Ballard Power Systems announced that it has signed a definitive agreement relating to technology transfer, licensing and supply arrangements with strategic partner Zhongshan Broad-Ocean Motor for the assembly and sale of FCveloCity 30-kilowatt (kW) and 85kW fuel cell engines in China.
Under the deal, Broad-Ocean will manufacture fuel cell modules in three strategic regions in China, including Shanghai.
The deal has an estimated value of approximately $25 million in revenue to Ballard over the initial 5-year term, including $12 million in Technology Solutions revenue.
Randy MacEwen, Ballard president and CEO said, “Converging macro trends in China, including large-scale urbanization, continued build-out of mass urban transportation, degrading air quality and a mandate to address climate change, together present an historic opportunity for zero-emission fuel cell solutions in the world’s largest mobility market.”
“Our strategic partnership with Broad-Ocean is a central piece in our China strategy, premised on the establishment of a comprehensive local fuel cell supply chain and related ecosystem to address the fast-growing clean energy bus and commercial vehicle markets,” MacEwen added.
Charles Lu, founder and chairman of Broad-Ocean added, “Hydrogen fuel cells are entering an exciting new growth phase in China and we intend to be at the forefront. We believe that this cooperation between Ballard and Broad-Ocean combines the strengths of both companies and will put us in a leading position in this new hydrogen fuel cell growth phase in China.”
Each fuel cell engine assembled by Broad-Ocean will utilize FCvelocity-9SSL fuel cell stacks, initially manufactured by Ballard at its Vancouver HQ facility.