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FuelCell Energy Technology Strengthens the Green Hydrogen Case

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Key Takeaways

  • FCEL advances green hydrogen with high-temp solid oxide electrolyzers using steam to boost efficiency.
  • A DOE-backed project explores pairing FCEL's electrolyzers with nuclear power to cut hydrogen costs.
  • FCEL targets steady hydrogen output for hard-to-electrify sectors, favoring execution over volume hype.

Hydrogen investing has moved beyond the hype and into a stage where real technology differences matter. As cost pressures and execution risks shape investor views, focus is shifting to solutions that can clearly improve efficiency and economics. FuelCell Energy (FCEL - Free Report) is positioning its green hydrogen strategy around solid oxide electrolyzer technology, with an emphasis on practical use rather than bold headlines. This reflects a broader industry reset, where scalable performance and system integration matter more than ambitious production targets.

FuelCell Energy’s solid oxide electrolyzers run at high temperatures and use steam instead of liquid water, which boosts efficiency and reduces the electricity needed to produce hydrogen. This advantage is important because power costs remain the biggest expense in green hydrogen. The company is also working with the U.S. Department of Energy at Idaho National Laboratory to study how these electrolyzers can be paired with nuclear power. Using excess nuclear capacity can improve reliability, increase utilization, and lower hydrogen production costs.

Large, affordable hydrogen supply is key for industries such as manufacturing, synthetic fuels, and heavy transport, where electrification is difficult. FuelCell Energy’s approach supports these uses by enabling steady hydrogen production with lower emissions. Strategically, this focus points to a longer-term story built on execution rather than near-term volume claims. Overall, the stock’s qualitative case rests on the view that disciplined technology development and strong partnerships can support lasting relevance as hydrogen markets become more selective and efficiency-focused.

From Project Plans to Operational Green Hydrogen Supply

Linde plc (LIN - Free Report) is positioning itself as a key player in green hydrogen, backed by decades of experience and a strong global infrastructure base. Linde offers end-to-end support across the hydrogen value chain, from production to distribution and real-world use. In the United States, Linde is building a 35 MW PEM electrolyzer in Niagara Falls to expand green liquid hydrogen supply. Linde will own and operate the plant, powered by hydroelectricity.

Meanwhile, Plug Power (PLUG - Free Report) is building a vertically integrated green hydrogen platform, combining electrolyzers, fuel cells and logistics. Plug Power began producing liquid green hydrogen at its Woodbine, GA plant in January 2024, using eight 5 MW PEM electrolyzers to make about 15 tons per day. Plug Power then liquefies and delivers the fuel through its own cryogenic trailers to hydrogen stations, supporting forklifts, vehicle fleets, and stationary power.

The Zacks Rundown on FCEL

Shares of FuelCell Energy have more than doubled over the past six months, breezing past the industry's growth.

Zacks Investment Research Image Source: Zacks Investment Research

FCEL currently has an average brokerage recommendation (ABR) of 3.44 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms. 

Zacks Investment Research Image Source: Zacks Investment Research

The chart below shows FCEL’s earnings over the past four quarters.

Zacks Investment Research Image Source: Zacks Investment Research

The stock 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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