FuelCell teams with Exxon Mobil on 'game-changing' carbon-capture technology

By Tomi Kilgore

FuelCell Energy's stock leaps toward a four-month high

Shares of FuelCell Energy Inc. got a nice boost Monday after the fuel-cell-technology company said it was teaming up with Exxon Mobil Corp. to work on deploying carbonate fuel-cell technology globally.

"The unique advantage of this [CFC] technology is that it not only captures CO2 but also produces low carbon power, heat and hydrogen as co-products," said Geoff Richardson, senior vice president of commercial and business development at Exxon Mobil.

FuelCell's stock (FCEL) rallied 3.6% in morning trading, heading for its highest close since Aug. 16. The stock has run up 30.7% so far in December, which puts it on track for the best monthly performance since it climbed 32.6% in August 2022.

Exxon Mobil shares (XOM) gained 1.5% in morning trading.

As part of the collaboration, Esso Nederland BV, which is Exxon Mobil's affiliate in the Netherlands, plans to build a pilot plant at its Rotterdam Manufacturing Complex.

If demonstrations of the technology are successful, Exxon Mobil could deploy the technology at its manufacturing sites around the world.

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

FuelCell's stock has dropped 42.6% year to date, while Exxon Mobil shares have fallen 7.2% and the S&P 500 SPX has advanced 23.3%.

-Tomi Kilgore

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12-18-23 1105ET

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