Shares of Ballard Power (TSX:BLD) are up today after the company reported it successfully demonstrated the world’s first fuel cell powered electric tram in China.
Ballard says the demo took place in March at the head office of CSR Qingdao Sifang Co. and was attended by senior officials of the city of Foshan, which is a tram customer of CSR Sifang.
“This is an exciting demonstration of our world-leading fuel cell power modules in a new application,” said Ballard CEO Randy MacEwen. “Clean urban transportation is a high priority in China, and this zero-emission prototype fuel cell tram is an important step in demonstrating one solution.”
Ballard’s entry into the Chinese market has not been without its bumps. In January, shares of the Vancouver-based company fell after announcing that its Chinese partner, Azure Hydrogen Energy Science and Technology, had breached previously announced contracts. Ballard The terminated contracts related to the assembly of its FCvelocity-HD7 Bus power modules in China and its ElectraGen telecom backup power systems that were intended for the Chinese market.
Bloomberg reports that Foshan intends to become China’s distribution hub for hydrogen transit, manufacturing the commuter trams, which top out at 43 miles-per-hour, across the country. Bloomberg reports that the Chinese city has already invested $72-million with Sifang.
At press time, shares of Ballard Power on the TSX were up 9.7% to $2.95.