Ballard Power Systems has signed a long term supply agreement with Plug Power Inc. to provide fuel cell stacks for use in GenDrive systems deployed in forklift trucks. The new supply agreement replaces an existing agreement and creates the opportunity for Ballard to remain in a leading supply position for fuel cell stacks in Plug Power’s GenDrive systems. The new agreement is effective immediately and runs to the end of 2017, with the provision for two 1-year extensions.
This new supply agreement encompasses the same Ballard fuel cell stack products that the Company has been providing to Plug Power in past years: FCgen-1020ACS air-cooled stacks used in GenDrive systems to power Class 3 pallet jacks; and FCvelocity-9SSL liquid-cooled stacks used in systems to power Class 2 reach trucks and Class 1 counterbalanced lift trucks.
Plug Power has driven accelerating growth in material handling, evidenced by new and repeat orders from end-customers such as Walmart, P&G, Sysco, CVS Pharmacy, Kroger and Mercedes-Benz. These orders generated significant growth in Plug Power system shipments and revenue through the first half of 2014, along with 177% year-on-year growth in Ballard fuel cell stack revenue from material handling.
A healthy rate of growth in market demand is expected to continue and, in combination with orders for multi-year deployments already received from such customers as Walmart, Plug Power anticipates an increase in its order book for products and services to $150 million at the end of 2014, a threefold increase from the prior year.