Ballard Power Systems, a world leader in clean energy fuel cell products, recently provided a status update to the supply agreement between the company and IdaTech and ACME Group. The supply agreement was for a telecom backup power solution in India.

Ballard entered into the development and supply agreement with IdaTech and ACME in October 2008 for hydrogen and natural gas-based backup power systems. As previously disclosed, committed purchase volumes in the agreement are subject to meeting product acceptance testing (PAT) timelines. Ballard’s primary role in the agreement is to develop a low-cost, liquid-cooled fuel cell stack and to manufacture fuel cell stacks for IdaTech to integrate into systems to be deployed by ACME.

IdaTech’s primary role in the contract is the development of the system, including the fuel processor and balance of plant. While the PAT was successfully met for the hydrogen system in July 2009, IdaTech has now indicated that the PAT for the natural gas system, scheduled for October 16, 2009, will likely be missed. The agreement provides for an extension of the PAT deadline for up to six months if IdaTech files an acceptable remediation plan by November 16, 2009, with committed volumes to be reduced commensurate with the length of the delay.

John Sheridan, president and CEO of Ballard Power, said, “We are certainly disappointed with this development and the implications on our 2010 product volumes.” Mr. Sheridan continued, “Market feedback has confirmed the substantial Indian telecom market opportunity, and we remain committed to this market. Together with our partners, we are well-positioned to pursue opportunities for our fuel cell stacks in natural gas-based systems, as well as significant opportunities for methanol and hydrogen-based systems.”