FuelCell Energy Stock Is Trading Higher: Here's Why

FuelCell Energy Inc FCEL shares are trading higher Monday after the company announced that ExxonMobil Corp XOM plans to build a pilot plant using fuel cell technology.

What To Know: ExxonMobil affiliate Esso Nederland BV plans to jointly develop a pilot plant at its Rotterdam Manufacturing Complex with FuelCell Energy to test technology that could significantly reduce CO₂ emissions. 

The plant will focus on obtaining data on performance and operability of carbonate fuel cell technology. It will also address potential technical issues that may occur in a commercial environment and help the companies better gauge installation and operating costs.

"FuelCell Energy and ExxonMobil believe that capturing carbon at the source is an efficient way to decarbonize heavy industry. This technology can capture carbon and produce electricity simultaneously, making it a game-changer in the industry," said Jason Few, president and CEO of FuelCell Energy.

The pilot project will be partially funded by the European Union under the Emissions Trading System Innovation Fund, as well as the Netherlands Enterprise Agency via a Demonstration Energy and Climate Innovation grant.

See Also: Adobe, Figma End $20B Merger: What's Behind the Abrupt Decision?

FCEL Price Action: FuelCell shares were up 10.4% at $1.70 at the time of publication, according to Benzinga Pro.

Photo: courtesy of FuelCell Energy.