Innovations in fuel-cell technology in Canada could be hampered unless a new partnership is formed between government and industry, says a new report.

The level of government support has not kept pace with the needs of the fuel cell industry, according to the study by Fuel Cells Canada and PricewaterhouseCoopers released last week.

Countries such as the U.S. and Japan are investing heavily to help their fuel-cell sectors overtake Canada, says Fuel Cells Canada chairman Ron Britton.

“From the federal administration in Washington, D.C., down to state governments, substantial incentives are being offered to the fuel cell sector,” says Britton.

“Almost every day, new initiatives are announced and U.S. state officials are actively encouraging Canadian companies to relocate south of the border.”

The Vancouver-based Fuel Cells Canada association represents 46 companies in the fuel-cell sector, including Calgary-based Global Thermoelectric Inc., which produces solid oxide fuel-cell (SOFC) technology, and Dynetek Industries, which manufactures fuel-storage systems for compressed natural gas.

About $150 million of government money has been invested in developing fuel-cell technology across Canada over the past 20 years.

But study leader John Webster, managing partner for PricewaterhouseCoopers in B.C., says partnerships with government – which could include more funding and procurement policies – are critical to maintaining Canada’s competitiveness in a sector forecasted to be worth $46 billion worldwide by 2011.

“The industry needs to work with government so that the policies and resources are put in place to keep Canada at the leading edge of fuel-cell development,” Webster said.

“In particular, the industry must capitalize on its competitive advantage in innovation and commercialization.”

According to the report, the North American fuel-cell industry is expected to provide 108,000 direct and indirect jobs in the stationary sector, and 33,000 direct and indirect jobs in the transportation sector by 2011.