Ballard Power Systems Signs Historic Deal in China
B.C.-based Ballard Power Systems, a global leader in fuel cell innovation and products, has recently completed a landmark deal in Foshan, China with Guangdong Nation Synergy Hydrogen Power Technology Co. Ltd. to establish a fuel cell stack production facility in Guangdong utilizing Ballard’s technology.
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The agreement will lead to the development of an FCvelocity®-9SSL fuel cell stack production operation in the City of Yunfu. A component of each fuel cell stack that contains critical intellectual property will continue to be exclusively manufactured in B.C. by Ballard and shipped to China. The fuel cell stacks will then be manufactured and integrated into locally assembled fuel cell engines which will be used in zero-emission buses and commercial vehicles in China. The deal is estimated to be worth a minimum of $168 million dollars to Ballard over the next five years and signifies a key milestone in the company’s strategy to develop a strong presence in China, the largest market in the world for fuel cell buses and commercial vehicles.
Ballard’s China strategy centers on engaging with strong Chinese partners to localize fuel cell production in order to reduce cost and drive scale. China has committed to curbing harmful emissions in its transportation sector, making Ballard’s technology a natural fit for the market.
The deal was accelerated by a historic meeting at Ballard’s headquarters in Burnaby, British Columbia this past May during a visit by Mr. Hu Chunhua, Party Secretary of Guangdong Province. Teresa Wat, B.C.’s Minister of International Trade, also accompanied the delegation on the visit to Ballard’s offices. Party Secretary Hu led a government and business delegation visiting British Columbia from May 8th-9th, 2016. The visit focused on expanding cooperation in various sectors, specifically e-commerce, clean energy and innovation technologies.
British Columbia’s trade and investment team in South China and Vancouver played a key role in organizing the delegation’s itinerary, including the visit to Ballard’s headquarters. Trade and investment representatives also assisted in the agreement by facilitating meetings with the Guangdong, Foshan and Yunfu governments, while B.C.’s Special Representative in Asia, Ben Stewart, visited Foshan city and met with government officials to promote Ballard’s technologies.
British Columbia clean technology companies, including Ballard, are recognized globally for their leadership in the industry. Hydrogen and fuel cell products made by these companies are being developed, tested and used commercially in materials handling, backup power, portable electronics, fuelling infrastructure and transit bus applications around the world. British Columbia also has one of the highest ratios of clean technology companies to GDP in Canada, with Vancouver home to 25 per cent of Canadian clean technology companies.
To learn more about companies in British Columbia’s thriving clean technology sector contact one of our International Trade and Investment Representatives.
Posted on: October 11, 2016