FuelCell Energy Inc (NASDAQ: FCEL) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced that it will be moving forward with a new project, exciting investors and sending the stock for the top. Today, we’ll talk about:
- The new project;
- what we’re seeing from FCEL stock as a result; and
- what we’ll be watching for ahead.
FCEL Announces New Project
As mentioned above, FuelCell Energy is having an incredibly strong day in the market today after announcing a new project. The announcement came by way of press release early this morning.
In the release, FCEL announced a 1.4 megawatt project. The project is for the City of San Bernardino Municpal Water Department and will be known as the SureSource 1500 power plant.
In the release, the company said that the plant will operate on anaerobic disaster gas (ADG) and as needed, natural gas, cleanly producing electricity and thermal energy to support the operation of the SBMWD water reclamation plant.
The company said that SBMWD will purchase the electricity produced at the plant through a 20-year Power Purchase Agreement. In a statement, Chip Bottone, President and CEO at FCEL, had the following to offer:
We are pleased to enter into this new agreement with the City of San Bernardino Municipal Water Department with our utility scale power and heat fuel cell solution, coupled with our own engineered and designed biogas treatment system.
Our solution is an excellent fit with off-takers such as water reclamation plants, as our plant can operate at peak efficiency on the resident anaerobic digester gas. Adding to the financial proposition is the thermal heat being provided to the treatment process, while also being in full compliance with SCAQMD provisions reducing or eliminating the need for flaring the waste gas.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to FuelCell Energy, the news proved to be overwhelmingly positive.
The fact that the company will be launching a new power plant and that the power that the plant produces is already purchased for the next 20 years is great news for investors. After all, this news will likely lead to an increase in revenue. So, it’s not surprising to see that excited investors are pushing the stock for the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:20), FCEL is trading at $0.26 per share after a gain of $0.036 per share or 16.40% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on FCEL. In particular, we’re interested in following the story surrounding the company’s work to build out the new power plant and expand value for investors. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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