Governments are increasingly pushing for clean and green energy policies. As investors, we must adapt to this changing landscape. One way to adapt is through starting a position in FuelCell Energy (NASDAQ:FCEL) stock.
This company is a known leader in delivering affordable and compliant fuel-cell solutions worldwide. Plus, FuelCell Energy stock is low-priced and it’s a small company.
So, this investment might not be for everyone. But if you’re willing to take a chance on fuel-cell technology, this company should be on top of your watch list.
Leveraging Strategic Partnerships
In order to serve the global market for fuel-cell technology, this company has formed a number of advantageous alliances. For instance, FuelCell Energy embarked on a partnership with European research organization Fraunhofer. This will add shareholder value as Fraunhofer provides “research and development capabilities to FuelCell Energy including advanced ceramics expertise, as well as relationships with the European power generation industry, governments and regulatory bodies.”
There are other strategic alliances, but the most famous one is FuelCell Energy’s partnership with Exxon Mobil (NYSE:XOM). As reported by Exxon Mobil, this lucrative agreement will be worth as much as $60 million. The stated purpose of the partnership is to “focus efforts on optimizing the core technology, overall process integration and large-scale deployment of carbon capture solutions.”
Vijay Swarup, the vice president of research and development for Exxon Mobil Research and Engineering, touted this partnership as having “the potential to achieve meaningful reductions of carbon dioxide emissions from industrial operations.
Meanwhile, FuelCell Energy CEO Jason Few heralded the “great opportunity to scale and commercialize our unique carbon capture solution.” It’s hard to argue with FuelCell’s CEO on this point. A partnership with a cash-rich behemoth like Exxon Mobil is a tremendous opportunity.
Ambitious New Business Strategy
Along with FuelCell’s value-added partnerships, a newly unveiled business strategy provides encouragement to shareholders. It’s called the Powerhouse business strategy, and its fundamental pillars are Transform, Strengthen and Grow.
Each of the three pillars is noteworthy. First, there’s the Transform pillar. This includes funding via a “$200 million senior secured credit facility with Orion Energy Partners to support execution of current and future projects and provide balance sheet strength and liquidity” as well as restructuring of the company’s management, organization and debt.
The Strengthen pillar involves building on FuelCell’s customer-centric approach along with “disciplined capital deployment … lean resource management and cost reduction opportunities.”
And the Growth pillar, as you might expect, involves an intention to increase the company’s sales.
There’s also a focus on market expansion into new geographies. And don’t forget about growth in “new technologies” like biofuels and long-term energy storage.
Jason Few had only been the company’s CEO for five months when this ambitious business strategy was released. It’s heartening to see that Few isn’t content to allow FuelCell to rest on its laurels. The new and improved business strategy could really take the company and the share price to the next level.
My Final Words on FCEL Stock
So what’s my takeaway? FuelCell Energy’s partnership with Exxon Mobil should benefit FCEL stockholders in the long run.
The company’s revamped business strategy suggests a new and exciting chapter is ahead. For your clean-energy holdings, this company and stock merit a B rating for business savvy and an ambitious corporate vision.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
