Plug Power Inc. (Nasdaq: PLUG) develops and deploys clean energy solutions through the conversion of fuel cell technology into continuous and backup-power products for customers around the world. In a joint announcement, Plug Power and Ballard Power Systems (Nasdaq: BLDP) announced the extension of their existing supply agreement through Dec. 31, 2010.
Per the agreement, Ballard will remain the exclusive supplier of fuel cell stacks for Plug Power’s GenDrive product line of fuel cell power units, specifically Ballard’s Mark9 SSL fuel cell product, which is used to replace lead-acid batteries in the trucks used in warehouse, distribution and manufacturing facilities.
“Clearly the best in the industry for this application, Ballard’s Mark9 SSL is at the heart of our GenDrive system. It features fast dynamic response as well as excellent reliability, power density and compatibility,” Andy Marsh, president and CEO of Plug Power stated in the press release. “Beyond the technology fit, this agreement signifies the strong relationship we have with Ballard. We are two companies that understand the big picture and are jointly driving market adoption of hydrogen fuel cells.”
The “big picture” is to produce a reliable motive power system with an advantage for increased productivity, reduced operational costs, proper utilization of commercial floor space, and the elimination of storage and handling of toxic materials. To do this, Plug Power has established relationships with some of North America’s largest manufacturers and retailers, and has integrated numerous fleets of GenDrive fuel cell units in end-user facilities. Ballard maintains focus on the application of fuel cell products in the materials handling market by reducing the cost of its Mark9 SSL product 23 percent in 2007; it plans on reducing cost by 40 percent more through 2010.
“We’re excited to extend our original agreement, which leverages Plug Power’s application expertise, system integration, market knowledge and customer relationships,” John Sheridan, president and CEO of Ballard stated. “Plug Power is leading the charge by putting product in the field and successfully demonstrating the benefits of fuel cell technology with key customers throughout North America.”
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