Government of Canada Supports Development of Alternative Energy Project

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North Cape, Prince Edward Island | April 22, 2005

The Honourable Joe McGuire, Minister of the Atlantic Canada Opportunities Agency, on behalf of the Honourable David L. Emerson, Minister of Industry, today announced a $5.1-million contribution to support the development of the Prince Edward Island Wind-Hydrogen Village Project. This Hydrogen Early Adopters (h2EA) program contribution is part of a $10.3-million project undertaken by Hydrogenics Corporation and Prince Edward Island Energy Corporation to demonstrate energy solutions and economic growth opportunities for local communities.

"Canada is aligning its environmental policymaking with economic andmarket realities to protect our environment and promote the development ofgreen technologies by Canadian firms," said Minister Emerson. "ThePrince Edward Island Wind-Hydrogen Village Project is exactly the type ofinnovative project that will help create the healthy environment and vibranteconomy that Canadians want, now and into the future."

"This contribution illustrates the Government of Canada’scommitment to green energy," said Minister McGuire. "By partneringwith industry, we are helping to position Atlantic Canada as a leader inspecific hydrogen solutions and demonstrating the principles of sustainabledevelopment."

Based at the western tip of Prince Edward Island, between Seacow Pond andNorth Cape, the project will use wind energy as the primary energy source andproduce hydrogen to provide backup and primary electricity for industrial,farm and household needs, as well as hydrogen fuel for transportationsolutions. A range of engine technologies will be showcased, including fuelcells, purpose-built hydrogen internal combustion engines and retrofittedinternal combustion engines.

"Promoting and demonstrating wind and hydrogen technology is a keycomponent of our government’s Renewable Energy Strategy," saidPrince Edward Island Premier Pat Binns. "We believe hydrogen technologywill soon be an important part of the economy and we are pleased to be apartner in this groundbreaking project."

"Prince Edward Island’s size and wind resources provide adistinct advantage for this project. It provides an ideal microcosm model ofthe hydrogen economy," said Pierre Rivard, President and Chief ExecutiveOfficer of Hydrogenics Corporation. "We are excited to participate inthis dynamic project, which has significant potential to advance thecommercialization of hydrogen and fuel cell technologies in Canada, and todemonstrate its capacity to be an important element in a truly clean andsustainable energy system."

Phase One of the project includes the installation of a hydrogen energystation, a hydrogen storage depot, and a wind-hydrogen and wind-dieselintegrated control system to power a number of homes and buildings withinNorth Cape. The next phase is expected to include the expansion of thewind-hydrogen village to allow for a farm operation, and hydrogentransportation solutions, such as shuttle buses and fuel-cell utilityvehicles. The final phase of the project will involve the introduction of ahydrogen-powered tour boat. The boat will be retrofitted with an engine thathas the ability to run on pure hydrogen, but with a diesel fall-back system.

The prospective solutions will meet the needs of the local community andbe easily replicable in other locations elsewhere in Canada. The project willdevelop the Canadian hydrogen supply chain as well as marketable knowledge,services and electronic applications, tested and proven in real-lifesituations, and showcased to the world.

The Technology Partnerships Canada h2EA program encourages Canadianindustries to take the lead in demonstrating existing technologies inreal-world applications, thus accelerating the market acceptance of hydrogenand hydrogen-compatible technologies with broad environmental, economic andsocial benefits for all Canadians.

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