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Hydrogenics Awarded Supply Agreement From American Power Conversion to Deliver Up to 500 Fuel Cell Power Modules for Backup Power Applications

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Posted by lkgeo1 on August 10, 2006, 11:09 am
 


Hydrogenics Awarded Supply Agreement From American Power Conversion to
Deliver Up to 500 Fuel Cell Power Modules for Backup Power Applications

Publication Date:10-Aug-2006
06:30 PM US Eastern Timezone
Source:FuelCellWorks


MISSISSAUGA, ONTARIO-- Hydrogenics Corporation (NASDAQ:HYGS -
News)(TSX:HYG.TO), a leading designer and manufacturer of hydrogen and
fuel cell systems, today announced it has entered into a manufacturing
and supply agreement with American Power Conversion (APC)
(NASDAQ:APCC), a leading global provider of high availability systems
for network-critical physical infrastructure (NCPI). Under the
agreement, Hydrogenics will deliver up to 500 HyPM XR 12 kW Fuel Cell
Power Modules for integration into APC's NCPI solutions, specifically
its InfraStruXure architecture. APC integrates the fuel cell power
module into its advanced, centrally managed, modular and scalable
InfraStruXure architecture. The systems are scalable in increments of
10 kW with 30 kW available per standard 19" server cabinet. Today, this
fuel cell product is available as an option for APC's InfraStruXure
system targeting customers requiring high quality, three-phase AC
'extended run' backup power in business-critical data centers,
satisfying both the air conditioning and electrical needs of these
applications.

"This is a tremendous opportunity for Hydrogenics to continue our
development of a commercial fuel cell product for an identified high
potential market that can start reaping cost-effective benefits today,"
said Pierre Rivard, President and Chief Executive Officer of
Hydrogenics. "Securing this largest single order to date for fuel cell
units is a great show of confidence from a world leading NCPI systems
provider- not only in Hydrogenics' products and expertise, but in the
first-mover opportunity that fuel cell technology provides. The order
was achieved in part by setting a new industry benchmark for volume
production, enabling significant cost reductions that can be passed to
the customer. Here is proof that the fuel cell industry has made real
progress in getting to a pricing structure that offers commercial
potential for substantial and growing markets."

"Business critical applications demand constant availability," said
Dwight Sperry, APC's vice president of Enterprise Systems and Business
Networks. "For those customers where generators are not a viable
solution, APC's InfraStruXure architecture with integrated fuel cell
technology provides a reliable, environmentally-friendly extended run
solution. This new agreement extends our existing relationship with
Hydrogenics demonstrating APC's commitment to continue providing the
market with the only integrated network critical physical
infrastructure system in this range incorporating fuel cell technology
for data center applications globally."

Interest from the backup power market for Hydrogenics' fuel cell
solutions is based on the ability to deliver reliable cost-effective
high-quality power, in a compact footprint, for long periods of time as
long as there is a sufficient supply of hydrogen. This overcomes the
deficiencies of batteries which need to be replaced every three to ten
years and require a large amount of weight-bearing space. Fuel cells
also overcome the reliability shortcomings of diesel generator systems
which may fail to start up on demand and be subject to increasingly
prohibitive and costly siting restrictions.

In the 1-50 kW range, the current market for critical extended run
backup power for AC-powered datacenters is over US $ billion. As the
cost of fuel cells continues to come down, it is anticipated that these
products will become an increasingly viable backup power solution for
the large base of customers that require longer durations of run-time.

The agreement expires three years from execution, or on the date of
delivery of the 500th fuel cell power module supplied under the
agreement, whichever occurs first. The contract allows that, if an
unanticipated development precludes delivery of the full 500 units,
Hydrogenics is entitled to a fair and commensurate consideration.


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