Ballard Power Systems (NASDAQ:BLDP; TSX: BLD) shares spiked more than 13% this morning, following the announcement of a distribution deal signed with the trading arm for the Toyota Group of companies in Japan.
The deal, announced August 18, is with Toyota Tsusho Corp., which is one of the companies under the Toyota Group of companies, which includes Toyota Motor Corp. (NYSE:TM).
But the deal doesn’t mean Ballard is getting back into the hydrogen fuel-cell car business.
The Burnaby-based fuel cell maker got out of the car business several years ago, when hydrogen fuel cell cars failed to take off, and focused on other applications, like making fuel cell stacks for buses and stationary power. Toyota makes its own hydrogen fuel cells.
But the deal is significant, said Ballard spokesman Guy McAree, because Japan is very keen on hydrogen power.
Under the agreement, Toyota Tsusho will become Ballard distributor in Japan.
“The Japanese government are big supporters of fuel cells and hydrogen and are looking for ways to utilize the technology, so Tsusho will be able to distribute all of our products to companies in Japan – both the Toyota Group of companies, but also any company in Japan,” McAree said.
“It isn’t specifically about cars, but at the same time we continue to do technology-solutions work with automotive companies as well.”
Toyota Tsusho is a trading company involved in a range of goods and materials, including metals, auto parts, chemicals and electronics. It has hydrogen fueling stations in Tokyo and Aichi Prefecture, and is involved in pilot projects to produce hydrogen from sewage gas and wind power.
“Japan formulated a strategic road map for hydrogen and fuel cells 2014 as part of its national growth strategy and is aiming to launch fuel cell buses and forklift trucks onto the market in 2016 and promote the adoption of 800,000 fuel cell vehicles (FCVs) by 2030,” a Tsusho press release states.
“In Tokyo, efforts have begun to build an infrastructure to utilize hydrogen at the Tokyo 2020 Olympic and Paralympic Games.”
Ballard’s shares spiked as much as 13% this morning, going from $2.53 to above $3, before settling back below $3 per share.
