PowerCell signs memorandum of understanding with ZeroAvia for series deliveries of fuel cell stacks

Regulatory

PowerCell Sweden AB has signed a memorandum of understanding, MoU, with the UK company ZeroAvia concerning series deliveries of 100-kW fuel cell stacks starting in 2024.
It is currently estimated that a final agreement could include delivery of 5,000 units over a five-year period. Final commercial terms will be negotiated in the next phase. The parties’ ambition, in accordance with the MoU,  is to reach a final agreement in the third quarter of 2022.

ZeroAvia intends to use the fuel cell stacks to produce a 600-kilowatt, low-temperature, hydrogen-electric powertrain that can be used to develop a certified 19-seat, fuel cell-powered commercial aircraft. The memorandum of understanding, MOU, also includes an agreement that PowerCell will establish local production in the UK for final assembly and adaptation of the stacks to ZeroAvia’s fuel cell system and application.

ZeroAvia has noted considerable interest in its plans to develop a 19-seat, hydrogen-electric aircraft and has received an increasing number of orders from customers looking to transition to emission-free powertrains for aircraft. The plane is intended to get a range of 300 nautical miles, which would enable emission-free flights between Stockholm and Malmö. Through this MOU, ZeroAvia has secured deliveries of fuel cell stacks for several years to come.

“Given the growing interest in hydrogen-electric solutions, customers are concerned that demand could increase at a faster rate than the industry’s production capacity. Over the past year, a growing number of customers have therefore begun investigating the possibility of safeguarding their long-term delivery capacity in the same way ZeroAvia is doing now,” says Richard Berkling, CEO of PowerCell Sweden AB.

For further information, please contact:

Richard Berkling
CEO, PowerCell Sweden AB (publ)
+46 (0) 31 720 36 20
E-mail: richard.berkling@powercell.se

This information is inside information, which PowerCell Sweden AB (publ) is obliged to publish in accordance with the EU Market Abuse Regulation. This information was submitted for publication through the agency of the above contact persons on July 18, 2022 at 06:01 a.m CEST.

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.

Fondkommission är Certified Adviser, e-post: ca@gwkapital.se, telefon: 08-503 000 50.