Emerging Market Watch: Chinese Fuel Cell Support

Adding to a point made earlier in this blog, it is significant that Chinese President Hu Jintao made an official visit to Ballard Power Systems, the BC-based fuel cell manufacturer – especially since Ballard was the only Canadian company to receive such a high-profile visit.

The influence of emerging markets in driving demand for alternative energy was demonstrated earlier this month when VW announced plans to sell hybrids in China. Jintao’s recent visit – complete with a ride in a Ballard-powered fuel cell car -underscores China’s potential to affect alternative energy development, especially as Chinese and other emerging cities contend with growing pollution issues and soaring oil prices. Ballard's President and CEO said the following of Jintao’s visit:

We believe today's meeting is an indication of how serious China is about the role hydrogen and fuel cell technology can play in meeting China's energy and transportation needs. Robust economic growth, rapid urbanization and soaring demand for personal mobility in China is adversely affecting air quality and increasing China's dependence on imported oil. Fuel cell technology is one of several ways in which China can address these challenges. Ballard has been working with China's Ministry of Science and Technology to explore possible areas of cooperation. The visit today by President Hu Jintao reinforces China's commitment to seeking sustainable development.

Also reflecting a previous point, Ballard’s stock performance shows how some alternative energy companies have been faring in Katrina’s aftermath. Similar to flywheel manufacturer Beacon Power, Ballard finished today with a 25% gain over the stock’s close a month ago. Both demand and investor capital seem increasingly available to alternative energy companies – perhaps this combination will result in some truly sustainable strides.