FuelCell Energy (FCEL) Stock Climbs On Performance Update

FuelCell Energy FCEL Stock News

FuelCell Energy Inc (NASDAQ: FCEL) is flying early on this morning, trading on gains of more than 58% in the premarket hours. The gains come after the comapny announced performance data from a fuel cell park in Incheon, South Korea. Here’s what’s going on:

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FCEL Stock Climbs On Fuel Cell Park Performance

In a press release issued early this morning, FuelCell Energy shared the performance data from a fuell cell park owned by Korean Southern Power Company in Incheon, South Korea. The park features eight SureSource 3000 power plants that were manufactured and are maintained by FCEL.

After a full year in operation, the company shared the performance of the power producing operation, which produces electricity and thermal energy to support a district heating system adjacent to the existing 1.8 gigawatt Shin-Incheon combined cycle power plant.

In the release, FCEL said that construction on the facility started in 2017, and in 2018, the facility became fully operational. From there, the company began the maintenance side of its long-term service agreement.

In the release this morning, FuelCell energy said that all contracted output under the terms of the contract have been exceeded through the first year of operation. In fact, electrical output requirements were exceeded by 22% while heat output requirements were exceeded by 26%.

In a statement, Jennifer Arasimowicz, Interim President and Chief Commercial Officer at FCEL, had the following to offer:

We are very pleased with the performance of the 20 megawatt fuel cell park. In addition to consistently exceeding power and heat output requirements since its commercial operation date, the installation is an ideal application for demonstrating the capabilities of our carbonate fuel cell technology to solve the utility scale clean power needs of the Korean market.

Why This News Caused Such Excitement

The truth of the matter is that the news issued by FCEL today proved to be overwhelmingly positive. First and foremost, the company has exceeded required power and heat outputs by very large margins. As a result, it is well within the terms of the long-term services agreement, meaning that the company will continue to service these operations, generating significant revenue in the process. However, the positivity goes far beyond that.

By exceeding the requirements by such large margins, the operations in South Korea serve as a source of validation for the company’s work in scalable clean energy. This is incredibly important as the world is looking for clean, reliable, and affordable energy sources in order to combat climate change.

So, not only does this data mean that FuelCell Energy will maintain a high-value customer, it also means that the company has a strong chance of catching the attention of others looking to build similar operations.

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