- FuelCell Energy’s shares surged by 16.2% to a four-month high following its teaming up with ExxonMobil.
- The partnership aims at testing carbon-capture technology, which could be deployed worldwide if successful.
FuelCell Energy’s partnership with ExxonMobil is raising eyebrows in the energy sector. The fuel cell technology firm stated that ExxonMobil’s affiliate in the Netherlands is planning to build a plant to test a technology developed in collaboration with FuelCell. The objective of this technology is to reduce carbon dioxide emissions. If the pilot projects prove successful, ExxonMobil could deploy the technology across its global operations.
According to FuelCell’s CEO, Jason Few, the technology is able to both capture carbon and produce electricity concurrently, thereby significantly decarbonising heavy industries. This simultaneous production is hailed by Few as a potential “game-changer in the industry”. ExxonMobil and FuelCell believe that capturing carbon at the source is an efficient pathway to decarbonizing heavy industries, not just the energy sector.
So far in 2023, FuelCell’s stock has dropped 44.6%, while ExxonMobil shares have fallen 8.5%. By contrast, the S&P 500 has rallied 22.9%. However, the recent surge in FuelCell shares after the partnership announcement offers a glimmer of hope for the company’s stock performance.
There is an increasing demand for technologies and approaches that help industries reduce their carbon footprint, in line with the global push towards sustainability. The partnership between FuelCell and ExxonMobil, and the carbon-capture technology they are developing, certainly promises a new and potentially effective way of addressing this pressing issue.