Proton ramps fuel cell production with Deutsche Mechatronics deal

A subsidiary of Germany’s Proton Power Systems (LSE:PPS.L), Proton Motor, signed an exclusive five-year agreement today with contract manufacturer Deutsche Mechatronics. The agreement is to facilitate the volume production of Proton Motor’s fuel cell systems in Germany.

The partnership is expected allow Proton Motor to deliver its products to market faster, in a cost-effective manner.

Deutsche Mechatronics plans to manufacture Proton Motor’s fuel cell hybrid systems, with the production capacity to be gradually increased up to 5,000 units per year per shift, under the agreement's terms. Financial terms of the deal were not disclosed.

Proton Power CEO Thomas Melczer said the contract manufacturing agreement should enable his company to prove to potential customers they have the immediate capabilities to mass produce and supply their products. He added that the company has seen an increased demand for its fuel cell systems in recent months. The volume production is expect to help reduce the cost of its products.

Proton Power Systems develops and produces fuel cells and fuel cell electric hybrid systems for both motive and stationary applications. Motive applications include forklifts, city buses, commercial vehicles and ferries, while stationary uses focus on the uninterruptible power supply sector, where there's demand for grid-independent power supply in places including data centers, hospitals and power substations.

In 2008, Proton delivered a ship's fuel cell system, one of the first times the technology has been applied in passenger vessels (see Proton Motor debuts first fuel cell passenger ship). The company also announced plans in 2008 to build a hybrid fuel cell truck, in collaboration with Osnabruck, Germany's Wilhelm Karmann (see Proton, Karmann to build hybrid fuel cell truck).