FuelCell Energy Inc. FCEL announced that it has entered into a power purchase agreement with the Connecticut Municipal Electric Energy Cooperative for the long-term supply of power to the U.S. Navy Submarine Base in Groton, CT.
This power project will ensure supply of cost-effective clean energy to the naval base. Further, it will be a move toward grid-independent operation. Power of 7.4 megawatt (MW) generated from FuelCell Energy’s Two SureSource 4000TM power plants will help the Navy continue with critical activities and also reduce the cost of generating power over the long run.
Growing Popularity of Fuel Cell
The fuel cell technology utilizes a chemical reaction process to convert a fuel source to electricity. It is eco-friendly process as it does not burn any fuel. Given the benefits, the U.S. Defense Department is jointly harnessing the capability of this technology to develop new vehicles and put it to use in other important process.
General Motors Co. GM is working with the U.S. Army for the development of fuel cell electric vehicles, which will lower the Army’s dependence on conventional fuel. According to General Motors, another vital reason for the rising popularity of fuel cell is its ability to produce very little heat while producing power. This lowers the chances of detection in the combat zone.
Fuel Cell Contracts
Due to the rising popularity of this technology, fuel cell producers are being awarded contracts from customers from all areas. In May 2017, FuelCell Energy, a Zacks Rank #3 (Hold) stock won a $3 million deal from U.S. Department of Energy to provide Energy Storage Solution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In July, another fuel cell maker — Plug Power PLUG — announced a new expanded deal with Walmart WMT. Per the deal, Plug Power 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.
In the past six months, FuelCell Energy, has outperformed the industry. The company’s shares have gained 39.6% compared with the industry’s rally of 6.4%.
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