Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeCommoditiesEnergyBallard buys U.K.-based hydrogen producer for $515 million in strategic pivotThe combination with GeoPura will create an entry point to the market for zero-emission backup power solutionsLast updated 1 hour ago You can save this article by registering for free here. Or sign-in if you have an account.Under the deal, Ballard will pay about $515 million upfront, including $154 million in cash plus 50.8 million shares, which would give GeoPura about 14.4 per cent of the combined company. Photo by James MacDonald/BloombergBurnaby, B.C.-based Ballard Power Systems Inc. is acquiring United Kingdom-based GeoPura Ltd., which produces zero-emission hydrogen, for about $515 million in equity and cash.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe lack of access to hydrogen has been a key hurdle to Ballard selling its hydrogen fuel cells, which are like engines that produce electricity from hydrogen and oxygen.By combining with GeoPura, Ballard hopes customers will buy its hydrogen fuel cells and its hydrogen fuel.“This acquisition … shifts our business toward recurring, high-margin revenues and reinforces our path to profitability by 2028,” Martin Neese, chief executive of Ballard, said.He took over last July and the company immediately announced a “fundamental reset,” including workforce adjustments, that the company said has cut its operating expenses by 40 per cent.Ballard has focused on fuel cells for transportation, such as buses and trucks. Neese has said customers’ inability to access hydrogen has been a major friction point to growing sales.The combination with GeoPura will address this and create an entry point to the market for zero-emission backup power solutions, including for data centres.Baltej Sidhu, an analyst at National Bank of Canada Capital Markets, described the deal as Ballard’s “most strategically significant” acquisition.“The acquisition also broadens Ballard’s addressable market beyond transportation applications, where hydrogen has progressed more slowly than many industry participants originally anticipated,” he said in a note on Tuesday.GeoPura is expected to generate US$50 million in revenue compared to Ballard’s estimated US$168 million, he said.The company said the majority of its revenues are from fuel sales and that it has established relationships with customers such as Microsoft Corp., Walt Disney Co. and Netflix Inc. as well as the U.K. Ministry of Defence.GeoPura already holds a 15-year contract with the U.K. government to provide hydrogen.Under the deal, Ballard will pay about $515 million upfront, including $154 million in cash plus 50.8 million shares, which would give GeoPura about 14.4 per cent of the combined company. Additional payments may be due if the company reaches financial milestones.Neese said the majority of GeoPura’s sales are in the European Union and “there is clearly an opportunity to do more in North America.” Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.