Dominion Resources Inc.
) business wing Dominion Bridgeport Fuel Cell LLC entered into an
agreement with Danbury based
FuelCell Energy Inc.
) for the acquisition of a fuel cell power generating facility
under development in Bridgeport, Connecticut. Dominion will
be the owner of the fuel cell park while FCEL will supervise the
construction, maintenance and operation aspects of the
facility. The project is slated to be complete and
operational by the end of 2013.
As per the agreement, FCEL will deliver five proprietary
stationary fuel cell systems for the Bridgeport facility. The
facility is estimated to generate 14.9 megawatts ("MW") of
electricity by incorporating a reactive process that will convert
natural gas to electricity in a clean and efficient manner unlike
conventional combustion reaction. Dominion will sell the output
from Bridgeport fuel cell unit to Connecticut Light & Power
for a period of 15 years.
The Dominion Bridgeport Fuel Cell facility falls under Project
150, a state-sponsored initiative backed by Clean Energy Finance
and Investment Authority ("CEFIA"). The program serves as a
platform for augmenting the development of clean energy projects
in Connecticut by 150 MW. CEFIA is the first full-scale clean
energy finance body in the U.S. that leverages public and private
funds to boost investments and step up clean energy deployment in
Connecticut. The electricity generated from fuel cell technology
will power 15,000 houses in Connecticut.
Dominion's other key eco-friendly ventures include wind farms
in Virginia and Indiana, a hydroelectric project in Virginia and
Carolina and a biomass power station in Virginia. Recently the
company's subsidiary Dominion Virginia Power received approval
from the state's regulators for the construction and operation of
a 30 MW solar power demonstration project in Virginia.
We believe the fuel cell park will certainly upgrade
Dominion's green asset basket and will sit well with the current
trend in the U.S. market that favors sustainable pro-environment
The fuel cell technology has the potential to offer cleaner,
more efficient alternatives to power generation and is expected
to gain significant ground in the future. We expect a cash-rich
company like Dominion to capitalize from this project thereby
securing higher returns, going forward.
However, the cost of fuel cell power systems is still high and
has to be brought down to competitive levels with conventional
technologies. Moreover, the durability and heat recovery systems
of this fuel cell technology are challenges that still need to be
worked upon. Dominion presently retains a Zacks #3 Rank
Another Zacks #3 Ranked operator
United Technologies Corporation
) is heavily investing in the fuel cell technology. Recently its
business wing UTC Power under an Energy Supply and Services
Agreement will provide energy from the fuel cell to the South
Coast Air Quality Management District in California. The fuel
cell unit is expected to be installed and come online by
The Zacks Consensus Estimate for the fourth quarter and full
year 2012 currently stand at 69 cents and $3.06 per share,
respectively. With a market capitalization of $29.41 billion, the
company has a total 15,800 employees.
DOMINION RES VA (D): Free Stock Analysis
FUELCELL ENERGY (FCEL): Free Stock Analysis
UTD TECHS CORP (UTX): Free Stock Analysis
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