Ballard signs supply agreement for fuel cell buses in China
Ballard Power Systems, based in Burnaby, B.C., Canada, has signed a new long-term license and supply agreement with an existing partner in China, Guangdong Synergy Hydrogen Power Technology Co., Ltd. (Synergy).
According to Chen Xiaomin, vice chairman of Foshan Automobile Transportation Group Co. Ltd., the deal “represents a potential catalyst for further advancement and adoption of fuel cell buses in China.”
“We see strong demand for low carbon solutions, and are excited by the opportunity to be first-to-market with a fuel cell bus offering,” he said.
Foshan Automotive is a leader in the manufacture of clean energy buses in Guangdong Province. China’s new energy program involves forty-eight cities that are focused on addressing severe air quality issues, in part through expansion of public transit, with one thousand clean energy buses to be deployed in each participating city.
The deal, with an estimated initial value of USD 17 million, is to provide fuel cell power products and technology solutions to support the deployment of approximately 300 fuel cell-powered buses in the cities of Foshan and Yunfu, China. Additionally, significant recurring royalties are expected to start in 2017.
The agreement with Synergy, which is a supplier to Foshan Automobile, includes the supply and sale of fully-assembled fuel cell power modules, ready-to-assemble module kits, a technology license for localization of assembly, supply of proprietary fuel cell stacks and long-term recurring royalties leveraged to unit volumes of locally assembled modules.
“We are thrilled to have Ballard selected as the exclusive supplier of fuel cell technology for the largest ever global deployment of fuel cell buses,” said Randy MacEwen, Ballard president and CEO.
“We are moving the cities of Foshan and Yunfu into the future by adopting clean, quiet and economical fuel cell buses. And, we are pleased to have a strong consortium of partners, including Ballard, Synergy and Feichi Bus,” said Xu Guo, vice mayor of Yunfu.
“Ballard’s flexible approach in developing a partnership model along with leading technical solutions that address the unique needs and opportunities in the Chinese market has been impressive. We look forward to localizing assembly of Ballard fuel cell modules in Foshan/ Yunfu to meet the fast-growing demand for clean energy buses in China,” said Ma Dongsheng, Synergy CEO.