Ballard Power Systems Inc. (NASDAQ:BLDP) shares are trading higher after the company disclosed winning the largest order of fuel cell engines in its history.
Notably, the company inked a Long Term Supply Agreement (LTSA) with its customer Solaris Bus & Coach sp. z o.o. for supplying 1,000 hydrogen fuel cell engines through 2027 for the European transit bus market.
The LTSA consolidates existing orders for around 300 fuel cell engines, with a new supply commitment for an incremental around 700 fuel cell engines and related after-market extended warranty services.
The company expects to deploy these engines in buses where Solaris buses powered by Ballard fuel cell engines operate in more than 22 European cities.
The company plans to start deliveries in 2024, which will run through the end of 2027.
Randy MacEwen, Ballard President and Chief Executive Officer, said, "This landmark agreement embarks on the next phase of Ballard and Solaris' partnership to accelerate fuel cell bus adoption in Europe, leveraging Ballard's proven product performance, as the energy transition gains momentum."
"We are on the road to achieving scaled deployment of fuel cell buses, which is a critical lever to facilitate economies of scale and cost down initiatives, driving improved economics and reduced emissions for fleet operators."
Apart from this, Ballard achieved $54 million in investment tax credits from the U.S. Internal Revenue Service as part of the Qualifying Advanced Energy Project Tax Credit (48C), funded by the Inflation Reduction Act (IRA).
Last month, the company reported fourth-quarter sales growth of 132% year-on-year to $46.80 million, beating the analyst consensus estimate of $34.07 million.
Also Read: Ballard Power Systems Analysts Slash Their Forecasts After Q4 Results
Price Action: BLDP shares are up 12% at $3.11 on the last check Monday.