Plug Power buys General Hydrogen

Combined with its acquisition of Cellex Power last month, Plug Power is positioned to accelerate development of hydrogen fuel cells for lift trucks.

By Staff -- Modern Materials Handling, 5/8/2007

Even before hydrogen becomes an established power source for lift trucks, consolidation of hydrogen fuel cell suppliers is underway.

Plug Power Inc. announced yesterday the acquisition of General Hydrogen Corp. for $10 million. Just three weeks ago, Plug Power announced it was buying Cellex Power Products, another supplier of hydrogen fuel cells for lift trucks, for $45 million.

The two British Columbia-based acquisitions will be integrated into one operation managed by Chris Reid, Cellex Power’s current president.

“We expect to realize significant technology and operational synergies as we pursue high-value applications in the material handing market,” says Dr. Roger Saillant, Plug Power’s president and CEO. “Further, we anticipate that higher volume commercial product manufacturing activities will be established in Plug Power’s Latham, N.Y., facility.”

General Hydrogen has focused on larger Class 1 sit-down lift trucks while Cellex has focused on Class 3 rider pallet trucks. Both companies are also developing fuel cells for Class 2 stand-up reach trucks.

“Given Plug Power’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 lift trucks,” says Saillant.

Fuel cell power units have the potential to increase productivity and reduce operating costs by eliminating the use of batteries on lift trucks. In addition, hydrogen is an alternative to the environmental and safety issues traditionally associated with lead-acid batteries.