| Ballard Power Gets Order from China for Fuel Cell Modules - Analyst Blog | |
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Fuel cell maker, Ballard Power Systems Inc. BLDP announced that it has received an order from a Chinese customer for supplying its next-generation FCvelocityTM-HD7 power modules for eight buses. Ballard Power expects to complete shipping by this year. These buses will be deployed in various cities in China.
Prospects in China
Ballard Power management identifies huge opportunities in China given rising demand for clean energy mass transportation alternatives in the nation.
Deteriorating air quality standards have compelled the country to adopt stringent measures to curb pollution. The Chinese government is investing heavily in renewable energy products and redirecting its emphasis to clean energy.
China launched the world’s first hydrogen fueled street car earlier this month. Through a program launched in 2011, the Chinese government targets to deploy more than 1,000 clean energy buses in each of its participating cities. Fuel cell buses will qualify for a subsidy of about $150,000 through 2017. Moreover, hydrogen fueling stations are also eligible for an additional subsidy of $650,000.
Though the application of fuel cell technology is yet to pick up in public transport, rising prospects in China will open new avenues for growth for fuel cell makers like Ballard Power, FuelCell Energy Inc. FCEL and Plug Power Inc. PLUG.
Other Contracts
In Feb 2015, Ballard Power had signed a couple of contracts to share its expertise on proton exchange membrane (PEM). While one of the contracts was with Ardica Technologies, the other was an unnamed global automotive OEM.
Per the Ardica deal, Ballard Power will share its expertise and advance programs through the development stages. Ballard Power will help Ardica develop a wearable fuel cell power system to be used by soldiers.
The company also finalized a deal first announced on Feb 11 with Volkswagen Group for $80 million for the transfer of certain automotive-related fuel cell intellectual property (read: Ballard Power Signs 2 Contracts to Spread Fuel Cell Knowhow).
Ballard Power currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the same industry is Kyocera Corp. KYO carrying a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KYOCERA CP ADR (KYO): Free Stock Analysis Report BALLARD PWR SYS (BLDP): Free Stock Analysis Report PLUG POWER INC (PLUG): Free Stock Analysis Report FUELCELL ENERGY (FCEL): Free Stock Analysis Report To read this article on Zacks.com click here.
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