Hydrogenics Corporation
TSX : HYG
NASDAQ : HYGS

Hydrogenics Corporation

January 31, 2006 07:30 ET

Hydrogenics Awarded Contract by Gas Natural to Deliver Hydrogen Station to Spanish Wind Farm

MISSISSAUGA, ONTARIO--(CCNMatthews - Jan. 31, 2006) -

Leading European Utility Using Hydrogen to Capture Excess Wind Power

Hydrogenics Corporation (TSX:HYG)(NASDAQ:HYGS), a designer and manufacturer of hydrogen and fuel cell systems, announced today that the company has been awarded a contract for over EUR 500,000 to deliver a hydrogen station to Gas Natural SDG, a Spanish-based energy services multinational with approximately ten million customers in Spain, Latin America, Italy and France (www.gasnatural.com).

Gas Natural will use a Hydrogenics' HySTAT™-A Hydrogen Station at the Sotavento Galicia wind farm to produce up to 60 Nm3/hr of hydrogen. The hydrogen will be used to fuel an internal combustion engine generator, which in turn will supply electricity to the electric grid.

Presently, the Sotavento Galicia wind farm produces more electricity than can be delivered to the grid and the excess "green" electricity cannot be stored or delivered to the electrical grid, resulting in lost revenue. By powering the HySTAT Hydrogen Station with the excess wind energy, Gas Natural will now provide the means to capture high value electricity that otherwise would have been lost and utilize it to make more electricity for the grid than was achievable in the past.

"This project demonstrates the role that hydrogen can play as an energy carrier," said Pierre Rivard, Hydrogenics President and Chief Executive Officer. "One of the biggest challenges with wind power is that unused energy can not be stored for later use when the wind isn't blowing. Hydrogen solves this problem. As we will prove at this location, excess electricity from wind can produce hydrogen to fuel an internal combustion engine, essentially turning that excess wind power back into electricity that people can use."

The project at the Sotavento Galicia wind farm is completely green and is the sixth project that Hydrogenics has announced with various worldwide customers where hydrogen stations are powered by wind or solar energy. This latest hydrogen station, complete with outdoor housing and auxiliary equipment, will be installed and commissioned by September, 2006.

About Hydrogenics

Hydrogenics Corporation (www.hydrogenics.com) is a leading global developer of clean energy solutions, advancing the Hydrogen Economy by commercializing hydrogen and fuel cell products. The company has a portfolio of products and capabilities serving the hydrogen and energy markets of today and tomorrow. Hydrogenics, based in Mississauga, Ontario, Canada, has operations in North America, Europe and Asia.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Law of 1995. These statements are based on management's current expectations and actual results may differ from these forward-looking statements due to numerous factors, including changes in the competitive environment adversely affecting the products, markets, revenues or margins of Hydrogenics' business. Readers should not place undue reliance on Hydrogenics' forward-looking statements. Investors are encouraged to review the section captioned "Risk Factors" in Hydrogenics' regulatory filings with the Canadian securities regulatory authorities and the United States Securities and Exchange Commission for a more complete discussion of factors that could affect Hydrogenics' future performance. Furthermore, the forward-looking statements contained herein are made as of the date of this release, and Hydrogenics undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release. The forward-looking statements contained in this release are expressly qualified by this.

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