Law firm Stephenson Harwood LLP has advised the sellers of Arcola Energy, a systems engineering company, on the company's acquisition by Canadian listed company Ballard Power Systems.

Arcola Energy, based in the UK, specialises in hydrogen fuel cell powertrain and vehicle systems integration. Ballard is a leader in the design and manufacturing of PEM fuel cell engines. It acquired 100% of Arcola for total upfront and earn-out cash and share consideration of up to US$40 million, based on the achievement of certain performance milestones.

Arcola is one of the fastest-growing hydrogen companies in the UK, working with local authorities, fleet operators and original equipment manufacturers to meet their zero-emission targets. The deal enables Arcola to combine its passion for decarbonizing mobility and unique expertise in fuel cell powertrain integration with Ballard’s world leading PEM (proton exchange membrane) fuel cell technology and market position in heavy-duty mobility.

The Stephenson Harwood team advising the sellers of Arcola was led by partner Sam Gray and included senior associate Michelle Gomes.

Driven by international climate change commitments, government policy, regulatory requirements and energy security concerns, investment in renewables and alternative energy is growing exponentially and Stephenson Harwood has considerable experience advising clients within the sector. The firm advises clients on the full breadth of energy transition-related opportunities from project financing and development, M&A, joint venture, construction and dispute resolution.