PowerCell and Robert Bosch GmbH have signed an agreement regarding the development, production and sale of the PowerCell S3 fuel cell stack for the automotive segment. The agreement includes a joint development of the S3 and a license whereby Bosch gets the exclusive right to produce and sell the new and improved version of PowerCell S3 for automotive applications such as cars, trucks and buses.
Bosch will pay PowerCell MEUR 50 (approx. MSEK 530) for the license and a royalty fee for every product sold.
The MEUR 50 payment will have a positive impact on the operating income for the second quarter 2019.
“By teaming up with Bosch we can achieve a commercial break-through within the automotive industry that would be very hard for us to accomplish on our own”, Per Wassén, CEO of PowerCell said.
The German company Robert Bosch GmbH is the world’s largest supplier to the automotive industry and is developing components for fuel cell systems for automotive vehicles. Bosch has previously received deliveries of PowerCell fuel cell stacks for their systems and in December last year, the parties signed a term sheet regarding a joint development cooperation for PowerCell S3 for the automotive segment. The final agreement includes a joint development of PowerCell S3 and gives Bosch an exclusive, global right to produce and sell the jointly improved version of the PowerCell S3 in fuel cell systems for automotive applications like passenger cars, trucks and buses for seven years following start of production. For these rights Bosch pays PowerCell MEUR 50 (approx. MSEK 530) in a lump sum and, in addition to that, a royalty fee for every product sold during the contract period.
“In the fuel-cell domain, Bosch already has a strong hand, and the alliance with PowerCell makes it even stronger. Commercializing technology is one of our strengths. We are now going to take on this task with determination and develop this market,” says Dr. Stefan Hartung, member of the Bosch board of management and chairman of the Mobility Solutions business sector.
The current version of PowerCell S3 has a power range of 30-125 kW, runs on pure hydrogen and is based on PEM technology. The PowerCell S3 has world-leading power density and is built with bipolar plates made of steel to be able to withstand and function under rough and varying conditions.
PowerCell will maintain its rights to commercialize the S3 stack and the jointly developed new version of the S3 in non-automotive applications, like stationary and marine applications, which are not covered by the agreement. The agreement does not cover the fuel cell stack being developed by PowerCell within the German Project Autostack Industrie, ASI, partly founded by the German Government and where PowerCell is one of the partners together with the German OEMs BMW, Daimler, Ford and Volkswagen. The agreement also does not cover the PowerCell S2 fuel cell stack.
Bosch operates development and productions facilities globally and has an excellent track record in achieving cost reductions through large-scale production of technologies.
“This agreement gives us an unparalleled possibility to leverage our S3 technology within the automotive industry while at the same time providing us with the resources needed for a successful expansion into other product segments”, Per Wassén, President and CEO of PowerCell said. “PowerCell has a clear mission – to save the planet – and with this agreement we get both the market and financial position needed to continue to leverage our cutting-edge technology commercially.”
The automotive industry is coming under increasing pressure to cut emissions of carbon dioxide. Over the last year the EU has imposed new and very strict regulatory demands for CO2 emissions from cars, vans and commercial vehicles like trucks and buses. The EU’s fleet requirements for trucks call for a reduction of CO2 emissions by 15 percent on average by 2025, and 30 percent by 2030.
“This target can only be met with an increased electrification”, Per Wassén, CEO of PowerCell said. “PowerCell with its leading fuel cell technology can play a decisive role here and the cooperation with Bosch presents us with a tremendous opportunity to bring about the change needed.”
For further information, please contact:
CEO, PowerCell Sweden AB (publ)
Phone: +46 (0) 31 720 36 20
This information is insider information that PowerCell Sweden AB (Publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:30 CET on April 29, 2019.
About PowerCell Sweden AB (publ)
PowerCell Sweden AB (publ) develops and produces fuel cell stacks and systems for stationary and mobile applications with a world class energy density. The fuel cells are powered by hydrogen, pure or reformed, and produce electricity and heat with no emissions other than water. As the stacks and systems are compact, modular and scalable, they are easily adjusted to any customer need.
PowerCell was founded in 2008 as an industrial spinout from the Volvo Group. The share (PCELL) is since 2014 subject to trade at Nasdaq First North Stockholm. G&W Fondkommission is Certified Adviser, e-mail: email@example.com, phone: +46 8 503 000 50.