Ballard Power Systems (NASDAQ:BLDP) shares climbed more than 27% after announcing the world’s first PEM fuel cell product using non precious metal catalyst
SmallCapPower | September 14, 2017: Ballard Power Systems (NASDAQ:BLDP) after Tuesday’s close announced that Ballard, in collaboration with Japan’s Nisshinbo Holdings (TYO: 3105), developed the world’s first PEM fuel cell product using non precious metal catalyst (NPMC). The “breakthrough technology,” which dramatically reduces the use of platinum will be launched by Ballard in a new 30-watt FCgen®-1040 fuel cell stack product in late 2017. Ballard Power Systems has been working with Nisshinbo Holdings on the NMPC development since 2013.
Ballard Power shares surged more than 27% on Wednesday, while shares of Nisshinbo Holdings also rose nearly 26% on the Tokyo stock exchange post the announcement.
Currently precious metal platinum constitutes 10-15% of cost of a fuel stack, and the new NPMC which uses carbon alloy material would result in significant cost savings.
Dr. Kevin Colbow, Ballard Power Systems’ Vice President – Technology and Product Development said, “We are delighted that this collaboration with Nisshinbo has enabled the development of an innovative breakthrough technology to reduce the amount of platinum in an air-cooled fuel cell stack by more than 80%. 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.”
In terms of valuation, Ballard Power currently trades at a TTM price to sales multiple of 10.04x and price to book of 8.39x.
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own shares in the company mentioned above.
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