Ballard Power Systems has acquired Arcola Energy, a systems engineering company based in the United Kingdom that specializes in hydrogen fuel cell powertrain and vehicle systems integration.
Ballard bought 100% of Arcola for a total upfront and earn-out cash and equity compensation of up to US$40 million, subject to certain performance benchmarks being met.
Arcola employs roughly 90 people in the United Kingdom and has over ten years of experience integrating Ballard fuel cell engines into powertrains and heavy-duty vehicles, including buses, garbage trucks, and trains. Arcola is one of the UK’s fastest growing hydrogen firms, partnering with some of the most innovative local authorities, fleet operators, and OEMs to help them achieve their zero-emission goals.
“We continue to focus on simplifying the fuel cell electric vehicle (FCEV) experience and ease implementation friction points for OEM customers and end-users,” said Randy MacEwen, Ballard’s President and Chief Executive Officer. “We are putting the customer at the heart of our strategy and investments. With the acquisition of Arcola, we will make it easier for existing and new OEM customers globally to offer FCEVs by providing stronger support for the integration of our fuel cell engines into their vehicle platforms, including powertrain integration, vehicle integration and application engineering.”
Dr. Ben Todd, Founder and CEO of Arcola, stated, “The entire Arcola team is thrilled to combine our shared passion for decarbonizing mobility and our unique expertise in fuel cell powertrain integration with Ballard’s world leading PEM fuel cell technology and market position in heavy-duty mobility. Together, we will improve and optimize FCEV powertrain and vehicle performance, lower lifecycle costs, and simplify powertrain and vehicle systems integration and service for customers.”
Mr. MacEwen added: “With COP26 as a contextual backdrop for the urgent need to decarbonize hard-to-abate sectors, we are seeing growing global interest in the adoption of hydrogen-powered fuel cell engines into zero-emission buses, commercial trucks, trains and marine vessels. We welcome the Arcola team to Ballard, where our purpose is to deliver fuel cell power for a sustainable planet. With this acquisition, we significantly strengthen our global systems integration capabilities to further support our growth plan, while deepening our UK presence.”
Ballard acquired Arcola for a total consideration of up to US$40 million, which includes 337,353 Ballard shares (with a current estimated value of US$6 million) that vest over two years and up to US$34 million in upfront and earn-out cash consideration based on the achievement of certain performance criteria over a two-year period.
