Fuel cell specialists Ballard Power Systems has announced the signing of an agreement with Guangdong Nation Synergy Hydrogen Power Technology (Synergy) to exclusively manufacture and sell Ballard’s direct hydrogen FCgen-H2PM fuel cell backup power systems in China.
Ballard will license the designs of its 1.7 and 5 kilowatt FCgen-H2PM systems to Synergy for manufacture in Yunfu in Guangdong Province and exclusive sales in China, after the Chinese firm paid a technology solutions fee of $2.5 million for the license and related technology services.
Synergy will make additional recurring payments to Ballard for each unit sold, subject to annual minimums. Ballard will also be the exclusive supplier of air-cooled fuel cell stacks to Synergy for use in the FCgen-H2PM systems that it produces and sells.
Ballard recently sold its methanol Telecom Backup Power business assets to Chung-Hsin Electric & Machinery Manufacturing Corporation (“CHEM”) for a purchase price of up to $6.1 million, while retaining the company’s direct hydrogen fuel cell backup power system assets.
The direct hydrogen fuel cell backup power system has since been rebranded FCgen-H2PM. In the transaction with CHEM, Ballard also signed a fuel cell stack supply agreement with CHEM which includes minimum sales of $2 million.
Randy MacEwen, Ballard’s President and CEO said, “The transaction announced today provides a strong foundation for future sales by Synergy of direct hydrogen backup power systems in China using Ballard’s leading system design and fuel cell stacks. We will also continue to market our FCgen-H2PM products to provide backup power for critical infrastructure in select European markets.”