Shares of Ballard Power (BLDP) jumped more than 4% in Thursday midday trading after the fuel cell products-maker announced a licensing agreement with a Chinese manufacturer.
BLDP said it had signed a definitive agreement relating to an assembly license for Telecom Backup Power systems made for the Chinese market with Azure Hydrogen. BLDP estimated the value of the agreement at about $6 million between 2014 and 2015.
The agreement also makes BLDP “the exclusive supplier of subsystems – including FCgen™-1020ACS air-cooled fuel cell stacks and fuel processors – and will receive a royalty payment for each Telecom Backup Power system sold in China, should Azure successfully execute its Business Plan and achieve volume commitments.”
In a statement announcing the deal, BLDP CEO and President John Sheridan commented: “The Telecom Backup Power market is a key growth driver for our business and is also a significant opportunity in China given the scale of the market and China’s growing focus on clean energy technology.”
On Wednesday, BLDP stock closed at $4.15 per share.
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