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Up to 30,000 Fuel Cell System Supply Agreement Signed with ACME Group
- Supply agreement of up to 30,000 5kW fuel cell systems (minimum order of 10,000) with the ACME Group, a leading supplier of passive infrastructure to the telecommunications industry in India
- Initial order for 310 systems for delivery in 2009; deployment of further 9,690 systems commencing in early 2010
- Potential for 20,000 additional units for deployment between 2011 and 2013
- Ballard Power Systems, Inc ("Ballard") will supply the fuel cell stacks
- Exclusive distribution agreement for India
- Formation of joint venture with the ACME Group to establish a low cost manufacturing facility in India
IdaTech plc ("IdaTech" or the "Company") (AIM: IDA), the advanced fuel cell solutions company headquartered in Bend, Oregon, USA, today announces that it has signed a supply agreement (the "Agreement") for up to 30,000 5kW hydrogen fuel cell systems to be delivered by March 2013 with the ACME Group ("ACME"), a leading provider of comprehensive passive infrastructure solutions to wireless telecom players both in India as well as overseas. The minimum order under the Agreement is for 10,000 systems for delivery during 2009 and 2010 with the potential for two further orders of 10,000 units each for delivery between 2011 and 2013.
The Agreement is a three party contract between IdaTech, ACME and Ballard. Under the Agreement, IdaTech will supply ACME with natural gas reformed fuel cell systems which will incorporate fuel cell stacks to be supplied by Ballard. The Agreement is subject to IdaTech and Ballard demonstrating certain design and performance criteria for the systems ahead of full deployment in early 2010.
ACME intends to deploy the systems throughout its key markets in India principally as long duration backup power for base stations of its telecom customers. The systems will provide ACME's customers with a more economic, reliable and environmentally acceptable product.
Under the Agreement, IdaTech is to deliver an initial 310 hydrogen fuel cell systems in 2009, 9,690 natural gas systems in 2010 and the possibility of a further 20,000 natural gas systems for delivery between 2011 and 2013.
IdaTech and ACME intend to establish a manufacturing facility in India through a joint venture to produce the systems to be delivered under the Agreement. IdaTech also anticipates using this production facility as an additional platform for IdaTech's low cost manufacturing of fuel cell systems. IdaTech will use its experience gained in establishing its flexible low cost production facility in Tijuana Mexico to set up this Indian facility of which IdaTech will be the majority owner. IdaTech will continue to produce systems at its Mexican facility for other customers.
Additionally, ACME will act as IdaTech's exclusive distributor for 5kW fuel cell systems in India.
IdaTech's unique fuel reforming technology and systems integration capability were two of the reasons why the Company was selected. IdaTech's proprietary reforming capability produces hydrogen gas from multiple commonly available fuel types, which is then utilised by the fuel cell to produce electricity. These integrated systems break through the hydrogen barrier by allowing the fuel cell to operate without the need to deliver and store compressed hydrogen gas. This should encourage faster adoption of IdaTech's fuel cell systems.
Given the large volume of systems involved in the ACME contract, the agreed costings for the units are substantially below those currently achieved by IdaTech. In due course, the Company will make an additional announcement giving further details of the effects of the ACME contract on IdaTech's future strategy and trading outcome.
Commenting on the Supply Agreement, Hal Koyama, Chief Executive Officer of IdaTech, said:
"This is a transformational agreement for IdaTech and also for the fuel cell industry. An order of this magnitude will serve as a catalyst for the fuel cell industry as a whole and serve as a reference point for fuel cell adoption in our key market of critical power backup systems.
We are delighted to be working with ACME on this venture and to deepen our existing collaboration with Ballard to provide our customers with more economic, reliable and environmentally-friendly backup power systems.
Execution of this contract will also provide an additional product line and open a range of new market applications for IdaTech worldwide."
Atul Sabharwal, Chief Operating Officer of the ACME Group, added:
"Fuel cell backup power systems offer an excellent and reliable proposition to telecom service providers because they help operators reduce downtime and also substantially reduce greenhouse gas emissions which contribute to global warming. Globally at a telecom site, batteries and generators are the cause of a lot of pollution. In addition they have high operational cost. We expect fuel cells to help with both these issues"
John Sheridan, President and Chief Executive Officer of Ballard, stated:
"This high volume, binding agreement represents a big step forward for Ballard and the broader fuel cell sector. The 10,000 unit volume will enable significant cost reductions and this new low cost, natural gas fuel cell product will be an important enabler for the acceleration of product adoption in other stationary power markets."
For further information please contact:
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IdaTech plc |
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Harol Koyama, Chief Executive Officer |
+1 541 383 3390 |
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James Cooke, Chief Financial Officer |
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Dresdner Kleinwort |
+44 (0) 20 7623 8000 |
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Charles Batten / Ben Bailey / Jon Drage |
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Buchanan Communications |
+44 (0) 20 7466 5000 |
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Charles Ryland / Catherine Breen |
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About IdaTech
IdaTech is a global leader in the development and manufacturing of clean and reliable PEM fuel cell solutions for telecommunications, commercial and industrial backup power from 250W to 15kW. IdaTech's unique technologies provide solutions for a wide range of applications from portable to off grid power and directly support efforts towards sustainable energy.
IdaTech's portfolio of industry-certified fuel cell solutions are based on the Company's fuel processing, fuel cell stack and power module and fuel cell system integration capabilities. With the support of strategic partners and customers, the Company's energy solutions are being deployed domestically and internationally for stationary, portable and other advanced applications.
For more information on IdaTech's fuel cell solutions and advanced technologies, please visit www.idatech.com.
About ACME
The ACME Group is a leader in the field of innovative solutions for the wireless telecom industry, cold chain management systems, alternate energy and waste water treatment. To learn more about the ACME Group, visit www.acme.in.
An acknowledged leader in telecom passive infrastructure, telecom power solutions and telecom enclosure systems, ACME's solutions and product portfolio have a wide range of usage beyond the telecommunications industry. The group has undertaken initiatives to provide revolutionary cutting edge, energy efficient solutions in other sectors as well. Its patented technology in thermal management provides cold chain and storage solutions for fruits, vegetables, vaccines, blood plasma, etc. which were hitherto dependant on DG set power to maintain temperatures during power failures.
About Ballard Power Systems
Ballard Power Systems (TSX: BLD) (NASDAQ: BLDP) isrecognized 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 www.ballard.com. |
