Ballard, Ebara Sign MOU For Fuel Cell Development Funding

Fuel Cells Today, May 31, 2005

Ballard Power Systems, Inc. recently announced the signing of a memorandum of understanding (MOU) with Japanese partner Ebara Corporation and jointly owned company Ebara Ballard Corporation related to a transaction that will provide $30 million in funding for the development of cogeneration fuel cell stack and system technology.

Under the MOU, Ballard said it will receive $18 million over the next four years for the ongoing development of the current and next generation one-kilowatt combined heat and power cogeneration fuel cell stack, subject to the completion of the work pursuant to technical milestones under the development program.

According to Ballard, Ebara Ballard will gain rights, over time, through an exclusive, royalty-bearing license, to assemble, service, develop, manufacture and sell stationary cogeneration fuel cell stacks in Japan, as part of a joint long-term strategy to localize development and manufacturing in Japan for the Japanese market. Ballard noted that it will retain all rights related to stationary cogeneration fuel cell markets outside of Japan as well as receive an equity investment from Ebara of $11.7 million in two payments, one at closing and the other in 2006.

"This transaction will provide funding for our planned development activities for the next generation cogen stack, which will continue at our R&D headquarters in Vancouver," said Ballard president and CEO Dennis Campbell. "This increased equity investment demonstrates Ebara's commitment to Ballard fuel cell technology and supports our strategic focus on the Japanese cogen market."

Contact: Ballard, website http://www.ballard.com.

(EIN STAFF: 5/26)