Energy & Mining

Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) Gets Bump from Tech, Orders

Ballard Power Systems Inc. (USA) (NASDAQ:BLDP)

Ballard Power Systems Inc. (USA) (NASDAQ:BLDP)

Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) shares jumped 27% after the provider of clean energy solutions unveiled a new lightweight fuel cell that uses less platinum. The company announcing a backlog order of $264 million also appears to have triggered investor interest in the stock.

Investors Reaction

Wednesday’s rally was the biggest in more than a year, allowing the stock to achieve a new 52-week high of $4.75 a share. The rally also capped a fine run, which began late last month, which has seen the stock add more than 4% in market value.

Ballard Power Systems Inc. (USA) (NASDAQ:BLDP)
One month BLDP stock price chart

Renewed investor on Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) comes on growing confidence for the positive impact the new fuel cell technology could have on the company. Up until now, fuel cell systems have hard to contend with substantial amounts of platinum which makes them extremely expensive.

Ballard Power’s new system details the use of far less precious metals which will result in an 80% decline in the amount of platinum required. According to the vice president of technology and product development, Kevin Colbow, the new Non-Precious Metal Catalysts NPMC design should be ready for use before the end of the year.

“The NPMC-based FCgen®-1040 stack represents a step-change in PEM fuel cell technology with high performance at a reduced cost. Since platinum contributes 10-to-15% of the cost of a fuel cell stack today, we are very excited about the potential cost savings NPMC technology can enable moving forward,” said Dr. Colbow.

Ballard Power Systems collaborated Nisshinbo Holdings to come up with the NPMC-based proton exchange membrane. The two are currently exploring various commercial applications of the new technology.

Growing Order Book

Separately, Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) says its order backlog totaled $263.5 million as of June 30, 2017, representing the actual value of orders that customers have made a contractual commitment for. The company’s 12-month Order Book stood at $97.2 million as of June 30, 2017.

According to the Chief Executive Officer, Randall MacEwen, the strong order backlog and 12-month order book numbers underscores the company’s continued growth trajectory. The company will be hosting an Investor and Analysts Day event, where it plans to provide more information and insight on how it plans to deliver on the commitments over the next 12 months.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

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James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

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