VANCOUVER, BC and
ROCKWALL, Texas,
March 14,
2024 /PRNewswire/ - Ballard Power Systems
(NASDAQ: BLDP) (TSX: BLDP) announced it has received notification
from the Hydrogen and Fuel Cell Technologies Office within the U.S.
Department of Energy (DOE) that Ballard's applications for two
grants totaling US$40 million under
the Clean Hydrogen Electrolysis, Manufacturing, and Recycling
Program have been selected and recommended for negotiation of
financial awards. The grants will support Ballard's construction
and build-out of an integrated fuel cell production Gigafactory
based in Rockwall, Texas.
Ballard plans for the new facility, dubbed Ballard Rockwall Giga 1, to be located on a
parcel of 22 acres of industrial land within the Rockwall
Technology Park in Rockwall,
Texas. In Phase I, Ballard plans to invest approximately
US$160 million (net of the
US$40 million in expected DOE grants)
from 2024 through the end of 2027 to build and commission a new
manufacturing facility with annual production capacity of 8 million
membrane electrode assemblies (MEAs), 8 million bipolar plates,
20,000 fuel cell stacks, and up to 20,000 fuel cell engines per
year, or the equivalent of 3 gigawatts of fuel cells. The land
acquisition rights and facility design provide Ballard with
optionality for additional future phases at the Rockwall site.
Future phases are expected to further increase production scaling
and capacity expansion with much lower capital requirements.
The facility represents the next stage of Ballard's 'local for
local' and advanced manufacturing strategy. Ballard expects to make
a final investment decision on this facility later in 2024, pending
completion of customary conditions, including necessary approvals,
negotiation of final awards with the DOE, and definitive
agreements.
The $40 million in total DOE
grants comprise a $30 million grant
relating to advanced proton exchange membrane (PEM) MEAs and
automated stack assembly, with the additional $10 million grant relating to a next-generation
flexible graphite bipolar plate manufacturing line. The grants have
been awarded by the U.S. DOE's Hydrogen and Fuel Cell Technologies
Office to implement provisions of the Bipartisan Infrastructure
Law, providing for the award of $750
million for Clean Hydrogen Electrolysis, Manufacturing, and
Recycling. Ballard has also applied for additional funding under
other U.S. government funding programs.
"We are thrilled to be recommended for participation in the
Clean Hydrogen Electrolysis, Manufacturing, and Recycling
Program," said Randy MacEwen,
Ballard's President & Chief Executive Officer. "We are grateful
for the strong support of the DOE's hydrogen policies that position
the U.S. for future scaling of hydrogen and fuel cells. This is
particularly important as the U.S. accelerates a path towards
environmental sustainability and energy security, while continuing
to boost domestic manufacturing and bolster critical supply chains.
We are also excited to unveil the next stage of our 'local for
local' manufacturing strategy, which will feature cutting-edge fuel
cell manufacturing technologies across our fuel cell production
value chain, enabling cost competitive solutions at scale."
Ballard has also received considerable support from the Rockwall
Economic Development Corporation (REDC), which owns and manages the
Rockwall Technology Park. The REDC has provided an attractive mix
of land, financial, fee and permit incentives for the facility,
while assisting in the planning and approval process. The facility
will also benefit from its proximity to the Gulf Coast hydrogen
hub.
"With an increasingly constructive policy environment and
growing customer interest, it is critical to invest in this
innovative manufacturing line," commented Dr. Lee Sweetland, Ballard's Chief Transformation
Officer. "We have been working hard to develop next-generation,
automated production processes for MEAs, bipolar plates, and stack
assembly that will position Ballard to meet expected future market
demand, while significantly driving down the cost of our
market-leading fuel cell engines. We are delighted to partner with
the REDC to establish Ballard Rockwall
Giga 1, which we expect to contribute to the Rockwall tax
base and add high quality jobs in Rockwall."
"We are thrilled that Ballard chose Rockwall, Texas for this transformative
project. We believe the choice of Rockwall speaks to our strong
advanced manufacturing workforce, logistical advantages, and
first-class shovel ready sites we have available in the Rockwall
Technology Park," said Phil Wagner,
President of the Rockwall Economic Development Corporation.
"Ballard's planned investment will go a long way in enabling
continued high-quality services at the city, county, and school
district levels. Likewise, we look forward to being a committed
partner for Ballard in their future growth."
About Ballard Power Systems
Ballard Power Systems' (NASDAQ: BLDP; TSX: BLDP) vision is to
deliver fuel cell power for a sustainable planet. Ballard
zero-emission PEM fuel cells are enabling electrification of
mobility, including buses, commercial trucks, trains, marine
vessels, and stationary power. To learn more about Ballard, please
visit www.ballard.com.
This release contains forward-looking statements concerning
planned operations expansion, related investments, product cost and
market impacts, and anticipated implementation timeline. These
forward-looking statements reflect Ballard's current expectations
as contemplated under section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Any such forward-looking statements are based on Ballard's
assumptions relating to its financial forecasts and expectations
regarding its product development efforts, manufacturing capacity,
and market demand.
These statements involve risks and uncertainties that may cause
Ballard's actual results to be materially different, including
general economic and regulatory changes, detrimental reliance on
third parties, successfully achieving our business plans and
achieving and sustaining profitability. For a detailed discussion
of these and other risk factors that could affect Ballard's future
performance, please refer to Ballard's most recent Annual
Information Form. Readers should not place undue reliance on
Ballard's forward-looking statements and Ballard assumes no
obligation to update or release any revisions to these
forward-looking statements, other than as required under applicable
legislation.
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SOURCE Ballard Power Systems Inc.