Fuel Cell Stocks Power Ahead

Wednesday, March 05, 2014

By Chuck Mikolajczak, Garima Goel and Sneha Banerjee, Reuters

Shares of U.S.-listed fuel cell makers surged in heavy trading on Wednesday, led by FuelCell Energy Inc , as investors bet that demand will grow for the cleaner alternative to lead-acid batteries as a way to power vehicles such as buses and fork lifts.

FuelCell Energy's shares surged 25 percent to a four-year high of $3.40 in early trading, with 58 million shares changing hands by 1055 ET, making them among biggest movers both in percentage and volume terms on the Nasdaq.

The company's shares, along with those of Plug Power Inc and Ballard Power Systems Inc have been on a tear in recent months. Its shares have jumped more than 61 percent over the past five sessions and have more than tripled in the past 12 months, including Wednesday's gains.

That performance pales, however, when compared to Plug Power's surge of 4,024 percent. Its shares rose as much as 5 percent to $7.01 on Wednesday, with nearly 27 million shares traded.

Shares of Canada's Ballard have jumped nearly eight-fold, while those of Hydrogenics Corp have more than tripled. Both stocks rose in early trading.

Fuel cells combine hydrogen and oxygen to produce electricity, water, and heat and generate electricity continuously as long as fuel is supplied. They do not burn fuel, which makes them an efficient, quiet and pollution-free alternative to combustion engines.

Global fuel cell market revenue is expected to reach $2.5 billion by 2018, according to market research firm MarketsandMarkets. Shipments of fuel cells are expected to jump to 1.1 million units by 2018, from 24,500 in 2012.

"The technology has become more affordable," said Byron Capital Markets analyst Dev Bhangui, who has a "hold" rating on Ballard and a "strong buy" on Hydrogenics.

"In the longer term, prices are going to come down further and can be integrated with other technologies," he said.

Latham, New York-based Plug Power said last week it had won a contract to supply fuel cells to Wal-Mart Stores Inc that will power warehouse forklifts.

Analysts have pegged the contract value at about $50 million - a figure Plug Power Chief Executive Andy Marsh told Reuters was "not a bad estimate."

Plug Power has said it expects to be profitable for the first time in 2014 on an EBITDA basis as it racks up orders, which have been pouring in since French industrial gas maker Air Liquide invested in the company last May.

"The space in general has been seeing a lot of momentum just because of new contracts," said Ardour Capital Investments analyst Adam Krop.

"Plug Power announced the Wal-Mart deal and there is speculation there could be more contract wins along those lines."

Plug Power's customers include U.S. grocer Kroger Co, Procter & Gamble Co, Coca-Cola Co and German car makers Daimler Mercedes and BMW.

Ballard is Plug Power's exclusive supplier of fuel cell stacks in North America and some European countries. The stacks convert hydrogen and oxygen into electricity.

Burnaby, British Columbia-based Ballard said last week it expects revenue to increase 30 percent this year to about $80 million. The company also makes fuel cells for use in buses, power backup systems and material handling equipment.

Its shares climbed as much as 10 percent to touch a 5-year high of $5.89 on the Nasdaq on Wednesday before easing back to $5.36.

(Writing by Sayantani Ghosh; Editing by Meredith Mazzilli and Ted Kerr)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Louis Dreyfus, Amaggi Hire HSBC to Sell Terminal Stake

Agricultural commodity traders Louis Dreyfus Co B.V. and Amaggi Group have hired HSBC Holdings Plc to sell part or the entire 25 percent stake they hold in a terminal at the Brazilian port of Itaqui,

Shell Presents Crewmember Safety Awards

Shell Shipping and Maritime, Americas recently held its third annual Goal Zero Hero Awards dinner in Houston, recognizing the crewmembers of 21 contracted/chartered vessels,

Bollinger Wins Contract for Phase II FRC Builds

Louisiana shipbuilder Bollinger Shipyards announced it has secured a contract to build Phase II of the Sentinel Class Fast Response Cutters (FRC) for the United States Coast Guard (USCG).

Finance

Louis Dreyfus, Amaggi Hire HSBC to Sell Terminal Stake

Agricultural commodity traders Louis Dreyfus Co B.V. and Amaggi Group have hired HSBC Holdings Plc to sell part or the entire 25 percent stake they hold in a terminal at the Brazilian port of Itaqui,

ITIC Reports on Ship Agents' Costly Transhipment Errors

International Transport Intermediaries Club (ITIC) says it continues to deal on a regular basis with claims resulting from errors by agents involving transhipment cargoes.

Slower Demand for Larger Vessels Drags Baltic Index Lower

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Thursday due to diminishing demand for larger vessels.

Environmental

DNV GL 7 JIPs in North America

In a concerted drive to find smart solutions to safely reduce complexities and cost in the North American oil and gas industry, DNV GL is leading seven new joint

Recent strength in dry bulk shipping to be short-lived - Drewry

Drewry forecasts dry bulk freight rates in 2016 will be, on average, lower than in 2015, as the medium-to-long term fundamentals for dry bulk shipping will remain challenging,

Dryad Maritime Unveil WxConnect

Today, 5th May 2016, Dryad Maritime release WxConnect, a new scalable, managed weather forecasting service for ships and fleets. The launch of the service comes

Fuels & Lubes

Gard Alert: Is Fuel in your Emergency Equipment Fit for Purpose?

Imagine the following scenario: It is in the middle of winter in the north Atlantic, freezing cold with rough seas, when an emergency onboard a tanker requires the crew to abandon the ship.

LUKOIL Marine Lubricants Launches Barge in Singapore

Experiencing continued success and growing demand for the supply of marine lubricants, LUKOIL Marine has launched an additional supply barge named LUKOIL Marine.

WSS Offers ‘One Stop Shop’ Approach to Bunkering

Ship operators who rely on a myriad of companies for their global bunkering needs are wasting time, money and energy, with no guarantee of standardized quality of products and services,

News

Louis Dreyfus, Amaggi Hire HSBC to Sell Terminal Stake

Agricultural commodity traders Louis Dreyfus Co B.V. and Amaggi Group have hired HSBC Holdings Plc to sell part or the entire 25 percent stake they hold in a terminal at the Brazilian port of Itaqui,

GPA Will Continue Weighing Containers at No Cost to Shippers

The U.S. Coast Guard announced last week that state-calibrated scales already in use at the Port of Savannah meet a new requirement of the international Safety of Life at Sea (SOLAS) Convention.

ITIC Reports on Ship Agents' Costly Transhipment Errors

International Transport Intermediaries Club (ITIC) says it continues to deal on a regular basis with claims resulting from errors by agents involving transhipment cargoes.

Vessels

Slower Demand for Larger Vessels Drags Baltic Index Lower

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Thursday due to diminishing demand for larger vessels.

Bollinger Wins Contract for Phase II FRC Builds

Louisiana shipbuilder Bollinger Shipyards announced it has secured a contract to build Phase II of the Sentinel Class Fast Response Cutters (FRC) for the United States Coast Guard (USCG).

NASSCO Delivers First ECO Class Tanker for SEA-Vista

On Thursday, April 28, 2016, General Dynamics NASSCO delivered the first ship in a series of three ECO Class tankers currently under construction for SEA-Vista LLC.

 
 
Maritime Careers / Shipboard Positions Naval Architecture Navigation Pod Propulsion Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1624 sec (6 req/sec)