Ballard Announces Update to Supply Agreement for Telecom Backup Power Solution in India
VANCOUVER–Ballard Power Systems (TSX: BLD; NASDAQ: BLDP) today announced that its partner IdaTech, LLC (”IdaTech”) has provided a status update to the supply agreement between IdaTech, ACME Group (”Acme”) and Ballard Power Systems (”Ballard”).
Ballard entered into the development and supply agreement with IdaTech and ACME in October 2008 for hydrogen and natural gas-based backup power systems. As previously disclosed, committed purchase volumes in the agreement are subject to meeting product acceptance testing (PAT) timelines. Ballard’s primary role in the agreement is to develop a low-cost, liquid-cooled fuel cell stack and to manufacture fuel cell stacks for IdaTech to integrate into systems to be deployed by ACME. IdaTech’s primary role in the contract is the development of the system, including the fuel processor and balance of plant.
While the PAT was successfully met for the hydrogen system in July 2009, IdaTech has now indicated that the PAT for the natural gas system, scheduled for October 16, 2009, will likely be missed. The agreement provides for an extension of the PAT deadline for up to six months if IdaTech files an acceptable remediation plan by November 16, 2009, with committed volumes to be reduced commensurate with the length of the delay.
John Sheridan, Ballard’s President and Chief Executive Officer said, “We are certainly disappointed with this development and the implications on our 2010 product volumes. However, we are pleased with our progress on the development of the new FCgen(TM)-1300 low-cost, liquid-cooled stack.” Mr. Sheridan continued, “Market feedback has confirmed the substantial Indian telecom market opportunity, and we remain committed to this market. Together with our partners, we are well-positioned to pursue opportunities for our fuel cell stacks in natural gas-based systems, as well as significant opportunities for methanol and hydrogen-based systems.”
Atul Sabharwal, Chief Operating Officer, ACME Group said, “ACME is also disappointed with this delay, but feels as strongly as ever that a substantial market opportunity exists for fuel cells in wireless telecom backup power and other applications in India, where reliable, cost-effective and environmentally-friendly solutions are greatly needed. We are excited about the potential for Ballard’s low-cost, fuel cell stack.”
About Ballard Power Systems
Ballard Power Systems (TSX: BLD; NASDAQ: BLDP) is recognized as a world leader in the design, development, manufacture and sale of clean energy fuel cell products. Ballard’s mission is to accelerate fuel cell product adoption. To learn more about what Ballard is doing with Power to Change the World(R), visit www.ballard.com.
