Hydrogenics Corporation: New Project Supports Advancement of Hydrogen Fuel Cell Technology for Lift Trucks

July 14, 2006

Hydrogenics, GM and NMHG to Strengthen Collaboration

MISSISSAUGA, ONTARIO and OSHAWA, ONTARIO and PORTLAND, OREGON–(MARKET WIRE)–Jul 13, 2006 — General Motors of Canada, NACCO Materials Handling Group, Inc. (NMHG) and Hydrogenics Corporation (TSX:HYG.TO)(NASDAQ:HYGS) announced today that they received funding from Sustainable Development Technology Canada (SDTC) for a demonstration project that will drive advancement of hydrogen technologies for application in commercial lift trucks and other industrial vehicles. The funding, subject to final contract negotiations, will be leveraged by project partners.

The demonstration project will involve use of Hydrogenics’ beta version HyPM® Fuel Cell Power Packs in up to 19 lift trucks and tuggers in operation over a two-year period at GM’s Oshawa car plant.

The materials handling market is one of the first major commercial mobility markets for hydrogen fuel cell technology. The HyPM Fuel Cell Power Packs provides a clean power option that is compatible with current electric lift trucks. The pack is ideal for this application because it fits within the existing battery compartment. For operators of large fleets of lift trucks in 24 hour operations, HyPM Fuel Cell Power Packs offer a near-term, economically viable alternative to batteries, by enabling productivity and operational improvements that include: faster refueling compared to the time required for battery recharging; extended run-time between fills; and consistent and abundant power.

Hydrogenics is leading the partners, who previously collaborated in the successful four month deployment of two alpha prototype forklifts in 2005 at GM of Canada’s Oshawa Car Plant. The new project builds on the previous project to further demonstrate in a real world setting, the reliability, durability and other performance metrics of the next generation beta HyPM Fuel Cell Power Packs. The project will also quantify total cost of ownership, which is expected to improve due to productivity improvements realized through the efficiencies of operating fuel cell powered lift trucks in an industrial environment.

“General Motors of Canada operated two hydrogen-powered forklifts in our car plant in 2005 and we were impressed with the durability and reliability of the vehicles, as well as their environmental potential,” said David Paterson vice president corporate and environmental affairs for, General Motors of Canada. “We are excited to be part of this project that will help to advance hydrogen technology even further.”

GM has been a long-time supporter of alternative energy sources for vehicles.

“NMHG is continually working to develop products our customers need today and will need in the future,” said Lee Tracy, NACCO Materials Handling Group, Inc.. “We see fuel cells as a propulsion solution that can provide new benefits for our customers. As such, we are pleased to participate in this demonstration.”

For Hydrogenics, the opportunity is to expand on the knowledge gained from the 2005 alpha unit demonstration project.

“Our alpha unit demonstration deployments in 2005 served the purpose of validating the opportunity for Fuel Cell Power Packs to serve the material handling market. The focus of this new, larger, demonstration is to further the technology development curve, moving Hydrogenics closer to the commercialization of its fuel cell technology in this exciting application,” said Pierre Rivard, president and CEO of Hydrogenics. “This project will also help us showcase our Canadian technologies here at home. We are grateful to the on-going support of our government partners, like SDTC and CFTCA, and industry partners, like GM Canada and NACCO, who assist in advancing this technology.”

The vehicles for the project will be powered by a next-generation HyPM Fuel Cell Power Pack, the development of which is being partially funded by the Canadian Transportation Fuel Cell Alliance, a $33 million federal government initiative that will demonstrate and evaluate fuelling options for fuel cell vehicles in Canada. Hydrogenics’ development of the next generation Fuel Cell Power Pack is currently underway.

About General Motors of Canada

Headquartered in Oshawa Ontario, General Motors of Canada employs 22,000 people nationwide. GM of Canada manufactures a variety of vehicles, engines, transmissions and other components, and markets the full range of General Motors vehicles and related services through 785 dealerships and retailers across Canada. Vehicles sold through this network include Chevrolet, Pontiac, Buick, GMC, Cadillac, Hummer, Saturn and Saab.

About Hydrogenics

Hydrogenics Corporation (www.hydrogenics.com) is a leading global developer of clean energy solutions, advancing the Hydrogen Economy by commercializing hydrogen and fuel cell products. The company has a portfolio of products and capabilities serving the hydrogen and energy markets of today and tomorrow. Hydrogenics, based in Mississauga, Ontario, Canada, has operations in North America, Europe and Asia.

About SDTC

Sustainable Development Technology Canada is a foundation created by the Government of Canada that operates a $550 million fund to support the development and demonstration of clean technologies – solutions that address issues of climate change, clean air, clean water, and clean soil to deliver environmental, economic and health benefits to Canadians.

An arm’s length, not-for-profit corporation, SDTC fills the void in the innovation chain between research and commercialization – helping clean technology developers move through the development and demonstration phases, in preparation for commercialization. SDTC applies a stringent due diligence process when selecting technologies and requires every applicant to involve a consortium of partners in their project.

SDTC encourages collaboration among private, financial, academic, and public sector partners, and with the Canadian government to build a sustainable development infrastructure in Canada.

Since April 2002, SDTC has completed eight funding rounds, committed $217 million to 97 clean technology projects, and leveraged $559 million from project consortia members, for a total portfolio value of $776 million

About NACCO Materials Handling Group

NACCO Materials Handling Group, Inc. designs, engineers, manufactures, sells, services and leases a comprehensive line of lift trucks and aftermarket parts marketed globally under the Hyster and Yale brand names.

Contact:     Contacts:
     Hydrogenics Corporation
     Media Contact:
     Jane Dalziel
     (905) 361-3639
     General Motors of Canada Limited
     Patty Faith
     (905) 644-2728
     NACCO Materials Handling Group, Inc.
     Dave Earnest
     (503) 721-6010

Source: Hydrogenics CorporationSource: Yahoo


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