A hydrogen fuel firm with its base in Dundee has been acquired by Canadian company Ballard Power Systems.
Ballard, a world leader in the design and manufacturing of PEM fuel cell engines, has completed the acquisition of Arcola Energy.
Arcola was one of the first major employers at the former Michelin tyre factory site.
The firm specialises in hydrogen fuel cell powertrain and vehicle systems integration.
Arcola currently has approximately 90 employees based in the UK and is one of the fastest-growing hydrogen companies.
It works with some of the most progressive local authorities, fleet operators and manufacturers to meet their zero-emission targets.
A growing interest in hydrogen power
Randy MacEwen, Ballard’s president and chief executive, was delighted to have acquired Arcola Energy.
He said: “We are putting the customer at the heart of our strategy and investments.
“With the acquisition of Arcola, we will make it easier for existing and new OEM customers globally.”
Mr MacEwen said there is a growing global interest in hydrogen-powered engines.
He said the acquisition “significantly” strengthened the firm’s global capabilities.
“We are seeing growing global interest in the adoption of hydrogen-powered fuel cell engines into zero-emission buses, commercial trucks, trains and marine vessels,” the Ballard president said.
“We welcome the Arcola team to Ballard, where our purpose is to deliver fuel cell power for a sustainable planet.”
Ben Todd is founder and chief executive of Arcola.
He has previously set out his vision of transforming heavy goods vehicles with 135 staff in Dundee.
He said the team is pleased to be continuing its work with Ballard.
He said Ballard has “world-leading” PEM fuel cell technology.
Mr Todd said that together, they will optimise vehicle performance, lower costs and simplify systems integration and services.
Ballard acquired Arcola for a total consideration of up to $40m.
That includes 337,353 Ballard shares, with an approximate value of £6m that vest over two years.
The remainder of the deal was $34 million in upfront and earn-out cash consideration, based on the achievement of performance conditions over a two-year period.