Ballard, Shell Hydrogen and Westcoast Energy Establish Private Capital Joint Venture to Help Build Early Stage Fuel Cell Centric Companies

    VANCOUVER, B.C.--July 25, 2001--Ballard Power Systems , Shell Hydrogen and Westcoast Energy today announced the creation of Chrysalix Energy Limited Partnership (Chrysalix), a new Vancouver-based private capital joint venture focused on promoting early stage companies with high growth potential in fuel cells and related systems, hydrogen infrastructure, maintenance and support techniques.
    Chrysalix aims to become a global leader in building new fuel cell technology companies and will act as a catalyst to enhance development at all stages of the energy value chain.
    Operating independently, Chrysalix will offer a unique value proposition to its start-up clients throughout the business planning, start-up and operations phase of development. Chrysalix will provide early-stage funding to new companies as well as expert services, technology knowledge, organized networking with industry players as well as experience in the management of intellectual property.
    "We believe that hydrogen has enormous potential to become the fuel of the future, providing the basis for a future hydrogen economy. But it can only happen if key technological challenges can be overcome. That is why we feel it is essential to help develop the ideas and work being conducted in this area - alongside the work we are already doing in our own business," said Don Huberts, Chief Executive Officer, Shell Hydrogen.
    "As a North American energy leader, Westcoast must play a prominent role in helping to shape the future of the energy value chain. It is our goal that Chrysalix will become the preeminent vehicle for supporting the growth of new fuel cell, hydrogen and related technology companies," said Michael Phelps, Chairman and Chief Executive Officer of Westcoast. "We believe the synergies created by the knowledge and experience of Chrysalix's founding partners combined with the creativity and spirit of young entrepreneurs will create the opportunities to develop successful, cutting-edge fuel cell companies," said Mr. Phelps.
    "The fuel cell industry is revolutionizing how we think of power and Ballard is at the forefront of this change. We understand the breadth of potential opportunities that can capitalize on this revolution and will leverage this knowledge through our involvement in Chrysalix," said Noordin Nanji, Vice-President, Strategic Development of Ballard. "Chrysalix will explore the full range of opportunities in fuel cells and fuel infrastructure that exist today and develop a portfolio of world class companies."
    Westcoast Energy Inc. headquartered in Vancouver, British Columbia, is a leading North American energy company with assets of approximately $15 billion. Westcoast Energy's interests include natural gas gathering, processing, transmission, storage and distribution, as well as power generation, international energy businesses, and financial, information technology and energy services businesses. More information is available on Westcoast Energy's Web site at www.westcoastenergy.com.
    Shell Hydrogen, with headquarters in Amersterdam, the Netherlands, is a global business consisting of separate companies and other organizational entities within the Royal Dutch/Shell Group of Companies. Shell Hydrogen was set up in 1999 to pursue and develop business opportunities related to hydrogen and fuel cells.
    Ballard Power Systems is recognized as the world leader in developing, manufacturing and marketing zero-emission proton exchange membrane fuel cells for use in transportation, electricity generation and portable power products. Ballard Power Systems' proprietary fuel cell technology is enabling automobile, electrical equipment and portable power product manufacturers to develop environmentally clean products for sale. The fundamental component of these end-user products is the BALLARD(R) fuel cell that combines hydrogen (which can be obtained from methanol, natural gas, petroleum or renewable sources) and oxygen (from air) without combustion to generate electricity. Ballard is partnering with strong, world-leading companies, including DaimlerChrysler, Ford, GPU, ALSTOM and EBARA, to commercialize BALLARD(R) fuel cells. Ballard has also supplied fuel cells to Honda, Nissan, Volkswagen, Yamaha, Cinergy, Coleman Powermate and Matsushita Electric Works, among others.
    Ballard's common shares are listed on The Toronto Stock Exchange under the trading symbol "BLD" and on the Nasdaq National Market System under the symbol "BLDP". Ballard, the Ballard logo and Power to Change the World are registered trademarks of Ballard Power Systems Inc.