Ballard, GPU to Commercialize Fuel Cell Stationary Power
Plants Worldwide
Ballard Power Systems (Vancouver, Canada) and
GPU International, Inc. (GPUI)—a subsidiary of GPU, Inc., a major international
electric company based in New Jersey—announced 17 December 1996 that
they have formed a venture for the commercialization of fuel cell stationary
power plants using the Ballard proton exchange membrane (PEM) fuel cell.
Under the terms of the agreement, which is subject
to final regulatory approval, Ballard Power Systems has created a new subsidiary,
Ballard Generation Systems, Inc., to commercialize fuel cell stationary
power plants. Ballard Generation Systems will develop, market, and manufacture
fuel cell stationary power plants worldwide and will be based in Burnaby,
British Columbia, Canada. Ballard Power Systems, the parent company, will
supply the fuel cells for these power plants. GPU International will invest
US$23.25 million (Can$31.2 million) over the next two years in the subsidiary,
Ballard Generation Systems, for up to a 19.3 percent share of Ballard Generation
Systems, two 250-kW fuel cell power plants for field trials, and nontransferrable
warrants to purchase 100,000 Common shares in Ballard Power Systems at a
price of $27.45 per share.
“To marshal the resources needed to bring
each of our products to market effectively, our plan is to join forces with
a carefully chosen team of marketing and manufacturing partners,” said
Mossadiq Umedaly, Vice President and Chief Financial Officer of Ballard
Power Systems. “GPUI brings deep insight in the international electric
power markets, which will contribute to the commercial success of Ballard
Fuel Cell power plants. The equity participation by GPUI also enables Ballard
to capitalize on the value of its stationary power plant technology beyond
the fuel cell, and establishes the value for this subsidiary, before GPUI’s
investment of $31.2 million at more than $130 million.”
“Under growing deregulation, Ballard Fuel
Cell stationary power plants will become an important part of the energy
market. These power plants will provide power for a broad range of market
applications including Premium Power,” said Bruce L. Levy, President
of GPU International. “We see that, by combining Ballard’s clear
lead in proton exchange membrane fuel cells and power plants with GPU’s
expertise in the world energy business, we can together build a growing,
successful, and profitable business.”
“We are pleased to welcome GPU as a strategic
partner and investor in our stationary power business,” said Firoz
Rasul, President and Chief Executive Officer of Ballard. “GPU has distinguished
itself as a leader in the deregulated electric power industry worldwide
and has participated in the commercialization of innovative energy products
and applications. Ballard Fuel Cell Power Plants will address the needs
of the substantial markets that are emerging for environmentally clean,
high quality power generated at the customer’s site.”
“GPU International has made investments
in power related projects throughout the world,” said GPUI’s Levy.
“We feel that fuel cell power plants will open up considerable new
markets in the power business within the next 5 years.”
GPU International is the nonregulated arm of
GPU, Inc. GPU serves a worldwide population of more than 13 million people,
with 4.4 million customers located in 12 countries. It had 1995 revenues
of more than US$3.8 billion and assets of about US$10 billion. GPU, Inc.
shares are on the New York Stock Exchange.
[For further information, contact Paul Lancaster, Ballard Power
Systems, Inc., 9000 Glenlyon Parkway, Burnaby, BC, V5J 5J9, Canada; phone
+1.604.454.0900; fax +1.604.412.4700. Or contact Patrick M. Dool, GPU International,
Inc., One Upper Pond Road, Parsippany, NJ 07054-1050, U.S.A.; phone +1.201.263.6951;
fax +1.201.263.6977.]
©1997. All Rights Reserved. A Publication of
the National Hydrogen Association.
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