FuelCell Gains on Deal to Replace System at California Jailby
Company to install 1.4-megawatt fuel cell at Santa Rita jail
System will provide heat and power under 20-year contract
FuelCell Energy Inc. surged the most in three weeks after agreeing to install a fuel cell power plant at a California jail, replacing a system installed by the company in 2006.
FuelCell rose 11 percent to 86 cents at the close in New York, the most since Oct. 5. The shares have slumped 44 percent this year.
The 1.4-megawatt fuel cell system at the Santa Rita jail in Dublin, California, will supply about 60 percent of the facility’s electricity for 20 years, for less than its current utility rates, Danbury, Connecticut-based FuelCell said in a statement Wednesday.
The system will also supply hot water from heat generated by the chemical reaction that produces electricity from natural gas. The original fuel cell was the first the company installed in California and will be replaced when the new one is completed in mid-2016.