Residential Fuel Cell Generator for Japanese Market

    VANCOUVER, B.C.--Oct. 23, 2001--Ballard Power Systems announced today that its stationary power subsidiary, Ballard Generation Systems (BGS), its stationary alliance partner, EBARA Corporation, and EBARA BALLARD Corporation have agreed with Osaka Gas to collaborate in the development of stationary proton exchange membrane (PEM) fuel cell cogeneration power generators for the Japanese residential market.
    "This collaboration broadens the exposure of fuel cell power generation to the Japanese market," said Mike Murry, Chief Operating Officer of Ballard Generation Systems. "We also gain valuable system integration experience incorporating BALLARD(R) fuel cells with the fuel processing systems of Osaka Gas."
    EBARA BALLARD will design a cogeneration power generator able to provide electric power for Japanese homes and apartments, as well as heat for space heating and hot water. BGS and EBARA Corporation will provide support for the project. The generator will incorporate BALLARD(R) fuel cells with a compact fuel processing subsystem developed by Osaka Gas. The proposed unit operates at low temperatures and is designed for continuous operation.

    BGS was formed in 1996 to commercialize PEM fuel cell stationary power generators that use the BALLARD(R) fuel cell. Ballard Power Systems owns 81.6 per cent of BGS, following the previously announced acquisitions of the interests of each of GPU Inc and EBARA in BGS. The remaining shares of BGS are held by ALSTOM France S.A.

    Osaka Gas is a Japanese natural gas utility serving more than 6,000,000 customers. They are developing compact and highly efficient fuel processing systems to accelerate the commercialization of residential PEM fuel cell cogeneration systems. EBARA BALLARD is a jointly held company of EBARA Corporation and Ballard Generation Systems. Its mandate is to market and manufacture BGS's fuel cell power generators incorporating the BALLARD(R) fuel cell to customers in Japan. In February 2001, EBARA BALLARD announced that its 1kW stationary PEM fuel cell prototype generator reached gross electrical efficiency of 42 per cent lower heating value (LHV) and heat recovery efficiency of 43 per cent LHV during in-house testing.

    EBARA Corporation is globally recognized as a major developer, manufacturer and distributor of fluid machinery and systems, precision machinery and environmental engineering systems and as a leader in zero-emission energy technology.

    This release contains forward-looking statements that are based on the beliefs of Ballard's management and reflect Ballard's current expectations as contemplated under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. When used in this release, the words "estimate," "project," "believe," "anticipate," "intend," "expect," "plan," "predict," "may," "should," "will," the negative of these words or such other variations thereon or comparable terminology are intended to identify forward-looking statements. Such statements reflect the current views of Ballard with respect to future events based on currently available information and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in those forward-looking statements.

    Ballard Power Systems is recognised as the world leader in developing, manufacturing and marketing zero-emission proton exchange membrane ("PEM") 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, ALSTOM and EBARA, to commercialise 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 Material Products, a subsidiary of Ballard Power Systems, is a Tier 1 automotive supplier of friction materials for power train components to General Motors and Borg Warner, as well as a supplier of gas diffusion layer materials for the fuel cell industry.

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