FuelCell Energy, Inc.’s (FCEL - Free Report) announced that it has closed the acquisition of Bridgeport fuel cell park in Connecticut from Dominion Energy (D - Free Report) . Dominion’s subsidiary Dominion Generation, Inc is the original owner of the 14.9 megawatts (MW) project that has been operated and maintained by FuelCell Energy under a service agreement.
FuelCell Energy provided cash consideration of $35.4 million, which was funded by Liberty Bank, Fifth Third Bank and the Connecticut Green Bank. Per the agreement, the company has acquired 100% of the equity interest of the plant and will own as well as operate it as part of its generation portfolio. The acquisition expands the company’s generation portfolio to 26.1MW and adds annual revenues in excess of $15 million per year.
Other Fuel Cell Park
FuelCell Energy is a global leader in delivering clean, efficient and affordable fuel cell solutions. The company provides comprehensive turn-key solutions for customers that include design and installation of a project to the long-term operation and maintenance of the fuel cell system.
Apart from the facility in Connecticut, the company operates the world’s largest fuel cell park— Gyeonggi Green Energy Fuel cell park — in South Korea. The park comprises 21 SureSource 3000 power plants providing 59 Megawatt of electricity along with district heating to a number of customers. It also operates the largest fuel cell park in North America comprising five 2.8MW power plants.
Rising Usage of Fuel Cell Technology
Fuel cell generates clean electricity with high-power density, extended range and market-leading uptime based on rapid refueling. The demand for fuel cell technology is gaining popularity on the back of reliability and cheaper-than-conventional power sources.
Per GRAND VIEW REASERCH, the global fuel cell market size was valued at USD 3.21 billion in 2016 and is projected to witness a CAGR of 20.9% over 2018-2025.
Naturally, rising popularity of fuel cell technology has encouraged producers like Plug Power (PLUG - Free Report) and Ballard Power Systems (BLDP - Free Report) to make acquisitions and sign contracts to benefit from growth prospects in the space.
Shares of FuelCell Energy have plunged 93.1% in the past year compared with the industry’s decline of 16.4%.
FuelCell Energy currently has 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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