VANCOUVER - Ballard Power Systems (TSX:BLD) said Thursday that it has signed a deal to supply natural gas fuel cells to be used for telecom back up power systems for use in India.
The agreement, with an affiliate of the ACME Group and IdaTech LLC, includes a binding commitment for the purchase of 1,000 units in 2009 and 9,000 units in 2010, subject to meeting product design and acceptance specifications.
ACME and IdaTech will form a joint venture in India for the manufacture and assembly of the natural gas fuelled systems, while Ballard will be the exclusive supplier of fuel cells to the joint venture.
As part of the 10,000-unit purchase commitment, Ballard has granted ACME exclusive rights for the sale and use of Ballard's fuel cells for stationary power applications in the Indian subcontinent and for telecom backup power in the Middle East and Africa, excluding South Africa through to mid-2011.
"This high volume, binding agreement represents a big step forward for Ballard and the broader fuel cell sector," Ballard president and chief executive John Sheridan said in a statement.
"The ten-thousand 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."
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