(Bloomberg) — Ballard Power Systems Inc., a Canadian maker
of fuel-cell technology, gained the most in almost four months
after winning a $10 million contract to help develop buses for
two Chinese cities.
Ballard, based in Burnaby, British Columbia, rose 11
percent to C$2.91 in Toronto, the most since Feb. 11.
The company agreed to provide Nantong Zehe New Energy
Technology Co. and Guangdong Synergy Hydrogen Power Technology
Co. with products and technology for the development of 33 fuel-cell buses, according to a statement Monday.
“We see this order as a meaningful step forward for
Ballard as they continue to make headway in the Chinese bus
market,” Jeff Osborne, a Cowen & Co. analyst, wrote in a note
Ballard and Zehe will collaborate with electric bus
manufacturer Jiangsu GreenWheel New Energy Electric Vehicle Co.
in the city of Rugao. The Canadian company and Synergy will
collaborate with Foshan Feichi Automobile Manufacturing Co. in
the city of Yunfu.
The two cities expect to have their fuel-cell bus fleets
operational next year.
Buses powered by fuel cells or electricity are eligible for
a subsidy of about $150,000 through 2017 in China. Hydrogen
fueling stations also may receive an additional $650,000
Fuel cells run on hydrogen or natural gas and produce
electricity through a chemical reaction.
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Justin Doom in New York at
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Reed Landberg at
Carlos Caminada, Will Wade