FuelCell Gains as Posco Begins Building South Korea Factory

FuelCell Energy Inc., (FCEL) the biggest publicly traded U.S. fuel-cell manufacturer, advanced the most in five months after Posco (005490), its largest shareholder, began construction on a South Korea factory that will manufacture its power systems.

FuelCell rose 12 percent to $1.49 at the close in New York, the most since May 24.

Posco, South Korea’s largest steelmaker, is building a factory that’s expected to begin production in 2015 with an initial annual capacity of 100 megawatts, Danbury, Connecticut-based FuelCell said in a statement today. Posco has licensed FuelCell’s technology and plans to sell them throughout Asia.

FuelCell’s systems convert natural gas into electricity through a chemical process.

To contact the reporter on this story: Justin Doom in New York at jdoom1@bloomberg.net

To contact the editor responsible for this story: Will Wade at wwade4@bloomberg.net

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