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 Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Industry Professionals to Speak at ShipConstructor Conference

The speakers representing various companies at next week's SSI Americas ShipConstructor User Conference, October 7-9, 2014 in Mobile, Alabama, demonstrate SSI's

NY Harbor Supply & Distribution Fall Reception/Buffet

More than 600 attendees are expected at the 52nd annual New York Harbor Supply & Distribution Fall Reception/Buffet for the energy and energy related industries

Kounalakis Joins OW Bunker N. America

OW Bunker, a reseller and physical supplier of marine fuels, announced the appointment of Georgia Kounalakis to its physical supply operation in North America.

Finance

Norvestor to Become PG’s Largest Shareholder

Norvestor VI, L.P., a fund advised by Norvestor Equity AS, announced it has signed an agreement to invest in Ing Per Gjerdrum AS including its subsidiaries PG Hydraulics AS and PG Construction AS.

GasLog Closes First Option Vessels Dropdown

GasLog Ltd.  announced today the closing of the sale of two modern liquefied natural gas (“LNG”) carriers, the Methane Jane Elizabeth and Methane Rita Andrea,

Brent Holds Above $97, Eyes Worst Quarter Since 2012

Brent crude futures hovered above $97 a barrel on Tuesday, aided by firm U.S. and Chinese data, but the oil benchmark was on track for its deepest quarterly drop

Environmental

‘Green’ Hybrid-powered Research Vessel Christened

The Maritime Aquarium at Norwalk christened a larger, “greener” new research vessel on Friday, September 26 in preparation for launching a new era in examining,

Cove Point LNG Export Facility Gets US FERC Approval

U.S. federal regulators on Monday approved construction of Dominion Resources Inc's liquefied natural gas export project in Cove Point, Maryland. Cove Point is the fourth U.

Shipping's GHG Emissions Down

The total Green House Gas (GHG) emissions from global maritime transport are estimated to have been over 20% lower in 2012 than in 2007, according to "London Matters

Energy

Louisiana to Get Natural Gas Liquefaction and Fueling Facility

Tenaska Bayou LNG expected to meet growing marine, transportation and oil and gas exploration and production demand on the Gulf Coast Tenaska NG Fuels, LLC and Waller Marine, Inc.

ABB WinsTunisia's Gas Treatment Plant Bid

ABB, the leading power and automation technology group, has been awarded a $216 million contract to deliver a gas treatment plant to the South Tunisian Gas Project (STGP).

GasLog Closes First Option Vessels Dropdown

GasLog Ltd.  announced today the closing of the sale of two modern liquefied natural gas (“LNG”) carriers, the Methane Jane Elizabeth and Methane Rita Andrea,

Fuels & Lubes

Kounalakis Joins OW Bunker N. America

OW Bunker, a reseller and physical supplier of marine fuels, announced the appointment of Georgia Kounalakis to its physical supply operation in North America.

Louisiana to Get Natural Gas Liquefaction and Fueling Facility

Tenaska Bayou LNG expected to meet growing marine, transportation and oil and gas exploration and production demand on the Gulf Coast Tenaska NG Fuels, LLC and Waller Marine, Inc.

Power and Endurance Ready for Austrailian Waters

Wamalhanha is the final newbuild in a series of six tugs of the Robert Allan Design, RAstar 3200 where her main duties will be terminal activities, escort duties, ship assist, towage duties.

News

NY Harbor Supply & Distribution Fall Reception/Buffet

More than 600 attendees are expected at the 52nd annual New York Harbor Supply & Distribution Fall Reception/Buffet for the energy and energy related industries

Kounalakis Joins OW Bunker N. America

OW Bunker, a reseller and physical supplier of marine fuels, announced the appointment of Georgia Kounalakis to its physical supply operation in North America.

Louisiana to Get Natural Gas Liquefaction and Fueling Facility

Tenaska Bayou LNG expected to meet growing marine, transportation and oil and gas exploration and production demand on the Gulf Coast Tenaska NG Fuels, LLC and Waller Marine, Inc.

Vessels

Nigerian Customer Orders Ninth Damen Dredger

A Nigerian customer has added its ninth Damen dredger to its fleet. The Cutter Suction Dredger type CSD500 was chosen due to the availability of Damen Field Services in Nigeria,

Power and Endurance Ready for Austrailian Waters

Wamalhanha is the final newbuild in a series of six tugs of the Robert Allan Design, RAstar 3200 where her main duties will be terminal activities, escort duties, ship assist, towage duties.

Steel Cut for Yamal LNG Project’s Lead Tanker

A steel-cutting ceremony was held on September 29 for the lead gas tanker ordered by SCF Group for transportation of liquefied natural gas (LNG) under the Yamal LNG project.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Ship Repair Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.2098 sec (5 req/sec)