TORONTO (CP) - Ballard Power Systems is starting commercial production Friday of emission-free fuel cells designed to power anything from home offices to lawn mowers in what it calls a "historic" move forward for alternative energy applications.

Analysts, meanwhile, say the release of Nexa's specifications show evidence that wide commercial revenues for Ballard are just around the corner. Until now, the company's sales have mostly come from fuel cell prototypes distributed to companies internationally, including to car and bus makers looking for cleaner running engines.

Investors also applauded the news, sending shares of Vancouver-based Ballard (TSE: BLD) shares up $2.58 to close at $30.98 on the Toronto Stock Exchange.

"That's a piece of the puzzle that's missing here," Morrow said. "In terms of operating efficiency, certainly it's efficient. But what is missing at this point is what's the product going to cost?"

Ballard won't reveal the price or initial production volume of the Nexa fuel cell, which will provide power as long as it is supplied fuel.

"As you can imagine with any new technology, the initial pricing would probably be a little bit higher than the conventional technology," said John Harris, Ballard's vice-president of marketing. "We expect that as volumes grow over the future those prices will come down significantly."

"I suspect that at this early stage (Ballard is) going to be focusing on the higher-end consumer," Pencak said.

Coleman - which has yet to announce a launch date - says the generators will be ideal for homes, camping and other applications that otherwise would use a conventional generator.

The fuel cells are intended to be used as an extended backup or intermittent electrical power source that will run as long as it is refuelled with hydrogen.

Also, as opposed to a power source that uses an internal combustion engine, products with the Nexa fuel cells can be used indoors since they're powered by hydrogen and are free of toxic emissions - unlike gas-powered generators.

Harris said recent Ballard tests had the 1.2-kilowatt generators powering a desktop computer, monitor, printer, fax, stereo system and desktop lamp. He added that they can be easily stored under a desk or in a closet.