Hydrogenics Corporation
TSX : HYG
NASDAQ : HYGS

Hydrogenics Corporation

November 01, 2005 07:00 ET

Hydrogenics Completes Forklift Pilot Deployments at GM and FedEx

MISSISSAUGA, ONTARIO--(CCNMatthews - Nov. 1, 2005) -

Fuel Cell Battery Replacement Technology Drives a Compelling Value Proposition

Hydrogenics Corporation (TSX:HYG)(NASDAQ:HYGS), today announced the successful completion of forklift field trials at GM of Canada's car assembly plant in Oshawa and FedEx Canada's 'mission critical' logistics hub at Toronto International Airport.

Hydrogenics designed, built and integrated fuel cell hybrid power packs to replace the lead acid batteries in two Hyster Class 1, 5500 lb sit-rider forklifts provided by NACCO Materials Handling Group. The forklifts were placed into service at two indoor multi-shift operations to showcase the technical readiness of Hydrogenics' fuel cell hybrid power pack and to verify the benefits and value propositions that can be offered to this market. In addition, Hydrogenics designed and built an indoor, PEM electrolyzer hydrogen refueler that was used to refuel the forklifts during the deployments.

"We gained real world learning's for this near term application as our forklifts operated full-time for three months in rigorous operations, with virtually no maintenance downtime. Just as important, they finished the trials at the same high level of performance as they began," said Pierre Rivard, President and CEO, Hydrogenics. "By undertaking a project that demonstrated Hydrogenics' uniqueness in being able to deploy world class technologies and products in both fuel cells and hydrogen refueling, we have shown the kind of 'end to end' solution Hydrogenics can offer to OEMs and future users of this emerging technology."

Multi-shift indoor materials handling operations face many challenges as a result of using forklifts that rely on lead acid batteries. Battery management issues profoundly impact operations, including a marked decrease in forklift power prior to shift-end, loss of productivity due to battery change-out time, and significant dedicated space and staffing for battery management. In addition, 24-hour operations require as many as three batteries per vehicle to cover the full shift rotation, contributing to ongoing capital cost infusions and battery disposal problems.

The field trials successfully addressed all of the above-mentioned 'battery' limitations. Not only were the forklifts operating at full power at the beginning and end of each shift, they were also refueled by the forklift operators, as needed, in two minutes or less from Hydrogenics' indoor refueling station.

"Hydrogenics is now able to go to forklift manufacturers and customers and demonstrate that we have a materials handling solution that will start paying for itself over the total life of forklift ownership, through operational efficiencies, productivity increases and fast, reliable refueling. We know that materials handling operations are starting to understand and quantify the value that a 'fuel cell solution' offers today, boding well for the future as costs continue to come down. We see this emerging business as a substantial growth area for Hydrogenics over the next three years."

The multi-billion dollar annual forklift market is positioned as an early adopter of fuel cell technology. Initial adoption is anticipated in multi-shift indoor operations that deploy a fleet of material handling vehicles. This particular market, currently dominated by battery-powered electric platforms, is where Hydrogenics' fuel cell hybrid power pack can offer a viable 'plug and play' alternative. Over three hundred thousand new battery-powered material handling vehicles are purchased globally every year.

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.


Contact Information

  • Hydrogenics Corporation
    Investors: Lawrence Davis
    Chief Financial Officer
    (905) 361-3633
    ldavis@hydrogenics.com
    or
    Hydrogenics Corporation
    Media: Jane Dalziel
    Director of Corporate Communications
    (905) 361-3639
    media@hydrogenics.com