Shares of FuelCell Energy (NASDAQ:FCEL) fell more than 20% in Monday trading after announcing late Friday the Connecticut Department of Public Utility Control [DPUC] approved 16.2 MW of projects using the company's energy power plants, falling short of investor expectations. Analysts were expecting approvals in the range of 20 to 35 MW; FuelCell's original proposal was for a 68MW deal.
The project, which incorporates six of FuelCell's DFC3000 fuel cells, is estimated to be worth $43 million in sales, the company said. "These selections firmly establish fuel cells' role in deploying ultra-clean energy capacity," CEO R. Daniel Brdar said. "With their 24/7 reliability, fuel cells can solve electric grid congestion while reducing the need for new generation, transmission and distribution investment. Our fuel cells provide this power with virtually no emissions." Canaccord Adams analyst John Quealy noted the deal disappointed investors, but also said that if finalized, the project will be among the largest fuel cell projects ever, and "key driver for the development of this nascent market."
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