FuelCell Energy and Malaysia Marine and Heavy Engineering Sdn Bhd Collaborate under a Joint Development Agreement for Detailed Feasibility Study Award for Low-Carbon Fuel Production Facility in Malaysia

Rhea-AI Summary

FuelCell Energy (FCEL) and Malaysia Marine and Heavy Engineering (MHB) have signed a Joint Development Agreement (JDA) to co-develop large-scale hydrogen production systems across Asia, New Zealand, and Australia. The collaboration builds on their February 2023 memorandum of understanding.

The partnership combines FuelCell Energy's solid oxide electrolyzer (SOEC) technology with MHB's large-scale fabrication expertise to develop modular solutions for commercial hydrogen production. Additionally, FuelCell Energy has been awarded a Detailed Feasibility Study (DFS) contract for a low-carbon fuel production facility in Malaysia, utilizing SOEC technology with carbon dioxide and water as feedstocks. The project will incorporate KBR 's proprietary low-carbon fuel synthesis technology.

This initiative aligns with Malaysia's goal to achieve net-zero carbon emissions by 2050 while advancing its national hydrogen value chain.

Positive

• Strategic expansion into Asian hydrogen market
• Contract award for Detailed Feasibility Study in Malaysia
• Partnership with established manufacturer MHB for scaling operations

Negative

• None.

Insights

Energy Technology Analyst

FuelCell Energy's Joint Development Agreement (JDA) with Malaysia Marine and Heavy Engineering represents a strategic expansion of their international commercialization efforts for hydrogen production technology. This agreement advances their February 2023 memorandum of understanding into a formal collaboration framework targeting markets across Asia, New Zealand, and Australia.

The immediate tangible outcome is a contract award for a Detailed Feasibility Study (DFS) evaluating a low-carbon fuel production facility in Malaysia using FCEL's solid oxide electrolyzer (SOEC) technology. The project's technical approach is noteworthy - utilizing carbon dioxide and water as feedstocks potentially enables both hydrogen production and carbon utilization in a single process.

The collaboration structure leverages complementary capabilities: FCEL provides advanced SOEC technology while MMHE contributes large-scale fabrication expertise. Additionally, KBR 's involvement adds proprietary synthesis technology to convert hydrogen into higher-value synthetic fuels.

For a company with FCEL's market capitalization ($124.3 million), this framework could provide a scaling pathway that would be challenging to achieve independently. The Malaysia project aligns with national decarbonization goals, potentially positioning FCEL within emerging hydrogen value chains in the region.

However, investors should recognize this remains preliminary - the current scope is to a feasibility study rather than confirmed facility construction. The announcement lacks financial details regarding the DFS contract value and timeline for potential facility development, making near-term revenue impact difficult to quantify.

Clean Energy Market Strategist

This JDA between FuelCell Energy and Malaysia Marine and Heavy Engineering represents a strategic positioning move in the emerging low-carbon fuels market rather than an immediate revenue catalyst. While progressing beyond the earlier MOU stage indicates commercial traction, the materiality for FCEL investors hinges on future developments beyond this feasibility study.

The technical approach merits attention - SOEC technology for converting CO2 and water into syngas represents a differentiated method compared to traditional electrolysis systems focused solely on hydrogen production. By incorporating carbon utilization, this addresses both hydrogen production and carbon management challenges simultaneously.

The collaboration structure intelligently addresses FCEL's scale limitations. For a $124 million market cap company, the partnership with MMHE provides critical large-scale fabrication capabilities while KBR adds proven synthesis technology. This creates a more complete technology stack than FCEL could offer independently.

Malaysia serves as a strategic entry point to broader Asian markets with its established energy infrastructure and net-zero commitments. However, the competitive landscape for low-carbon fuel projects remains intense, with much larger players investing heavily in alternative pathways.

For investors, this represents incremental positive momentum in FCEL's commercialization journey, but remains at the pre-revenue stage for this specific initiative. Without disclosed financial terms or timeline commitments for facility development, the near-term impact is primarily strategic positioning rather than material financial contribution.

DANBURY, Conn. and KUALA LUMPUR, Malaysia, March 06, 2025 (GLOBE NEWSWIRE) --

• The collaborative journey for both FuelCell Energy and MHB started with a memorandum of understanding in February 2023 on developing hydrogen production facilities across Asia, New Zealand, and Australia.

• The collaboration, under the Joint Development Agreement, will support a Detailed Feasibility Study for a low-carbon fuel production¹ facility using solid oxide electrolysis (SOEC)² technology with carbon dioxide and water as feedstocks in Malaysia.
  

FuelCell Energy, Inc. (Nasdaq: FCEL) and Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), a wholly owned subsidiary of Malaysia Marine and Heavy Engineering Holdings Berhad (KLSE: MHB), have announced the signing of a Joint Development Agreement (JDA) to co-develop large-scale hydrogen production systems and technologies across Asia, New Zealand, and Australia.

Building on a memorandum of understanding signed in February 2023, the JDA represents a pivotal step for the two companies, driven by a shared vision to make clean hydrogen production easily accessible and viable. The collaboration underscores FuelCell Energy and MHB’s commitment to advancing green energy solutions and supporting global decarbonization and energy transition goals.

Under the terms of the JDA, the two companies will bring together FuelCell Energy’s cutting-edge solid oxide electrolyzer (SOEC) technology and MHB’s expertise in large-scale fabrication to develop modular solutions that support rapid deployment of commercial hydrogen production.

Project Award: Detailed Feasibility Study (DFS) in Malaysia

In conjunction with the JDA, FuelCell Energy and MHB are collaborating to support a contract awarded to FuelCell Energy for a Detailed Feasibility Study (DFS) of a low-carbon fuel production facility in Malaysia. The DFS will evaluate the production of low-carbon fuel utilizing SOEC technology with carbon dioxide and water as feedstocks.

Additionally, as part of the DFS, the companies will collaborate with KBR LLC, which will provide its proprietary low-carbon fuel synthesis technology.

The project aligns with Malaysia’s goals to achieve net-zero carbon emissions by 2050, while advancing its national hydrogen value chain.

Quotes by the CEOs

FuelCell Energy President and CEO, Jason Few, commented, "Our collaboration with MHB is a significant step forward in establishing our place in the hydrogen and low carbon fuels market, showing our global reach and demonstrating our ability to scale up for large-scale projects through strategic collaborations in a variety of industries.”

MHB Managing Director and CEO, Mohd Nazir Mohd Nor, said, “We are pleased to continue our collaboration with FuelCell Energy as we take another step forward in developing the hydrogen value chain in Malaysia. Building on our earlier efforts, this partnership highlights our readiness to take on larger-scale projects.

He added, “By leveraging MHB’s extensive fabrication capabilities and FuelCell Energy’s innovative SOEC technology, we aim to deliver real, scalable solutions that can attract strong stakeholder support and drive progress in the energy transition. This ongoing effort reflects our commitment to contributing towards a cleaner, low-carbon future.”

Notes to Editors

1. Low-Carbon Fuel Production: A proprietary process that converts hydrogen (as a result of the SOEC process in this case) and carbon monoxide into synthetic fuels, offering a sustainable alternative to traditional fuels.
   
   
2. Solid Oxide Electrolysis (SOEC): An advanced technology that uses electricity to split steam into hydrogen and oxygen, with the hydrogen used as a feedstock to further process into low-carbon fuels.
   

About FuelCell Energy

FuelCell Energy, a pioneer in clean energy technology, provides efficient and sustainable power, carbon capture, and hydrogen solutions worldwide. The company’s fuel cells have been in commercial operation for more than 20 years and are able to run on various fuels including natural gas, hydrogen, and biofuel. The company’s installations have a wide variety of applications, including support of the electric grid, distributed baseload power on site for data centers, industrial operations, and major manufacturers. Founded in 1969 in Danbury, Connecticut, FuelCell Energy holds more than 530 patents that enable solutions for today’s energy needs. Learn more about our groundbreaking technology at fuelcellenergy.com. Learn more about FuelCell Energy’s electrolyzer here.
Contact:
FuelCell Energy
ir@fce.com 
203.205.2491

Kathleen Blomquist
kblomquist@fce.com  
203.546.5844

About MHB

Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) is a globally trusted energy and marine solutions provider for a wide range of offshore and onshore facilities and vessels.
With an illustrious 50-year history of proven excellence and a reputation for delivering integrated solutions to international energy clients, we operate the largest fabrication yard in Malaysia and one of the largest in Southeast Asia. Our specialisation lies in energy offshore construction, including deepwater facilities, marine repair, conversion services, and marine refurbishment, with a niche focus on Liquefied Natural Gas (LNG) carriers.

Today, MHB is at the forefront of the green energy revolution, spearheading initiatives in renewable energy and decarbonisation. Leveraging our extensive expertise, we construct carbon capture facilities, advanced offshore wind farm substations, and provide fabrication services for green hydrogen facilities, supporting our clients’ aspirations for cleaner and more sustainable energy solutions.

Our capabilities and track record in summary:

• Full range engineering, procurement, construction, installation & commissioning (EPCIC) services for offshore structures.
• Complete offshore facility conversion services in one location.
• Comprehensive ship repair, refurbishment, upgrading and life extension of various types of vessels and rigs.
  

For more information, kindly contact MHB Corporate Communications:

Nor Mariam Mohd Nazir
Hp: +6012 341 9494
Email: nor.mariam@mmhe.com.my

Farah Nabilah Mohd Azman
Hp: +6011 2634 2915
Email: farah.nabilah@mmhe.com.my

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/53587c5c-36ce-4fc5-bad4-da812c834e80

FAQ

What is the scope of the Joint Development Agreement between FuelCell Energy (FCEL) and MHB?

The JDA covers co-development of large-scale hydrogen production systems across Asia, New Zealand, and Australia, combining FCEL's SOEC technology with MHB's fabrication expertise.

What technology will FCEL use in the Malaysian low-carbon fuel production facility?

The facility will use solid oxide electrolysis (SOEC) technology with carbon dioxide and water as feedstocks.

When did FCEL and MHB initially begin their collaboration?

The collaboration began with a memorandum of understanding in February 2023.

How does this project align with Malaysia's environmental goals?

The project supports Malaysia's goal to achieve net-zero carbon emissions by 2050 and advances its national hydrogen value chain.