Huge Fuel Cell Order Placed by Indian Network Infrastructure Vendor

US based fuel-cell manufacturer, IdaTech has signed a supply agreement for up to 30,000 5kW hydrogen fuel cell systems to be delivered mainly to Indian telecoms operators. The supply agreement is with Acme Group, a provider of passive infrastructure solutions to wireless telecom players both in India as well as overseas.

The minimum order under the Agreement is for 10,000 systems for delivery during 2009 and 2010 with the potential for two further orders of 10,000 units each for delivery between 2011 and 2013.

The name of the network operator(s) that will take the fuel cell units was not disclosed, although within India, the company lists Airtel, Vodafone, Aircel, Idea and Reliance as its network customers. The company inked a co-operation deal with Nokia Siemens Networks earlier this year, which may or may not be related to this latest agreement.

The Agreement is a three party contract between IdaTech, Acme and Ballard. Under the Agreement, IdaTech will supply Acme with natural gas reformed fuel cell systems which will incorporate fuel cell stacks to be supplied by Ballard. The Agreement is subject to IdaTech and Ballard demonstrating certain design and performance criteria for the systems ahead of full deployment in early 2010.

Acme intends to deploy the systems throughout its key markets in India principally as long duration backup power for base stations of its telecom customers.

IdaTech and Acme intend to establish a manufacturing facility in India through a joint venture to produce the systems to be delivered under the Agreement. IdaTech also anticipates using this production facility as an additional platform for IdaTech's low cost manufacturing of fuel cell systems. IdaTech will use its experience gained in establishing its flexible low cost production facility in Tijuana Mexico to set up this Indian facility of which IdaTech will be the majority owner. IdaTech will continue to produce systems at its Mexican facility for other customers.

Commenting on the Supply Agreement, Hal Koyama, Chief Executive Officer of IdaTech, said "This is a transformational agreement for IdaTech and also for the fuel cell industry. An order of this magnitude will serve as a catalyst for the fuel cell industry as a whole and serve as a reference point for fuel cell adoption in our key market of critical power backup systems.

Posted to the site on 14th October 2008