Stock GuruProfile – OTCBB: ETLY – ECOtality, Inc.
The Hydratus, a portable hydrogen on-demand unit using magnesium and water as the primary fuels is being developed by Ecotality. This hydrogen on-demand unit is portable. I think it is crucial to understand that once Congress gets behind serious tax incentives for hydrogen this technology will really take off! Of course, former Vice-President Al Gore’s recent testimony before Congress was a huge help.
Tax incentives are crucial in the world of alternative energy.
While no one can predict what the Senate will do there is a strong consensus that it is just a matter of time until a significant amendment to the energy bill involving serious tax incentives for hydrogen passes.
Sens. Byron Dorgan (D-ND) and Lindsey Graham (R-SC) introduced a bill that would provide $600 million in tax incentives over 10 years “to establish the infrastructure foundation for the hydrogen economy.” The defeat of the Senate energy tax package was not the end of this amendment. It will likely surface again and it’s important to understand the financial infrastructure that will likely support the hydrogen industry.
Unlike the Energy Policy Act of 2005, the latest energy bill approved by the Senate on June 21, and the tax package that failed to garner 60 votes, breaks no new ground on hydrogen or fuel cells. Proponents are moving rapidly to establish a hydrogen-based economy, including Sens. Dorgan and Graham.
The amendment, which could be introduced as a stand-alone bill and amended to a tax package Senate Majority Leader Harry Reid (D-NV) insists is not dead, would provide tax credits for “hydrogen installation and infrastructure cost” and “hydrogen fuel costs.” With renewed debate on the energy tax package likely, the Dorgan hydrogen amendment is seen as having a better chance of being adopted.
The measure would provide for a tax credit covering 50 percent, up to $600,000 over three years, of the cost of installing hydrogen refueling infrastructure. The language is structured in such a way as to cover leasing of such equipment, including that used for producing, compressing and distributing hydrogen. The credit is payable “per taxpayer per facility.”
The second major provision of the proposed measure would cover “30% of hydrogen fuel costs up to $2,000 per hydrogen conversion device less than or equal to 25 kW [kilowatt] per year,” according to a fact sheet on the amendment. The credit would jump to $4,000 per year for a hydrogen energy conversion device with output of 100kW or less and to $6,000 for output of more than 100 kW.
Both fuel cell technologies and internal combustion engines operating on hydrogen — which would use the horsepower equivalent of kW to determine credit amounts — would be eligible for the credits. Eligible equipment put into service after Dec. 31, 2004 would qualify.
Total cost of the program is limited to $600 million, $15 million in 2008, $30 million in 2009, $40 million in 2010 and $50 million for each year thereafter, through 2017. If penetration of fuel cell and hydrogen-fueled vehicles reach five percent of the light-duty fleet, the tax credits for fuel costs would sunset.
The amendment is meant to encourage the penetration of the technologies in the short-term in applications such as forklift fleets, buses and government fleets. An important component of the hydrogen provisions in EPAct’05 was to stimulate greater use of hydrogen and fuel cell technologies in government fleets.
ECOtality Teamed Up in Serious R&D Collaborations
ECOtality is currently working with the National Aeronautics and Space Administration’s (NASA) Jet Propulsion Labs (JPL), the California Institute of Technology (Caltech), GreenMountain Engineering, and Airboss Aerospace to develop this innovative technology.
More to come this weekend on the potential of Hydrogen and ECOtality’s significant presence in this industry!
Source: ECOtality, Inc.
ECOtality,Inc.
6821 E. Thomas Rd.
Scottsdale AZ. 85251
Phone: (480) 219-5005
Fax: (480) 219-5338
Email: info@ECOtality.com
Website: www.ecotality.com
About ECOtality, Inc.: ECOtality, Inc. headquartered in Scottsdale, Ariz., is a technology innovator that leverages global R&D resources to develop and commercialize renewable energy technologies, specifically aimed at addressing today’s global energy challenges. Through strategic partnerships, ECOtality applies scientific knowledge and creates proprietary green energy technologies. ECOtality is focused on bringing innovative eco-friendly concepts to practical commercialization through the acquisition, partnership and development of early stage renewable energy technologies. With strategic partnerships and an aggressive developmental model, the company strives to accelerate the market applicability of clean technologies to become accepted alternatives to carbon-based fuel technologies. For more information about ECOtality, Inc. please visit www.ecotality.com.
Forward-Looking Statements: This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the company’s SEC filings. These risks and uncertainties could cause the company’s actual results to differ materially from those indicated in the forward-looking statements.
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