Fuel cell maker Ballard Power Systems (BLDP) and auto supplier Westport Fuel Systems (WPRT) announced deals with a Chinese automotive and equipment manufacturer, as Beijing tightens clean-air rules.
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On Wednesday, Weichai Holding announced that it will take a 19.9% interest in Ballard. The two will also form a joint venture based in Shandong Province, China. Weichai will own 51% of the JV and Ballard the other 49%.
The deal includes a $90 million technology transfer and commitment for at least 2,000 fuel-cell powered commercial vehicles.
Weichai will also invest $163 million in Ballard, while current Ballard investor Zhongshan Broad-Ocean Motor will invest a further $20 million to maintain its 9.9% ownership position.
The Ballard deal follows one by Westport Fuel Systems late Tuesday.
Westport Fuel, a maker of low-emission engines and fuel-injection systems, announced development and supply agreements with Weichai to "develop, market, and commercialize a heavy-duty, natural gas engine," according to the release.
The new engine will meet Chinese emissions standards and is expected to be launched in the second half of 2019. The standards will require all new diesel heavy-duty vehicles after July 2021 to have diesel-particulate filters to help reduce pollution.
Ballard Power shares jumped 16% to close at 3.41 on the stock market today. Westport Fuel soared 21.45% to 3.51.
Among other fuel cell stocks, FuelCell Energy (FCEL) rose 0.98%, and Plug Power (PLUG) climbed 0.5%.
Fuel Cell Stocks Expand
Despite the rush to build more batteries for the electric vehicle and solar power sectors, fuel cell technology has been gaining traction.
Recent IPO Bloom Energy (BE) debuted on the NYSE on July 27 and priced at the high end of its expected range. The company makes stationary fuel cells for electricity.
But shares fell 1.4% Wednesday.
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