FuelCell Energy (NASDAQ: FCEL) stock surged during intraday trading Tuesday following its agreement with a Korean company to sell fuel cell modules and offer associated services.
FuelCell Energy (FCEL) has clinched a pivotal purchase and service agreement with Gyeonggi Green (GGE), an energy-focused company affiliated with Korea Hydro & Nuclear Power. The deal entails GGE purchasing 42 upgraded carbonate fuel cell modules, each boasting a capacity of 1.4 megawatts, from FuelCell Energy. These modules will replace the existing ones at the Hwaseong Baran Industrial Complex fuel cell power platform, recognized as the world’s largest fuel cell power platform, situated in Hwaseong-si.
In addition, the deal includes a new seven-year service agreement, under which FuelCell Energy will provide ongoing maintenance and service for the fuel cell modules. Over the term of the agreement, the company anticipates generating revenue of approximately $160 million.
The Hwaseong Baran Industrial Complex fuel cell power platform, established in 2013 with FuelCell Energy’s design and technology, boasts a substantial capacity. It can generate 58.8 megawatts of electricity utilizing 42 fuel cell modules, catering to approximately 135,000 homes’ power needs. Additionally, the platform produces about 250 billion kilocalories of hot water annually, heating around 20,000 homes.
In conjunction with this announcement, FuelCell Energy has also disclosed plans to unveil its second-quarter financial results before the market opens on June 10. Following the release, the company will host a conference call at 10:00 a.m. ET to discuss the results. According to estimates from Benzinga Pro, analysts anticipate the company to report a loss of 8 cents per share on quarterly revenue of $21.351 million.
FuelCell Energy (NASDAQ: FCEL) Stock Movement
On Tuesday, FCEL stock jumped 7.24%, closing at $0.9380, marking a 19.95% increase for the week. The trading volume was 91,318,512 shares, significantly higher than the average daily volume of 30.73 million.
