Ballard Power Systems Inc., a Canadian maker of fuel-cell technology, gained the most in almost four months after winning a $10 million contract to help develop buses for two Chinese cities.
Ballard, based in Burnaby, British Columbia, rose 11 percent to C$2.91 in Toronto, the most since Feb. 11.
The company agreed to provide Nantong Zehe New Energy Technology Co. and Guangdong Synergy Hydrogen Power Technology Co. with products and technology for the development of 33 fuel-cell buses, according to a statement Monday.
“We see this order as a meaningful step forward for Ballard as they continue to make headway in the Chinese bus market,” Jeff Osborne, a Cowen & Co. analyst, wrote in a note to investors.
Ballard and Zehe will collaborate with electric bus manufacturer Jiangsu GreenWheel New Energy Electric Vehicle Co. in the city of Rugao. The Canadian company and Synergy will collaborate with Foshan Feichi Automobile Manufacturing Co. in the city of Yunfu.
The two cities expect to have their fuel-cell bus fleets operational next year.
Buses powered by fuel cells or electricity are eligible for a subsidy of about $150,000 through 2017 in China. Hydrogen fueling stations also may receive an additional $650,000 subsidy.
Fuel cells run on hydrogen or natural gas and produce electricity through a chemical reaction.