Ballard Gets $54 Million in U.S. Investment Tax Credits to Support New Texas Plant
By Robb M. Stewart
Ballard Power Systems will receive a further $54 million in U.S. federal funding support to help with the construction of its new fuel cell factory in Texas.
The company said Monday it was awarded investment tax credits from the Internal Revenue Service as part of the Qualifying Advanced Energy Project Tax Credit, funded by the Inflation Reduction Act. It adds to the award of $40 million in U.S. Department of Energy grants, providing Ballard with a total of $94 million of U.S. federal funding to support the build-out of its Rockwall Gigafactory.
The company said it aims to make a final investment decision on the facility later in 2024. Ballard plans to build the plant on 22 acres of industrial land within the Rockwall Technology Park in Rockwall, Texas, and in the first phase of development the company expects to invest about $110 million from 2024 through the end of 2027.
News of the tax credits came as Ballard earlier Monday said it signed a long-term supply deal with a European bus manufacturer for 1,000 hydrogen fuel cell engines through 2027, the largest order in the company's history. The order from Solaris Bus & Coach consolidates existing orders for about 300 fuel cell engines, while adding after-market and extended warranty services to the orders with a new supply commitment for an incremental roughly 700 fuel cell engines and related after-market extended warranty services.
In premarket trading, Ballard's shares were 13% higher on Nasdaq.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
April 01, 2024 09:05 ET (13:05 GMT)
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