Covers Hydrogenics' Mobility Fuel Cell Systems, Power-to-Gas and Fueling Station Technology
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 signed separate supply agreements with several Chinese electric vehicle integrators to bring its fuel cell and fueling station technology to China as part of the country's strategy to solve prevalent air quality issues. The agreements were signed in Beijing on Friday, November 13, at ceremonies attended by Ontario Premier Kathleen Wynne and trade commission delegates, along with local and state officials. Hydrogenics has worked closely with a number of Chinese companies throughout the past year – already delivering over 30 propulsion systems for buses and other vehicle platforms from leading original equipment manufacturers (OEMs) such as Futian and Volvo. The largest bus OEM in China, Yutong, is one of the key suppliers seeking to bring fuel cell technology into the urban transit mainstream.
The deals signed Friday cover more than 2,000 vehicles over the course of the next 3-5 years. Staged rollouts will follow typical engineering milestones from prototyping, manufacturing, vehicle certification and infrastructure build-out. Included in the agreements are heavy-duty fuel cells, fueling stations, and assessments for converting wind energy and other forms of surplus electricity to hydrogen using Hydrogenics' Power-to-Gas energy storage technology. Hydrogenics anticipates that, during the next twelve months, $10 million or more of revenue could be realized, after which product deliveries should accelerate. Based on Chinese proposals, vehicle fuel cell requirements alone over a five year period are forecast to be above $100 million.
Hydrogenics CEO Daryl Wilson stated, "We are thrilled to have been chosen by Chinese OEMs for our industry-leading hydrogen technology. These agreements demonstrate China's commitment to tackling air quality, driving an urgent need for zero-emission transportation. Hydrogenics is the clear choice in this regard due to the compelling and unique advantages of our heavy-duty fuel cells versus the competition, and Hydrogenics is the only 'one stop shop' providing the full scope of technology to meet China's needs – from Power-to-Gas applications to fueling stations and vehicle propulsion systems. It is believed over 2,000 buses and other zero-emission vehicles will be launched over the next five years in China, resulting in a significant revenue opportunity for the Company."
In China today there are over 250,000 electric vehicles in operation – one of the largest deployments of zero-emission transportation worldwide – and vehicle integration companies have begun to seek ways to improve the limited range these vehicles provide. Hydrogen fuel cells provide such range. In addition, China's vast deployed wind and solar power systems offer unprecedented potential for the generation of green hydrogen fuel through Power-to-Gas energy storage. Hydrogenics has already demonstrated the commercial viability of multi-megawatt systems for converting renewable energy to high purity hydrogen.