Ballard Power Systems Inc. BLDP shares are on the upswing after clinching the largest order of fuel cell engines in its storied past.

In a significant move, the company has sealed a Long Term Supply Agreement (LTSA) with its partner Solaris Bus & Coach sp. z o.o. to deliver 1,000 hydrogen fuel cell engines by 2027 for the European transit bus market.

This notable agreement amalgamates prior orders for approximately 300 fuel cell engines, with a fresh commitment to supply an additional 700 fuel cell engines and accompanying after-market extended warranty services.

The company has set its sights on deploying these engines in buses where Solaris buses, powered by Ballard fuel cell engines, operate across more than 22 European cities.

Deliveries are projected to commence in 2024 and continue through the conclusion of 2027.

Randy MacEwen, Ballard’s President and Chief Executive Officer, expressed, “This momentous agreement marks the next chapter in Ballard and Solaris’ collaboration to drive fuel cell bus adoption in Europe, harnessing Ballard’s impeccable product performance as the energy shift garners pace.”

“Our journey toward achieving widespread deployment of fuel cell buses is pivotal to unlocking economies of scale and cost reduction initiatives, thereby enhancing economics and curbing emissions for fleet operators.”

Furthermore, Ballard has secured $54 million in investment tax credits from the U.S. Internal Revenue Service under the Qualifying Advanced Energy Project Tax Credit (48C), funded by the Inflation Reduction Act (IRA).

In the previous month, the company revealed a remarkable 132% year-on-year surge in fourth-quarter sales to $46.80 million, surpassing analyst consensus projections of $34.07 million.

Also in the Spotlight: Ballard Power Systems Analysts Adjust Their Predictions Following Q4 Results

Price Movement: BLDP shares are currently up by 12% at $3.11 as of the latest check on Monday.