Expected contract value of C$60-100 million
VANCOUVER, March 6, 2013 /CNW/ - Ballard Power Systems (NASDAQ: BLDP)(TSX: BLD) has announced signing of an agreement with
Volkswagen Group (www.volkswagenag.com) for a major Engineering Services contract to advance development of
fuel cells for use in powering demonstration cars in Volkswagen's fuel
cell automotive research program. The contract term is for 4-years,
with an option for a 2-year extension. The expected contract value is
in the range of C$60-100 million.
Dr. Juergen Leohold, Head of Group Research at Volkswagen AG said, "This
research agreement with Ballard demonstrates our commitment to the
development of clean energy fuel cell transportation alternatives. I
anticipate accelerating our automotive fuel cell program as a result of
this collaborative effort, which will bring together additional fuel
cell skills and expertise in both organizations."
Work will involve the design and manufacture of a next-generation fuel
cell for use in Volkswagen HyMotion demonstration cars. Ballard
engineers will lead critical areas of fuel cell product design -
including the membrane electrode assembly (MEA), plate and stack
components - along with testing and integration work.
"The announcement of this research agreement with Volkswagen Group, a
recognized global leader, is a major step for Ballard both
strategically and financially," said John Sheridan, Ballard President
and CEO. "It represents a tremendous ramp-up in our Engineering
Services business following the recent expiration of the five year
automotive non-compete agreement. Ballard's focus with Volkswagen in
this new automotive fuel cell research program will parallel our
continuing work in commercial fuel cell markets for backup power and
material handling — enhancing product durability and performance while
radically reducing product costs."
Over the past several years, Ballard has made significant advances in
its commercial fuel cell products, with average product cost reductions
of 60% and increases in product durability. Sales of Ballard's clean
energy fuel cell products have also been accelerating, with a 30%
cumulative annual growth rate (CAGR) in revenue since 2010.
Additional details regarding the agreement between Ballard and
Volkswagen will be filed by Ballard in a Material Change Report which
will be available on SEDAR at www.sedar.com.
About Ballard Power Systems
Ballard Power Systems (TSX: BLD) (NASDAQ: BLDP) provides clean energy
fuel cell products enabling optimized power systems for a range of
applications. Products deliver incomparable performance, durability and
versatility. To learn more about Ballard, please visit www.ballard.com.
This release contains forward-looking statements concerning revenues,
product development activities, anticipated product improvements and
cost reductions. These forward-looking statements reflect Ballard's
current expectations as contemplated under section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Any such forward-looking statements
are based on Ballard's assumptions relating to its financial forecasts
and expectations regarding its product development efforts,
manufacturing capacity, and market demand.
These statements involve risks and uncertainties that may cause
Ballard's actual results to be materially different, including general
economic and regulatory changes, detrimental reliance on third parties,
successfully achieving our business plans and achieving and sustaining
profitability. For a detailed discussion of these and other risk
factors that could affect Ballard's future performance, please refer to
Ballard's most recent Annual Information Form. Readers should not place
undue reliance on Ballard's forward-looking statements and Ballard
assumes no obligation to update or release any revisions to these
forward looking statements, other than as required under applicable
SOURCE: Ballard Power Systems Inc.
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