09:17 AM EDT, 04/01/2024 (MT Newswires) -- Ballard Power Systems ( BLDP ) said Monday that it has entered into a long-term supply agreement with Solaris Bus & Coach sp. z o.o., a European bus manufacturer, to supply 1,000 hydrogen fuel cell engines through 2027 for the European transit bus market.

According to a statement, the agreement consolidates existing orders for about 300 fuel cell engines while adding after-market and extended warranty services to such existing orders. The deal also includes a new supply commitment for about 700 fuel cell engines and related after-market extended warranty services.

The 1,000 units will comprise about 80% FCmove-HD 70 kW and 20% FCmove-HD+ 100 kW engines to address the 12-meter and 18-meter bus markets. The delivery will begin in 2024 and run through the end of 2027.

Solaris will deploy the engines in buses across Europe where Solaris buses powered by Ballard fuel cell engines currently operate in more than 22 European cities.

Separately, Ballard announced it has been awarded US$54 million of investment tax credits from the U.S. Internal Revenue Service as part of the Qualifying Advanced Energy Project Tax Credit (48C), funded by the Inflation Reduction Act (IRA). A statement noted the 48C program, which provides 30% investment tax credits for selected clean energy manufacturing projects, is designed to support secure and resilient domestic clean energy supply chains. Ballard plans to use the $54 million in tax credits to support the build-out of a new fuel cell Gigafactory in Rockwall, Texas.