Ballard Power Continues to Soar after Big Fuel Cell Orders
The last 10 days were extremely eventful for the fuel cell maker Ballard Power Systems Inc. BLDP with the company receiving back-to-back orders from two major Asian countries, China and India. The orders did have a positive impact on the prices, with its shares gaining nearly 17.1% from Sep 25 to close at $1.37 yesterday.
Ballard Power Systems received a Chinese order worth $17.1 million on Sep 25 to deliver next-generation fuel cell modules for 300 buses (read: Ballard Power Gets $17M Fuel Cell Order for Chinese Buses).
The company followed that order with another Chinese order worth $6 million for the supply of fuel cell engines specifically designed for integration into low floor trams to be used in China.
The above two deals could lead to the adoption of more fuel cell modules for mass transportation in China. The Chinese government is keen on cutting down emissions and extensive use of fuel cell modules could actually help the country to lower vehicle emission levels. In the capital city of Beijing, vehicle emission contributes nearly 22% of the total pollution.
Ballard Power Systems received yet another order from an Indian conglomerate, Aditya Birla Group. The company will send 50 ElectraGenTM-H2 direct hydrogen modules. These modules will be deployed in the country’s Idea Cellular network. Ballard Power expects to deliver these modules to Aditya Birla Group by the end of this year. The order represents the initial move of a planned deployment of 200 systems by the end of 2016 2016 (read: Ballard Power Gets Another Indian Contract for H2 Modules).
India could turn out to be another prolific market for the fuel cell markers due to a mandate by the Department of Telecommunications that requires telecom companies to reduce their reliance on diesel generators by powering at least 50% of rural towers and 20% of urban towers with clean energy systems. The use of smartphones is increasing by leaps and bounds in the country, which will inevitably lead to more mobile towers.
Meanwhile, the company’s acquisition of Protonex Technology Corporation will help it to deliver reliable, cost effective and clean portable power solutions to its customers. In particular, Protonex Technology’s knowledge of the U.S. military market will be a great help for Ballard Power to secure defense deals.
Zacks Rank
Ballard Power currently has a Zacks Rank #2 (Buy). Other favorably ranked stocks in the Electric – Miscellanies Components industry include Nidec Corporation NJ, Stoneridge Inc. SRI and Mobileye N.V. MBLY, all sporting a Zacks Rank #1 (Strong Buy).
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