.S., not a foregone conclusion. Countries that commercialize first will win many of these jobs, and other countries are investing accordingly. The U.S. must keep pace,” Rose said. “If U.S. companies are able to forge a lead in hydrogen technologies, U.S. global competitiveness will be fostered,” the report concluded. “The movement to hydrogen in particular could well be an opportunity for U.S. automotive firms to recapture market share lost to foreign multinationals in recent years.”

Commercialization could produce more than 100,000 new jobs in 41 industries in the five Upper Midwest States, the traditional center of auto manufacturing.

Release of the report coincides with Congressional efforts to extend tax credits for fuel cells and other advanced energy technologies. “The report underscores the benefits of tax credits to stimulate markets, and the risks from letting credits expire,” Rose said.

The study, Effects of a Transition to a Hydrogen Economy on Employment in the United States, was ordered by Congress in 2005, and conducted by RCF Economic and Financial Consulting, under a competitive contract. While noting the usual uncertainties, RCF called the estimate “a reasonable measure of the potential opportunities that hydrogen presents to U.S. employment.”