- Connecticut approves draft proposal for 63-megawatt plant
- Beacon Falls project may add $500 million in revenue
FuelCell Energy Inc. surged the most in almost five months after Connecticut approved a proposal for what would be the world’s largest fuel cell power plant.
FuelCell rose 16 percent to $6.16 at the close in New York, the most since Aug. 10. Before Friday, the Danbury, Connecticut-based fuel cell manufacturer’s market value had declined 70 percent over the past year to about $170 million.
The Connecticut Siting Council approved Thursday a draft decision for the 63.3-megawatt Beacon Falls fuel cell power plant in the state that will use FuelCell Energy equipment, according to a statement from the project developer. That would be bigger than a 59-megawatt fuel cell plant in operation in South Korea, which also uses FuelCell Energy systems.
Jeffrey Osborne, a Cowen & Co. analyst in New York, estimated that the revenue from the project would be almost triple the company’s market value.
“We expect the total value to FuelCell Energy to be close to $500 million,” Osborne said in the note. “We see this project as a huge win for the company.”
Fuel cells turn natural gas or hydrogen into electricity through a chemical reaction that produces little greenhouse-gas emissions.
“This is a good milestone. It clears a hurdle,” Kurt Goddard, FuelCell Energy’s head of investor relations, said in an interview Friday.