MISSISSAUGA, Ontario, Jan 12, 2006 -- BUSINESS WIRE

Hydrogenics Corporation (TSX:HYG)(NASDAQ:HYGS), announced today that the company was awarded a contract by Basin Electric Power Cooperative, Bismarck, N.D., to supply an electrolyzer-based hydrogen refuelling station for installation in Minot, N.D. In addition to the core electrolyzer module, Hydrogenics is supplying compression, storage and dispenser equipment as part of the contract. The station is one of the first United States-based hydrogen fueling stations to use electricity from a wind power resource to produce hydrogen from water, in this case using electricity generated by wind resources either owned or contracted by Basin Electric.

The hydrogen produced will be used to refuel hydrogen-powered vehicles, demonstrating a linkage between wind power and vehicle refueling. Recognizing the challenge presented by the intermittency and varying outputs of wind power, an important element of the project is the development of various control schemes by which the electrolyzer can interface with the electrical output of wind turbines to optimize fuel production, particularly during low electricity demand periods. The project will demonstrate the ability and practicality of making and using hydrogen energy with zero carbon emissions, using excess wind power that might otherwise be under-utilized. This capability can potentially lead to significantly enhanced overall efficiencies of existing and future wind power installations.

The installation of this electrolyzer fueling station at North Dakota State University's North Central Research Extension Center, scheduled for the latter part of 2006, is an integral component of a Department of Energy (DOE) sponsored Wind Hydrogen project announced by Senator Byron Dorgan's office in September 2004. The Senator, a national leader in the drive to bring hydrogen and wind energy into mainstream use, has been instrumental in the creation and advancement of this unique multi-phase project.

"This is Hydrogenics' third undertaking to show how hydrogen technologies can add significant value and benefits to investments that people are making today in wind power in many parts of the world," comments Pierre Rivard, Hydrogenics President and Chief Executive Officer. "While Hydrogenics has the depth and versatility to make hydrogen using different technologies and feedstocks, the generation of totally clean, sustainable and cost-effective hydrogen is where we believe the greatest potential exists for growth in hydrogen infrastructure. Securing opportunities, such as this one with a wind energy leader like Basin Electric, in the home state of Senator Dorgan - hydrogen's most recognized political proponent in the United States - is a significant win for our company to validate our technology and bring us closer to this end game."

"Promoting and demonstrating how hydrogen technologies can further enhance our wind energy goals is a key component of North Dakota's ongoing energy strategy," said Ron Rebenitsch, Basin Electric Manager of Member Marketing. "We believe hydrogen technology can become an important part of our future energy mix, and we are pleased to be playing a role in this ground-breaking project. Through this project we are advancing North Dakota's reputation for developing renewable energy technologies and contributing to a national objective to reduce reliance on imported fossil fuels."

The hydrogen electrolyzer will be constructed at the Research Extension Center with the support of Verendrye Electric, Velva, N.D., and Central Power Electric Cooperative, Minot.

About Hydrogenics

Hydrogenics Corporation (www.hydrogenics.com) is a leading global developer of clean energy solutions, advancing the Hydrogen Economy by commercializing hydrogen and fuel cell products. The company has a portfolio of products and capabilities serving the hydrogen and energy markets of today and tomorrow. Hydrogenics, based in Mississauga, Ontario, Canada, has operations in North America, Europe and Asia.

About Basin Electric Power Cooperative

Basin Electric is a consumer-owned, regional cooperative headquartered in Bismarck. It generates and transmits electricity to member rural electric systems in nine states: Colorado, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, South Dakota and Wyoming. These member systems distribute electricity to about 1.8 million consumers.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Law of 1995. These statements are based on management's current expectations and actual results may differ from these forward-looking statements due to numerous factors, including changes in the competitive environment adversely affecting the products, markets, revenues or margins of Hydrogenics' business. Readers should not place undue reliance on Hydrogenics' forward-looking statements. Investors are encouraged to review the section captioned "Risk Factors" in Hydrogenics' regulatory filings with the Canadian securities regulatory authorities and the United States Securities and Exchange Commission for a more complete discussion of factors that could affect Hydrogenics' future performance. Furthermore, the forward-looking statements contained herein are made as of the date of this release, and Hydrogenics undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release. The forward-looking statements contained in this release are expressly qualified by this.

Hydrogenics Corporation (TSX:HYG) (NASDAQ:HYGS)

SOURCE: Hydrogenics Corporation

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