Ballard Power Systems, a Burnaby-based provider of clean energy products, has entered into an $18 million supply contract with Chinese electric motor manufacturer Zhongshan Broad-Ocean Motor Co. The contract will see Ballard supply 400 fuel cell engines to be integrated into clean energy buses and trucks in cities across China.
The deal follows Broad-Ocean’s focus on implementing Ballard’s fuel cell technology into vehicles to address environmental concerns in China.
Randy MacEwen, Ballard President and CEO said, “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.”
Ballard had already announced an $11 million deal with Broad-Ocean in April for the supply of 200 fuel cell engines. In total, the company will be supplying 600 fuel cell engines valued at $29 million. Ballard also plans to establish three module assembly operations in China over the next five years.
Broad-Ocean Motor currently owns 9.9% of Ballard, making it Ballard’s largest shareholder, following a $28.3 million purchase last August. Ballard’s share price has gone up 5.8% on the Toronto Stock Exchange to $3.83 a share as of press time.
