Canadian clean energy fuel cell specialist Ballard Power Systems has announced the signing of several multiyear definitive agreements in support of the zero-emission fuel cell bus programme of its China-based partner, Azure Hydrogen, aimed at the Chinese market, following a memorandum of understanding signed on May 28.

Using Ballard’s fuel cell technology, Azure plans to partner with Chinese bus manufacturers in a phased development programme for the deployment of zero-emission fuel cell buses in China.

The initial 12 months of the first phase of the contract, worth about $11-million, requires Ballard to provide a licence, associated equipment and engineering services for Azure, enab- ling Azure to assemble several Ballard FCvelocity-HD7 bus power modules in China.

Once this has been established, Azure will assemble modules with fuel cell stacks, which will be exclusively supplied by Ballard.

The signing of the definitive agreements, which required the approval of the Chinese government, took place last month at the World Hydrogen Technologies Convention in Shanghai, China.

Several senior Chinese officials participated in the signing ceremony, including counsellor to the State Council and former Ministry of Science and Technology secretary-general Shi Dinghuan, Rugao Economic Development Zone party committee secretary Ma Jinhua and Shandong Institute of Technology president Professor Zhang Xinyi.

Ballard CEO John Sheridan says the com- pany is pleased to move ahead with its partnership with Azure, adding that the agreements represent significant value in the short term and great potential in the medium term in what could become the leading market for zero-emission fuel cell buses.

“This is also a key step for Ballard to establish an important licensing revenue stream, expanding the company’s business model for value creation,” he adds.

Meanwhile, Azure CEO Ronald Lee affirms the promise of a market in China. “We see significant market opportunity for the deployment of clean energy fuel cell bus fleets in China, where they will have a direct positive impact on the severe air-quality problem in our major cities,” he said.

Azure plans to secure funding from Chinese sources, including private investors and governments, to enable the development of fuel cell bus fleets in China for initial public-transport service by 2015.