Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) revealed that it signed a $18 million contract with Zhongshan Broad-Ocean to provide fuel cell engines for the deployment of 400 trucks and buses in China.
Ballard was awarded with $18 million as part of their new contract in exchange for the supply of fuel cell engines for the vehicles to be deployed. The contract is part of a program that Broad Ocean is undertaking, which involves using Ballard’s fuel cell technology to put more zero-emission vehicles on China’s roads. This has been considered a huge step towards helping china address its environmental concerns.
“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,” stated Ballard’s CEO, Randy MacEwen.
The $18 million deal marks the second such deal between the two firms
The $18 million deal between Ballard and Broad Ocean is not the first deal of its kind between the two companies. Ballard had previously announced another similar deal in April, in which it received $11 million from Broad Ocean to supply 200 fuel cell engines. This brings the total amount of the two deals to $29 million and a total of 600 fuel cell engines to be supplied.
The rapidly growing demand for alternative sources of energy due to the environmental health issues has also encouraged Ballard to make plans for building three module assembly plants in China over the next five years. The country is looking to improve its environment by reducing pollutants such as regular combustion engines.
Fuel cell-powered vehicles are said to be a great alternative for China since they have no emissions and present a viable solution towards solving environmental concerns. Ballard offers ideal solutions for the country since it provides clean energy technology that is also designed to reduce risks and costs for the customer.
Ballard stock closed the latest trading session on Tuesday at $2.81 after gaining by 4.07 percent from the previous close.