Hydrogenics Wins $8M Order for New Fuel-Cell Power Modules

26 December 2005

Hydrogenics has won a $US8-million contract for multiple units of its recently-introduced HyPM 500 Series Fuel Cell Power Modules (earlier post) from a world-leading military OEM.

The power modules, representing in aggregate over 600 kW of power capacity, will be delivered over a two year period starting in 2006. The modules will be used for an undisclosed application.

The new series focuses on standardization—all Hydrogenics module sizes are now built around the 500 series stack. The company has also standardized certain desirable integrated options—such as select power conditioning options and hybrid package options—reducing the need for customized work.

Relative to earlier versions, the HyPM 500 modules offer a wider range of power options, slightly reduced the weight, and reduced the cost. The HyPM 500 Series is available in two standard configurations, the LP model for mobility applications, and the XR model for stationary applications.

It is important to note that the power modules to be delivered under this contract are identical to the power modules that form the foundation of our products for the backup power and light mobility markets. As such, we believe that considerable benefits will accrue from this sale in terms of our product initiatives for these commercial markets.

—Pierre Rivard, President and CEO, Hydrogenics Corporation

Separately, Hydrogenics announced that it received a series of purchase orders from GM for fuel cell test services anticipated to be delivered in 2006. Concurrent with the issuance of the purchase orders noted above, Hydrogenics repurchased $750,000 the 2,470,436 common share purchase warrants it issued to GM in 2001.

This purchase price for the warrants will be paid for by way of a credit against the services to be provided.