Specialised energy products provider Ballard Power Systems has entered into a technology solutions transaction with automotive manufacturer Volkswagen (VW) for the transfer of automotive-related fuel cell intellectual property (IP), as well as a two-year extension of an engineering services contract.
The first portion of the deal would see Ballard transferring the automotive-related portion of fuel cell IP assets previously acquired from United Technologies Corporation, in return for payments from VW totalling $50-million, the majority of which was expected to be received at the closing of the transaction in the current quarter.
Ballard would receive the balance of payment in early 2016.
The company would, meanwhile, retain a royalty-free licence to use the IP transferred to VW in bus and nonautomotive applications, as well as for certain limited precommercial purposes in automotive applications.
The transaction also included a two-year extension, through to March 2019, of the existing long-term engineering services agreement for the design and manufacture of next-generation fuel cell stacks signed by Ballard and VW in 2013.
This extension had an incremental value estimated at between $24-million and $40-million.
Over the full six years, the contract had an estimated value of between $80-million and $112-million and included a further optional two-year extension.
VW technical development coordinator Professor Ulrich Hackenberg said the group’s automotive fuel cell patent portfolio, together with the combined fuel cell skills and expertise of VW and Ballard, would underpin the company’s ability to play a leading role in fuel cell automotive development and commercialisation.
Commenting on the entire transaction, Ballard president and CEO Randy MacEwen said the deal extended and deepened the group’s relationship with VW.
“The IP transfer surfaces significant value for Ballard, while the extension of the engineering services contract reflects a growing positive sentiment toward fuel cells within the automotive sector, along with the outstanding progress made, to date, in our work with VW on its fuel cell car programmes,” he commented.