Ballard Power Systems (Toronto:BLD.TO; NasdaqGM:BLDP) and Plug Power Inc. (NasdaqGM:PLUG) have signed an initial 2-year agreement for fuel cell stacks for materials handling applications.
This supply agreement follows Plug Power’s announcement that it will acquire General Hydrogen Corporation, and replaces Ballard’s previous supply agreement with General Hydrogen. Plug Power also purchased Cellex Power Products, Inc. earlier this year. Both General Hydrogen and Cellex Power are Ballard customers in the materials handling market. Under this new agreement, Ballard will supply Plug Power with fuel cell stacks for all of Plug Power’s commercial sales in the materials handling market (including the requirements of Cellex Power and General Hydrogen) through April 2009.
“The strength that Ballard’s fuel cell technology has demonstrated in both Cellex Power and General Hydrogen products were contributing factors in our decision to enter the materials handling market,” said Dr. Roger Saillant, President and Chief Executive Officer, Plug Power. “The existing system designs of both acquired companies, built around the Ballard stack, provide an excellent springboard toward a full portfolio of lift truck power modules for maximum opportunity in the materials handling space.”
“Plug Power’s entry into the materials handling market validates the value potential of this near term market for fuel cell technology,” said Noordin Nanji, Ballard’s Chief Customer Officer. “Plug Power has significant experience developing low cost fuel cell systems, and has strong manufacturing capability and capacity.”
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