Ballard Power Systems BLDP has won a $7.7-million worth order of membrane electrode assemblies (MEA) from Guangdong Synergy Ballard Hydrogen Power Co., Ltd. (Synergy-Ballard JVCo). This order is placed in pursuant to the MEA Long-Term Supply Agreement and Stack Assembly License Agreement signed between Ballard Powerand Synergy-Ballard JVCoin 2019.
Notably, MEAs are a crucial component of every cell in a fuel cell stack as it facilitates the chemical process to generate clean electricity from a combination of hydrogen and oxygen.
Ballard Power's leading fuel cell technology to provide clean energy is currently powering more than 650 Fuel Cell Electric Buses and above 2,200 fuel cell trucks in China. Further, this order receipt indicates continued progress and market demand for Ballard Power fuel cell technology in heavy- and medium-duty motive applications in China including buses and commercial trucks.
Moreover, management expects to witness higher adoption of fuel cell electric vehicles in China as the national and provincial governments are increasingly prioritizing the decarbonization of mobility with zero-emission solutions. Ballard Power's fuel cell technology is gaining popularity on the back of reliability, affordability as it is cheaper-than-conventional power sources and sustainability.
Also, last month, the company received orders for 15 of its 85-kilowatt heavy-duty FCveloCity®-HD fuel cell modules from Wrightbus. Additionally, in April, it received an order from Solaris Bus & Coach S.A. for 20 of Ballard Power’s new 70 kilowatt heavy-duty FCmove™-HD fuel cell modules.
With fewer vehicles on road due to the coronavirus pandemic, cities around the globe witnessed a massive fall in pollution levels. However, once life is back to normal, toxic emissions will automatically rise. In a bid to address this issue, some companies are working on fuel cell technology and are aiming to provide power to mass transportation system based on the same.
Apart from Ballard Power, companies like Bloom Energy BE, Plug Power, Inc. PLUG and FuelCell Energy, Inc. FCEL are growingly using fuel cell technology to supply clean energy.
Zacks Rank & Price Performance
The stock currently holds a Zacks Rank #4 (Sell).
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In the past three months, shares of the company have skyrocketed 105.2%, outperforming the industry’s 23.8% rally.
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FuelCell Energy, Inc. (FCEL) : Free Stock Analysis Report
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