Good news out of Asia for Canada-based Ballard Power Systems: The fuel cell company has signed a new collaboration deal for fuel cell buses and secured a $5 million strategic equity investment.
Ballard has inked a strategic collaboration agreement with Xiamen King Long United Automotive Industry Co. Ltd., a China-based developer, designer and manufacturer of buses, to design and deploy fuel-cell-powered buses.
The companies have agreed to collaborate on the development, optimization and production of a prototype fuel cell bus, with Ballard supplying its proprietary fuel cell engine along with technology solutions support. The companies also plan to collaborate on key deployments of fuel cell buses, initially in China and eventually in King Long’s global network.
“Together, we are looking to optimize the design in order to improve performance, while lowering cost,” says Randy MacEwen, Ballard’s president and CEO. “This will help drive fuel cell buses to cost parity with incumbent bus technologies. King Long’s strategic commitment to fuel cell bus deployment represents further validation of the substantial potential for zero-emission mass transit solutions in China and beyond.”
Ballard has also successfully closed a $5 million strategic equity investment in the company by Japan-based Nisshinbo Holdings Inc. The investment was made through a private placement subscription of 3,322,479 common shares issued from treasury at a price per share of $1.5049 (based on a 10-day volume weighted average price calculation).
Ballard says it intends to use the proceeds from the financing for general corporate purposes, including the potential funding of future acquisitions or investments in complementary businesses, products or technologies.