Ballard Power To Supply Fuel Cell Buses To SunLine Transit

Ballard Power Systems Inc. (NASDAQ:BLDP) announced that it has entered into a definitive agreement with SunLine Transit Agency to supply five 150 kilowatt (KW) FCveloCity fuel cell engines. These fuel cell engines will be used toward powering clean energy buses in Palm Desert, CA along with promoting heavy duty transit solutions in the Coachella Valley area.

Per the agreement, Ballard Power will be collaborating with BAE Systems (OTC:BAESY) supplier of electric drive systems, and North American bus OEM, ElDorado National to deliver transit service by supplying fuel cell buses to SunLine Transit Agency.

Ballard’s Global Step Forward

Ballard’s Technology team and subsidiaries are working progressively to provide clean services to accelerate fuel cell development not only in the U.S but also across other markets including Canada, China, and Europe.

Recently in the month of June, the company entered in to an $18 million supply contract with Zhongshan Broad-Ocean Motor Co., Ltd. to aid the implementation of 400 FCveloCity fuel cell engines into energy buses and trucks in China. This deal was the extension of a program with Broad-Ocean to deploy Ballard’s fuel cell technology in support of China’s plan to address environmental issues and adoption of zero-emission vehicles.

The company’s subsidiary, Protonex, also signed an agreement to supply fuel cell propulsion system to South African-based FlyH2 Aerospace, a developer of hydrogen fuel cell powered unmanned aerial vehicles (UAVs) for commercial applications.

Fuel cell Technology for Cleaner Future

Fuel cell electric buses provide affordable zero-emission transportation. Governments worldwide are implementing clean energy transportation in direct response to climatic effects of air pollution caused by combustion engines.

In Jun 2017, the U.S. Department of Energy (DOE) announced its intention to invest $15.8 million for 30 new projects aimed at development new, low-cost materials required for hydrogen production, storage and for fuel cells onboard light-duty vehicles.

Further, Department of Energy release also highlighted the increasing use of fuel cell vehicles for transportation, nearly 2,000 fuel cell vehicles were sold or leased in U.S. since 2015. Fuel cell vehicles consume 95% less petroleum per mile than conventional internal combustion engine vehicles, have no tailpipe emissions, and offer quiet operation.

Fuel cells have been an option for vehicles utilizing a clean air alternative as a result of which this technology has been getting attention for zero emission and reliability benefits. Apart from Ballard Power other companies like Plug Power (NASDAQ:PLUG) and FuelCell Energy, Inc. (NASDAQ:FCEL) are taking steps toward introducing novel fuel cell alternatives.

Price Movement

Ballard Power Systems has outperformed the Zacks categorized Electronics - Miscellaneous Components industry in the last six months. The company’s shares gained 38.8% compared with the industry’s advance of 20.8%.

Zacks Rank

Ballard Power currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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