U.S. Department of Energy Selects Delphi to Help Address Heavy-Duty Truck Idling Issue

Delphi Corporation (NSYE: DPH) has been selected by the U.S. Department of Energy to help develop a solid oxide fuel cell (SOFC) auxiliary power unit (APU) for long-haul trucks and other commercial vehicles. The program will be conducted in collaboration with the DOE's Hydrogen, Fuel Cells and Infrastructure Technologies program. U.S. Secretary of Energy Spencer Abraham made the announcement during a media briefing at Wayne State University in Detroit earlier today. The DOE's Office of Energy Efficiency and Renewable Energy and Delphi will share the cost of the 3-year, $4.75 million project. Delphi will lead the technical development, working with subcontractor team member Volvo Trucks North America, Inc. and other OEM customers to be announced at a later date. The program objective is to develop, construct and validate an SOFC APU system to help reduce truck idling, save fuel and reduce emissions. "We're pleased to be working with the Department of Energy on this important project," said J.T. Battenberg III, Delphi chairman, chief executive officer and president. "As we know, the transportation of goods and services is a major element of the nation's economy and national security. The results of this program should help the United States' energy policy. Delphi's technology can help protect our environment and save fuel for our country, all while serving our customers in ways that will improve their driving and ownership experience." According to DOE estimates, 840 million gallons of diesel fuel are consumed each year by the idling of 480,000 long-haul trucks, resulting in emissions of 20 billion pounds of carbon dioxide into the atmosphere each year. It further generates air-polluting emissions of 100 million pounds of nitrogen oxides and 4 million pounds of particulates. Delphi's SOFC APU can reduce the fuel usage and the corresponding emissions during idling by as much as 90 percent, according to DOE estimates. The system will allow truck owners to power air conditioning, heater, TV, radio, computer and other electronic devices during the drivers' rest periods without having to keep their engines running. The DOE's Solid State Energy Conversion Alliance (SECA) and Office of Fossil Energy's National Energy Technology Laboratory (NETL) had previously identified Delphi as a leader in this area. In 2001, the DOE entered into a 10-year, $138-million cost-sharing program with Delphi and Battelle to develop and test an SOFC APU that can be mass produced at low cost for commercial and military applications. PROJECT OVERVIEW This 3-year program will occur in three phases, said Dr. Jean Botti, chief technologist, Delphi Dynamics & Propulsion Innovation Center. In Phase One, Delphi will work with Volvo Trucks North America to define the application requirements, including the load profile that Delphi will use to simulate fuel economy improvement. Phase Two will focus on the full system design and SOFC APU component build, development and test. Phase Three will integrate the sub-system components at the system level to validate a fully integrated system design. Fuel efficiency improvements will be confirmed by exposing the SOFC APU to simulated application conditions for commercial trucks. The Delphi team has enlisted an advanced transportation technology consortium, Electricore, Inc., to serve as administrative program manager for the project. DELPHI'S PROGRESS IN SOFC DEVELOPMENT Delphi has been developing fuel cell technology for the past 10 years. Delphi's technology is designed to generate auxiliary electric power for passenger, commercial and military applications, as well as serving as a stationary power unit. The unit is designed to generate 5kW, which would be enough to provide baseline power for many applications. Delphi currently estimates the technology will be available in the market sometime between 2008-10. ABOUT DELPHI'S SOLID OXIDE FUEL CELL Delphi's solid oxide fuel cell is an energy conversion device that produces electricity by the electrochemical combination of the hydrogen and carbon monoxide from fuel with the oxygen from the air. "The unit produces highly efficient electrical power with near zero emissions," Botti said. In more technical terms, the solid oxide fuel cell consists of anode and cathode electrodes separated by a ceramic (solid-oxide) electrolyte. The electrochemical combination of fuel and oxygen across the ion-conducting ceramic membrane produces the power. To provide consumers with an auxiliary power source, Delphi's SOFC is designed to operate independent of the engine or power grid. To provide automakers with maximum flexibility, the hydrogen reformation feature of the unit may also be integrated with internal combustion engines to help reduce engine emissions. Throughout its 100-year history, Delphi has been a recognized leader in engine and energy management solutions. Two of the company's breakthrough achievements in this area include the world's first self-start engine and the world's first catalytic converter.