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"How does the Bush administration's FreedomCAR initiative differ from the PNGV program?
Lynn: The only real difference is that it's even less goal-oriented than the previous program. With the PNGV there was no goal to get a certain number of cars on the road by a certain time, there was no goal to reduce emissions by a certain amount; but there was the goal to at least have a functioning prototype complete by a certain date. That actually helped to organize and focus work within the automotive industry. With the FreedomCAR program there's not even a target date for any type of technological combination on wheels, so the program doesn't even begin to get to the level of rigor that the PNGV program (which failed) actually had.
What exactly does FreedomCAR promise? That hydrogen will somehow be used in some way someday in a car?
Lynn: That's another problem with this whole idea. Even if they had a target - we're going to put X number of cars on the road running on hydrogen-powered fuel cells by X date - and they managed to do that, the other side which people often do not look at closely enough is, where does the hydrogen come from? If you look at what specifically the Bush administration says in terms of what the road map should be for the commercialization of hydrogen, it's very clear that all of their investment on the fuel side is all based on technologies that are designed to extract hydrogen from hydrocarbons. If you get to this vehicle on the road that's fuel cell powered, it's actually just oil by another name, or natural gas by another name. Or it may even be coal by another name. If you look at the full efficiency of the system, running a fuel cell car on hydrocarbons is probably by most measurements a less efficient use of hydrocarbons than our present internal combustion engine. Simply transferring the emissions of carbon dioxide and other greenhouse gases from individual cars to facilities that extract hydrogen from fossil fuels is not a goal that serves society in any particular way. Unless there was a simultaneous push to develop technologies to allow for the creation of hydrogen from water using renewable energy sources where basically you're creating electricity by solar or wind power, and then putting it into a car. But the question then is, are there better places to be putting that electricity - wouldn't it be better to simply put that in house that are now served by coal? If you're taking electricity and turning it into hydrogen, and then you're taking the hydrogen and turning it back into electricity! Even if you're looking at the fuel cell as a way to get renewable energy into a vehicle, it's not necessarily the most efficient way to do so."
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http://www.environmentaldefense.org/article.cfm?ContentID=3775