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April 22, 2005
For immediate release

Hydrogenics and PEI Energy Corporation Partner to Develop Prince Edward Island Wind-hydrogen Village Project

Environment, Energy & Forestry

Prince Edward Island Premier Pat Binns and Randall MacEwen, Vice President, Corporate Development of Hydrogenics Corporation (Nasdaq: HYGS; TSX: HYG), announced today that Hydrogenics and Prince Edward Island Energy Corporation will lead a consortium of industry and government partners to develop Canada’s first wind-hydrogen village demonstration - the Prince Edward Island (PEI) Wind-Hydrogen Village Project. This multi-faceted initiative will demonstrate, in real-life and in real-time, how wind energy and hydrogen technologies can work together to offer clean and sustainable energy solutions across a wide range of applications.

As announced in an Industry Canada release today, the $10.3-million project is receiving an investment of $5.1 million through the Hydrogen Early Adopters (h2EA) program of Technology Partnerships Canada. The Government of Prince Edward Island will invest $2.9 million in the three-year project. This includes $2.5 million in earnings from the North Cape Wind Farm and $425,000 from Prince Edward Island Business Development.

Hydrogenics’ reputation as a leader in the development of hydrogen technologies, and the Province’s national leadership in developing wind energy facilities, provide a strong foundation on which to build a wind-hydrogen village in Prince Edward Island. The home of the Atlantic Wind Test Site (AWTS), Canada’s only national wind test site, PEI now draws more than five per cent of its electricity from wind energy at North Cape, which is the site of today’s announcement and the primary site of the project.

“Promoting and demonstrating wind and hydrogen technologies is a key component of our Government’s Renewable Energy Strategy,” said Prince Edward Island Premier Pat Binns. “We believe hydrogen technology will become an important part of the economy, and we are pleased to be a partner in this ground-breaking project. The Prince Edward Island Wind-Hydrogen Village will advance PEI’s reputation as a centre for research and development of renewable energy technologies and contribute to our objective to reduce the province’ s reliance on imported fossil fuels, achieve a measure of energy self-sufficiency, and protect our environment for future generations.”

Noting that the company’s reputation as a world leader in the development of hydrogen technologies is unparalleled, Premier Binns added that he is pleased to have Hydrogenics Corporation serve as project manager for the Prince Edward Island Wind-Hydrogen Village.

“We are excited to be involved in this landmark project with an excellent roster of partners, both private and public,” commented Randall MacEwen, Vice President of Hydrogenics Corporation. “With our diverse portfolio of hydrogen and fuel cell products and expertise, we believe we can bring the kind of comprehensive leadership to this project that will ensure its success. The PEI Government continues to demonstrate vision and leadership toward lessening PEI’s dependence on imported power through the deployment of clean wind technologies. This next logical step - marrying up wind with hydrogen as a means of storing energy - has real potential to further reduce dependence on imported power, promote local economic development and promote environmental sustainability. PEI’s strong wind regime, geographic size, political will, skilled work force and committed academic community make PEI a perfect location to demonstrate and deploy wind-hydrogen technologies. We believe this initiative will position PEI to become a model for future wind-hydrogen deployments globally, particularly for island and off-grid communities.”

Over the course of the three years, the Prince Edward Island (PEI) Wind-Hydrogen Village Project will demonstrate solutions for a range of energy applications, including the installation of a hydrogen energy station, a hydrogen storage depot, and a wind-hydrogen and wind-diesel integrated control system to power the North Cape Interpretive Centre Complex, the Atlantic Wind Test Site, as well as other homes and buildings in the North Cape area. Subsequent phases are expected to include a hydrogen refueling station in Charlottetown to support the refuelling needs of up to three full-service hydrogen shuttle buses used in Charlottetown and the Charlottetown-North Cape corridor, as well as the deployment of fuel cell utility vehicles and the expansion of the wind-hydrogen village to provide energy for additional buildings and facilities, including at least one farm operation. The final phase of the project is expected to involve the introduction of a hydrogen-powered tour boat.

Further details on this project and its partners will be released in the coming months.

About Prince Edward Island

Located on Canada’s east coast, Prince Edward Island’s size, excellent wind regime, and strong commitment to renewable energy make the province an ideal location for leading edge energy research and development. The PEI Energy Corporation is a Crown corporation responsible for pursuing and promoting the development of energy systems and the generation, production, transmission and distribution of energy in Prince Edward Island.

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 over 300 employees based in operations in North America, Europe and Asia.

www.gov.pe.ca/go/PEIWind-HydrogenVillage

BACKGROUNDER

PRINCE EDWARD ISLAND WIND-HYDROGEN VILLAGE PROJECT

The History

Prince Edward Island is a national leader in wind energy development. The home of the Atlantic Wind Test Site (AWTS), Canada’s only national wind test site, PEI now draws more than five per cent of its electricity from wind energy at North Cape. In 2003, the Province hosted the PEI Wind-Hydrogen Symposium, bringing together industry leaders to explore the business potential for hydrogen development in PEI. The symposium was the birthplace of the Prince Edward Island Wind-Hydrogen Village Project.

The Project

The Prince Edward Island Wind-Hydrogen Village will demonstrate how wind energy and hydrogen technologies work together to offer clean and sustainable energy solutions in our daily lives. Wind energy will be the primary energy source. The wind turbines at North Cape will be used directly to meet ongoing electricity needs and to provide power to electrolysis equipment which makes hydrogen from water. The hydrogen will then be used in fuel cell systems or hydrogen internal combustion engines to provide backup and primary electricity, as well as transportation fuel, for industrial, farm and household needs.

-Phase One of the project will see the installation of a hydrogen energy station, a hydrogen storage depot, and a wind-hydrogen and wind-diesel integrated control system to power the North Cape Interpretive Centre Complex, the Atlantic Wind Test Site, as well as other homes and office buildings in the North Cape area.

-Phase Two is expected to include up to three full-service hydrogen shuttle buses to be used in Charlottetown and the Charlottetown-North Cape corridor, a hydrogen refuelling station, additional fuel cell utility vehicles, and the expansion of the wind-hydrogen village to provide energy for additional buildings and facilities, including at least one farm operation and the Seacow Pond Wharf.

-Plans for the final phase of the project involve the introduction of a hydrogen-powered tour boat to operate out of Seacow Pond Wharf. The boat will be retrofitted with an engine that has the ability to run on pure hydrogen, with a diesel fall-back system.

The Partners

The project leaders are Hydrogenics Corporation and the Prince Edward Island Energy Corporation. Hydrogenics is a leading global developer of clean energy solutions, advancing the Hydrogen Economy by commercializing hydrogen generation and fuel cell products. The PEI Energy Corporation is a Crown Corporation which owns and operates the North Cape Wind Farm and is involved in the development of other renewable energy initiatives in Prince Edward Island.

Other participants are:

-Atlantic Orient Corporation, a global leader in small wind turbine power systems for remote communities

-Dynetek Corporation, a leader in compressed-gas hydrogen storage systems

-Frontier Power Systems, a PEI-based engineering company which specializes in the design, construction and installation of control systems to enable renewable energy-based technologies to be integrated into conventional electrical systems

-Holland College, the primary technical training institute in Prince Edward Island

-Maritime Electric Company Limited, the primary electrical utility in Prince Edward Island

-Saskatchewan Research Council will provide the engines for the pickup trucks and boats as well as integration expertise, and will assist in technology transfer

-Saint Mary’s University

-University of New Brunswick

-University of Prince Edward Island

-Vestas Canada, the world’s largest wind turbine company

The Financing

Industry Canada has announced that the $10.3-million project will receive an investment of $5.1 million through the Hydrogen Early Adopters (h2EA) program of Technology Partnerships Canada. The other major financial contributor is the Government of Prince Edward Island which will invest $2.5 million in earnings from the North Cape Wind Farm and $425,000 from Prince Edward Island Business Development.

The Benefits

Technological

Until now, hydrogen technologies have generally been evaluated in relatively isolated smaller-scale demonstrations for applications in transportation and short-term backup power supply. The Prince Edward Island Wind-Hydrogen Project will significantly advance the collective technologies needed for the hydrogen economy by demonstrating fully-integrated hydrogen solutions, tested and proven in real life situations and showcased to the world.

Environmental

Hydrogen and related technologies reduce greenhouse gases which contribute to climate change, and offer solutions to air quality problems. When the energy stored in hydrogen is released, the only emission is water. Most of our current greenhouse gases are produced by burning fossil fuels in vehicles. When hydrogen is made by wind and water as it will be in this project, and that hydrogen is used to power vehicles, we will be able to envision how future transportation can be fuelled by the wind, cleanly and sustainably.

Economic

In the short-term, the Prince Edward Island Wind-Hydrogen Village Project will advance PEI’s reputation as a centre for research and development of renewable energy technologies, and present significant economic opportunities in areas such as tourism. In the longer-term, the project will contribute to the province’s objective to reduce reliance on imported fossil fuels and address similar energy security and supply issues in other jurisdictions. The Prince Edward Island Wind-Hydrogen Village Project will demonstrate the potential for a small or remote community to generate both fuel and electricity to supply a whole spectrum of its energy needs.

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Media Contact: Sandra Lambe
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