Shares of FuelCell Energy (NASDAQ:FCEL) jumped more than 20 percent today on heavy volume after announcing news about a new power plant it will install. In late trading, FuelCell Energy was up 27 cents at $1.54 per share on volume of more than 4.1 million shares compared to its average daily volume of just over 1.1 million shares. FuelCell Energy has a market cap of $174 million and a 52-week range between $0.98 and $4.02 per share.
FuelCell Energy announced the sale of a 2.8 megawatt (MW) DFC3000 power plant to be installed at a wastewater treatment plant operated by Inland Empire Utilities Agency (IEUA), a municipal water district based in Chino, California. Renewable biogas created by the wastewater treatment process will be the primary fuel source for the generation of ultra-clean electricity. UTS Bioenergy LLC will purchase the DFC3000 and sell the power generated to IEUA under a 20 year power purchase agreement. FuelCell Energy will service the power plant under a long term service agreement and the unit is expected to be operational in early 2012.
"Installation of this fuel cell operating on renewable biogas is an important component of our renewable energy generation strategy," said Terry Catlin, Board President, Inland Empire Utilities Agency. "The clean electrical generation process and the reliable 24/7 operating nature of the fuel cell will help us attain the objectives of our strategic energy plan and position us to meet ever more stringent clean air emission requirements."
This distributed generation fuel cell helps the IEUA reach its goal of generating all of their power needs on-site in a renewable manner and reducing reliance on the electric grid.
Fuel cells use an electrochemical process to efficiently generate clean electricity, without combustion. The primary byproducts of this process are high-quality heat and water. The lack of combustion eliminates almost all pollutants such as NOx, SOx or particulate matter. The fuel cell power plant will replace existing internal-combustion engines so the clean power generation will help IEUA meet the stringent emission regulations issued by the South Coast Air Quality Management District (SCAQMD), the local air pollution control agency. This reduction in pollutants is equivalent to removing at least 353 cars from the road.
"Fuel cells represent an economically and environmentally compelling solution for converting renewable waste streams into clean electricity," said Arun Sharma, Vice President Business Development, UTS BioEnergy LLC. "We believe fuel cells are a critical component of improving the reliability and efficiency of power supplies and expect to replicate this fuel cell business model with other power users that have baseload 24/7 energy requirements."
"Clean, efficient and dependable fuel cell power generation offers our clients a cost effective path to address their strategic energy goals and environmental stewardship simultaneously," said Chip Bottone, Senior Vice President and Chief Commercial Officer, FuelCell Energy.
For more information please visit our website at www.fuelcellenergy.com
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