http://www.fce.com/
Posted on 03/27/2007 11:17:02 AM PDT by thackney
NEW YORK — Shares of FuelCell Energy Inc. surged Tuesday after the company announced a lucrative deal to supply fuel cell power products to Connecticut.
The Connecticut Clean Energy Fund selected Danbury, Conn.-based FuelCell for six power projects that would total about 68 megawatts, the company said Tuesday. The deal would be valued at $200 million if all the projects are approved, FuelCell said.
RBC Capital Markets analyst Stuart Bush had expected FuelCell to win just 10 megawatts' worth of projects. The company's dominance in the state's contract decision "bodes well for continued FuelCell traction in the marketplace" versus Connecticut-based competitor UTC, he said in a client report Tuesday.
Shares of FuelCell surged $1.40, or 19.4 percent, to $8.60 on the Nasdaq Stock Market in midday trading. The stock spent most of 2006 in decline since hitting a 52-week high of $15 in April. However, shares have climbed 12 percent so far in 2007.
Jeff Osborne, an analyst with CIBC World Markets, preached caution in a report to clients, however.
Although FuelCell's Connecticut projects are much larger than he expected, Osborne said there is risk that some of that wattage may never materialize, as the state's Public Utility Commission must still examine cost points with utilities before final power purchase agreements are put into action.
I once worked across the street from FCE, the place was always catching on fire for one reason or another.
I once worked across the street from FCE, the place was always catching on fire for one reason or another.
That's nearly $3 million per MW installed. Pretty damn pricey.
Oh, but it's saving the earth for our chilrun!! Spare no expense. ;-)
What energy source do they use to produce the hydrogen and oxygen?
from their FAQ's
Q: Where does the “Direct” come from in “Direct FuelCell”?
A: Our fuel cells operate directly on readily available fuels such as pipeline natural gas. There is no need to first produce hydrogen externally and then send the hydrogen to the fuel cell.
Q: Why is this “direct” processing an advantage?
A: The ability to operate directly on readily available fuels is important because:
• It makes for a simpler, more efficient system than externally processed systems.
• The infrastructure to support our products is already pervasive in this country (the natural gas pipeline). We do not have to wait for the “hydrogen economy” to materialize.
• In addition to allowing our fuel cells to operate directly on existing fuels, the high operating temperature enables us to utilize high-quality by-product heat for additional energy efficiency.
Q: What is the difference between your “Direct FuelCell” and a “hydrogen fuel cell”?
A: The key reaction in every fuel cell, including ours requires hydrogen and oxygen. The difference between our technology and other types of fuel cells is how that hydrogen is produced. Some fuel cells require pure hydrogen. Others have to make it externally in a “reformer” and then send it to the fuel cell. Our product runs on standard pipeline natural gas. The hydrogen is produced directly inside the fuel cell, where it is immediately consumed in the reaction, rather than in an external reformer.
Q: How can your fuel cells work directly with pipeline natural gas?
A: By combining innovation with the inherent operating characteristics of the high-temperature Direct FuelCell. Getting hydrogen from a fuel (such as natural gas) requires heat. Our fuel cells generate heat. We figured out a way to use that heat to extract hydrogen from natural gas and then immediately use the hydrogen. It's a very simple and quite elegant concept.
I used to work for their competitor, UTC (aka International Fuel Cells). I worked in life extension of PAFCs and also with contamination issues with MCFCs.
I suspect that the Direct FuelCell is either molten carbonate (MCFC) or solid oxide (SOFC). When I left (18 years ago) there were some serious materials issues with MCFCs and SOFCs. However, if the materials issues were solved then either of these were the way to go for specialty applications.
MCFCs were somewhat intolerant of sulfur and chloride compounds, and these would have to be scrubbed from the natural gas first.
These are both great for specialty applications. Using MCFCs or SOFCs for baseload power is rather senseless. The dirty little secret is that it takes almost as much energy to make a MCFC as it will produce in its useful life.
But if you factor in the buiding heat and domestic hot water, it is not so bad.
Several of these type of units have been installed in Anchorage and used successfuly. I am impressed wit the clean installations and no noise product.
Connecticut ping!
Please Freepmail me if you want on or off my infrequent Connecticut ping list.
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