Ballard Power Systems Inc. (BLDP-T) is expanding beyond its traditional transportation markets into new applications for hydrogen power, including data centres and diesel generator replacements, following its acquisition of U.K.-based GeoPura Limited, the Burnaby-based company’s CEO says.

In their first joint interview with a Canadian media outlet, Ballard CEO Marty Neese and Ballard president Andy Cunningham outlined the rationale and plan for the approximately $515-million transaction announced in July, which closed in August.

Ballard, which makes fuel cells that convert hydrogen into electricity, was looking to expand into the energy-as-a-service (EaaS) market, Neese said.

The company saw “the strongest demand for our product being through GeoPura,” and was compelled by its end-to-end solution and EaaS model, which includes supplying hydrogen, building hydrogen-powered generators and distributing the element.

“So it was a natural fit,” Neese said about the acquisition, “given our long history and our relationship together.”

How GeoPura reshapes Ballard

The relationship between the two companies started before GeoPura was formed in 2019, Cunningham said. As GeoPura was being built, its founding team was in contact with Ballard, the Canadian company being a longtime player in the hydrogen sector. GeoPura was an avid customer of Ballard, using its fuel cells for the company’s Hydrogen Power Units (HPUs) for example, which are generators powered by hydrogen.

GeoPura brings a portfolio of active and in-development hydrogen production sites in the U.K. and Ireland to Ballard, Cunningham said, capable of outputting 10 tonnes of hydrogen per day. One of those sites is a joint venture named HyMarnham Power, which is converting a former coal plant in England into a clean hydrogen facility.

Acquiring GeoPura “provides a strong path for growth,” Neese said, with “strong value proposition for enhanced value capture” through vertical integration by giving Ballard control over hydrogen production and distribution.

GeoPura also gives Ballard access to new markets. Before the acquisition, Ballard primarily served transportation markets, including bus, rail and marine applications, Neese said. Now with GeoPura’s background, Ballard has the means to serve construction sites, film and television projects and live sporting events by replacing diesel-powered generators with a hydrogen-fuelled alternative.

Cunningham pointed out the advantages of switching from diesel to hydrogen as not only reducing carbon emissions, but also eliminating diesel exhaust and reducing noise, especially helpful for filming media and live events where silence is often critical.

The biggest opportunity for Ballard that may have been opened is powering data centres, Neese said, not just providing the primary or backup power for the facilities, but the construction.

Ballard is weighing whether to invest in expanding its fleet of HPUs or increasing its hydrogen production capacity, Neese said. The company could increase the number of HPUs for rent, with Ballard providing the fuel from its production or purchasing from other businesses. Alternatively, it could elevate the green hydrogen production from its projects such as HyMarnham.

“We have the choice to either build our own production capacity,” Neese said, “or using our knowledge of producing hydrogen, be a very good partner to others and create offtake for them.”

'Exciting' growth via GeoPura

The acquisition came at a point when the green hydrogen sector faced significant uncertainty.

Low-carbon hydrogen remains a tiny portion of the global hydrogen market, expected to be the source of one per cent of needs in 2026, the International Energy Agency forecast. While it represents growth, the sector is also anticipated to see a narrower project pipeline by 2030.

Ballard also faced mounting pressure, with a restructuring in 2024 that included cuts to jobs and product development. But Ballard plans to shrug it off and move on. Hydrogen, Neese said, is superior to fossil fuels as an energy source.

“The markets that GeoPura has demonstrated the capability to grow in are exciting,” he said. “These are large, nascent markets.” That includes being a low-carbon alternative to millions of diesel generators, which Neese called “an exciting opportunity.” Ballard “can start seeing the opportunity to compete economically with diesel as an incumbent,” he said.

Similar to how the auto industry had its fair share of skeptics when it invested in gas stations before mass adoption of the car, Cunningham said the hydrogen sector could follow a similar trajectory. “We are just at the point of transition,” Cunningham said, with hydrogen being “pretty much cost competitive with diesel.”

Ballard has a pipeline of “interesting things” to announce, Neese said, such as a product from its GeoPura portfolio.