Ballard Power Systems (
TSX: BLD,
Stock Forum) continued its expansion into clean energy transit markets when the company announced today that it had entered into a definitive license and supply agreement with each of Nantong Zehe Energy Technology Co. and Guangdong Synergy Hydrogen Power Technology Co. to provide fuel cell power products and technology solutions to assist in the development of an initial 33 fuel cell-powered buses in two Chinese cities.
According to the
news release, the company stated that the deal is worth approximately $10.0 million, the majority of which is expected to be realized in 2015.
The company is teaming with Zehe and electric bus manufacturer Jiangsu GreenWheel New Energy Electric Vehicle Co. in the city of Rugao in Jiangsu province while the company and Synergy will be working with electric bus manufacturer Foshan Feichi Automobile Manufacturing Co. in the city of Yunfu in Guangdong province.
Municipal governments in both Rugao and Yunfu expect to have fuel cell bus fleets in operation by 2016.
The deal was formalized at a signing held in Beijing with a host of dignitaries attending which included Guy Saint-Jacques, Canada’s Ambassador to China.
Ballard President and CEO, Randy MacEwen, commented at the ceremony, “We continue to see strong growth opportunities in China's mass transit market where fuel cells are increasingly being discussed as the next generation of clean propulsion. This demand is being driven by China's growing need for clean urban mass transit and air quality policies.”
The company had an initial order to supply FCVelocity®-HD7 power modules for 8 buses announced in April. This initial order has now become part of the new deal with Zehe.
Mr. Ma Jin Hua, Member of Rugao Municipal Standing Committee of C.P.C and Vice Secretary of Party Committtee of RETDZ stated, “It is important that we deal with experienced, market-leading companies in order to ensure successful delivery with the most advanced technology. This is one reason that Ballard Power Systems is the right choice for a program of such importance.”
Mr. Xu Guo, Member of Foshan / Yunfu Municipal Standing Committee of C.P.C and Vice Mayor of Foshan / Yunfu City added, “We are very pleased to be moving forward with this key initiative, in support of our government's new energy program. Zero-emission fuel cell modules will form a critical element in our future bus deployments, contributing to a cleaner environment for Chinese citizens.”
Ballard Power Systems was in the news recently when
the Burnaby, British Columbia-based company announced four days ago that it was to operate and support a zero-emission bus fleet in London, UK for an additional five years.
Shares climbed 8.78% on the news to $2.85 per share.
Currently there are 132.6m outstanding shares with a market cap of $377.8 million.