Stock Update (NASDAQ:FCEL): Pepperidge Farm Strengthens Its Recipe for Sustainability, Adding Second Megawatt-Class Fuel Cell to Flagship Bakery

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, announced the execution of a definitive term sheet with existing customer Pepperidge Farm, Incorporated to install a 1.4 megawatt Direct FuelCell® (DFC®) power plant at its bakery in Bloomfield, Connecticut. FuelCell Energy will manufacture, install and service the power plant with work on the project commencing immediately. Pepperidge Farm will pay for power as it is produced under a power purchase agreement (PPA). This new power plant will supplement the existing DFC power plant that was installed at the bakery in 2008 and has been generating savings for Pepperidge Farm and carbon reductions ever since. The agreement also includes the multi-year extension of the service contract for the existing DFC power plant. FuelCell Energy is developing this project and expects to close on permanent financing on or before the commercial operation date of the power plant, with commissioning expected by the end of 2015.

"The addition of this low-emission fuel cell power plant to complement our existing fuel cell installation further enhances our sustainability profile, reflecting our strong commitment to the environmental welfare of the communities in which Pepperidge Farm and our parent, Campbell Soup, operate," said Harry Pettit, Manager of Systems and Infrastructure Engineering, Pepperidge Farm, Incorporated. "We look forward to broadening and deepening our partnership with FuelCell Energy and continuing to benefit from the efficient and reliable on-site power and heat its fuel cell power plants provide."

"Pepperidge Farm is a great example of a customer that has experienced significant savings in power costs and dramatically reduced pollutant and carbon emissions, while improving energy security and power reliability," said Chip Bottone, Chief Executive Officer, FuelCell Energy, Inc. "Our ultra-clean and affordable power plants add value for food and beverage processors such as Pepperidge Farm and repeat orders like this validate our solutions and customer service commitment."

DFC power plants are scalable, supporting the incremental addition of plants to meet growing power needs, such as this commercial bakery project. The new 1.4 megawatt fell power plant will be installed adjacent to the existing fuel cell plant, and together, will meet approximately the entire energy needs of the facility with an on-site solar array supporting peak power needs. The high-quality and ultra-clean heat produced by the fuel cell power generation process is a key aspect of an innovative two stage heat recovery that includes steam generation for use in the baking process, followed by secondary heat recovery in which excess heat is used to preheat supply air entering the thermal oxidizer used for odor destruction, and the heat will be an integral part of an ammonia based chilling system to be installed.

The utilization of these two fuel cell power plants instead of grid power will prevent the emission of more than 9,400 tons of CO2, a greenhouse gas, which is equivalent to removing more than 1,800 cars from the road. Fuel cells generate power electrochemically, a process that is virtually pollution-free. These installations will annually avoid the emission of 43 tons of smog-producing nitrogen oxide (NOx), 98 tons of sulfur dioxide (SOx) that causes acid rain, 4,500 pounds of particulate matter (PM10) that can aggravate asthma.

Due to the fuel cell power plant's high electrical and thermal efficiency and virtual lack of pollutants, this project was awarded a grant under the Connecticut Low and Zero Emissions Renewable Energy Credit (LREC) program, which distributes renewable energy credit payments for each megawatt hour of power produced. This program is one of the many created by the state of Connecticut with the objective to drive deployment of clean distributed generation through low-emissions technologies such as fuel cells.

Fuel cells electrochemically convert a fuel source into electricity and heat in a highly efficient process that emits virtually no pollutants due to the absence of combustion. The Direct FuelCell® (DFC®) stationary fuel cell power plants manufactured by FuelCell Energy utilize carbonate fuel cell technology and provide continuous baseload power located where the power is used, including both on-site applications and electric grid support. The combination of near-zero pollutants, modest land-use needs, and quiet operating nature of these stationary fuel cell power plants facilitates locating the power plants in urban locations. The power plants are fuel flexible, capable of operating on natural gas, on-site renewable biogas, or directed biogas. 

About Pepperidge Farm, Incorporated

Pepperidge Farm, based in Norwalk, Connecticut, is a leading provider of premium quality fresh bakery products, cookies, crackers, and frozen foods. Among the company's most popular products are Goldfish® crackers, Milano® cookies, frozen Puff Pastry, frozen garlic loaves and Texas toasts, and more than 50 varieties of fresh baked breads including Pepperidge Farm® Swirl, Farmhouse and Whole Grain and Ecce Panis® artisan breads. Pepperidge Farm was founded in Connecticut in 1937 by Margaret Rudkin, an entrepreneurial homemaker who began baking fresh bread for her ailing son. Today, the company has nine bakeries and more than 4,000 employees. Pepperidge Farm has been part of Campbell Soup Company since 1961 and is part of its Global Biscuits and Snacks division. (Original Source)

Shares of Fuelcell Energy closed yesterday at $1.25 . FCEL has a 1-year high of $2.84 and a 1-year low of $1.05. The stock's 50-day moving average is $1.29 and it's 200-day moving average is $1.59.

On the ratings front, Cowen analyst Jeff Osborne maintained a Buy rating on FCEL, with a price target of $3, The current price targetrepresents a potential upside of 140.0% from where the stock is currently trading, In a report issued on March 11. The current price targetrepresents a potential upside of 140.0% from where the stock is currently trading

According to, Osborne has a total average return of 1.3%, a 54.8% success rate, and is ranked #1978 out of 3562 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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