South Africa Unites with Ballard Power and Amplat in Fuel Cell Development

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--At a time when South Africa's platinum mining industry is experiencing a rough passage through violent labor union disputes and a slackening in world demand, it was good news when the government announced that it would support the development of the country's fuel cell industry.

The drive to improve on the uses of platinum by beneficiation (adding value) will see the government, Ballard Power Systems (NASDAQ:BLDP) (Burnaby, British Columbia) and Anglo American Platinum (OTC:AGPPY) (Amplat) (Johannesburg, South Africa) partner in the project.

Field trials for a new, methanol-fuelled home generator prototype product designed for use in off-grid residential applications will take place in 2014. Plans then call for a pilot test of more than 200 units in villages across rural South Africa in 2015.

Speaking at the "Hydrogen + Fuel Cells 2013" international conference and exhibition in Vancouver, South Africa's Deputy Minister of Mineral Resources said that this type of project is key in the development of new technologies, which would stimulate job creation in South Africa.

"South Africa has over 75% of the world's platinum resource, which is a key component of Ballard's proton exchange membrane fuel cell products," Ballard said. "Platinum-based fuel cells provided a significant economic and environmental development opportunity by facilitating the provision of clean, reliable and cost-effective power."

The generator comprises a fuel cell system, including a fuel cell stack, methanol fuel processor and other components needed to meet the requirements of rural electrification within in a local mini-grid. It will serve the needs of remote communities, which are presently unable to access a cheap and secure electricity supply.

Karim Kassam, Ballard's vice president of business and corporate development, said that work to-date has included a market feasibility study, testing of a proof-of-concept system, based on existing technology, and the initial work on a prototype system.

Andrew Hinkly, Amplat's marketing head, said that his company's involvement in fuel cell market extended beyond the implications for platinum utilization, to the potential transformational impact fuel cells could have on the economy in South Africa.

Recent market research reports agree that global fuel cell shipments will grow at a compound annual growth rate (CAGR) of 20% in the near term.

For related information, see October 22, 2012, article - World's Largest Fuel Cell Power Park to Be Built in South Korea.

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