Fuel cell developers Ballard Power Systems have signed a Memorandum of Understanding (MOU) with Japanese partner Ebara Corp and their jointly-owned company, Ebara Ballard Corp to provide approximately $30 million in funding for the next generation of cogeneration fuel cell stack and system technology.

Ballard will receive $18 million over the next 4 years for the ongoing development of the current and next generation 1 kW combined heat and power cogeneration fuel cell stack.

Ballard will also receive an equity investment from Ebara of $11.7 million in two payments, one at closing and the other in 2006. Ebara Ballard, meanwhile, will gain rights to sell such systems in Japan through an exclusive, royalty-bearing licence.