NEW YORK (TheStreet) -- Shares of Ballard Power Systems (BLDP) are higher by 5.95% to $2.40 in mid-morning trading on Wednesday, after the clean energy products provider announced it signed an agreement for the development of fuel cell modules to power trams in China.
The company has signed a framework agreement with Tangshan Railway Vehicle Co. for the development of a new fuel cell modules that will be designed to meet the requirements of ground transport vehicle applications.
"TRC trams will use next-generation Ballard fuel cell power modules designed specifically for this application. Initial work is expected to involve technology solutions provided by Ballard to assist in the design and integration of a fuel cell power module into TRC tram equipment, with the goal of powering a GTV prototype in 2016," the company said in a statement.
This is the second announcement this week from Ballard regarding a deal to provide clean energy services for transportation options in China.
On Monday, Ballard signed a $10 million deal to power 33 clean energy buses in two Chinese towns. Ballard's stock rose on Monday following the announcement.
Separately, TheStreet Ratings team rates BALLARD POWER SYSTEMS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate BALLARD POWER SYSTEMS INC (BLDP) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself."