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FuelCell Energy to Deliver Clean Energy Solution in Korea

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FuelCell Energy, Inc. (FCEL - Free Report) has entered in to an agreement with South Korea based Korea Southern Power Company (KOSPO), for a fuel cell project. The project will use FuelCell Energy’s SureSource solutions.

Per the deal, FuelCell Energy will be supplying the 20-megawatt (MW) of fuel cell power plants and expects to operate and maintain the fuel cell plant under a 20-year service agreement. FuelCell Energy’s SureSource 3000™ modules will be used in this project. FuelCell Energy will starting shipping the modules from fourth quarter 2017 and expects to complete them by early 2018. Construction will start during the end of 2017 and the project is expected to become operational by 2018.

FuelCell’s Recent Deal & Future Plans

During the month of August, FuelCell Energy announced that it had agreed to power NRG Energy, Inc.’s (NRG - Free Report) Energy Center in Pittsburgh, PA. Per the terms of the agreement, the fuel cell power plant will be responsible for supplying energy to NRG Energy's facility.

With utility-scale market opportunities in Asia, as evident from the deal under review, the company is well poised to meet clean energy goals of not only the United States but also in Asian countries like Korea, in this case. With current portfolio of fuel cell projects, FuelCell Energy is positioned to deliver efficient, affordable and clean solutions to customers.

Developments from Peers

Other companies such as Plug Power Inc. (PLUG - Free Report) and Ballard Power Systems Inc. (BLDP - Free Report) are also taking steps toward introducing novel fuel cell alternatives. These companies are also receiving contracts to provide fuel cell solutions to its clients.

In July, Ballard Power collaborated with BAE Systems to supply five 150 kilowatt (KW) FCveloCity fuel cell engines to SunLine Transit Agency. Ballard’s Technology team and subsidiaries are known for providing clean services for fuel cell development in the United States and other markets of Canada, China and Europe. (Read more:Ballard Power to Supply Fuel Cell Buses to SunLine Transit)

During the same month, fuel cell maker Plug Power announced a new expanded deal with Walmart (WMT) in a partnership where the company will provide its GenKey hydrogen fuel station and fuel cells to up to 30 additional Walmart store locations in North America over the next three years. (Read more: Plug Power Partners with Walmart in New Fuel Cell Deal, Stock Soars)

Price Movement

In the past three months, FuelCell Energy has outperformed the industry. The company’s shares have gained 44.2% against the industry’s gain of 3.6%.



Zacks Rank

FuelCell Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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