FuelCell Moving Higher On Power Plant Deal
Traders should watch the fuel cell sector for a move higher Friday following FuelCell Energy’s (NASDAQ: FCEL) announcement of a deal with the University of California.
FueCell will install a 1.4 MW fuel cell power plant, which will provide about 30 percent of the electricity for the Irvine Medical Center. The medical center entered a multi-year agreement to buy electricity generated by the plant.
Opening up the possibility of similar deals in the future, FuelCell CEO Chip Bottone commented, “Due to the highly efficient power generation process, stationary fuel cell power plants are virtually absent of the pollutants that cause smog and acid rain and are exempt from the State of California Cap-and-Trade Program so UC Irvine Medical Center will see its Compliance Obligation reduced, avoiding carbon tax payments and increasing savings."
Note the rally this week:
- FuelCell up 13.9 percent
- Plug Power (NASDAQ: PLUG) up 15.9 percent
- Ballard Power Systems up 21.2 percent
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