Stock Update (NASDAQ:FCEL): FuelCell Energy Inc Announces Carbon Capture Study With Cenovus Energy

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 a contract with Cenovus Energy Inc. to complete the preliminary front-end design and engineering (pre-FEED) for siting a fuel cell system to capture CO2 from flue gas. The system would be at an existing 14 megawatt natural gas-fired co-generation facility located at the University of Calgary in Alberta, Canada.

Cenovus, a Canadian integrated oil company, is the lead partner of a Joint Industry Project (JIP) and acts on behalf of the JIP participants that include Alberta Innovates-Energy Environment Solutions as well as Cenovus, Devon Canada and Shell Canada, three members of Canada’s Oil Sands Innovation Alliance (COSIA). This project is intended to quantify the benefits of the fuel cell carbon capture solution for the separation of CO2 from the flue gas of boilers used to make steam in oil sands production.

“Cenovus and our COSIA partners on this project are focused on innovation and technology development to reduce greenhouse gas emissions, and this fuel cell carbon capture project illustrates our commitment to this goal,” said Craig Stenhouse, Manager, COSIA at Cenovus. “We’re encouraged by the growing commercial adoption of FuelCell Energy power plants, and configuring them for carbon capture is a compelling application for us to pursue.”

“Cost is a critical aspect for Canadian oil sands operators, and our carbon capture solution can efficiently and affordably concentrate CO2, while also producing ultra-clean power that supports economics from the sale of electricity,” said Chip Bottone, Chief Executive Officer, FuelCell Energy, Inc. “Our solution is delivered in an environmentally friendly manner, and the scalable nature of our carbon capture solution is attractive, as additional capture capability can be incrementally added over time.”

The FuelCell Energy solution is an effective and one of the least costly options for removal of CO2 emissions from coal-fired power plants, as demonstrated under a multi-year project from the U.S. Department of Energy (DOE).  Completion of the pre-FEED project for Cenovus will verify the unique capability of the Direct FuelCell® (DFC®) power plant to capture carbon from gas-fired power generation and combustion facilities while simultaneously producing ultra-clean power. The project is focused on separating 75% of the CO2 from the flue gas of the cogeneration plant at theUniversity of Calgary, which provides electricity and heat for the campus. (Original Source)

Shares of Fuelcell Energy closed last Friday at $4.78. FCEL has a 1-year high of $17.40 and a 1-year low of $4.51. The stock’s 50-day moving average is $5.22 and its 200-day moving average is $8.42.

On the ratings front, FCEL has been the subject of a number of recent research reports. In a report issued on January 8, Cowen analyst Jeff Osborne maintained a Buy rating on FCEL, with a price target of $23, which represents a potential upside of 381.2% from where the stock is currently trading. Separately, on the same day, FBR’s Carter Driscoll reiterated a Buy rating on the stock and has a price target of $8.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jeff Osborne and Carter Driscoll have a total average return of -17.6% and -23.4% respectively. Osborne has a success rate of 40.0% and is ranked #3461 out of 3579 analysts, while Driscoll has a success rate of 12.5% and is ranked #3488.

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


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