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Ballard Power Systems to build $160 million fuel cell plant in Texas

April 14, 2024

Vancouver-based Ballard Power Systems is set to commence construction on a $160 million fuel cell production facility in Rockwall, Texas this year. The 22-acre facility, named Ballard Rockwall Giga 1, is expected to be completed by 2027. The U.S. Department of Energy has awarded Ballard a $40 million grant under the Clean Hydrogen Electrolysis, Manufacturing, and Recycling Program to support the costs of building the facility.

The new facility will manufacture equipment essential for fuel cell production, with the capacity to build up to 20,000 fuel cell engines annually, and will potentially increase production as the facility expands post-2027. This development is part of a broader initiative by President Joe Biden to enhance the production of clean hydrogen technologies.

Despite recent financial setbacks, Ballard views the Rockwall facility as a significant step towards future growth. The company’s stock hit a five-year low on Tuesday, and it reported a net loss of $48.9 million in its fourth quarter of 2023 report. However, the Rockwall Economic Development Corporation has provided financial, fee, and permit incentives for the plant, believing that Ballard’s presence will stimulate regional growth.

Texas has become a significant player in the fight against climate change, with companies like Houston-based Exxon Mobil and San Ramon, Calif.-based Chevron backing projects like the $1.2 billion Gulf Coast hydrogen hub in Houston. Plano-based Toyota is also supporting a fuel cell power generator in Arvada, Colo.