FuelCell Energy (FCEL) Stock Pops On Development Update

FuelCell Energy FCEL Stock News

FuelCell Energy Inc (NASDAQ: FCEL) is making a run for the top in the market this morning, trading on gains of nearly 9% early on. The gains come after the company announced the successful launch of production stack modules with extended life. Here’s what’s going on:

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FCEL Stock Pops On Launch

In a press release issued early this morning, FuelCell Energy announced the development and successful launch of production stack modules with extended life. In order to complete the design, the company transitioned production from its five-year stack design to a seven-year stack design in the fourth quarter of 2018.

The goal of the transition was to focus on improving the stability of the core cell components as well as improving overall stack and stack module designs. Importantly, FCEL said that the increased life span of the fuel cell stack was achieved with less than a 5% increase in the cost of the module.

Importantly, FCEL reminded investors that the effort to extend the life of these products was partially supported by the United States Department of Energy. This support came through a Smart Matrix program funded by the office of Energy Efficiency and Renewable Energy.

About a year befor the production transition, FuelCell Energy manufactured and placed in operation a prototype 4-stack module. This module showed stable performance, sending the company to continue to work on the completion of various other milestones. With the completion of these milestones, the company’s new seven year design was ready for market.

In the release, FCEL said that the first prototype module has been in operation for two years. Moreover, the first modules built after the production transition to the seven-year design have been in operation for around one year. Importantly, these modules are showing signals that are expected to be seen in a seven-year life span.

Why This Is So Important

When it comes to power plant operating costs, stack life is extremely significant. In fact, module restack costs make up about half of power plant non-fuel operating costs. Importantly a stack with a 5-year life span will deliver about 55.2 GWh of energy before stack replacement is needed. The seven-year module delivers about 40% more energy.

In the release, FCEL said that the successful development and launch of the seven-year stack module program further highlights the company’s rich innovation history and focus on continuous improvement to drive value for its customers. Moreover, the company said that it continues to work on further stack performance and life enhancements as we speak, suggesting that more good news is to come for FCEL investors!

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