press release

Texaco Press Release - Texaco to Explore Fuel Cell Systems Business Company

Company Will Also Participate in "California Fuel Cell Partnership - Driving For the Future"


HOUSTON, April 20 - Texaco announced today the formation of Texaco Energy Systems Inc., a venture that will explore opportunities in the promising fuel cell energy business. Texaco also announced participation in the "California Fuel Cell Partnership - Driving For the Future," a unique collaboration of industry and the State of California that will test fuel cell vehicles on California highways.

According to William M. Wicker, Senior Vice President of Texaco Inc., "We are engaged in an ongoing effort to broaden Texaco's portfolio of energy opportunities. We plan to apply our expertise in fuels and processing to develop fuel cell technology solutions that advance the commercial viability of this new source of energy and build Texaco's technology-based businesses. The California Fuel Cell Partnership will afford practical experience in understanding infrastructure needs and motivate collaborative research on fuel conversion technology."

Converting a broad range of readily available hydrocarbon fuels into hydrogen is a necessary step in the commercial development of an efficient and feasible fuel cell energy system. The formation of Texaco Energy Systems and participation in the California Fuel Cell Partnership will allow Texaco to apply the company's extensive expertise in fuel conversion technologies to advance the development of commercially viable fuel cell systems.

"Texaco is the recognized world leader in gasification technology, a process that converts solid, liquid or gaseous hydrocarbon feedstocks into hydrogen or synthesis gas. Gasification is among the most promising conversion technologies for fuel cell systems," said Wicker. Worldwide, there are 68 Texaco-owned or licensed gasification plants operating or under construction, with 14 dedicated to the production of hydrogen.

In addition to fuel conversion and delivery technology, Texaco Energy Systems also has been established to investigate and identify the potential range of available fuel cell market segments, from transportation, marine and stationary power, to low and portable power systems.

The California Fuel Cell Partnership provides on-the-road experience in the transportation market segment. The partnership plans to place about 40 fuel cell passenger cars and 25 fuel cell buses on California roads between 2000 and 2003. Ford and DaimlerChrysler will initially provide five fuel cell passenger cars each by 2001 and a total of 30 passenger cars throughout the project. The Partnership will work with California transit agencies for testing the buses. Ballard Power Systems will provide all the fuel cells for these vehicles and Texaco, Shell and Arco will supply fuel.

Operating in more than 150 countries, Texaco and its affiliates explore for, find, produce and sell crude oil, natural gas liquids (NGLs) and natural gas; manufacture and market high-quality fuels and lubricant products; operate trading, transportation and distribution facilities; and produce electricity or alternate forms of energy for power and manufacturing.

Updated: April 1999