The Vancouver company Ballard Generation Systems has signed a memorandum of understanding with GEC Alsthom under which the European company will invest $39 million to acquire a 21.4 per cent stake in the Canadian company. The investment will take the form of $21 million in cash and $18 million in manufacturing technology and expertise.

As a result of the investment, Ballard will establish a production facility in Canada for the manufacture of 250 kW fuel cell stationary power plants. The two companies will also jointly invest $37 million to form a new company to manufacture and sell fuel cell power plants in Europe.

Ballard Generation Systems was formed as a venture between Ballard Power Systems and the US company GPU International in December 1996. The Canadian company has developed its 250 kW fuel cell with support from Technology Partnerships, Canada.