Ballard Power Systems Inc. (USA) (NASDAQ: BLDP) had good news for its shareholders Tuesday, after the company reported winning an $18-million follow-on order with Broad-Ocean to support deployment of 400 buses and trucks in China.
Monday’s announcement of the transaction said it was part of an ongoing program with Broad-Ocean to implement Ballard's leading fuel cell technology in support of China's ambitious plan to address environmental concerns and advance the adoption of zero-emission vehicles.
The company says the complementary addition of fuel cell systems effectively addresses the limitations of stand-alone battery solutions in certain use cases, resulting in growing demand for zero-emission and efficient propulsion systems that provide bus, truck and commercial vehicles with the traditional range and refueling times provided by legacy diesel solutions.
The news, together with an $11-million transaction announced in April, is a strong sign that Ballard is planning to support Broad-Ocean through the deployment of 600 fuel cell engines having a value of $29 million, with substantial deliveries expected to be made this year.
Ballard CEO Randy MacEwen commented, “today's announcement adds further momentum to our strategy in China's new energy transportation market. This deal provides another critical validation of the rapidly emerging market opportunity in China for the adoption of fuel cell technology to help solve environmental challenges, including air quality.”
Ballard boasts clean energy products that it says reduce customer costs and risks, and helps customers solve difficult technical and business challenges in their fuel cell programs.
The news was easy on the eyes and ears of traders, who boosted the stock price 14 cents, or 5.2%, late Tuesday to $2.84.
