SFC Energy has agreed to purchase selected fuel cell assets from Ballard Power Systems Europe’s Scandinavian (BPSE) business for an undisclosed amount.
H2 View understands that the purchase will cost at least €1m but not exceed €10m, allowing SFC to expand its own power range with two 1.7kW and 5kW PEM hydrogen fuel cell solutions.
The acquisition will also cover BSPE’s customer base, its sales pipelines, and maintenance contracts of around 400 sites in Denmark, Norway, Sweden and Finland – subject to customer consent. The German firm will also attain Ballard employees.
SFC Denmark is expected to “generate revenues in the mid-single-digit million Euro range and a positive contribution to EBITDA and EBIT starting in 2025.”
“By integrating Ballard Power Systems’ expertise in this power range into our product portfolio, we will be able to offer our combined customer base the most comprehensive range of stationary fuel cells below 50kW worldwide,” explained Dr. Peter Podesser, CEO of SFC Energy.
“The transaction thus contributes to various elements of our defined and consistently pursued growth strategy.
“The challenge now is to realise the addressable market potential, which we estimate to be well over 1,000 locations in northern Europe in the first phase and to realise synergies along the entire value chain.”
Randy MacEwen, CEO of Ballard Power Systems, added, “We believe the consolidation by SFC Energy of our proven 1.7kW and 5kW PEM fuel cell solutions into their growing product portfolio of low-power hydrogen fuel cells in the stationary power markets will provide significant value for our existing customer base.”
The transaction is expected to close before the end of the year, depending on regulatory approvals.
Last month (September), H2 View learned that Ballard launched plans to cut jobs, streamline operations and potentially scrap its Chinese joint venture to save over 30% in spending as it prepares to weather a slow-down in the hydrogen market.
Read more:Ballard restructures: Job cuts, executive changes, strategic shift in China
The Canadian company claimed the measures were necessary to reduce corporate spending and maintain balance sheet strength as the hydrogen industry faces delays.
The news came not long after the fuel cell developer warned its 3GW fuel cell factory in Texas, US, could be in doubt.
Read more:Ballard’s 3GW hydrogen fuel cell factory in question amid stalling market adoption
Despite securing up to $94m in US federal funding for the facility, it was revealed during an investor call that Ballard doesn’t have an order book in line with a factory of such scale.
