Hydrogenics Signs Broad Supply Agreements With Chinese Vehicle Integrators
November 16 2015 - 6:30AM
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.
About Hydrogenics
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.
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 Act of 1995, and under applicable
Canadian securities law. These statements are based on management's
current expectations and actual results may differ from these
forward-looking statements due to numerous factors, including: our
inability to increase our revenues or raise additional funding to
continue operations, execute our business plan, or to grow our
business; inability to address a slow return to economic growth,
and its impact on our business, results of operations and
consolidated financial condition; our limited operating history;
inability to implement our business strategy; fluctuations in our
quarterly results; failure to maintain our customer base that
generates the majority of our revenues; currency fluctuations;
failure to maintain sufficient insurance coverage; changes in value
of our goodwill; failure of a significant market to develop for our
products; failure of hydrogen being readily available on a
cost-effective basis; changes in government policies and
regulations; failure of uniform codes and standards for hydrogen
fuelled vehicles and related infrastructure to develop; liability
for environmental damages resulting from our research, development
or manufacturing operations; failure to compete with other
developers and manufacturers of products in our industry; failure
to compete with developers and manufacturers of traditional and
alternative technologies; failure to develop partnerships with
original equipment manufacturers, governments, systems integrators
and other third parties; inability to obtain sufficient materials
and components for our products from suppliers; failure to manage
expansion of our operations; failure to manage foreign sales and
operations; failure to recruit, train and retain key management
personnel; inability to integrate acquisitions; failure to develop
adequate manufacturing processes and capabilities; failure to
complete the development of commercially viable products; failure
to produce cost-competitive products; failure or delay in field
testing of our products; failure to produce products free of
defects or errors; inability to adapt to technological advances or
new codes and standards; failure to protect our intellectual
property; our involvement in intellectual property litigation;
exposure to product liability claims; failure to meet rules
regarding passive foreign investment companies; actions of our
significant and principal shareholders; dilution as a result of
significant issuances of our common shares and preferred shares;
inability of US investors to enforce US civil liability judgments
against us; volatility of our common share price; and dilution as a
result of the exercise of options; and failure to meet continued
listing requirements of Nasdaq. 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 US 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, unless otherwise required by law. The forward-looking
statements contained in this release are expressly qualified by
this.
CONTACT: For further information, contact:
Bob Motz, Chief Financial Officer
Hydrogenics Corporation
(905) 361-3660
investors@hydrogenics.com
Chris Witty
Hydrogenics Investor Relations
(646) 438-9385
cwitty@darrowir.com
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