Another Cal-State University Moves to Fuel Cell Power (FCEL)

FuelCell Energy Inc. (NASDAQ: FCEL) is running higher this morning on news that Southern California Edison Company has ordered a 1.4 megawatt DFC1500 fuel cell power plant to install as a utility-owned fuel cell on the campus of California State University, San Bernardino.

The ultra-clean electricity generated by the power plant will interconnect into the existing SCE distribution grid without a commensurate investment in the transmission and distribution grid. An aim is to cut the reliance on the power grid and the DFC1500 installation will use natural gas as the fuel source to generate this ultra-clean electricity with virtually zero pollutants.

California State San Bernardino will become the fifth California university with a DFC installation, representing eight megawatts in total power generation capacity.  The unit is expected to be operational in early 2012.

No financial terms were disclosed.  Shares are still showing thin trading volume right before the open.  The initial news pop appeared to be up by double-digit percentages, but shares are up 4% at $1.82 right before the open.  The 52-week trading range is $0.98 to $3.40 and the market cap was $215 million at yesterday’s close.

JON C. OGG