A consortium of companies is developing fuel cell-powered forklifts.

Private industry and government sources will spend CDN3.54 million (USD2.70 million) on the one-year technical demonstration. Full details were released on April 2 after Sustainable Development Technology Canada (SDTC) approved the project in October.

The project involves Nacco Materials Handling Group (NMHG) incorporating fuel cell propulsion systems and hydrogen storage systems in two standard Hyster model E55XM2 Class 1 forklifts. NMHG will make the modifications at its plant in Berea, Kentucky USA.

It includes demonstrations and pre-commercialisation of the forklifts. An initial design of the reconfigured forklifts was scheduled for completion by the end of March.

SDTC said verification of the forklifts' veracity for the task is anticipated by September 30, and the project will end by April 2005. SDTC will monitor emissions reduction, environmental impacts, commercialisation and market rollout.

Hydrogenics Corp of Mississauga, Canada, a hydrogen and fuel cell systems maker, heads the consortium. Hydrogenics is supplying its HyPM-brand fuel cell power module.

John Deere ePower Technologies, a unit of Deere & Co, is handling systems design and doing the integration work with Hydrogenics and NMHG.

Once ready, delivery service FedEx Canada and General Motors will each use one of the forklifts in operations in Toronto.

"This project reflects the exciting potential of hydrogen technologies to reduce air pollution and greenhouse gas emissions (GHG)," said David Anderson, Canada's environment minister.

Forklift fleets were considered an important market for hydrogen power, Hydrogenics said, as industrial vehicles contributed 13% of total transport-related GHG emissions.

In addition to the Hydrogenics-led project, NMHG said it is exploring other fuel cell and energy strategies to benefit end users.