Ballard Power Systems has entered into a high volume development and supply agreement with an affiliate of the ACME Group and IdaTech LLC to supply net 5kW natural gas fuel cell products. The systems will be deployed by ACME, primarily for telecom backup power applications in India.
Ballard will supply these fuel cell products to IdaTech for integration into natural gas-fuelled systems. ACME and IdaTech will enter into an agreement to form a joint venture in India for the manufacture and assembly of this system. Ballard will be the exclusive supplier of fuel cells to this joint venture.
This agreement provides a binding commitment for the purchase of approximately 1,000 units in 2009 and 9,000 units in 2010, subject to meeting product design and acceptance specifications.
ACME, an infrastructure provider to telecom network operators, intends to deploy these systems for extended backup power for wireless base stations throughout India.
In consideration of ACME’s minimum 10,000 unit purchase commitment and its agreement to develop the market for fuel cell systems in applicable territories, 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 applications in the Middle East and Africa (excluding South Africa) through to mid-2011. The agreement provides options for extending these exclusivity provisions into 2011 and 2012, subject to additional binding orders by ACME for at least 10,000 units per year.
These agreements replace Ballard’s existing supply agreement with ACME and represent an increase in volume of at least three times. These agreements do not impact Ballard’s existing supply agreements with IdaTech for its iGen and ElectraGen products.