[sustran] fuel cell buses

[Craig Townsend]

>From "The Globe and Mail" Internet Edition, 7 April 2000

Daimler bus deal power Ballard to commercialization

PETER KENNEDY
British Columbia Bureau
Friday, April 7, 2000


Vancouver -- Ballard Power Systems Ltd. has taken its biggest step yet to
commercialization as DaimlerChrysler AG says it will begin selling buses
that use its pollution-free fuel cells by 2002.

The announcement by the world's largest transit bus manufacturer is seen as
a big step forward for Burnaby, B.C.-based Ballard, whose fuel-cell stacks
are designed to replace the internal combustion engine.

Investors reacted by driving Ballard's stock up $13.90 to $131 on the
Toronto Stock Exchange. On the Nasdaq Stock Market, the stock rose $10.88
(U.S.) to $90.75.

"Obviously, we are very pleased," said Paul Lancaster, vice-president of
finance at Ballard.

"This is the first time that a specific bus manufacturer has talked about
using a fuel cell engine in its product line," he said.

Buses powered by fuel cell engines have already been demonstrated in
several European cities, and DaimlerChrysler has already begun talks with
officials from several transit authorities in Europe.

"We are offering them for sale and taking orders now," said DaimlerChrysler
spokeswoman Ann Smith.

"But any purchase announcements will come from the transit agencies, not
DaimlerChrysler," Ms. Smith said.

DaimlerChrysler said the company's Stuttgart, Germany-based EvoBus Gmbh
unit will build and market up to 30 fuel-cell-powered buses by 2003, making
it the first automotive company to have technology available for sale in
buses. The first of the Mercedes-Benz Citaro city buses, which are expected
to cost $1.2-million (U.S.) each, will be delivered by 2002.

The fuel cell engines will be built by Xcellsis, a company formerly known
as DBB Fuel Cell Engines Inc., which is owned 51 per cent by
DaimlerChrysler, 27 per cent by Ballard and 22 per cent by Ford Motor Co.

Analysts said Ballard's stock rose yesterday because of the deal's positive
impact on the company, which is developing fuel cells with several partners
not only for cars and buses but also for stationary power plants.

"This announcement on its own is compelling, but the story goes far beyond
that," said James David of Warburg Dillon Read in Montreal.

Ballard has just completed a two-year testing program on three buses owned
by the Chicago Transit Authority. Fuel-cell-powered buses are expected to
go into service this summer in both Vancouver and California.

As well, a consortium that includes Ballard, the State of California and
Atlantic Richfield Co. has said 25 buses and 30 cars will hit the streets
of California for testing and demonstration over the next three years.

Ms. Smith said DaimlerChrysler is aiming to have fuel-cell-powered buses in
commercial production before cars because it is easier to set up the
necessary refuelling infrastructure. The company is planning to bring fuel
cell cars to market by 2004.

She said the Mercedes-Benz Citaro buses will be designed to contain
hydrogen gas storage tanks on their roofs. "In this case the hydrogen will
be available in a central location to allow the buses to refuel several
times a day," she said.

________________________________________________
Craig Townsend
Institute for Sustainability & Technology Policy
Murdoch University
South Street, Murdoch
Perth, Western Australia 6150

tel: (61 8) 9360 6293
fax: (61 8) 9360 6421
email: townsend at central.murdoch.edu.au