There’s a lot of power behind Ballard Power (NASDAQ:BLDP) stock today. In a still-fresh development, the company struck a consequential deal with Stadler Rail (OTCMKTS:SRAIF). Reportedly, Ballard ordered fuel cell engines from Stadler, and these are designed to power the first hydrogen train in the U.S. Moreover, these trains are expected to be in service in California in 2024.
Traders and everyone else, get ready for a giant leap forward in the clean energy transition. Surely, you’ve already heard about cars being powered by hydrogen fuel cells, but what about trains? They won’t be left standing on the tracks, as Ballard Power is preparing to make trains part of America’s big push for environmentally friendly energy sources.
Ballard Power has been around for a while, helping to add fuel cell power to buses, trucks and even marine vessels. The company is proving its stature as a pioneer once again, however. Ballard’s not working alone, though, as it’s collaborating with a rolling stock manufacturer with 80 years of experience.
California’s San Bernardino County Transportation Authority (SBCTA) awarded Stadler Rail a contract to build a hydrogen-powered train. Furthermore, Ballard will provide six 100-kilowatt fuel cell engines to power the history-making train.
What’s Happening with BLDP Stock?
BLDP stock traders went into celebration mode upon hearing this news, pushing the shares up as much as 5% today. Could they be witnessing and participating in a historic moment? Or, will this just be a slow-motion train wreck?
Only time will tell, as Ballard Power’s investors will need to be patient. According to the press release, the U.S.’s first hydrogen-powered train won’t be in service until 2024. This, of course, is assuming there aren’t any snags along the way as the two companies develop this groundbreaking train.
The train will seat more than 100 passengers and be in service in the city of San Bernardino, California. Ballard Power CEO Randy MacEwen is, as we might expect, excited to work with Stadler Rail on this project. MacEwen’s vision is “to reduce emissions in the transportation sector and bring the first hydrogen powered, zero emission passenger train to the United States.”
Who knows — this could be a landmark moment in American locomotive clean energy. At the very least, it’s a great day to be an owner of BLDP stock.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.