Stuart Energy and CKI Sign Letter of Intent

October 29, 2001 by Jeff Shepard

Stuart Energy Systems Corp. (Toronto, Canada) announced that it has signed a letter of intent with Cheung Kong Infrastructure Holdings Ltd. (CKI, Hong Kong), which is a major shareholder of Stuart Energy. With this letter of intent, Stuart Energy aims to pursue and penetrate the market for medium-to-large scale hydrogen back-up power solutions in the Asia-Pacific market. Subject to Stuart Energy achieving certain milestones, the letter of intent contemplates minimum purchase orders for 2,750 H(2)BPS by March 31, 2004, representing an estimated CDN$600.0 million in revenue over the term of the seven-year project.

Stuart Energy's H(2)BPS is intended to replace diesel-powered systems for existing and newly constructed buildings in the Asia-Pacific market. Stuart Energy will be the systems integrator for this project, bringing together the company's commercial hydrogen technology with commercially available storage and proven internal combustion engine technology. Emerging fuel cell technology will be incorporated into the solutions as it becomes commercially viable.

"We are excited by this significant opportunity and by having CKI as our strategic partner in bringing the hydrogen economy to the Asia-Pacific region. This is an extraordinary business opportunity for Stuart Energy, one that positions us as leaders in the hydrogen solutions race," said Jon Slangerup, president and CEO of Stuart Energy Systems. "With the signing of this letter of intent, we are well positioned in the back-up power market. Once installed, our solutions will represent the beginning of a hydrogen infrastructure, which should accelerate the commercialization of hydrogen-based technologies."