April 1 (Reuters) - Canadian fuel cell manufacturer

Ballard Power Systems ( BLDP ) has been awarded a $54 million

investment tax credit to support its fuel cell factory in Texas,

the company said on Monday, bringing total funding for the

project to $94 million.

Shares of the firm rose as much as 15% in early morning

trade.

The U.S. Inflation Reduction Act (IRA) provides tax credits

for electric vehicles (EVs) and clean energy projects in a bid

to decarbonize the U.S. power sector and incentivize the push

for cleaner forms of energy generation.

The award - part of the 48C program, which provides 30%

investment tax credits for selected clean energy manufacturing

projects - will go into the build-out of the new fuel cell

factory called Ballard Rockwall Giga 1.

Ballard had previously received $40 million in U.S.

Department of Energy grants for the factory.

The firm said on Monday it intends to invest roughly $110

million from 2024 through end 2027 to commission a new

manufacturing facility, and expects to make a final investment

decision on the facility later this year.

Separately, Ballard said it had received an order for 1,000

hydrogen fuel cell engines from European bus manufacturer

Solaris Bus and Coach.

The deal with Solaris consolidated orders for nearly 300

engines and a new supply agreement for an additional 700 engines

through 2027.