Hydrogenics teams with Enbridge to tackle energy storageApril 25, 2012
Both companies to develop utility scale energy storage system
Hydrogenics Corp., a developer of hydrogen fuel cells, has announced that it has partnered with Enbridge Inc., a company specializing in alternative energy systems. Through the partnership, the two companies will work to establish a new utility scale energy storage system for North America. Clean energy storage is becoming more important as alternative energy begins to attract more interest from consumers, companies, and governments. Traditional storage methods are neither sufficient nor efficient enough to meet the demands presented by new forms of energy. As such, new technologies must be created in order to bolster what is often called the “smart grid.”
Collaboration could help solve some of the problems with energy storage
The collaboration will focus on developing a utility scale energy storage system in Ontario, Canada. This system will serve as a benchmark for future endeavors throughout Canada and the U.S. The partnership will combine Hydrogencis’ expertise in water electrolysis and Enbridge’s knowledge of alternative energy systems to create efficient storage technologies that will be ready for the widespread adoption of alternative energy that is expected to take place within the next few years.
Storage remains a serious issue for alternative energy
Storage has long been an issue keeping alternative energies, such as hydrogen and solar energy, away from rampant commercialization. Alternative energy may not be able to compete with traditional fossil-fuels without efficient storage because a great deal of energy could be lost in the storage process. Hydrogen fuel, in particular, has been subject to criticism for the lack of efficient storage technologies that exist to work with fuel cells. Hydrogenics believes that its partnership with Enbridge will help solve some of these problems and put alternative energy on track toward widespread acceptance.
Efforts could expand to the U.S. if Canadian projects prove successful
As part of the agreement, Enbridge has purchased more than 1 million common shares from Hydrogenics for $5 million. Part of this money will go towards the projects the two companies will be establishing in Canada. Depending on the success of these projects, both companies may decide to expand tests to the U.S., where alternative energy is beginning to gain a great deal of popularity.