Burnaby-based Ballard Power Systems (TSX:BLD) plans to discontinue its EBARA Ballard Corp. joint venture, which focused on developing and selling stationary power systems in Japan's residential cogeneration market.
John Sheridan, Ballard's president and CEO, said the increased investment requirements and the longer timeline to commercialization changed the business case for the joint venture. He added that it was in the best interests of shareholders to wind down the program.
While the company is ending its joint venture, Ballard will continue to sell its residential fuel cell product in Japan and other international markets.
Given the low growth projected for the residential cogeneration market in 2009, Ballard doesn't anticipate a major impact from the dissolution on its current financial outlook.
Ballard's share price range during the past week: between $2.12 and $2.27; 52-week high: $5; 52-week low: $1.10.