Ballard Gains on Deal to Develop 33 Fuel-Cell Buses in China

(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

to investors.

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

subsidy.

Fuel cells run on hydrogen or natural gas and produce

electricity through a chemical reaction.

To contact the reporter on this story:

Justin Doom in New York at

jdoom1@bloomberg.net

To contact the editors responsible for this story:

Reed Landberg at

landberg@bloomberg.net

Carlos Caminada, Will Wade

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