Ballard plans restructure to reduce operating costs

FCwave marine fuel cell module (Photo: Ballard Power Systems)

Hydrogen fuel cell specialist Ballard Power Systems is to carry out a corporate restructuring plan. The realignment should deliver a 30% reduction in operating costs, while ‘maintaining long-term competitiveness and balance sheet strength’.

According to the company, the reduction in corporate spending has been prompted by a slowdown in hydrogen infrastructure development and delayed fuel cell adoption.

“As discussed during our recent earnings call, in the context of a challenging macroeconomic and geopolitical outlook and amid protracted policy uncertainty, we see a multi-year push-out of the availability of low-cost, low carbon hydrogen and hydrogen refueling infrastructure,” said Randy MacEwen, Ballard president and CEO.

He continued: “As this delay represents a significant headwind to our corporate growth plan, we are implementing a cost restructuring to moderate our investment intensity and pacing to better align with delayed market adoption. We expect our restructuring measures to impact our global operations, yielding annualized total operating expense savings in excess of 30%, with a substantial part of the annualized savings being realized in 2025.”

The reduction measures will include workforce cuts, a ‘rationalization’ of development programs, operational consolidation, reduction in capital expenditures, plus working capital improvement initiatives.

As part of the changes, CFO Paul Dobson and COO Mark Biznek are set to leave the company. They will be replace respectively by Kate Igbalode and Lee Sweetland.

MacEwen added: “With continued challenges in the China fuel cell market and underperformance of the Weichai Ballard joint venture, we are also conducting a strategic review of our China strategy, including all options relating to the WBJV.”