Ballard Announces Supply Agreement for Fuel Cell-Powered Lift Truck Market

Ballard Power Systems (TSX:BLD; NASDAQ:BLDP) announced it has signed an Equipment Supply Agreement with Cellex Power(TM) Products, Inc.

Ballard will deliver 27 Mk 902 4.8 kilowatt fuel cells to Cellex for integration into its power units for its upcoming beta trials. Cellex’s power products are designed to replace industrial lead acid batteries in electric lift trucks used in high throughput distribution centers. “Our decision to focus our efforts on fuel cell development, leaving systems integration to others, is beginning to bear fruit. The flexibility of our Mk 902 fuel cell platform, which was developed for automotive applications, enables us to meet our customers’ needs in multiple markets,” said Noordin Nanji, Ballard’s Vice President, Marketing and Business Development.

Ballard expects to begin unit deliveries in the third quarter of 2005. The term of the ESA expires in the third quarter of 2006. If the field trials are successful, Ballard and Cellex intend to negotiate a follow-on supply agreement to support higher volumes in 2007 and beyond.

Ballard’s liquid-cooled, hydrogen-fueled Mk 902 fuel cell is designed to perform in rugged conditions, can be configured for motive or stationary power applications, and is scalable in power increments from 4 kilowatts to 21 kilowatts depending on customer requirements.

Cellex is commercializing fuel cell power solutions for use in industrial vehicles. Cellex’s initial target market is fuel cell power products for customers who operate large fleets of electric lift trucks used in high throughput distribution centres. Other markets include airport ground support equipment; personnel carriers; mining vehicles; and commercial sweepers and scrubbers.