Ballard Power Systems BLDP received a follow-on purchase order of 20 fuel cell modules from its partner New Flyer. The latter plans to power 20 New Flyer Xcelsior® model Fuel Cell Electric Buses (FCEBs) for enhancing operations with Alameda-Contra Costa Transit District (AC Transit) in Oakland, CA.
The delivery of the order is expected this year. With this deal, the number of New Flyer FCEBs that the company is powering in California comes to 45 while the Ballard-powered FCEBs operated by AC Transit totals 31. Fuel cell technology utilizes hydrogen and oxygen to generate emission free electricity. There is an increasing uptake of fuel cell products and services as hydrogen is economical and also an eco-friendly source to generate power.
California’s Initiative to Lower Emission
The California Air Resources Board (CARB) passed an Innovative Clean Transit (ICT) regulation with a zero-emission goal set for all operating transit buses in the state by 2040. To this end, it aims to achieve zero emission from 25% of buses purchased by California transit agencies from the start of 2023, increasing to 50% later by 2026 and 100% by 2029. Thus, this zero-emission bus target is going to create a new market opportunity for Ballard Power’s fuel cell modules in California.
Order Continues to Come
The company’s fuel cell modules provide safe, reliable and clean power. The current project reflects the increase in usage of fuel cells. In January 2021, the company received a purchase order for heavy-duty vehicles and transport applications besides Ballard FCmoveTM-HD fuel cell modules from Arcola Energy to power a passenger train for display during COP26, which will be hosted by Glasgow City in November 2021. Prior to this, in July 2020, Ballard Power won a $7.7-million contract of membrane electrode assemblies from Guangdong Synergy Ballard Hydrogen Power Co., Ltd.
Zacks Rank and Price Performance
Ballard Power currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past month, shares of the company have gained 10.9% against the industry’s 0.8% decline.
One-Month Price Performance
Image Source: Zacks Investment Research
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