Contact

FuelCell Energy – Figures not yet convincing

By

April 8, 2023

Image titel:

Sources:

FuelCell Energy – Figures not yet convincing

The numbers for the fourth quarter of fiscal 2022 (start Oct. 31, 2021): Turnover indeed rose 88% year-over-year to make 130.5 million USD in fiscal year 2022 (39.2 million USD in Q4 compared to 13.9 million USD year-over-year), however the reported loss of minus 147.2 million USD should be viewed critically. With the turnover, in my view, special factors like an order to be handled of ex-partner Posco in South Korea should be taken into consideration.

The order volume for the year fell from 1.288 billion USD to 1.090 billion USD. Only positive was the cash position, which was raised to 458.1 million USD compared to the 432.2 million USD on Oct. 31. This is related to an ATM program where shares are continuously placed on the stock exchange. For me, it raises the question of why the stock market, the investors, is backing this so?

Advertisements

Positive to evaluate are the declarations that they possess a leading electrolysis technology, specifically SOFC, and could produce hydrogen with it at very favorable conditions in the future. The company is investing in various production facilities in the USA as well as in Canada. The cooperation with ExxonMobil, involving the carbon capture technology of FuelCell Energy, continues, even if with less of an invest on the side of ExxonMobil.

ExxonMobil is meanwhile the subject of massive criticism for practicing greenwashing with its climate activities (CO2 emissions, among other things). The nature of this research partnership is not entirely transparent. What potential order volumes for FuelCell Energy are affiliated with this?

Advertisements

FuelCell Energy platform located on the U.S. Navy Submarine Base in Groton, CT

cmeec2-mmh3-08nov2022-hi-res-retouch-3.jpg

Source: FuelCell Energy

Good news with regard to projects that are now going into implementation: Through a PPA (power purchasing agreement), FuelCell Energy is selling electricity from the US Navy’s Groton sub base (6 MW) to the Connecticut Municipal Electric Energy Cooperative.

FuelCell Energy is operating more and more FC power plants under its own distribution management, that is, it sells the energy by means of long-term purchase contracts. For Toyota, a 2.3-MW plant in Long Beach, CA is being operated to produce electricity, hydrogen and water. Per year, the company can supply 41.5 MW of power. In 2023, it is to be 45 MW. The first goal is an annual output from new plants of 100 MW and manufacturing capacity to reach 200 MW per year.

FuelCell Energy is therefore positioning itself as a player in the ramp-up of the hydrogen economy and will receive funding through the Inflation Reduction Act. The carbon capture technology will, according to statements by the company, be a leading one. The share will continue along its path, but the continuous ATM program gives me pause.

Disclaimer

Each investor must always be aware of their own risk when investing in shares and should consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid cap, i.e. they are not standard stocks and their volatility is also much higher. This report is not meant to be viewed as purchase recommendations, and the author holds no liability for your actions. All information is based on publicly available sources and, as far as assessment is concerned, represents exclusively the personal opinion of the author, who focuses on medium- and long-term valuation and not on short-term profit. The author may be in possession of the shares presented here.

Written by author Sven Jösting, March 5th, 2023

:Schlagworte

Here are interesting and current articles on the topic of hydrogen – stocks and the stock market!

Economic prospects for companies in the hydrogen sector | Future, stocks & hydrogen companies on the stock exchange and more…

Which hydrogen companies will prevail in the competitive market in the long term? Get tips and cartwheels and learn more about risks or opportunities. Our stock market specialist and expert author Sven Jösting reports critically, independently and competently.

Feb 28 2024

H2Direkt: Blueprint for heating with pure H2

The energy providers Thüga und Energie Südbayern (ESB) as well as Energienetze Bayern have...
Feb 26 2024

Just switch over?

Hydrogen in the existing natural gas network Whether hydrogen contributes to the clean heating...
Feb 26 2024

Pilot plant for coating bipolar plates

At Fraunhofer FEP (Fraunhofer-Institut für Organische Elektronik, Elektronenstrahl- und...
Feb 20 2024

55 MW electrolyzer to decarbonize Saarland

Hydrogen Regions series: HydroHub Fenne living lab The power plant site in Fenne, Völklingen, a...
Feb 20 2024

Chicken feathers as FC membrane material

Feathers from chickens or other poultry could in the future help make fuel cells more effective...
Feb 15 2024

SMEs demand more security

Guest article by André Steinau, CEO of GP Joule Hydrogen After all, the Ampel Coalition leading...
Feb 15 2024

Accelerated expansion of renewable energies

RED III is here – Elsewhere, the wait continues Progress is being made at EU level – albeit...
Feb 12 2024

Picea 2 relies on lithium instead of lead

HPS presents new product generation The company HPS Home Power Solutions has unveiled a new...
Feb 12 2024

H2 production by photocatalysis

The direct generation of hydrogen from sunlight has long been considered the most elegant solution...
Feb 05 2024

Regional instead of international

Hy-Fcell has it difficult asserting itself The aspiration of Landesmesse Stuttgart with Hy-Fcell...
Feb 01 2024

Hydrogeit Verlag turns 20 years old

Hydrogeit Verlag is proudly celebrating its 20th anniversary as a renowned specialist publisher in...
Jan 26 2024

Stracke other H2Now managing director

BMV Energy GmbH is entering the market as another player in hydrogen refueling stations. The...
Jan 26 2024

Starting points for a comprehensive hydrogen ramp-up

Industry congress GAT 2023 in Cologne To establish a functioning hydrogen economy, the entire...
Jan 26 2024

The industry highpoint in autumn

Hydrogen Technology Expo total success In autumn 2023 as well, the Hydrogen Technology Expo was...
Jan 22 2024

New management for the northern real-world lab

Obituary for Professor Werner Beba Mike Blicker will be the new project coordinator of the...
Jan 22 2024

Axel Funke moving to Apex

The Apex Group is expanding its management team from five to six people. Starting the new year,...
Jan 16 2024

Weichai Power: Strong share price increase

The share price of Weichai Power has risen by almost 50 percent in the last few weeks. The reason...
Jan 16 2024

Siemens Energy: Ideal candidate for “buy on bad news”

What should be read from: “Siemens Energy rescued.” Was the company on the verge of bankruptcy? By...
Jan 16 2024

Plug Power: Facts offer little hope

The turnover in the amount of 198.7 million USD in the third quarter lay considerably below...
Jan 15 2024

Nikola Motors: Capital increase at the right time

Short sellers are working massively against the company at the stock exchange. There were shortly...

0 Comments

Leave a Reply