Hydrogenics has just closed a deal with American Power Conversion for a sale of up to 500 fuel cell modules for integration into APC's InfraStruXure architecture, which is used as a backup power generator.

Hydrogenics had developed a niche, some would say a monopoly, in testing, control and diagnostic equipment to the world's fuel cell industry. This has no doubt given them enormous insight into what works and what doesn't. And perhaps this is now starting to translate into their own fuel cell production business . . . no question, they are pleased about the order. Here's a quote from the CEO, taken from the full press release on their website below.

"This is a tremendous opportunity for Hydrogenics to continue our development of a commercial fuel cell product for an identified high potential market that can start reaping cost-effective benefits today," said Pierre Rivard, President and Chief Executive Officer of Hydrogenics. "Securing this largest single order to date for fuel cell units is a great show of confidence from a world leading NCPI systems provider- not only in Hydrogenics' products and expertise, but in the first-mover opportunity that fuel cell technology provides. The order was achieved in part by setting a new industry benchmark for volume production, enabling significant cost reductions that can be passed to the customer. Here is proof that the fuel cell industry has made real progress in getting to a pricing structure that offers commercial potential for substantial and growing markets."

Buoyed by the news, Hydrogenics closed up over 4% today at 1.71.