Is FuelCell (Nasdaq: FCEL) Energy On The Verge Of Profitability?

Atlanta,GA 5/30/12 (StreetBeat) -- Shares of FuelCell Energy (Nasdaq:FCEL) were on the move to open the new - albeit shortened - trading week, spiking by eight percent on Tuesday after the company received some positive coverage by a couple of popular financial media outlets which are predicting that profitability may be a possibility for the company over the short term.

Concerns of profitability have weighed down the FCEL share price each time the stock has ran on encouraging news. Earlier this year news of alarge cash infusion from a South Korean partner allowed FCEL to run towards the two dollar mark, but the push faded and shares subsequently dropped to well below the price of a recent stock offering.

It is precisely the relationship with Fuel Cell's Korean partner that has sparked positive coverage from both Forbes and Bloomberg over the past weeks. Forbes argued that the relationship has allowed FuelCell to solidify its pipeline and production expectations with enough volume where the company could achieve profitability at a manufacturing volume of 80 megawatts annually, approximately 30% higher than the current levels.

Bloomberg also piped in, citing the low prices of natural gas as a key factor in FuelCell's near term ability to reach profitability.

These predictions may be well within reach, as progress and the expansion of existing agreements materializes in both Asia and Europe. Earlier this month FuelCell announced the acquisition of key assets by its German subsidiary and a European joint venture that will improve the company's ability to leverage its technology to fuel growth on the European continent.

Additionally, an existing order in Korea will be accelerated in order to meet growing demand in the region.

Those news items were followed-up with a release by FuelCell this week announcing that existing customers have extended their service agreements in flock, helping to solidify the company's mid to long term revenue stream.

Like Capstone Turbine (Nasdaq:CPST), another company looking to take advantage of the global shift towards 'cleaner' energy production, FuelCell is primed to find itself in the middle of a potentially very lucrative trend.

Short interest had increased from the April to May period, but continued positive developments and coverage by high-profile media outlets could spark a modest round of short covering and may ultimately lead to a quick return to previously-traded levels - levels that might hold, given the reinvigorated and encouraging outlooks of prosperity for the company.

One to keep an eye on for those that might be looking for a clean energy pick or two. Also look for encouraging trends during the company's earnings call, slated for June 6th.

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Apple (Nasdaq: AAPL) has huge solar plans at N.C. data center

Orlando, FL 2/21/12 (StreetBeat) -- Apple Inc. (Nasdaq: AAPL) said on Monday that it plans to power its massive data center in North Carolina with equally massive solar and fuel-cell installations.

The company said the solar array, expected to cover much of 100 acres, will be the biggest end-user-owned installation in the country. Its capacity is estimated at 20 megawatts, supplying 42 million kilowatt-hours of solar power annually.

The fuel-cell installation is estimated at 5 megawatts and will be fueled by biogas. Two likely suppliers of the fuel cells are Bloom Energy or FuelCell Energy (Nasdaq: FCEL).

Apple has already spent an estimated $1 billion to build the 500,000-square-foot data center in Maiden, N.C., which plays a major role in its iCloud storage and sync service and its Siri voice-activated personal assistant.

The fact that the company planned to build a large solar farm next to the data center has been known since last year but the exact size hadn't been revealed until Apple issued an environmental report on Monday, along with a facilities report.

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FuelCell Energy Enters Into Partnership Agreement With Abengoa to Develop Localized Fuel Cell Power Plants for Europe and Latin America

Tallahassee, FL 12/12/11 (StreetBeat) -- FuelCell Energy, Inc. (Nasdaq:FCEL) a leading manufacturer of ultra-clean, efficient and reliable power plants, today announced a partnership agreement with Abengoa S.A. to develop localized stationary fuel cell power plants for markets in Europe and Latin America. Abengoa will develop, manufacture and market stationary fuel cell power plants using fuel cell modules provided by FuelCell Energy. The initial pilot installation will be at the Abengoa headquarters in Palmas Campus Palmas Altas, Spain using a 300 kilowatt proprietary Direct FuelCell(R) (DFC(R)) module supplied by FuelCell Energy and balance of plant designed and manufactured by Abengoa. Renewable biogas markets will be targeted and the parties will cooperate to enhance the capability and market opportunities for DFC power plants operating on liquid biofuels.

"FuelCell Energy has developed leading edge carbonate fuel cell technology that is unsurpassed for meeting utility-scale power needs for ultra-clean baseload distributed generation" said Javier Brey, General Manager of Abengoa Hidrogeno. "The fit is natural between our organizations and we look forward to growing the market for ultra-clean and efficient distributed generation fuel cell power plants in Spain as well as in Europe and Latin America, where we already have a presence. We will develop and manufacture in Spain stationary carbonate fuel cell plants by starting from FCE technology, and it will increase also the value of our partnership. In the short term, we plan to develop technology together."

The partners will target markets in Europe and Latin America for megawatt-class DFC power plants, focusing on municipalities, large industrial power users and facilities that generate renewable biogas. These markets value high efficiency, distributed generation and the ability to generate virtually emission-free clean power from renewable fuels, all attributes of DFC power plants. DFC power plants are fuel flexible, capable of operating on clean natural gas or renewable biogas.

Under the partnership, Abengoa will use its experience with biofuels to develop a fuel processing system that will support the use of liquid biofuels as a fuel source for DFC power plants. Ultra-clean, efficient and reliable fuel cell power plants that can operate on liquid biofuels are attractive in Latin American markets such as Brazil where sugar cane is widely used as a feedstock to create ethanol.

"Abengoa has experience developing fuel cell systems with value added capabilities" said Chip Bottone, President and Chief Executive Officer for FuelCell Energy, Inc. "When combined with their European and Latin American business and marketing reach through the Abengoa organization, we see excellent prospects for market expansion in Europe as well as developing the Latin American market for ultra-clean baseload distributed generation fuel cell power plants."

Fuel cells generate power through an electrochemical reaction that does not require combustion. Due to this lack of combustion, fuel cells emit virtually no pollutants, resulting in the generation of ultra-clean electricity. Fuel cells can achieve up to 90 percent efficiency when configured to use the high quality heat generated by the power plant in a combined heat & power (CHP) mode. High efficiency reduces fuel costs and carbon emissions and producing both electricity and heat from the same unit of fuel drives economics while simultaneously promoting sustainability. Biogas producers require heat in their processes so the ability for DFC plants to use biogas as a fuel and produce both ultra-clean power and usable heat helps convert a waste disposal challenge into an economical and environmentally friendly power generation solution.

The world-class Direct FuelCell technology of FuelCell Energy will be combined with the extensive customer network and service expertise of Abengoa to sell DFC fuel cells in the target geographies. FuelCell Energy will export fuel cell modules manufactured at the Company's production facility in the USA and Abengoa will supply Spanish designed and built balance of plant to complete the fuel cell power plant. Completion of a distribution agreement is expected to follow this announcement within the next six months.

Abengoa (MCE:ABG.MC) is an international company that applies innovative technology solutions for sustainable development in the energy and environment sectors, generating electricity from the sun, producing biofuels, desalinating sea water and recycling industrial waste.

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FuelCell Energy (NASDAQ:FCEL) Jumps +20% on Power Plant News

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