IdaTech Signs New Distribution Agreement with ACME
IdaTech plc (AIM IDA.L), a global leader in the development and manufacture of clean and reliable extended run backup power fuel cell products for telecommunication applications today announces an update on the status of the supply agreement between IdaTech, ACME Group (”ACME”) and Ballard Power Systems Inc. (”Ballard“) signed in October 2008 (”Supply Agreement”).
On 23 September 2009, the Company announced that a milestone in the product acceptance process, due in October 2009, was likely to be missed. The Supply Agreement allowed an extension of the product acceptance process of up to 6 months if IdaTech elected to submit an acceptable remediation plan by 15 November 2009. IdaTech did not submit such a plan and today announces that the Supply Agreement between IdaTech, ACME and Ballard terminated effective on 15 November 2009.
In place of the Supply Agreement, IdaTech and ACME have entered into a Distribution Agreement (”Distribution Agreement”) for ElectraGen™ backup power products. Under the terms of this agreement, ACME and IdaTech will work together to develop the Indian telecom market for back up fuel cell systems and in particular for the large scale deployment of the natural gas fuel cell system, which was the focus of the original Supply Agreement. The natural gas fuel cell system will incorporate the Ballard liquid cooled FCgenTM 1300 stack
IdaTech’s ElectraGen™ products can be powered by hydrogen gas or by its proprietary fuel reformer system which converts liquid fuel into high-purity hydrogen onsite as needed, or in the case of the natural gas product, uses that fuel to produce and supply hydrogen on demand. The ability of IdaTech to be able to provide multi-fueling options was key in ACME’s decision to partner with IdaTech.
Commenting on the update, Hal Koyama, CEO said:
“IdaTech is making very good progress with the development of the natural gas fuel cell product and is delighted to continue working with ACME. The Distribution Agreement gives both IdaTech and ACME greater flexibility and allows the companies to continue to collaborate on a number of projects. Our new agreement is a sign of the strong interest in the large scale market for fuel cell products in India and the collaboration with ACME. Working together, we plan continue to develop and grow the market.
As previously announced, in the development of the natural gas product, IdaTech has broken through a significant number of the cost barriers and added significant new technology to the Company’s portfolio. Much of this new capability will also be leveraged in IdaTech’s next generation methanol/water fueled systems, due for launch in late 2010.“
Atul Sabharwal, Chief Operating Officer of ACME commented:
“ACME sees a great interest in IdaTech’s fuel cell systems for its key markets in the near future. The replacement of the Supply Agreement with the Distribution Agreement allows both ACME and IdaTech greater flexibility in working together and ensures ACME will be able to supply its customers with the fuel cell products they need.”
Commenting on the update, John Sheridan, Ballard CEO said:
“We are encouraged by the prospects for IdaTech’s ElectraGenTM family of products in the Indian market and beyond. We look forward to our continued collaboration in developing leading edge products and to supply IdaTech with our FCgenTM-1300 fuel cell for its natural gas based system.“
