Hydrogenics Receives Funding for Fuel Cell Forklift Truck

Hydrogenics Corporation (Nasdaq: HYGS; TSX: HYG), a designer and manufacturer of hydrogen and fuel cell systems, is receiving C$1.56-million contribution from Sustainable Development Technology Canada (SDTC) for a development and demonstration project of fuel cell-powered forklifts.

The project will include Class I sit-rider electric forklifts incorporating hydrogen storage, and a refueling station. The potential customer base for Class I forklifts are companies running multi-shift fleet operations, such as many in the automotive and transportation sectors.

Forklift fleets are an important market for hydrogen power. Off-road vehicles, including forklifts and other industrial vehicles, contribute nearly 13 per cent of the global total of transportation-related greenhouse gases. Hydrogen fuel cell-powered forklifts are ideal for indoor facilities because they produce no exhaust emissions, and they have significant advantages over traditional battery-powered forklifts.

SDTC's contribution has been leveraged by a $1.98 million funding commitment from a consortium that is led by Hydrogenics. The consortium members include Deere & Company, FedEx Canada, General Motors of Canada, NACCO Materials Handling Group and the Canadian Transportation Fuel Cell Alliance. The total project is estimated to cost approximately $3.54 million.

The project involves outfitting two Class I sit-rider electric forklifts manufactured by NACCO Materials Handling Group with fuel cell propulsion systems. Hydrogenics will supply its HyPM fuel cell power module for the forklifts. Deere & Company and NACCO Materials Handling Group will assist in the integration of the fuel cell systems into the vehicles.

The funding also supports the provision of a hydrogen refuelling station that will serve to refuel both forklift vehicles. This refueler is designed and built around Hydrogenics proprietary PEM (proton exchange membrane) technology. Demonstrations of the forklifts and refueler will take place at GM and FedEx operations within the Greater Toronto Area, and potentially other locations, throughout the fall and winter of 2004/2005.

"This fuel cell project is just one example of the strides in sustainable development that can be made when partners along the supply chain come together – product developers, distributors and customers," said Vicky J. Sharpe, SDTC's President and CEO.