PowerCell signs deal for serial delivery of hydrogen fuel cell stacks to ZeroAvia potentially worth up to SEK 1.51 billion
PowerCell has signed the world’s first contract ever covering the serial delivery of hydrogen fuel stacks to the aviation industry. The client is the groundbreaking zero-emission aviation company ZeroAvia. The agreement, potentially valued up to SEK 1.51 billion, is conditioned on ZeroAvia obtaining necessary certifications, and comprises 5,000 hydrogen fuel cell stacks with deliveries planned to start in 2024. Approximately SEK 25 million of the order value is expected to impact revenues in 2022.
The deal follows the Memorandum of Understanding which was announced 18 July, 2022. The pioneering ZeroAvia focuses on hydrogen-electric aviation solutions and aims to launch a 19-seat aircraft with 300-mile range by 2025. ZeroAvia has already passed significant flight test milestones and has a number of key partnerships with major aircraft OEMs and major global airlines such as British Airways, United Airlines and American Airlines.
The total order value of SEK 1.51 billion is conditional on ZeroAvia obtaining necessary certifications of the powertrain. Both parties are confident that the technology will receive the necessary certification and accelerate the decarbonization of a critical industry with high emissions.
PowerCell will, upon completed aviation certifications, deliver a total of 0.5 GW fuel cells comprising of 300 kW superstack modules based on the industrialized 100 kW fuel cell stack. The fuel stacks will be used by ZeroAvia to manufacture a 600 kW, low-temperature, hydrogen-electric powertrain for the certified 19-seat, fuel cell-powered commercial aircraft.
As part of the agreement, PowerCell will establish a unit in the UK for final assembly and the adaptation of the stacks to ZeroAvia’s fuel cell system and application. The new unit will give PowerCell both proximity to the customer and the significant aviation market.
“We are proud of this serial delivery deal which shows that the demanding aviation industry, which is leading the development of hydrogen electric applications, recognizes our positioning and offering ’Industrialized Innovation’ as truly value-creating,” says Richard Berkling, CEO of PowerCell. “We look forward to continue the close cooperation with clean aviation leader ZeroAvia, and the joint contribution to an aircraft fleet with zero emissions.”
“We aim to power a revolution in green flight and hydrogen-electric powertrains are the only viable, scalable solution for zero-emission aviation,” says Val Miftakhov, founder and CEO of ZeroAvia. “We are addressing a multi-billion dollar market for converting aircraft to zero-emission engines, and we need the surety of high quality LTPEM fuel cell stacks in our supply chain to meet that opportunity. This deal gives us that certainty from a provider that has formed a big part of our early designs and testing towards a certifiable system.”
For further information, please contact:
Richard Berkling
CEO
Phone: +46 31 720 36 20
Email: richard.berkling@powercell.se
This information constitutes 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 13:05 CEST on 05 October 2022.
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 Growth Market, Stockholm. G&W Fondkommission is Certified Adviser, e-mail: ca@gwkapital.se, phone: +46 8 503 000 50.
About ZeroAvia
ZeroAvia is a leader in zero-emission aviation, focused on hydrogen-electric aviation solutions to address a variety of markets, initially targeting a 300-mile range in 9–19 seat aircraft by 2025, and up to 700-mile range in 40–80 seat aircraft by 2027. Based in the UK and USA, ZeroAvia has already secured experimental certificates for its two-prototype aircraft from the CAA and FAA, passed significant flight test milestones, secured a number of key partnerships with major aircraft OEMs and major global airlines, and is on track for commercial operations in 2024. The company’s expanding UK operations are supported by grants from UK’s Aerospace Technology Institute and Innovate UK, and ZeroAvia is part of the UK Government’s Jet Zero Council. For more, please visit zeroavia.com, follow @ZeroAvia on Twitter, Instagram, and LinkedIn.