COPYRIGHT © 2010 BALLARD POWER SYSTEMS INC. ALL RIGHTS RESERVED

B A L L A R D P O W E R S Y S T E M S

A CLEAN ENERGY GROWTH COMPANY TSX: BLD NASDAQ: BLDP

October 2010

Utilizing Renewable Energy Resources for

Distributed Power

Larry StapletonVice-President, Sales

October 2010

1. About Ballard

2. Fuel Cells and Clean Power

3. Market Development Progress

4. Fuel Cells at work in Distributed Energy

5. Summary

Contents

October 2010

About Ballard

CLEAN ENERGY FUEL CELL PRODUCTS…

OUR COMPANY

• Approximately 335 employees

• World-leading R&D & manufacturing facilities

• Locations in Vancouver, Canada (HQ) & Lowell, MA

OUR BUSINESS

• Design, manufacture, sale & service of hydrogen fuel cell products

OUR CUSTOMERS

• System integrators and OEM’s addressing end-user needs: materials handling, telecom backup power, residential cogeneration, and transit buses

OUR FOUNDATION

• Technology Leadership – 350+ Patents and patent applications

• Production Expertise – Shipped over 100MW fuel Cell Products

• Expanding Go-to-Market Capabilities – Powered over 1,000 stationary installations and over 200 heavy and light duty vehicles

October 2010

Fuel Cells and Clean Power

Clean energy market growth will reflect a mix of energy technologies

Clean Energy Mix

Bio-energy

Solar

Fuel cellPEM, SOFC,

PAFC…

Wind

As product costs continue to decline, fuel cells will play key roles in the clean energy

space

P A G E 1

October 2010

Ballard leverages leadership in PEM across multiple markets…

Compact & scalable

Fuel flexibility

Efficient, reliable and safe

P A G E 2

Fast start-up and low temperature

Rapid response to changes in power demand

Durable across wide variety of duty cycles

PEM Fuel Cells

1kW 100kW 1MW 10MW10kW

Tem

pera

ture Hig

h6

00

°C-1

20

0°C

Low

60°C

-120

°C

PEMFC

SOFC

MCFC (Fuel Cell Energy)

PAFC (United Technologies)A

pplic

ati

ons

Incre

asin

g h

eat

manag

em

ent

req

uire

ments

October 2010

Ballard leadership in PEM fuel cells is based on -

Portfolio of proven commercial solutions Fuel cell stacks, power modules and systems

Strong delivery capabilities Access to over 2,000 patents and licenses

High volume manufacturing facility

SI & channel partnerships

100MW+ of fuel cell products shipped

Developing a global customer base -

Ballard: Putting Fuel Cells to Work

Backup PowerSupplemental

PowermCHP

Distributed Generation

BusMaterial Handling

System Integrators/OEMs

Downstream Customers

October 2010

Backup & Supplemental Power

Initial focus on telecom

Addressable market: ~$1B+

Compelling value proposition

Channel access primarily through system integrators

P A G E 5

z

Recent Progress - Dantherm Power acquisition to accelerate

backup power market development Deployment of Dantherm Power systems in

Wind Mobile network IdaTech sale of 100+ systems to Hutchinson

Telecom in Indonesia FuelWorksTM established to advance fuel

processing technology

October 2010

Exclusive stack supplier to Plug Power….clear market leader

Addressable market –

Plug Power indicates ~380,000 trucks of an installed base of 1.7M trucks in N/America (market potential >$1.5B)

Focus –

Battery replacement in N/American high-volume distribution centers & manufacturing facilities

P A G E 7

Material Handling

Recent Progress – Extension of supply agreement with Plug Power through 2014, with

mutual exclusivity for North America Plug Power sales to Walmart, Sysco, Whole Foods, Coca-Cola Year-to-date shipments are 3x full-year 2009 shipments Plug Power distribution agreement with Raymond Corporation

October 2010

Zero-emission public transit

Government supported programs

Canada, UK, Brazil, Germany, USA, The Netherlands

Channel access through bus OEM’s and system integrators

P A G E 8

Bus

Recent Progress – World’s largest fuel cell bus fleet deployed in Whistler, BC;

~450k km's (~275k miles) accumulated Sales to APTS in The Netherlands and SunLine Transit Agency

October 2010

Distributed Generation

Addressable market: ~$3B+ (based on ~1,000 MW of by-product hydrogen…ie. sufficient to power ~800k-1M homes for a year)

Focus on chemical plants (where there is by-product hydrogen available and a feed-in tariff program in-place)

P A G E 6

Recent Progress – Completion of 1 MW factory acceptance test of a DG

system for FirstEnergy First by-product hydrogen powered fuel cell generator in

California

October 2010

Why Fuel Cells? Matrix of Applications

* Comparative cost of energy on a $USD/MWh basis, that takes into account the installed system price and associated costs such as financing, land, insurance, transmission,

operation and maintenance, and depreciation, among other expenses.

October 2010

Solution for Distributed Generation

Power Scaleable in 1MW increments

Packaging Self contained ISO container

Fuel efficiency 48%, based on LHV

Availability 95%

Output Heat Load 1400 kW

Lifetime 20 years

SitingSelf-contained power modules,simple integration with plant

Product differentiation: Zero-emission power production

Compact & scalable

Efficient, reliable and safe

Fast start-up and low temperature

Rapid response to changes in power demand

Durable across wide variety of duty cycles

October 2010

Sell clean electricity to utility

Primary Product

Provide electricity to Plant

Operating cost savings / carbon emissions offset

Revenue ($) from Feed-in Tariff

Hydrogen Electricity

By-Product Hydrogen

October 2010

Remote Communities

solar hydro

electrolyser

hydrogen storage

remote community

CLEARgen™

wind

H2

clean energy

electricity

Diesel Generator

October 2010

Demonstration Projects

1MW fuel cell system for peak load management. First large scale reference site

Demonstration Project: 100kW fuel cell system for remote community – Bella Coola HARP Pilot Project

163kW fuel cell system to use by-product hydrogen at K2 Pure Solutions bleach production plant in California

October 2010

Summary

Positive environmental impact of fuel cells

Reduced GHG emissions by 31,000-to-116,000 tonnes through 2025

Smart Grid roll-out will be supported by fuel cell-based distributed generation deployments

Unreliable power grids will be augmented by fuel cell supplemental power solutions

Hydrogen + fuel cells …. key contributor to the future clean energy landscape

COPYRIGHT © 2010 BALLARD POWER SYSTEMS INC. ALL RIGHTS RESERVED

B A L L A R D P O W E R S Y S T E M S

A CLEAN ENERGY GROWTH COMPANY TSX: BLD NASDAQ: BLDP

Thank you!

Utilizing Renewable Energy Resources for

Distributed Power

October 2010