General Hydrogen's Hydricity pack on a class 1 forklift.

New York-based fuel cell provider PlugPower Inc has bought Canadian company General Hydrogen Corp for USD10 million.

The acquisition price consists of about USD7 million in cash and the assumption of USD3 million in loans previously made by PlugPower to General Hydrogen.

PlugPower ventured into the industrial vehicle fuel cell market when it bought Cellex Power Products Inc in March (Forkliftaction.com News #302).

PlugPower president and CEO Roger Saillant said that, with the two acquisitions, the company expected to realise significant technology and operational synergies while pursuing "high-value" applications in the materials handling market.

"We anticipate that higher-volume commercial product manufacturing activities will be established in PlugPower's Latham, New York, facility."

PlugPower plans to integrate Cellex Power and General Hydrogen into one operation managed by Cellex Power's current president Chris Reid.

General Hydrogen, based in Richmond, British Columbia, Canada, is close to Cellex Power, in Vancouver, Canada. General Hydrogen initially focused on larger class 1 sit-down forklifts typically used in manufacturing operations. Cellex Power focused initial product development on class 3 rider pallet trucks used in large distribution centres.

Both companies are developing fuel cell power units for class 2 stand-up reach trucks used in large distribution centres.

"Given PlugPower's financial and operational strength and the combined fuel cell expertise of the three companies, we expect to accelerate product development for all three classes of electric forklifts," Salliant said.

General Hydrogen and Cellex Power were targeting the estimated USD1.5 billion motive power market in which lead-acid batteries were the incumbent technology, according to a PlugPower statement.

With the new acquisition, PlugPower will buy fuel cell stacks from Ballard Power Systems Inc for all its commercial sales in the materials handling market, through a two-year agreement. It replaces a previous supply agreement between General Hydrogen and Ballard.

Ballard's chief customer officer Noordin Nanji praised PlugPower's entry into the materials handling market.

"[It] validates the value potential of this near-term market for fuel cell technology," Nanji said. "PlugPower has significant experience developing low-cost fuel cell systems and has strong manufacturing capability and capacity."

General Hydrogen and Cellex Power are Ballard customers, purchasing Ballard's fuel cell stacks for their fuel cell products.

PlugPower offers fuel cell solutions for telecommunications applications. It is currently integrating fuel cell technology into backup power products for telecommunications companies. Telecommunications backup and materials handling applications are central to the company's revenue growth strategy.