Company Update (NASDAQ:FCEL): FuelCell Energy Inc Progressing Scalable and Affordable Carbon Capture Solution With $23.7 Million Project

FuelCell Energy Inc (NASDAQ:FCEL), a global leader in the design, manufacture, operation and service of ultra‐clean, efficient and reliable fuel cell power plants, today announced the selection for negotiation of a $23.7 million cost share carbon capture project with the support of the U.S. Department of Energy Office of Fossil Energy.  Sponsored by the National Energy Technology Laboratory, the project is to install and operate a two-megawatt Direct FuelCell® (DFC®)  system configured for carbon capture in addition to power generation.  The carbon capture fuel cell system will be a modification of the Company’s commercial DFC3000® fuel cell power plant and will be installed next to an existing coal-fired power plant to capture carbon dioxide (CO₂) from the exhaust of the coal plant.  The Company expects to finalize the award with the DOE by the end of September 2015.  The Company is evaluating multiple sites with interested utility and independent power producers that operate coal-fired power plants and expects to announce the site selection in the fall of 2015.

“Our affordable carbon capture solution solves coal-fired power plant emission challenges, enabling an incremental transition to cleaner power generation from coal,” said Chip Bottone, President and Chief Executive Officer, FuelCell Energy, Inc.  “Our value proposition is attracting a lot of interest in the power industry and from legislators in states with a reliance on coal as we address a compliance obligation with a solution that provides a project return compared to conventional carbon capture approaches that incur only costs.”

The initial installation under this project represents the first of an expected two phase project at the selected site.  The second phase, to follow this DOE project, would be to install eleven additional fuel cell power plants to capture approximately 700 tons/day of CO2 in total, while simultaneously generating about 648,000 kilowatt hours/day of ultra-clean power.

The carbon capture solution for this project routes the flue gas from a coal-fired power plant into the fuel cells air intake system.  The CO₂ is concentrated and captured within the fuel cells and approximately 70 percent of smog producing nitrogen oxide (NOX) is destroyed, supporting clean air initiatives, such as the U.S. Clean Power Plan.  Following capture, the CO₂ is cooled and compressed utilizing standard chilling equipment and is available for industrial or agricultural applications, enhanced oil recovery or sequestration. Unlike commercially available carbon capture technologies which significantly reduce the power output of the existing coal-fired power plant, DFC-based carbon capture is projected to provide additional clean power while separating carbon dioxide from the flue gas of the coal-fired power plant.

“Generating power while simultaneously capturing carbon emissions means that a coal-fired power plant operator or a project investor receives a return on capital, making this an affordable solution for ratepayers,” continued Mr. Bottone.  “The power plant operator can adopt our solution incrementally, capturing greater amounts of carbon and reducing pollutant emissions over time, while increasing the overall power output of the facility.”

The multiple advantages of FuelCell Energy’s DFC carbon capture fuel cell solution include:

  • Utilizes a proven fuel cell power system owned by utilities on three continents
  • Scalable solution that can be added incrementally over time to capture greater amounts of CO₂
  • Affordable to rate payers and provides the owner with a revenue stream from the sale of electricity generated by the fuel cell power plants
  • Extends life of coal-fired power plants with an easy-to-site solution that addresses emission challenges (Original Source)

Shares of Fuelcell Energy closed yesterday at $0.8253. FCEL has a 1-year high of $2.68 and a 1-year low of $0.64. The stock’s 50-day moving average is $0.82 and its 200-day moving average is $1.10.

On the ratings front, Cowen analyst Jeff Osborne reiterated a Buy rating on FCEL, with a price target of $3, in a report issued on July 13. The current price target implies an upside of 261.4% from current levels. According to, Osborne has a total average return of -10.9%, a 41.2% success rate, and is ranked #3607 out of 3742 analysts.

Fuelcell Energy Inc is an integrated fuel cell company. The Company designs, manufactures, sells, installs, operates and services ultra-clean, highly efficient stationary fuel cell power plantsfor distributed power generation.

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