Ballard sells manufacturing rights for fuel cell engines to Chinese firm for $25M
Ballard Power Systems, a Vancouver-based fuel cell engine provider, has sold production of its modules to Broad-Ocean, a motor manufacturer based in Zhongshan, China
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VANCOUVER—Ballard Power Systems announced Feb. 16 that it has signed a definitive agreement with Zhongshan Broad-Ocean Motor Co., Ltd. for the assembly and sale of FCvelocity 30-kilowatt (kW) and 85kW fuel cell engines in China.
Under the deal, Broad-Ocean will manufacture fuel cell modules in three regions in China, including Shanghai.
The deal has an estimated value of approximately $25 million in revenue to Ballard over the initial 5-year term, and is expected to close by the second quarter of 2017.
Ballard will initially provide Broad-Ocean, a manufacturer based in Zhongshan, with the fuel cell stacks to assemble these engines. These stacks will be manufactured at Ballard’s Vancouver facility until late-2017, when a fuel stack manufacturing facility will become operational in the Chinese city of Yunfu.
Ballard will have the exclusive right to purchase fuel cell engines from any of the Broad-Ocean manufacturing operations for sale outside China.
Ballard also plans to approach local governments and Chinese bus manufacturers to find partners for their fuel cell technology.
“Converging macro trends in China, including large-scale urbanization, continued build-out of mass urban transportation, degrading air quality and a mandate to address climate change, together present an historic opportunity for zero-emission fuel cell solutions in the world’s largest mobility market,” said Randy MacEwen, Ballard president and CEO.
“Hydrogen fuel cells are entering an exciting new growth phase in China and we intend to be at the forefront,” said Charles Lu, founder and chairman of Broad-Ocean.