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. “We are thrilled to have Ballard selected as the exclusive supplier of fuel cell technology for the largest ever global deployment of fuel cell buses,” said Randy MacEwen, Ballard President and CEO. “The Foshan and Yunfu governments are demonstrating strong vision and leadership by championing a collaboration model that addresses mass transit needs, supports air quality initiatives and contributes to continued economic development.” Mr. Xu Guo, Vice Mayor of the City of Yunfu said, “We are moving the Cities of Foshan and Yunfu into the future by adopting clean, quiet and economical fuel cell buses. And, we are pleased to have a strong consortium of partners, including Ballard, Synergy and Feichi Bus.” Mr. Ma Dongsheng Frank, CEO of Synergy stated, “We selected Ballard, the global leader in fuel cell technology for buses, as our exclusive technology partner. Ballard’s flexible approach in developing a partnership model along with leading technical solutions that address the unique needs and opportunities in the Chinese market has been impressive. We look forward to localizing assembly of Ballard fuel cell modules in Foshan / Yunfu to meet the fast-growing demand for clean energy buses in China.” Mr. Chen Xiaomin, Vice Chairman of Foshan Automobile Transportation Group Co., Ltd. added, “Foshan Automotive is a leader in the manufacture of clean energy buses in Guangdong Province. We see strong demand for low carbon solutions, and are excited by the opportunity to be first-to-market with a fuel cell bus offering. This deal represents a potential catalyst for further advancement and adoption of fuel cell buses in China.” Today’s ceremony at Ballard was also attended by senior representatives of the Canadian Federal Government as well as the British Columbia Provincial Government, including B.C. Minister of International Trade Teresa Wat. Minister Wat said, “This deal shows that B.C. is ready to meet China’s rapidly-growing clean energy needs and is a world leader in fuel cell technology with the necessary talent and skills to deliver in the global marketplace. This job-generating deal is a great accomplishment for Ballard and our government is a proud supporter of the company’s growth throughout the Asia Pacific Region.” Mr. MacEwen continued, “Given its scale and importance, this deployment in Foshan will serve as a major competitive advantage for Ballard and our local partners as we seek to bring additional Chinese cities onboard. China’s new energy program involves forty-eight cities that are focused on addressing severe air quality issues, in part through expansion of public transit, with one thousand clean energy buses to be deployed in each participating city.” Alfred Wong, Ballard’s Director – Sales for Asia Pacific added, “This follow-on agreement with Synergy represents a strong statement of support for Ballard’s technology and products in terms of meeting the emerging interest for fuel cell adoption in China’s enormous mass public transportation sector. Ballard has a strong brand in China and we are moving quickly to seize early market demand.” On September 24, 2015, Ballard announced that the Company is developing two new configurations of its FCvelocity®-HD7 power module, to deliver 30 kilowatts (kW) and 60 kW of net power, respectively, in addition to the 90 kW net power configuration which was launched in June 2015. These two new module configurations are planned to be available for commercial deployment in 2016 and will be supplied to Synergy under the deal announced today. Today’s 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. (”Zehe”), 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 exceptional reliability while clocking millions of kilometers on the road, principally in bus fleets. FCvelocity®-HD7, Ballard’s seventh-generation heavy duty module, offers a number of key advantages: Further discussion of Ballard’s activities and plans in the heavy-duty mass transit market will take place during the Company’s Investor and Analyst Day, scheduled to be held on October 1, 2015 in New York City. Institutional investors wishing to attend are asked to register as soon as possible, as space is limited, by emailing Ballard at analystday@ballard.com. Ballard’s Investor and Analyst Day will also be webcast, with the live audio stream and presentation materials accessible through a link on Ballard’s homepage at www.ballard.com. Following the event, the webcast and presentation materials will be archived in the Investors section of Ballard’s website at www.ballard.com/investors. About Ballard Power Systems Ballard Power Systems BLDP, +2.63% (BLD) provides clean energy products that reduce customer costs and risks, and helps customers solve difficult technical and business challenges in their fuel cell programs. To learn more about Ballard, please visit www.ballard.com. About Guangdong Synergy Hydrogen Power Technology Co., Ltd. (”Synergy”) Guangdong Synergy Hydrogen Power Technology Co., Ltd. is a Chinese integrator and solution provider focused on the market for fuel cell modules. The company is actively developing this market for mass transit solutions in China, including buses and trams. About Foshan Automobile Transportation Group Co., Ltd. Foshan Automobile Transportation Group is the largest comprehensive road transport enterprise in Foshan City, with more than 7,000 employees. The company is a comprehensive transportation group consisting of diversified businesses, such as passenger transport, public transit, cross-regional city buses, taxis, car rentals, logistics, energy supply, automobile manufacturing, auto repair, technician education and vocational training.
Under a newly signed long-term license and supply agreement, Ballard Power Systems will supply Guangdong Synergy Hydrogen Power Technology, an existing partner in China, with fuel cell power products and technology in support of the planned deployment of approximately 300 fuel cell-powered buses in China. The deal has an estimated initial value of $10 million through 2016, with the opportunity for significant recurring royalties starting in 2017.