FuelCell gets closer to broader use of solid-oxide technology

FuelCell Energy on Great Pasture Road in Danbury, Conn. on Thursday, Aug. 15, 2013. FuelCell Energy on Great Pasture Road in Danbury, Conn. on Thursday, Aug. 15, 2013. Photo: Tyler Sizemore / Tyler Sizemore Photo: Tyler Sizemore / Tyler Sizemore Image 1 of / 1 Caption Close FuelCell gets closer to broader use of solid-oxide technology 1 / 1 Back to Gallery

DANBURY — Executives with FuelCell Energy (Nasdaq: FCEL) recently announced more than $15 million in government contracts that the company hopes will move them forward in plans to commercialize their solid oxide fuel cell technology.

The projects, according to company officials, will demonstrate not only the performance and commercial readiness of the technology, but it will also further reduce manufacturing costs at a time when the company has been focused on cost reductions and increased margins.

“These projects validate our solid oxide technology and readiness to continue advancing commercialization of our solution for sub-megawatt commercial applications and storage opportunities,” Chip Bottone, the company’s chief executive officer, said in a recent statement about the contracts. “We are ready to expand our applications and confirm cost and performance profiles.”

The contracts with the U.S. Department of Energy include $10.9 million to construct a 400 kilowatt solid oxide fuel cell at a site that’s yet to be announced. Kurt Goddard, the company’s vice president of investor relations, said the installation will likely be in a prominent location in order to demonstrate the attributes of the technology.

While the company has been successful in selling its megawatt-scale carbonate fuel cells, solid oxide fuel cells are preferred for smaller applications to produce electricity needed on site. While several companies are working towards the commercialization of solid oxide cells, few have yet to be successful in developing a commercialization of the product.

Company officials said they also received a $1.3 million contract from federal energy officials to retool existing solid oxide technology so that the cell can produce hydrogen. Essentially, it’s running the cell in reverse, using electricity to create hydrogen rather than using hydrogen to create electricity.

The hydrogen produced by the system can be stored and used for grid power, for hydrogen refueling stations and for industrial purposes.

The company was also awarded a $3.1 million contract to reduce manufacturing costs within market competitive cost parameters.

"We have extensive experience in reducing product costs and leveraging manufacturing scale, as demonstrated by our commercial carbonate megawatt class power plants," Bottone in the statement.

In June FuelCell executives reported its net loss shrank to $10.7 million, or 4 cents per share from a loss of $16.6 million, or 7 cents a share during the first quarter last year.

dperrefort@newstimes.com;