VANCOUVER and ZHONGSHAN,
China, June
5, 2017 /PRNewswire/ - Ballard Power Systems (NASDAQ:
BLDP; TSX: BLDP) today announced that it has entered into an
$18 million supply contract with
Zhongshan Broad-Ocean Motor Co., Ltd. ("Broad-Ocean";
www.broad-ocean.com/en/index.html) to support the deployment of 400
FCveloCity® fuel cell engines integrated into clean
energy buses and trucks in key Chinese cities.
The transaction is part of an ongoing program with Broad-Ocean
to implement Ballard's leading fuel cell technology in support of
China's ambitious plan to address
environmental concerns and advance the adoption of zero-emission
vehicles. The complementary addition of fuel cell systems
effectively addresses the limitations of stand-alone battery
solutions in certain use cases, resulting in growing demand for
zero-emission and efficient propulsion systems that provide bus,
truck and commercial vehicles with the traditional range and
refueling times provided by legacy diesel solutions.
Randy MacEwen, Ballard President and CEO commented, "Today's
announcement adds further momentum to our strategy in China's new energy transportation market. 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. With our strategic partner
Broad-Ocean, we are positioning Ballard to successfully address
this opportunity and scale our business, while driving down costs
to support sustainable long-term demand."
This announcement, together with an $11
million transaction announced in April, means that Ballard
is planning to support Broad-Ocean through the deployment of 600
fuel cell engines having a value of $29
million, with substantial deliveries expected to be made
this year. In addition to these modules for use in strategic
demonstration projects in key Chinese cities, Ballard also closed
the strategic technology transfer, licensing and supply deal with
Broad-Ocean in April, under which Broad-Ocean plans to set up three
module assembly operations in China, representing a further $25 million to Ballard over 5-years.
Founded in 1994, Broad-Ocean is headquartered in the City of
Zhongshan in Guangdong Province
and is listed on the Shenzhen Stock Exchange. The Company is a
leading global manufacturer of motors that power small and
specialized electric machinery for electric vehicles (EVs),
including buses, commercial vehicles and passenger vehicles, and
for heating, ventilation and air conditioning (HVAC). Broad-Ocean
produces more than 50 million motors annually for customers on 5
continents. On August 18, 2016
Broad-Ocean became Ballard's largest shareholder following an
investment of $28.3 million in
Ballard common shares, representing approximately 9.9% of Ballard's
outstanding common shares following the transaction.
About Ballard Power Systems
Ballard Power Systems
(NASDAQ: BLDP; TSX: BLDP) provides clean energy products that
reduce customer costs and risks, and helps customers solve
difficult technical and business challenges in their fuel cell
programs. To learn more about Ballard, please visit
www.ballard.com.
This release contains forward-looking statements concerning
planned product deployments, provision of services, market adoption
and demand for our products. These forward-looking statements
reflect Ballard's current expectations as contemplated under
section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Any such
forward-looking statements are based on Ballard's assumptions
relating to its financial forecasts and expectations regarding its
product development efforts, manufacturing capacity, and market
demand.
These statements involve risks and uncertainties that may cause
Ballard's actual results to be materially different, including
general economic and regulatory changes, detrimental reliance on
third parties, successfully achieving our business plans and
achieving and sustaining profitability. For a detailed discussion
of these and other risk factors that could affect Ballard's future
performance, please refer to Ballard's most recent Annual
Information Form. Readers should not place undue reliance on
Ballard's forward-looking statements and Ballard assumes no
obligation to update or release any revisions to these forward
looking statements, other than as required under applicable
legislation.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities. The Ballard
Common Shares have not been registered under the United States
Securities Act of 1933, as amended, or the securities laws of any
other jurisdiction and may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
SOURCE Ballard Power Systems Inc.