Ballard Power Systems has signed a Technology Solutions transaction with Guangdong Nation Synergy Hydrogen Power Technology Co. Ltd. (Synergy) for exclusive fuel cell technology sales rights in China.

Under the terms of the agreement, Ballard will license the designs of its 1.7kW and 5kW FCgen®-H2PM polymer electrolyte membrane (PEM) systems to Synergy. The latter will manufacture the units in Yunfu, Guangdong Province, and will sell them exclusively in the North Pacific rim country.

We see significant market potential for direct H2 fuel cell backup power systems in China

Chen Xiaomin, General Manager of Synergy

Synergy has paid Ballard an upfront Technology Solutions fee of $2.5m for the license and related technology services and will make additional recurring payments to Ballard for each unit sold.

Ballard will also be Synergy’s sole supplier of air-cooled fuel cell stacks for use in the FCgen-H2PM systems under the terms of the deal.

Randy MacEwan, President and CEO of Ballard, indicated that the transaction “provides a strong foundation for future sales by Synergy of direct hydrogen (H2) backup power systems in China using Ballard’s leading system design and fuel cell stacks.”

Leading the craze

Chen Xiaomin, General Manager of Synergy, reinforced, “We see significant market potential for direct H2 fuel cell backup power systems in China, particularly given the recent establishment of China Tower Corporation. The Ballard brand is synonymous with PEM fuel cell technology leadership.”

This is not the first deal that the two companies have committed to in order to advance fuel cell technologies in the North Pacific rim region. In 2015, Ballard and Synergy signed the largest-ever fuel cell bus agreement to support the deployment of 300 buses using the technology in the Chinese cities of Foshan and Yunfu.

China is arguably one of the biggest manufacturers of renewable energy in the world. With strong support from the government, fuel cell technology is spreading across the country fast with China leading the way in the worldwide fuel cell vehicle (FCV) craze.