Hydrogenics: E.ON and Swissgas using Hydrogenics Technology

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Falkenhagen, Germany – Hydrogenics Corporation, a leading developer and manufacturer of hydrogen generation and hydrogen-based power modules, today announced that, on August 28, 2013, E.ON inaugurated commercial operations at its Power-to-Gas (P2G) facility in Falkenhagen, Germany. The plant uses wind power and Hydrogenics’ electrolysis equipment to transform water into hydrogen, which is then injected into the existing regional natural gas transmission system. The hydrogen, as part of the natural gas mix, can be used in a variety of applications including space heating, industrial processes, mobility, and power generation. The facility, which has a capacity of two megawatts, produces 360 cubic meters of hydrogen per hour.

"This project makes E.ON one of the first companies to demonstrate that surplus energy can be stored in the gas pipeline system in order to help balance supply against demand," said Dr. Ingo Luge, CEO of E.ON Deutschland. "This method of energy storage is considered a key technology for the transformation of Germany's energy system. It will reduce the need to take wind turbines offline when the local grid is congested and will therefore enable us to harness more wind power."

Swissgas, which represents over 100 local natural gas utilities, is a partner in the project with a 20 percent capital stake and an agreement to purchase a portion of the gas produced. Dr. Heinrich Schwendener, a member of the organization’s Board of Management, stated, “Swissgas’ involvement demonstrates the significant value of Switzerland’s gas infrastructure, which enables us to transport and store regenerative energy across national boundaries.”

The inauguration ceremony was also attended by Dr. Philipp Rösler (Germany's Economics and Technology Minister), Dr. Christian Ehler (Member of the European Parliament), and Henning Heidemanns (State Secretary in the Ministry of Economics and European Affairs of the Federal State of Brandenburg), along with 200 other guests.

"One of the biggest challenges of transforming Germany's energy system is finding ways to integrate the increasing share of intermittent, renewable-source energy," said Minister Rösler. "To ensure that Germany's power system remains stable and that our economy continues to have the energy it needs, we not only have to rapidly expand energy networks but also require innovative solutions like the P2G unit here in Falkenhagen."

Daryl Wilson, CEO of Hydrogenics, added, "We are delighted to see this plant now in full commercial use. In April of this year we announced a second Power-to-Gas project with E.ON for the city of Hamburg, which is currently under construction. That facility, containing the world’s largest single mega-watt PEM stack, is expected to be delivered in the spring of 2014.  These projects serve as a platform for upcoming Power-to-Gas facilities not only in Europe but around the world.”

For Hydrogenics Corporation (Nasdaq:HYGS, TSX:HYG), this has been a turnkey Power-to-Gas project which included supply, installation, connection and commissioning of the hydrogen production facility including gas compression, master controls, as well as a five year service and maintenance agreement.

About Hydrogenics
Hydrogenics Corporation (www.hydrogenics.com) is a globally recognized developer and provider of hydrogen generation and fuel cell products and services, serving the growing industrial and clean energy markets of today and tomorrow. Based in Mississauga, Ontario, Canada, Hydrogenics has operations in North America and Europe.

Hydrogenics Contacts:

Chris Witty
Hydrogenics Investor Relations
(646) 438-9385
cwitty@darrowir.com

Bob Motz, Chief Financial Officer
Hydrogenics Corporation
(905) 361-3660
investors@hydrogenics.com
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