Ballard lands $17M deal for deployment of ~300 fuel cell buses in China; new 30 kW and 60 kW modules
Under a newly signed long-term license and supply agreement, Ballard Power Systems will supply Guangdong Synergy Hydrogen Power Technology Co., Ltd., an existing partner in China, fuel cell power products and technology in support of the planned deployment of approximately 300 fuel cell-powered buses in the cities of Foshan and Yunfu, China.
The deal has an estimated initial value of $17 million through 2016, with the opportunity for significant recurring royalties starting in 2017. The agreement includes 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.
|90 kW FCvelocity-HD7. Click to enlarge.|
Earlier this month, Ballard announced the development of two new configurations of its FCvelocity-HD7 power module—30 kilowatts (kW) and 60 kW of net power—in addition to the 90 kW net power configuration which it launched in June 2015.
These two new module configurations—targeted at smaller bus and range extender applications—are planned to be available for commercial deployment in 2016 and will be supplied to Synergy under the new deal.
(The FCvelocity-HD7 is the 7th-generation fuel cell module designed for transit bus and light rail applications from Ballard.)
The new supply announcement is also in addition to Ballard’s June 2015 announcement regarding the signing of definitive license and supply agreements with Synergy as well as with Nantong Zehe New Energy Technology Co, Ltd., valued at $10 million, for the delivery of FCvelocity-HD7 90kW net power modules, for use in 33 fuel cell buses to be deployed in the cities of Yunfu and Rugao, China.
Ballard’s high performance FCvelocity-HD modules have demonstrated extreme reliability while clocking millions of kilometers on the road, principally in bus fleets. The FCvelocity-HD7 heavy duty modules operate in extreme conditions that include cold as well as hot, humid environments.
A simplified and scalable design enables the module to be integrated into multiple transportation applications and the modular design of the air and cooling systems allow flexible and simple “drop-in” integration into vehicle drive trains.
The new FCvelocity-HD7 power module features a reduced parts count, simplified design and lower parasitic load. Key components are manufactured with high-volume production processes, thereby reducing capital cost of the module and maintenance costs associated with parts replacement over the life of the product.
Ballard’s HD7 represents a cost reduction of more than 30% from the prior generation HD6 product and a cost reduction of approximately 65% in this product line over the past six years.