Do you think fuel cells are the future for meeting our energy needs? Well Ballard Power Systems (NASDAQ: BLDP) does and its the leader in the development of fuel cells for the automobile industry. Ballard is developing fuel cells for cars with Diamler Chrysler and Ford. They're also working with EBARA, a Japanese company, to develop a fuel cell co-generation system for the residential market and working on developing home-generator fuel cells with Coleman.

Ballard's also helping to get fuel cells into bus transport. Its fuel cells are in demonstration bus projects in Europe; Santa Clara, California; Beijing, China; Perth, Australia; and San Paolo, Brazil. In addition, its participating in a research project with the U.S. Federal Transit Administrator. Ballard boosts its systems already on the ground have resulted in over 2 million kilometers of actual transit bus revenue service with the transport of over 6 million passengers.

Fuel cells are energy efficient and clean. When fully developed and economically viable, they could replace the conventional internal combustion engines we are all so familiar with today. Ballard developed fuel cells based on the proton-exchange membrane, which many consider one of the better technology options for vehicles. Even with its successful demonstration projects, the company has many challenges to overcome before it will be profitable. Right now it depends on governmental grants to generate its needed cash flow. If the money from governmental agencies dries up, so will its operating cash.

Trading on the stock closed at $4.53 on December 4. Analysts put it's target at $5.53 in one year. This is a long-term play because the company won't have profits for at least several years and possibly a lot longer. But, if you believe that fuel cells are our energy future, Ballard is one of the companies that's worth betting on.

http://www.ballard.com/About_Ballard/

I think fuel cells are very efficient when compared to other forms of energy. Also these contribute less to pollution compared to others. But commercial viability is the only area of concern where feul cells are lacking. They are expensive when compared to others. May be if fuels cells are used extensively then the price may come down drastically which would lead to the companies manufacturing them to sustain easily and make money.