IdaTech Signs Supply Agreement for Up to 30,000 Fuel Cell Systems

IdaTech plc today announced that it has signed a supply agreement for up to 30,000 5kW hydrogen fuel cell systems to be delivered by March 2013 with the ACME Group, a provider of comprehensive passive infrastructure solutions to wireless telecom players in India and overseas. The minimum order under the Agreement is for 10,000 systems for delivery during 2009 and 2010 with the potential for two further orders of 10,000 units each for delivery between 2011 and 2013.

The Agreement is a three party contract between IdaTech, ACME and Ballard. Under the Agreement, IdaTech will supply ACME with natural gas reformed fuel cell systems which will incorporate fuel cell stacks to be supplied by Ballard. The Agreement is subject to IdaTech and Ballard demonstrating certain design and performance criteria for the systems ahead of full deployment in early 2010.

ACME intends to deploy the systems throughout its key markets in India, principally as long duration backup power for base stations of its telecom customers. Under the Agreement, IdaTech is to deliver an initial 310 hydrogen fuel cell systems in 2009, 9,690 natural gas systems in 2010 and the possibility of a further 20,000 natural gas systems for delivery between 2011 and 2013.

IdaTech and ACME intend to establish a manufacturing facility in India through a joint venture to produce the systems to be delivered under the Agreement. IdaTech also anticipates using this production facility as an additional platform for IdaTech’s low cost manufacturing of fuel cell systems. IdaTech will use its experience gained in establishing its flexible low cost production facility in Tijuana Mexico to set up this Indian facility of which IdaTech will be the majority owner. IdaTech will continue to produce systems at its Mexican facility for other customers.

Additionally, ACME will act as IdaTech’s exclusive distributor for 5kW fuel cell systems in India.

Given the large volume of systems involved in the ACME contract, the agreed costings for the units are substantially below those currently achieved by IdaTech. In due course, the Company will make an additional announcement giving further details of the effects of the ACME contract on IdaTech’s future strategy and trading outcome.

Source: Fuel Cell Today