Ballard Power Receives Follow-On Order from the U.S. Army

Protonex, an affiliate of Ballard Power Systems Inc. BLDP, has received an order from the U.S. Army aggregating $2.8 million. The order involves supplying over 400 Squad Power Manager (SPM-622) Special Operations Kits, to be used by the Special Operation Forces in battlefields.

This power management device enhances the efficient use of energy by reducing the number and type of batteries needed in various military operations.

This follow-on order from the military reflects the latter’s satisfaction with the operational excellence of these devices. Over 4,000 such devices have been put to use by the U.S. military and other allied forces.

Ballard Power Systems focuses on developing and bringing to market fuel cell systems for transportation, stationary and portable applications. The company’s acquisition of Protonex Technology Corporation at the beginning of the third quarter is enabling it to deliver reliable, cost effective and clean portable power solutions to its customers. In particular, Protonex Technology’s knowledge of the U.S. military market is proving to be a great help for Ballard Power to secure defense deals.

In the second half of 2015, the company has nabbed significant contracts from China and India to supply fuel cell modules. India is emerging as a lucrative market for fuel cell makers due to a mandate by the Department of Telecommunications that requires telecom companies to reduce their reliance on diesel generators by powering at least 50% of rural towers and 20% of urban towers with clean energy systems. The Chinese government is also keen on cutting down emissions and extensive use of fuel cell modules could actually help the country to lower vehicle emission levels. These mandates, along with the recent Paris Climate Pact, will boost adoption of fuel cell modules the world over.

Zacks Rank

Ballard Power currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the Electric – Miscellanies Components industry include Fabrinet FN, LightPath Technologies, Inc. LPTH and Sparton Corp. SPA, all sporting a Zacks Rank #1 (Strong Buy).

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