Ballard Signs $22-Million Fuel-Cell Deal With Ford

Ford Motor Co. and Ballard Power Systems Inc. signed a $22-million contract for Ballard to supply fuel-cell modules to Ford’s Think environmental vehicle division over the next three years.

The deal is the biggest single order for Ballard, based in Vancouver, Canada. Ford and Ballard are longtime partners in developing fuel-cell vehicles and technology.

The auto maker’s Think unit, based in Carlsbad, Calif., previously said it intends to have a limited test fleet of fuel-cell-powered cars on the road in 2004. The new supply deal with Ballard “will enable us to meet that goal,” Think Director John Wallace said.

Fuel cells convert hydrogen to electricity, providing power for electric cars without the necessity of storage batteries and lengthy recharging sessions.

Before retail production of fuel-cell cars becomes feasible, manufacturers must overcome the limited availability of hydrogen and the relatively large size and high cost of the power systems.

Ballard shares rose $1.30 to close at $15.71 on Nasdaq after hitting a 52-week low a day earlier; the stock is off 75% year to date. Ford, like other major auto makers trading at new 52-week lows in the wake of last week’s terrorist attacks, saw its shares fall 94 cents to $15.49 on the New York Stock Exchange.