PRESS RELEASE: Billerica, Massachusetts, August 13, 2018 — Nuvera Fuel Cells, LLC, a provider of fuel cell power solutions for motive applications, has announced an agreement with Zhejiang Runfeng Hydrogen Engine Co., Ltd. (ZRHE) to manufacture and assemble fuel cell engines for use in the Chinese “New Energy Vehicle” market. The agreement provides a product license to ZHRE for the manufacture of 45kW fuel cell engines, based on Nuvera's current generation fuel cell stack, for sale in China over the next three years. The units are expected to be integrated in transit buses, delivery vehicles and other motive platforms in the cities of Ningbo, Hangzhou, Kunming, and Xi’an. ZRHE is a newly created subsidiary of Zhejiang Runfeng Energy Group (Runfeng) based in Hangzhou, China.
In addition to the fuel cell engine manufacturing license, the agreement also provides royalty and technology services revenue to Nuvera. The agreement incorporates a minimum initial purchase volume of 500 fuel cell stacks after successful testing of the engines, with annual minimum purchases increasing throughout the three-year term of the contract. The fuel cell stacks used in these engines will be manufactured exclusively by Nuvera, initially at its facility in Billerica, Massachusetts. Localization in China is anticipated in the 2019-2020 timeframe.
Jon Taylor, President and CEO of Nuvera, stated that “our relationship with ZRHE represents Nuvera’s entry as a serious player into the Chinese market. The Central China Government Road-map has set aggressive targets for the deployment of fuel cell vehicles over the next twelve years, with more than one million vehicles to be deployed by 2030. With a strong technology fit and a competitive product cost, Nuvera is well-positioned to take advantage of this exceptional opportunity.”
Established in 2004, Runfeng is an electric vehicle powertrain system integrator. Runfeng also engages in the research and development, production, and after-sale service of electricity converters for the wind, solar and photovoltaic industries in China. Runfeng created ZRHE in 2018 to focus specifically on manufacturing fuel cell engines for mobility applications.
“Runfeng is already a strong player in China’s clean energy market,” said Warren Brower, Chief Sales and Marketing Officer for Nuvera. “This strategic partnership provides both companies with a solid foundation for the successful commercial introduction of Nuvera® fuel cell products into China. The scale of the Nuvera-ZRHE agreement represents a significant milestone in the fuel cell industry.”
ABOUT NUVERA FUEL CELLS, LLC
Nuvera Fuel Cells, LLC is a manufacturer of heavy-duty, zero-emissions engines for mobility applications. With facilities located in the U.S. and Europe, Nuvera provides clean, safe, and efficient products designed to meet the rigorous needs of industrial vehicles and other transportation markets.
Nuvera is a subsidiary of Hyster-Yale Group, Inc., which designs, engineers, manufactures, sells, and services a comprehensive line of lift trucks and aftermarket parts marketed globally primarily under the Hyster® and Yale® brand names. Hyster-Yale Group is a wholly owned subsidiary of Hyster-Yale Materials Handling, Inc. (NYSE:HY). Hyster-Yale Materials Handling, Inc. and its subsidiaries, headquartered in Cleveland, Ohio, employ approximately 6,900 people worldwide.