Why FuelCell Energy Stock Is Moving Higher Wednesday

FuelCell Energy Inc FCEL shares are trading higher Wednesday after the company announced plans to build a fuel cell power plant that’s expected to add over $160 million to its generation backlog.

What Happened: FuelCell on Wednesday announced it will build a 7.4 MW fuel cell power plant in Hartford, Connecticut that will deliver Class 1 renewable baseload power to the state’s local grid.

FuelCell said it plans to sell the power produced by the fuel cell plant to local distribution utilities Eversource and United Illuminating under a 20-year power purchase agreement. The project is expected to add more than $160 million of future revenue to the company’s backlog.

“Society is increasingly reliant on always-available electric power to meet data center, streaming, and cloud computing demand, as well as the proliferation of electric-hungry devices from cell phones to cars and trucks,” said Jason Few, president and CEO of FuelCell Energy.

“We are well positioned to participate in the renaissance of infrastructure investments occurring in the U.S. at a time when the federal government is clearly signaling a focus on how AI will impact our electrical grid.”

See Also: Gillette Parent Procter & Gamble Q2 Earnings: Navigates Commodity And Forex Challenges, Maintains Core FY25 Outlook

How To Buy FCEL Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in FuelCell Energy's case, it is in the Industrials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

FCEL Price Action: FuelCell shares were up 6.7% at $9.59 at the time of publication, according to Benzinga Pro.

Photo: courtesy of FuelCell Energy.