IST to deploy fuel cell systems for one of SA's leading wireless providers

Fuel cell products and services are becoming increasingly significant in the emerging telecommunications sector of the South African economy, evidenced by a successful field trial and follow-on orders from a leading South African wireless provider.

Plug Power's GenCore is expected to become an important component in the expansion of telecommunications services and utility infrastructure throughout South Africa, observes an official with local company IST Holdings (Pty) Ltd (IST), Plug Power's South African distribution partner.

"We are seeing accelerating demand for the GenCore product from one of the nation's leading wireless providers, following the successful trial that completed in the first half of 2006," said Magatho Mello, Managing Director of the Telecom Division of IST Holdings.

During the six-month field trial, Plug Power's GenCore fuel cell responded to 121 power failures at a wireless base station, providing more than 100 total hours of backup power.

As a result of the successful trial, IST has received follow-on orders for additional GenCore units and expects to install systems at more than 25 cell site locations.

This trial and the resulting purchase orders not only demonstrate the viability of GenCore in the telecom market, but also underscore the current reliability challenges in South Africa, where mobile telecommunications is still growing.

"These orders are indicative of the remarkable success we've achieved thus far with IST in South Africa," said Greg Silvestri, Plug Power's President. "Last year we combined the strengths of Plug Power's product offering and market-hardened support capability with IST's deep technical and market experience to win the only award granted to date by the International Finance Corporation for fuel cell technology. Together, Plug Power and IST have met aggressive expectations and established clear leadership in the South African market."

Progress is also being made in South Africa's utility market through an ongoing field trial with a leading power utility in Sub-Saharan Africa to evaluate the application of GenCore units within its telecom, distribution and transmission divisions. Increased demand for reliable power throughout South Africa has prompted the construction of additional power-generating capacity and simultaneous upgrade of existing infrastructure, both of which can benefit from the uninterruptible power supply (UPS) capabilities provided by Plug Power's GenCore fuel cell.

Mello also noted promising interest in other UPS applications of the GenCore product, including "inquiries and activities such as backing up critical areas of hospitals".

In December 2005, the International Finance Corporation (IFC), the private sector arm of the World Bank Group, awarded a $3 million grant to IST and Plug Power to install 400 fuel cells in remote locations and cities throughout South Africa over a three-year period. IST operates throughout Africa's southern countries and sees the supply of fuel cells in South Africa under the IFC programme as a logical step toward introducing fuel cells and other renewable energy projects across the African continent.