FuelCell Energy Inc (NASDAQ: FCEL) stock is making a run for the top in the market this morning, trading on early gains of more than 10%. However, the company hasn’t issued any press releases or filed anything with the SEC, leaving many investors wondering why the stock is running.
Nonetheless, the gains can be explained. It seems as though an uptick in government activity in the United States and a story in China seem to be fueling the gains in FCEL. Here’s what’s going on:
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Here’s Why FCEL Stock Is Climbing
While FuelCell Energy hasn’t issued any news, there’s a good reason that the stock is making its way up in the market today. I first caught wind of the story when browsing through the ticker’s page on StockTwits.
I came across a message by CatP, stating:
@Nemmack69 click the attachment listed in the last paragraph. And yea it’s small potatoes for R&D but it shows govt commitment to $FCEL. It is similar tech that DRAX is presenting in upcoming EU conference drax.com/press_release/9-au… you recall Drax/ $FCEL order from earlier, right
After coming across this post, I went digging to see if uptake of fuel cell technologies is leading to the boost in FCEL stock, and it seems to be the case.
One of the first stories I found was published yesterday, when the United States Department of Energy announced $40 million in 2019 funding for 29 projects to advanced the H2@Scale concept, a concept very near and dear to FuelCell Energy.
This funding goes to show that the United States DOE is committed to moving forward with clean energy technologies and that companies like FuelCell Energy are on the right track.
In a statement, Rick Perry, U.S. Secretary of Energy, had the following to offer:
The H2@Scale concept is a critical piece of the country’s comprehensive energy strategy and an enabler of multiple industries in our economy. As an energy carrier, hydrogen has the potential to unite our nation’s domestic energy resources. These selections support DOE’s mission and advances our commitment to enable economic growth and energy security through the development of more affordable hydrogen technologies.
In other news, also released yesterday, a Chinese company hit the tape with a big story of its own. The country’s largest SUV and pickup truck manufacturer, Great Wall Motors, signed a deal with Jiading District Government of Shanghai to launch its headquarters in Jiading.
So, what does this have to do with FCEL? The headquarter facility will be home to work on focus areas like hydrogen technology, fuel-cell technology and connected vehicle and mobility devices. In a statement, Wei Jianjun, Chairman of Great Wall Motors, had the following to offer:
The Jiading base will be developed relying on vigorous endeavors from enterprises and research institutions, and will be dedicated to introducing such high-tech industries as hydrogen.
Why is this important for FuelCell Energy?
Well, the company is currently leading the charge when it comes to FuelCell technology, so interest both in the United States and abroad in the technology is a great thing for the company.
However, going beyond that, this is a great thing for the industry as a whole. At the end of the day, when governments and large companies focus their efforts on new technologies, these technologies tend to grow in popularity, ultimately giving a boost to the entire sector.
The Bottom Line
The bottom line here is simple. As governments, large companies, and other influential players in the market continue to see value in fuel cell technologies, FCEL stock is likely to benefit as its opportunities for revenue generation grow.
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