FuelCell Energy Inc (NASDAQ: FCEL) has been gaining investor interest as of late after releasing an earnings report that showed strong progress and a narrower than expected loss. However, the earnings news is days old, and there’s nothing new from the company. So, why is FCEL stock up more than 13% this morning?
The answer is simple. Around the world, we are seeing an increase of adoption of fuel cell technologies, both from big commercial and government entities and from large investors. Here’s what’s going on:
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
FCEL Stock Climbs As Industry Sees Strong Adoption
While FuelCell Energy hasn’t issued any news since the release of its financial results, there’s a good reason that the stock is gaining today. Multiple stories are hitting the tape, showing strong investor interest in the industry as well as continued commercial and municipal investments into the technology.
First and foremost, a filing with the London Stock Exchange showed that Allianz Global Investors GmbH, a massive German based, international investment firm just bought a very large stake in ITM Power PLC. ITM focuses on hydrongen energy technologies.
While this investment wasn’t made directly into FCEL, it shows that large, international investment firms are seeing value in the emerging fuel cell industry. As a result, deals like this help the entire industry.
In other news, The Railway Technical Research Institute in Japan is seeing value in the development of fuel cell technologies to save on energy in large projects. In fact, the Institute is working on the development of a fuel cell hybrid train.
The goal is to build a the train as a railway vehicle that’s suitable for the next generation, reducing the environmental impact associated with this mode of travel. So far, the RTRI has started the testing of a prototype multiple-unit fuel cell hybrid train. The test showed that the hybrid train had 1.5 times more power and a higher acceleration rate.
Right here at home, we’re seeing more interest in fuel cell technologies. In fact, Idaho National Laboratory recently announced that it is working with three commercial utility companies surrounding hydrogen technologies.
The three commercial utlity companies were chosen by the United States Departnerment of Energy’s Office of Nuclear Energy, who is also funding the research. The first-of-its kind project is focused on improving the long-term economic competitiveness of the nuclear power industry.
Three commercial electric utilities and Idaho National Laboratory have been chosen by the U.S. Department of Energy’s Office of Nuclear Energy’s funding opportunity announcement (FOA) U.S. Industry Opportunities for Advanced Nuclear Technology Development for a first-of-a-kind project to improve the long-term economic competitiveness of the nuclear power industry.
None Of This Has Anything To Do With FCEL
This is something that I’m expecting to see in comments and in emails, so, let’s address it up front. The truth of the matter is that none of this news did come from FCEL. However, it has everything to do with the stock.
The bottom line is that FuelCell Energy is one of the companies that is on the leading edge of innovation in fuel cell technologies. So, as we see large investors snapping up big percentages of fuel cell companies, these moves insinuate that FCEL may be buiding into a great takeover opportunity for some of these larger suitors.
Moreover, both, governments and large commercial energies are investing time and energy into innovation surrounding hydrogen-to-energy technology. Demand is rising in regions around the world. Sure, FCEL isn’t one of the companies that is working in Idaho to help the nuclear fuel industry survive through an energy renaissance nor is the company working on the train in China.
Nonetheless, stories like these show that the fuel cell/hydrogen energy technology industry is one that is ikely to experience rapid growth. That’s great news for investors across the industry, including those that own FCEL shares.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
Don’t Miss The Next Big Story!
Join our free mailing list below to receive real-time alerts!
The author has no shares. This article was not paid for in any way. The author has no financial relationship with any company mentioned. The opinion stated is the true opinion of the author with no financial or other bias. The author is not an investment adviser or broker. It is suggested that readers do their own research before making financial decisions. This article should in no way be considered advise or a solicitation to purchase shares of any company listed.