Markets

Ballard Power to Launch a Version of FCvelocity-HD7 Module

A stock chart on display
Credit: Shutterstock photo

Canadian fuel cell manufacturer Ballard Power Systems Inc.BLDP announced that it may introduce two new configurations of its FCvelocity-HD7 fuel cell module in 2016. Currently under development, the new configurations will broaden Ballard Power's portfolio. The company has already begun talks for initial orders. The new versions will largely be used in large urban transit buses.

Characteristic Features

New configurations of the FCvelocity-HD7 fuel cell module will cater to rising power requirement of heavy-duty transit applications such as buses, providing customers with increased flexibility. They will deliver net power of 30 kilowatt ("kW") and 60 kW.

The seventh generation of FCvelocity-HD7 module in 30 kW and 60 kW will complement Ballard Power's 90 kW module launched in Jun 2015.

The FCvelocity-HD7 heavy duty fuel cell offers a number of advantages like zero-emission, fuel cell stack technology, fuel efficient and simplified and scalable design, to name a few. These modules can be easily integrated into multiple transportation applications and feature reduced parts count and lower parasitic load.

Module parts are manufactured in high-volume production processes which help in reducing overall cost as well as maintenance cost related to the replacement of parts over the life of the product.

Fuel Cells for Transit Application

An increasing uptake of fuel cell modules for mass transit is witnessed in many countries around the globe. Two primary advantages of employing fuel cells in transportation are its energy-efficient nature and the crucial role it plays in mitigating climate change through reduction in greenhouse gases.

Ballard Power's growing popularity in supplying fuel cells to various markets speaks of the emerging consciousness of this technology. The company has designed and shipped more than 150 modules to date which are powered in more than 100 buses in 20 cities around the world.

Rising Prospects in the East

Expanding opportunities in China are noticed given the rising demand for clean energy mass transportation alternatives in the nation. Ballard Power management is also eyeing India as a prospective market due to a mandate by India's 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.

In April and June this year, Ballard Power received two orders from China for supplying its next-generation power modules for buses and trams.

Rocky Road Ahead

Despite the benefits of fuel cell application in transportation, this technology has to overcome several challenges before it is widely accepted. On the cost front, fuel cell technology compares unfavorably with other conventional gasoline and diesel vehicles. Sometimes fuel cell systems don't work in extreme conditions and new facilities must be constructed for transporting hydrogen to consumers.

Although its application is yet to start on a very large scale, it is surely a move in the right direction.

Zacks Rank

Ballard Power currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the Electric - Miscellanies Components industry include Active Power Inc. ACPW , Mobileye N.V. MBLY and TDK Corporation TTDKY . All three stocks currently sport a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BALLARD PWR SYS (BLDP): Free Stock Analysis Report

ACTIVE POWER (ACPW): Free Stock Analysis Report

MOBILEYE NV (MBLY): Free Stock Analysis Report

TDK CORP-ADS (TTDKY): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

BLDP TTDKY

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More