Ballard Power Systems Inc.: Fuel Cell Supply Agreement

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Ballard Announces Fuel Cell Supply Agreement with Baxi Innotech for German Callux Project
Wednesday March 11, 6:00 am ET

VANCOUVER, March 11 - Ballard Power Systems Inc. announced today that it has entered into a three-year supply agreement with Baxi Innotech GmbH, the leading European developer and manufacturer of fuel cell micro combined heat and power (mCHP) units. Under the agreement, Baxi Innotech agrees to exclusively purchase Ballard fuel cells through to the end of Phase 2 of the German Callux Project, scheduled to conclude in 2012.

The Callux Project was launched in September 2008 as part of Germany's national innovation program for hydrogen and fuel cell technology. The project represents Germany's largest demonstration project of combined heat and power fuel cell systems for domestic use. These systems provide decentralized power to the home at a high level of energy efficiency.

Ballard brings its extensive experience in the Japanese residential cogeneration market to the European market with its FCgen(TM)-1030 fuel cell product, which Baxi Innotech, a division of leading European heating equipment company the Baxi Group, will integrate into its 1 kW GAMMA 1.0 natural gas pilot production series. The performance and durability Ballard's products have demonstrated in Japan will prove invaluable, particularly when partnered with Baxi's broad experience and channel strength supplying heating equipment in Europe.

"We are very pleased to be working with Baxi, a strong system integrator and respected leader in the European heating industry," said John Sheridan, President and CEO. "This partnership represents a win-win opportunity for both parties to successfully participate in the Callux project."

"The close cooperation, along with Ballard's position as the world wide most experienced fuel cell maker, will set a benchmark for all other fuel cell technologies and system manufacturers," said Guido Gummert, Managing Director of Baxi Innotech.

In consideration of Baxi Innotech's agreement to exclusively purchase and use Ballard fuel cell products for the Callux Project, Ballard has in return agreed to exclusively supply fuel cell stack products to Baxi Innotech for the same project. The supply agreement also provides for joint product development efforts, and lays the groundwork for future collaboration beyond the scope and timing of the current project.

About Ballard Power Systems

Ballard Power Systems (TSX: BLD - News; NASDAQ: BLDP - News) is recognized as a world leader in the design, development, manufacture and sale of clean energy fuel cell products. Ballard's mission is to accelerate fuel cell product adoption. To learn more about what Ballard is doing with Power to Change the World®, visit

About the Baxi Innotech GmbH

BAXI INNOTECH has been a subsidiary of the British BAXI Group - one of the leading heating equipment manufacturers in Europe - since 2002. BAXI INNOTECH is the brain pool of the Group for innovative product developments based on combined heat and power technology. Since it was founded ten years ago, the company has been developing a fuel cell heating unit for single-family homes - in close dialogue and in partnership with suppliers, utility companies and the specialist trade - to meet the needs of the European market. Additionally, since September 2008, this Hamburg-based company has been participating in the Callux Project, the practice test of the German Federal government and industry in preparation for the market launch of fuel cell heating units.

Source: Ballard Power Systems Inc.
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