Ballard Announces Update to Supply Agreement for Telecom Backup Power Solution in India
September 23 2009 - 2:28AM
PR Newswire (US)
VANCOUVER, Sept. 23 /PRNewswire-FirstCall/ -- 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 http://www.ballard.com/. This release
contains forward-looking statements that are provided to enable
external stakeholders to understand our expectations as at the date
of this release and may not be appropriate for other purposes.
These forward-looking statements are based on the beliefs and
assumptions of Ballard's management and reflect Ballard's current
expectations as contemplated under section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. Such assumptions relate to Ballard's
financial forecasts and expectations regarding its product
development efforts, manufacturing capacity, and market demand, and
include matters such as generating new sales, producing, delivering
and selling the expected number of units, and controlling its
costs. These statements involve risks and uncertainties that may
cause Ballard's actual results to be materially different,
including, without limitation, the rate of mass adoption of its
products, product development delays, changing environmental
regulations, its ability to attract and retain business partners
and customers, its access to funding, increased competition, its
ability to protect its intellectual property, changes in its
customers' requirements, foreign exchange impacts on its net
monetary assets and its ability to provide the capital required for
product development, operations and marketing. For a detailed
discussion of these risk factors and other risk factors that could
affect Ballard's future performance, please refer to Ballard's most
recent Annual Information Form. Readers should not place undue
reliance on Ballard's forward-looking statements and Ballard
assumes no obligation to update or release any revisions to these
forward looking statements, other than as required under applicable
legislation. DATASOURCE: Ballard Power Systems Inc. CONTACT: or to
arrange an interview with a Ballard spokesperson, please contact
Media Relations at telephone number (604) 453-3804 or on e-mail
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