January 2003

Hydrogen fuel cells (FCs) are one of the most promising new technologies of the twenty-first century for electricity generation. Because a fuel cell directly converts the chemical energy of hydrogen fuel to electrical energy without burning the fuel, the process is much more efficient, as well as cleaner and safer, than any currently available conventional technology, including thermal, large hydropower, and nuclear power generation. At some time during this century, fuel cells, together with renewables, could replace most existing thermal power generation capacity and eliminate the need for direct burning of fossil fuels and fossil-derived liquid fuels, such as gasoline, diesel, and fuel oil. Industrialized country governments and companies have invested tens of billions of dollars in the development and commercialization of fuel cells. China needs to recognize and understand the profound changes that fuel cell technology may bring to the world’s fossil fuel-dependent economy, so as to avoid potential adverse economic impacts. Instead, with foresight and careful planning, China could benefit immensely from this technological revolution.