In June 1999, Petro-Canada, Ballard Power Systems and Methanex Corporation announced the signing of a memorandum of understanding to work together to prepare for the establishment of a commercially viable fuel distribution network to meet the expected market demand for fuel cell vehicles. Ballard Power's proton exchange membrane fuel cell converts energy from a fuel source into electricity, without combustion.
When powered with carbon-based fuels such as methanol, fuel cell vehicles still produce carbon-based emissions, but at lower levels. The energy system supporting methanol powered fuel cell vehicles (including fuel recovery, processing, and use) would produce significantly lower amounts of greenhouse gas emissions than that supporting internal combustion engine vehicles or battery-powered electric vehicles.
The Fuelling A Cleaner Canada Association (Petro-Canada, Methanex and Ballard) devoted itself to activities related to pilot funding and to participation in issues resolution with various stakeholder groups. Methanex and Ballard, because of their global reach, have played a pivotal role in addressing several issues through industry and government sponsored forums. Petro-Canada has continued to monitor developments as it moves toward the association’s objective of a pilot demonstration for fuel cell vehicles in Canada.
Petro-Canada also is a participant in the development of alternate fuels projects that may contribute to the reduction of greenhouse gas emissions. One such venture, with Iogen Corporation of Ottawa, a biotechnology company, aims to commercialize a process for producing fuel ethanol from waste byproducts of the agriculture industry. The process uses enzymes to break down the cellulose to form ethanol; the ethanol is then blended with gasoline (up to a 10 per cent concentration). Construction of a demonstration plant began in early 2000. Petro-Canada helped fund the research as well as construction of the plant.