General Motors and Hydrogenics have formed a strategic alliance to accelerate the development of fuel cell technology into global commercial markets.
The alliance will include shared intellectual property rights and joint efforts in fuel cell product development, engineering, prototyping, testing, branding, and marketing strategies.
As part of the agreement, GM will receive 11.3 million shares of Hydrogenics common stock, or approximately 24% of Hydrogenics’ outstanding shares. Hydrogenics will also issue GM warrants to acquire an additional 2.4 million Hydrogenics common shares, bringing GM’s stake to 28% of outstanding equity.
GM will also appoint a representative to Hydrogenics’ Board of Directors in conjunction with the alliance, resulting in the expansion of Hydrogenics’ board from seven directors to eight.
Last month, Hydrogenics won a contract from the Department of National Defence in Canada (DND) to advance into the next stage of development of its chemical hydride-fuelled, portable fuel cell power program.
The contract award followed Hydrogenics’ successful completion of Phase I of a project that involved the evaluation of a hydrogen supply subsystem and the design of an integrated, hydrogen-fuelled PEM fuel cell power generator.
Hydrogenics is building multiple 500W compact power generators, designed to charge batteries and directly power applications in the field. The company expects to deliver prototype systems by the end of the year.