March 8, 2004

Hydrogenics to develop fuel cell van, hydrogen refuelling system for Purolator

Purolator Courier has contracted Hydrogenics, a designer and manufacturer of hydrogen and fuel cell systems, to develop and deploy a fuel cell hybrid delivery van and an on-site hydrogen refueling system. The two-year project is part of the courier company's "Greening the Fleet" initiative to explore the use of clean transportation technologies.

Hydrogenics will develop and deploy a fuel cell hybrid electric vehicle whose fuel cell/battery electric propulsion system will be designed and integrated into a hybrid electric vehicle platform produced by Azure Dynamics and used in Purolator's delivery fleet.

The other key element of the project is the development and commissioning of a hydrogen generation and refueling system using Hydrogenics' proprietary proton exchange membrane (PEM) electrolysis technology, which has the capability to generate hydrogen cleanly from water using renewable energy, such as wind power. This refueling station will be commissioned at one of Purolator's depots in the Greater Toronto Area, where it will potentially become part of Toronto's emerging hydrogen refueling infrastructure.

"Fleet applications such as this represent an early-adopting market for fuel cells primarily because fleets typically return daily to a central depot where an appliance can easily refuel them," said Hydrogenics president and CEO Pierre Rivard.

"What's unique about this contract," he noted, "is that Hydrogenics' proprietary technology is providing a complete solution, from the fuel cell power for the van to the hydrogen refuelling appliance. This...is a great way for Hydrogenics to demonstrate its Light Mobility Initiative."

Purolator's "Greening the Fleet" program is committed to reducing greenhouse gas emissions. "In keeping with our earlier commitment to deploy environmentally friendly vehicles in our fleet, this project takes Purolator and the industry to a whole new level where we can one day lead the industry to zero emissions," said Purolator president and CEO Robert Johnson.

The initiative is being partially funded through the Canadian Transportation Fuel Cell Alliance (CTFCA), a $23-million partnership initiative with the federal government to demonstrate and evaluate various fuelling options for fuel cell vehicles in Canada.

In other activities, Hydrogenics has been contracted by the U.S. Navy's Naval Surface Warfare Center (NSWC)-Crane division to provide a PEM electrolysis refueler for the NSWC's test facility in Crane, Indiana. NSWC Crane is due to take delivery of the unit this month.

The contract calls for Hydrogenics to supply a fully integrated, compact HyLyzer refueler capable of producing and dispensing two kilograms per day of high-purity compressed hydrogen gas.

NSWC's purpose in this initiative, in addition to fulfilling the site's hydrogen needs, is to gain experience with a comprehensive, compact hydrogen refueling system which provides electrolysis, compression, high-pressure storage and dispensing for special operations.

"This is an excellent opportunity to help advance the concept of an appliance-based hydrogen infrastructure, with deployable and compact hydrogen production for the military," said Hydrogenics' Pierre Rivard.

Hydrogenics, based in Mississauga, Ontario, has operations in British Columbia, Canada, Japan, the U.S. and Germany. More information is available on the company's Web site, www.hydrogenics.com

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