Hydrogen, fuel cell sector lobbies Canada for cash

* Government funding runs out in March 2010

* Germany, car makers investing in hydrogen technology

VANCOUVER, British Columbia , Sept 15 (Reuters) - Canadian hydrogen and fuel cell company executives warned on Tuesday that the sector needs a fresh infusion of government cash to prevent falling behind other countries and foreign firms spending billions to promote the alternative energy technology.

"Canada until now has been the cradle of the hydrogen technology industry," said Daryl Wilson, chief executive of Hydrogenics Corp (HYG.TO) referring to decades of research, mostly by Ballard Power Systems Inc (BLD.TO), into developing fuel cells as a clean power source.

As of March next year there will be no specific government funding for hydrogen and fuel cell development in Canada when the current C$150 million ($140 million) five-year program runs out.

The lobbying effort comes a week after Germany announced it is planning to launch a countrywide hydrogen fueling network by 2015, the date most of the world's biggest car makers say they will roll out hydrogen-powered cars.

"Canada has such a strong position in terms of this technology but if we don't keep the momentum there is a huge risk of losing it to other countries," said Andreas Truckenbrodt, CEO of the Automotive Fuel Cell Cooperation, a joint venture between Daimler AG (DAIGn.DE) and Ford Motor Co (F.N).

The group, based in Vancouver, was formed around Ballard's automotive fuel cell unit which the company sold in 2006 after deciding it would take too much money and time to develop an affordable new propulsion system technology.

The executives said that without a government roadmap and funding, it is very difficult to attract investment from the private sector, which wants certainty on the industry's direction and doesn't want to shoulder all the risk.

The delegation will meet with Industry Minister Tony Clement and Natural Resources Minister Lisa Raitt.

They will ask for a federal procurement incentive for hydrogen and fuel cell products, an investment tax credit that already exists in the United States. They will also seek new funding for product research, development and deployment.

($1 = $1.07 Canadian) (Reporting by Nicole Mordant; Editing by Jeffrey Hodgson)