FuelCell Energy Inc (NASDAQ:FCEL) announced the completion of construction and commercial operation of a previously announced 5.6 megawatt fuel cell project located on the Pfizer 160 acre research and development facility in Groton, Connecticut. A dedication event was held at the installation yesterday, attended by local, State and Federal legislative officials, including Connecticut Governor Dannel Malloy, Connecticut Senator Richard Blumenthal, Commissioner Catherine Smith of Connecticut Department Economic & Community Development, and Commissioner Katie Dykes of Connecticut Public Utilities Regulatory Authority.
FuelCell Energy delivered a complete turn-key solution including the installation, operation and maintenance of the fuel cell plants. Pfizer purchases the power and heat generated by the ultra-clean fuel cells as it is produced under a twenty year power purchase agreement from a direct subsidiary of FuelCell Energy. Pfizer also benefits from increased energy resiliency from on-site power and its sustainability goals are supported by both the clean power generation and the combined heat and power configuration that generates usable heat along with the power. This project was engineered, manufactured and commissioned all within 2016, demonstrating FuelCell Energy’s ability to rapidly install clean and affordable power generation where the power is needed.
“We value Pfizer as a vibrant contributor to the local economy and further investments in their campus, such as this fuel cell power plant project, support their commitment to the region,” said Marian Galbraith, Groton City Mayor. “The City and, in particular Groton Utilities, appreciate the opportunity to be a partner in the pursuit of green energy options which are good for business and good for our citizens.”
“It is exciting when two innovative Connecticut companies such as Pfizer and FuelCell Energy work together to solve business challenges in a manner that benefits the citizens of the State,” said Catherine Smith, Commissioner, Connecticut Department of Economic and Community Development (DECD). “Environmentally friendly on-site power that enhances power reliability using a product manufactured in Connecticut is a win for the entire State.”
Following the commencement of commercial operations by this 5.6 MW installation, a direct subsidiary of FuelCell Energy closed on tax equity financing with PNC Energy Capital through a sale lease-back transaction. This type of private financing strategically enables fuel cell projects by supporting a power purchase agreement structure, which facilitates fuel cell adoption by enabling the end-user of the power and heat to avoid an upfront investment in the power generation equipment and, instead, purchase power as it is produced.
“Our customers value our complete and comprehensive solution that includes sourcing the financing, enabling our customers to simply budget for power as it is produced,” said Michael Bishop, Senior Vice President and Chief Financial Officer, FuelCell Energy, Inc. “Our fuel cell projects attract private capital reflecting the predictable power generation profile, strong credit profiles of the power end-users, our turn-key solution that includes operating and maintaining the plants and the multi-megawatt scale of our fuel cell projects is the appropriate size to attract financing interest.” (Original Source)
Shares of Fuelcell Energy closed yesterday at $2.80, down $0.30 or -9.68%. FCEL has a 1-year high of $11.40 and a 1-year low of $2.70. The stock’s 50-day moving average is $5.21 and its 200-day moving average is $5.70.
On the ratings front, FCEL stock has been the subject of a number of recent research reports. In a report issued on October 27, FBR analyst Carter Driscoll reiterated a Hold rating on FCEL. Separately, on October 25, Roth Capital’s Craig Irwin downgraded the stock to Hold and has a price target of $4.00.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Carter Driscoll and Craig Irwin have a yearly average loss of 25.4% and 7.8% respectively. Driscoll has a success rate of 11% and is ranked #4001 out of 4164 analysts, while Irwin has a success rate of 31% and is ranked #3884.
FuelCell Energy, Inc. designs, manufactures, sells, installs and services stationary fuel cell power plants for distributed power generation. It operates through the Fuel Cell Power Plant Production and Research segment. It offers products for the Ultra-Clean Power and Renewable Power markets.