Study predicts vehicle fuel cells could power jobs here.

Group says industry could produce 7,000 start-up jobs

More than 7,000 jobs could initially be created in the four-county Southern California region if a vehicle fuel cell industry develops in the United States, according to a study released last week by a Los Angeles-based research group.

If the industry grows over the next 13 years to a worldwide $9 billion business, as some optimists predict, close to 71,000 jobs could be created in the Los Angeles, Orange, San Bernardino and Riverside counties region, according to the study.

The predictions about the Southland are based on the presence in the region of several key industries that are needed to produce fuel cells. According to the study, there are 18 key industries that are involved in developing fuel cells. Seven have operations in the four-county region.

Five of the seven local industries -- chemicals, plastics, industrial equipment, industrial apparatus and electronic components -- represent major segments of the national businesses.

Because of the presence in the county of those five industries that could be major suppliers, the region would benefit greatly if a fuel cell industry was developed in the U.S., the report said.

Under a current state mandate, which is subject to change, about 10 percent of the new cars sold in California by 2003 must have alternate sources of power. Assuming that most of the cars would have fuel cells for power, the industry would produce close to $600 million in business for local suppliers, the Economic Roundtable found.

And if a worldwide industry grows to a $9 billion business by 2007, it could produce $5.84 billion in economic activity in the region, according to the study.

The study by the Economic Roundtable was sponsored by the Metropolitan Transportation Authority to assess the possibility of developing a fuel cell industry for transportation purposes, and to study its potential impact on the local economy.

Daniel Flaming, president of the non-profit public policy research organization, recommended in the study that a local fuel-cell users consortium made up basically of public agencies be created to assure a domestic industry.

"The buyers consortium should encourage fuel cell manufacturers to utilize components produced by firms in the Los Angeles region, provide information to local firms about components needed for fuel cells, and facilitate communication and interaction among firms from the Los Angeles region and fuel cell manufacturers," said the report.

Flaming said members of the consortium could include city, county, regional and state agencies involved in transportation. Public agencies should be involved because it's expected that early users of fuel cells for transportation purposes will be government bodies.

An official from the MTA warned that if Los Angeles' interests, as well as those of U.S. companies and public agencies, don't get involved in creating a fuel cell industry, another country will.

"If it doesn't happen here, it will go overseas to someplace like Japan, and we will have lost out again," said Rich Davis, director of equipment engineering and advanced technology for the MTA.

Fuel cells could be used as an alternate source of power for automobiles, trucks and buses that now use internal combustion engines that cause pollution. Fuel cells are similar to batteries but are different in that a mixture of hydrogen and oxygen is used to generate electrical power.

Fuel cell-powered motor vehicles do not produce any pollutants and, according to fuel-cell proponents, are more efficient than battery-powered vehicles.

Fuel-cell powered vehicles have the potential of going further without refueling or recharging than battery-powered vehicles, according to proponents. Fuel cell- and battery-powered vehicles produce about the same amount of horsepower.

The downside of fuel cells is their size and the number that must be used to power a car or other highway vehicle. For instance, it can take 24 fuel cells that are each basically the size of a large car battery to power a passenger bus.

So far, fuel cells to power highway vehicles are still in the testing stages.

In Los Angeles County, various business and government leaders have talked about trying to establish a fuel cell industry in the area. In particular, local leaders have said a fuel cell industry could make up for some of the job losses at the county's aerospace/defense companies.

In addition to forming a buyers, or users, consortium for fuel cells, the report recommends that local, regional and state governments should accelerate the permitting process for companies interested in working on fuel cell development.