Boston, MA 03/10/2014 (wallstreetpr) – Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) is a fuel cell and ultra-clean electricity provider. The company is among the many fuel-cell related stocks that are enjoying their time in business currently. The company has until recently been basking in the glory of peers such as Plug Power Inc (NASDAQ:PLUG), but now it has its own reason to be excited.
The company has just landed an important contract from the U.S. Depart of Energy. The contract is important in that it will not only contribute to the company’s revenue, but it is also an indication of the growing adoption of fuel cell related energy. Thus, it is more likely than not to lead to more and bigger deals for Ballard Power Systems Inc. (USA) (NASDAQ:BLDP).
Given the excitement that is surrounding alternative energy stocks, shares of Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) have been on a upward trend in recent times and the latest contract comes as another big boost for the stock.
The Department of energy contract
Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) whose stock has been popping with double digits of late landed a continuation contract from the energy department. The deal is worth $2.8 million. This is quite a tiny amount if you understand what the industry of alternative energy is worth, yet as mentioned earlier, it is just a small start to bigger things in the future and that future is very near.
The company will develop tri-generation plant for industrial application as part of the energy department contract. According to management estimations, the plant should be up and running by close of 2014. Beyond the ultra-clean energy generation, the plant will also provide on-site hydrogen. The benefit of on-site production of hydrogen is that it helps to reduce the production, storage and transportation costs associated hydrogen.
Investor Takeaway
Ballard Power Systems Inc. (USA) (NASDAQ:BLDP), with a market cap of $807.14 million and whose stock of late routinely set new record prices, has a lot of promise for the future. The benefits that fuel cell energy provides are so attractive to business that providers of the same can only enjoy better moments going forward.
Looking at the manner in which the stock is scaling up, the current price looks greatly discounted and thus investors can still take up positions when the stock is still affordable by most measures.
