Agreement hands off Chinese rights to Ballard's FCgen-H2PM fuel cell backup power systems
VANCOUVER—Canadian fuel cell company Ballard Power Systems has signed a technology agreement with Guangdong Nation Synergy Hydrogen Power Technology Co. (Synergy) that will grant the Chinese company the exclusive rights to build and market the company’s FCgen-H2PM fuel cell backup power systems in China.
Worth $2.5 million upfront, Synergy will pay Ballard for each unit sold, exempting an annual minimum, as well as source the air-cooled fuel cell stacks in each unit to Ballard.
Based in Guangdong Province, Synergy plans to sell the 1.7 and 5 kilowatt backup power systems to Chinese telecommunications companies to power critical infrastructure.
The deal follows the Canadian cleantech company’s sale of its methanol-based backup power business to Taiwan’s Chung-Hsin Electric & Machinery Manufacturing Corp. in May for as much as $6.1 million.
“In parallel to the recent sale of our methanol-based backup power business to CHEM, we identified an opportunity to surface additional value on our direct hydrogen-based backup power system designs,” Randy MacEwen, the company’s president and CEO said. “The transaction announced today provides a strong foundation for future sales by Synergy of direct hydrogen backup power systems in China using Ballard’s leading system design and fuel cell stacks.”
Ballard said it will continue selling the FCgen-H2PM systems in the European market.