Initial Contract Value of $4 Million, with Follow-On Awards Expected in 2017
MISSISSAUGA, Ontario -- Hydrogenics Corporation (NASDAQ:HYGS) (TSX:HYG), a leading developer and manufacturer of hydrogen generation technology and hydrogen fuel cell power modules, today announced that it has been selected by one of its certified integrator partners in China for a fuel cell order to power buses throughout a number of major metropolitan areas. The initial size of the contract is estimated to be worth $4 million, although significant follow-on awards are anticipated in 2017. Additional terms were not disclosed. This latest win builds on Hydrogenics’ expansion into China, first announced in 2015, that includes partnering with a number of electric vehicle integrators to bring fuel cell and fueling station technology to the country. The Chinese market is growing rapidly due to the dedication of the Chinese government to combat smog and global warming.
“We are very pleased to announce this latest award in China, where we are seeing the fruits of our labor as the country continues to aggressively pursue initiatives to improve air quality,” said Hydrogenics’ CEO Daryl Wilson. “One of our certified integrator partners will purchase a large quantity of fuel cell power modules for their end customers, who will use them in buses of various sizes and designs. The country’s leadership continues to see the value of zero-emission vehicles as part of an overall plan to dramatically reduce air pollution nationwide, and fuel cell incentives are being offered at a level equivalent to batteries. In addition, fuel cells offer a greater range of mobility and more rapid fueling than batteries, last longer, and can be an integral part of a carbon neutral program if sustainable resources are also used to generate the hydrogen fuel itself. Hydrogenics remains a compelling choice given our technology leadership in heavy-duty fuel cells as well as the scope of our applications – which span from energy storage to large-scale hydrogen-based energy production. Our orders in China and expanding presence there lay the foundation for even larger contracts in the quarters to come; I can clearly say that 2017 will be the biggest year ever for us in China but, again, remains the tip of the iceberg for this tremendous market.”
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.