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Ballard Power to Sell Fuel Cell Modules to Chinese Company
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Ballard Power Systems Inc. (BLDP - Free Report) announced that it signed an agreement with Shenzhen UpPower Technology Co., Ltd. ("UpPowerTech"), a leading fuel cell bus systems integrator in China, for the supply of 10 FCveloCity-MD 30-kilowatt fuel cell power modules. These modules will be utilized by UpPowerTech in its clean energy buses.
The fuel cell buses will be deployed in the City of Nanning in the Province of Guangxi with an aim to lower emission levels. Ballard Power is expected to deliver the order by this year, with the buses projected to be deployed in 2017.
Ballard’s Presence in China
Earlier this month, Ballard Power announced that it has signed a Memorandum of Understanding (MoU) with its strategic partner Zhongshan Broad-Ocean Motor Company Limited ("Broad-Ocean"). Under the deal, the companies will produce fuel cell modules for use in buses and commercial vehicles in select cities and regions across China. (Read more:Ballard Power Fortifies Hold in China with Broad-Ocean Deal)
Scope for Fuel Cell Buses
China is projected to be the big market for fuel cell buses. Chinese authorities are now focused on reducing pollution by factories and utilities. The country’s government also intends to lower emissions generated by vehicles.
The huge population in China translates into increasing demand for mass transportation. Thus, eco-friendly fuel cell buses will be able cater to a significant portion of the population, while ensuring lower emission levels.
This July, Ballard Power and China-based Guangdong Nation Synergy Hydrogen Power Technology Co. Ltd. formed a joint venture to produce fuel cell stacks at a facility located in Yunfu city, northwest of Hong Kong. This five-year deal has the potential to generate total revenue of $168 million for Ballard Power.
In August, Ballard Power inked an agreement with Toyota Tsusho Corporation ("TTC"), a unit of the Toyota Group, to expand its operations in Japan. This strategic tie-up will allow Ballard market its fuel cell products in Japan.
Our View
The Chinese market is apparently a happy hunting ground for Ballard Power. The company has inked quite a few deals in the recent months for its fuel cell modules.
We expect further growth in the demand for fuel cell modules in China and Ballard’s high-quality fuel cell modules should be able to capture a major share of the market.
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Ballard Power to Sell Fuel Cell Modules to Chinese Company
Ballard Power Systems Inc. (BLDP - Free Report) announced that it signed an agreement with Shenzhen UpPower Technology Co., Ltd. ("UpPowerTech"), a leading fuel cell bus systems integrator in China, for the supply of 10 FCveloCity-MD 30-kilowatt fuel cell power modules. These modules will be utilized by UpPowerTech in its clean energy buses.
The fuel cell buses will be deployed in the City of Nanning in the Province of Guangxi with an aim to lower emission levels. Ballard Power is expected to deliver the order by this year, with the buses projected to be deployed in 2017.
Ballard’s Presence in China
Earlier this month, Ballard Power announced that it has signed a Memorandum of Understanding (MoU) with its strategic partner Zhongshan Broad-Ocean Motor Company Limited ("Broad-Ocean"). Under the deal, the companies will produce fuel cell modules for use in buses and commercial vehicles in select cities and regions across China. (Read more:Ballard Power Fortifies Hold in China with Broad-Ocean Deal)
Scope for Fuel Cell Buses
China is projected to be the big market for fuel cell buses. Chinese authorities are now focused on reducing pollution by factories and utilities. The country’s government also intends to lower emissions generated by vehicles.
The huge population in China translates into increasing demand for mass transportation. Thus, eco-friendly fuel cell buses will be able cater to a significant portion of the population, while ensuring lower emission levels.
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Ballard’s Presence in Asia
This July, Ballard Power and China-based Guangdong Nation Synergy Hydrogen Power Technology Co. Ltd. formed a joint venture to produce fuel cell stacks at a facility located in Yunfu city, northwest of Hong Kong. This five-year deal has the potential to generate total revenue of $168 million for Ballard Power.
In August, Ballard Power inked an agreement with Toyota Tsusho Corporation ("TTC"), a unit of the Toyota Group, to expand its operations in Japan. This strategic tie-up will allow Ballard market its fuel cell products in Japan.
Our View
The Chinese market is apparently a happy hunting ground for Ballard Power. The company has inked quite a few deals in the recent months for its fuel cell modules.
We expect further growth in the demand for fuel cell modules in China and Ballard’s high-quality fuel cell modules should be able to capture a major share of the market.
Zacks Rank & Key Picks
Ballard Power Systems currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry include Nidec Corporation (NJDCY - Free Report) , Stoneridge Inc. (SRI - Free Report) and TTM Technologies Inc. (TTMI - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>