Plug Power, Ballard in US DoD fuel cell project

Latham, N.Y.-based Plug Power (Nasdaq: PLUG) and Vancouver's Ballard Power Systems (Nasdaq: BLDP) said today they received $3.5 million from the U.S. Department of Defense for a fuel cell systems development project.

The two companies have already been working together since early 2006 on backup power applications that target the U.S. government agencies.

Under today's funding agreement, Plug Power and Ballard said they will work on a modular and scaleable fuel cell system for use in telecommunication and other mission-critical backup applications.

"The funding acts as a catalyst that unites Plug Power's established leadership in the development and commercialization of backup power solutions with Ballard's latest technology, the Mark1020 ACS fuel cell stack," said Roger Saillant, Plug Power's president and CEO.

"We expect this project will result in superior backup power solutions for telecommunications and other mission-critical applications," said Saillant.

The companies said prototype system trials are expected to be deployed in 2008 with both government and commercial customers.

"Moving into the second phase of this collaboration with Plug Power illustrates how government, in the role of both investor and end customer, moves new technology forward," said John Sheridan, Ballard's president and CEO.

"Both phases are prerequisites for early stage commercialization of fuel cell solutions to provide customers with clean, reliable backup power," said Sheridan.

Plug Power and Ballard said the funding would be administered through the U.S. Army Corps of Engineers' Engineer Research and Development Center Construction Engineering Research Laboratory.

The lab focuses on the evaluation and installation of fuel cell power plants for stationary applications, including infrastructure, environmental, water resources and disaster operations.