Ballard Power Systems BLDP received a purchase order of 15 70-kilowatt (kW) FCmoveTM-HD fuel cell modules from Tata Motors to power the latter’s zero-emission Fuel Cell Electric Buses (FCEBs), delivery of which is expected to be completed by 2022.
Notably, these buses will be supplied to the Research & Development Centre of Indian Oil Corporation Limited (IOCL) by Tata Motors. Both will study the prospects of fuel cell technology for commercial vehicles. This will include testing, maintenance and operation of the FCEBs in real-world public transport conditions in India's National Capital Region (NCR). Also, IOCL will generate and dispense the hydrogen fuel to be used by the Ballard Power modules.
In 2012, these companies had signed a non-binding Memorandum of Understanding (MOU) for 12 FCvelocityTM-1100 fuel cell stacks to power zero-emission buses planned for demonstration in various Indian cities.
Benefits of FCmoveTM
FCmoveTM is Ballard Power's 8th-generation high-performance fuel cell module for transit buses and reduces costs from the company’s prior-generation product. This module roughly lowers product lifecycle expenses by 35% and improves the reliability of services. Also, it is tolerant to a wider range of operating conditions.
India’s Focus on Lowering Emission
India’s transportation sector accounts for 13.5% of its energy-related carbon dioxide emissions and is the third largest global emitter of greenhouse gas emissions. The country’s emissions are escalating despite the government’s efforts to trim the same. To decrease such high emissions and create a low carbon transport system, India is working toward two goals. These include implementing a policy for building a sustainable transport system and increasing the cities’ capacity to improve mobility along with slashing emissions.
Indian government is intensifying its focus on hydrogen as an alternative fuel to fight pollution in the country, mainly the NCR, where winter months witness hazardous levels of polluted air. To this end, major industry players formed a new energy transition coalition this year called India H2 Alliance to commercialize hydrogen technology and systems to help develop a net-zero carbon pathway in the country. Electrification of transport will help the region decarbonize the said industry. The current move by Tata Motors is in line with India’s deepened focus on hydrogen policy.
India’s lower transport emission strategy might create opportunities for other companies like Ballard Power to supply fuel cell technology and provide solutions to the rising transport-related emission. These include Bloom Energy BE, Plug Power, Inc. PLUG and FuelCell Energy, Inc. FCEL.
Zacks Rank and Price Performance
Ballard Power currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past month, shares of the company have lost 6.9% compared with the industry’s 5.1% fall.
One-Month Price Performance
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