A pioneer in clean energy production
FuelCell Energy Inc.
) received a $2.8 million award from the U.S. Department of
Energy's (DoE) Advanced Manufacturing Office. This contract will
enable FuelCell Energy to continue with its research on
tri-generation capabilities of a Direct FuelCell (DFC) power
plant for industrial applications.
What is Fuel Cell?
Fuel cell is a device by which electricity is produced through a
chemical reaction. Each fuel cell has two electrodes, one
positive and one negative, and an electrolyte through which
charged particles can be carried from one electrode to the other.
The chemical reaction that takes place at the electrodes produces
electricity. Hydrogen is the basic fuel needed for the chemical
reaction besides oxygen. Electricity is produced with negligible
pollution and the by product is water.
Advantages of a Fuel Cell
Fuel cells can be effectively used for power generation, thereby
reducing greenhouse gas emissions drastically. Not only will this
technology reduce the use of oil for power generation, but will
also provide fuel flexibility to power generators.
How can DoE chip in?
The cost of power generation utilizing fuel cell technology is
higher than conventional sources of producing power. The
challenge is to lower this cost and generate a large amount of
electricity for industrial usage.
The DoE has been proactive in aiding alternative power generation
in the U.S. Funding a project for continuation of tri-generation
capabilities of a DFC power plant will go a long way to make this
technology commercially viable.
Fuel cell power generation technology has the potential to be a
game changer in electricity generation. Per a DOE report, in the
next 10 to 20 years, the fuel cell market could range from $14
billion to $31 billion per year for stationery power, $11 billion
per year for portable power and $18 billion to $97 billion per
year for transportation.
Tri-Generation Fuel Cell Plant
The objective of the tri-generation power plant is to lower the
cost of power generation. The idea is to generate electricity,
heat and hydrogen in the same complex. With tri-generation,
hydrogen need not be purchased and transported while electricity
will not be required to be purchased from the grid.
Tri-generation at the DFC power plant is expected to come into
operation by end 2014.
Effective Clean Solutions
Producing electricity from clean (cheap as well) energy sources
is going to drive the utility space going forward. The DoE
too is providing all-out support to companies engaged in this
field of innovative research. The bright prospects of fuel cell
technology have been drawing companies like
General Motors Company
) to secure fuel cell patents.
FuelCell Energy Inc. currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector include
Ballard Power Systems Inc.
). Both stocks hold a Zacks Rank #2 (Buy).
BALLARD PWR SYS (BLDP): Free Stock Analysis
ENERSYS INC (ENS): Free Stock Analysis Report
FUELCELL ENERGY (FCEL): Free Stock Analysis
GENERAL MOTORS (GM): Free Stock Analysis
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