Ballard Power Systems

Diesel Progress North American Edition, August, 2004

Ballard Power Systems said it will restructure its partnership with DaimlerChrysler and Ford Motor Co., selling back a unit it purchased in 2001. Ballard said the deal with the auto giants for Ballard AG, which was known as XCELLSIS in 2001, will allow it to focus on the development of fuel cell stacks, rather than on related engine technology. DaimlerChrysler and Ford will also provide Ballard with up to $58 million to develop the next two generations of vehicle fuel cells and the next generation of electric drive systems, the Vancouver-based company said. Ballard said that owning Ballard AG had allowed it to resolve technology issues on how the stacks of cells, which produce electricity from hydrogen, work with related engine systems such as electronics. But Chief Executive Dennis Campbell acknowledged that demand for the system technology was less than expected because car firms want to develop it themselves, in part to use it in hybrid gasoline/electric vehicles.

The deal will see Ford buy a 50% stake in the German-based Ballad AG unit by returning 9 million Ballard shares worth $80.4 million held by the two automakers. The shares will then be canceled. Ballard will also cancel 7.6 million shares it was set to sell DaimlerChrysler in November as part of the two-stage deal in which it bought XCELLSIS.

In other Ballard news, BC Hydro announced it has developed a hydrogen fuel cell emergency backup system for utility applications, powered by Ballard's Nexa RM Series fuel cell modules. The installation for this field trial is at BC Hydro's Edmonds office in Burnaby. BC Hydro has signed a memorandum of understanding with Ballard that includes both field testing and the potential for commercialization of the Nexa RM Series for utility backup applications. Ballard also announced that it has developed a version of its 30 kW Ecostar power converter specifically designed for photovoltaic (PV) applications. The 30 kW grid-tie utility interactive power converter is designed to combine superior inverter and transformer efficiency with ease of installation. Finally, Ballard announced five partnerships to enhance sales channels for its Ecostar PV systems. Ballard's new partners join Energy Outfitters, Ballard's first North American distributor, and now include: Solar Depot, Akeena Solar, DC Power Systems and MBL & Sons.