Ballard, Plug Power extend supply agreement

Vancouver, British Columbia-based Ballard Power Systems (Nasdaq: BLDP) and Latham, N.Y.-based Plug Power (Nasdaq: PLUG) announced today that they have extended their existing fuel cell supply agreement through the end of 2010.

The companies said the previous contract was set to expire May 1, 2009.

Under the terms of the new deal, Ballard will remain the exclusive supplier of fuel cell stacks for Plug Power's GenDrive product line of fuel cell power units.

Financial terms of the agreement were not disclosed.

"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," said Andy Marsh, president and CEO of Plug Power.

"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."

Ballard's Mark9 SSL fuel cell products supply power to GenDrive hydrogen fuel cell units, which the companies said replace lead-acid batteries in lift trucks used in large warehouse, distribution and manufacturing facilities.

"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," said John Sheridan, president and CEO of Ballard.

Ballard said it reduced the cost of its Mark9 SSL product by 23 percent in 2007 and is on-track for a further 40 percent reduction through 2010.

The company said this would be achieved primarily by means of continuous manufacturing processes, reduced platinum loadings and volume component pricing from upstream suppliers.

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