Markets

FuelCell Energy's (FCEL) Unit Signs 7.4MW Long-Term PPA

FuelCell Energy, Inc. 's FCEL unit Yaphank Fuel Cell Park, LLC recently announced that it has signed the first of three long-term power purchase agreements (PPA) under the Fuel Cell Resources Feed-In Tariff IV (FIT IV) program. The project is administered by PSEG Long Island.

Details of the Deal

The company inked a deal for a 7.4-megawatt (MW) fuel cell project located in Yaphank, NY, which is one of the three projects totaling 39.8 MW that is awarded to FuelCell Energy as part of the FIT IV competitive bid process.

The company has finished permitting, engineering and site design required to make progress in this innovative project construction in Long Island. Notably, power from the Yaphank project will be sold under a 20-year power purchase agreement. Moreover, the company will own, operate and maintain the fuel cell power plants, which are being installed.

Apart from the above project, the company has two other selected projects totaling 32.4 MW, which have made substantial progress and are expected to execute PPAs in the near term. The company expects to complete the development of these landmark projects and anticipates to commence construction in 2019.

Rising Usage of Fuel Cell Technology

Fuel cell generates clean electricity with high-power density, extended range and market-leading uptime based on rapid refueling. Of late, this technology is gaining sheer prominence and witnessing increased adoption on transit buses and commercial trucks. It is a viable option for vehicles, providing reliability and economic benefits.

To reduce carbon emissions from diesel-powered vehicles, the demand for fuel cell electric vehicles (FCEVs) is increasing. Courtesy of inherent zero emissions, FCEVs are increasingly favored over diesel-powered vehicles. Naturally, rising popularity of this technology has encouraged fuel cell producers like Plug Power PLUG and Ballard Power Systems BLDP to make acquisitions and sign contracts to reap the benefits of this space's growth prospects.

Renewable Market Outlook

According to the U.S. Energy Information Administration, total renewables used in the electric power sector were 15% in 2016, which rose to 17% in 2017. A comprehensive study by the Department of Energy's National Renewable Energy Laboratory (NREL) shows that renewables will contribute more than 80% of total electricity generation in the United States by 2050 compared with the present level of 30%. We may expect fuel cell to contribute a substantial portion to this renewable electricity generation of the United States, over time, which in turn should benefit Fuel Cell Energy.

Price Movement

Shares of FuelCell Energy have lost 72.3% in the past year, underperforming its industry 's decline of 0.7%.

Zacks Rank & Another Key Pick

FuelCell Energy currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Another top-ranked stock from the same industry is Ameresco, Inc. AMRC , which also carries a Zacks Rank of 2.

Ameresco pulled off average four-quarter positive surprise of 164.96%. Its bottom line is expected to grow 17.5% over three-five year period.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Ballard Power Systems, Inc. (BLDP): Free Stock Analysis Report

Plug Power, Inc. (PLUG): Free Stock Analysis Report

Ameresco, Inc. (AMRC): Free Stock Analysis Report

FuelCell Energy, Inc. (FCEL): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

PLUG BLDP FCEL AMRC

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More