When Charles Dickens wrote, "Bring in the bottled lightning, a clean tumbler and a corkscrew," it's safe to say the great English novelist wasn't referring to energy technology. But in the 21st century we know that a whole lot of bottled lightning can be uncorked using a variety of sophisticated devices -- and one of the most interesting types is fuel cells.
Today we got lightning news from one of the best companies in the fuel cell space, the aptly named FuelCell Energy (NASDAQ: FCEL). Although the company reported lower product sales and revenues for fiscal Q2 of $19.3 million compared to $26.4 million in fiscal Q2 a year ago, it did say that the prior year product sales and revenues were unusually high due to timing.
As with so many earnings statements we've seen of late, the company said the credit crisis caused delays in closing commercial products sales order in the U.S. However, FuelCell Energy's earnings statement did include the admission of an additional $64.8 million of contracts added to backlog subsequent to quarter's end.
But perhaps the more powerful lightning unleashed by FuelCell Energy was the news of its order from POSCO Power. The South Korean power producer placed an order for 30.8 MW of FuelCell Energy Modules and components with an estimated value of $58 million. The order calls for delivery during 2010 and early 2011.
As part of the transaction, POSCO Power agreed to purchase $25 million in FuelCell Energy common stock at $3.59 per share (the 10-day average FuelCell Energy stock closing price through June 8) once the licensing agreement is finalized.
News of the deal rocketed FCEL shares up nearly 25% right out of the gate on Tuesday, proving once again that bottled portfolio lightning can be uncorked in the alternative energy space.
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