Recently Updated and Extended Joint Development Agreement between ExxonMobil Technology and Engineering Company and FuelCell Energy Aimed at Accelerating Access to Carbonate Fuel Cell Technology for Carbon Capture
- Extension of joint development agreement between FuelCell Energy and ExxonMobil Technology to December 31, 2026.
- Pilot project for carbon capture technology at Esso Nederland BV's Rotterdam Manufacturing Complex expected to start in early 2026.
- Jointly developed technology captures CO2 emissions from industrial sources while generating electricity and hydrogen simultaneously.
- The technology aims to improve the economics of carbon capture and lower barriers to adoption in the marketplace.
- Manufacturing of modules for the Rotterdam demonstration has begun in FuelCell Energy's Torrington, Connecticut facility.
- None.
Insights
The extension of the joint development agreement (JDA) between FuelCell Energy and ExxonMobil Technology and Engineering Company (EMTEC) indicates a significant commitment to the advancement of carbonate fuel cell technology. This collaboration is poised to enhance the scalability of carbon capture solutions, a critical factor in the energy sector's transition to cleaner technologies. The ability to capture CO2 while generating electricity and hydrogen presents a dual advantage: it addresses environmental concerns and provides a potential revenue stream through the sale of generated by-products.
From a business standpoint, the JDA extension through the end of 2026 allows for a longer-term development and testing phase, which is necessary given the complexities of integrating such technologies into existing industrial infrastructures. The involvement of the European Union and the Netherlands Enterprise Agency through financial support underscores the technology's potential impact on emission reduction targets set by governments and regulatory bodies. The modular nature of the technology also suggests flexibility in deployment, which could facilitate adoption across various industries and emission-intensive sectors.
The market's response to this news may reflect optimism about the potential for broader adoption of carbon capture technology, which could be seen as a positive driver for FuelCell Energy's stock. The ability to commercialize these advancements could position FuelCell Energy as a leader in carbon capture, a market that is gaining traction as the world seeks to balance industrial growth with environmental sustainability.
The pilot project at Esso Nederland BV's Rotterdam Manufacturing Complex represents a practical application of the jointly developed technology in an industrial setting. The success of this pilot could serve as a proof of concept, demonstrating the viability of the technology in real-world conditions. This is particularly relevant as the industry seeks to validate the economic feasibility of carbon capture technologies, which have historically been criticized for their high operational costs.
Furthermore, the advancements in the carbonate fuel cell technology could potentially disrupt the traditional carbon capture market by offering a more energy-efficient alternative. Traditional carbon capture methods typically require additional energy inputs, which can offset the environmental benefits. In contrast, the ability of FuelCell Energy's technology to generate electricity and hydrogen could mitigate such energy penalties, making it a more attractive option for industrial emitters looking to reduce their carbon footprint without sacrificing operational efficiency.
Investors and stakeholders in the environmental technology space will likely monitor the progress of this pilot project closely, as its outcomes could have broader implications for the adoption of carbon capture solutions globally. The success of such initiatives could also influence environmental policies and encourage further investments into clean energy technologies.
The financial implications of the extended JDA for FuelCell Energy could be substantial. By incorporating improvements from the joint development into their current generation modules, FuelCell Energy may enhance their product offering, potentially leading to increased market share and revenue growth in the near term. The anticipation of a commercial framework negotiation with ExxonMobil could also signal future strategic partnerships and revenue-sharing opportunities, which would be of particular interest to investors.
Given the financial backing from the European Union's Emissions Trading System Innovation Fund and the Netherlands Enterprise Agency, the project's risk profile may be somewhat mitigated, which could be favorable for investor sentiment. The ability to market both the original and enhanced versions of the carbon capture technology expands FuelCell Energy's portfolio, potentially opening up new customer segments and applications.
While the actual financial impact will depend on the technology's commercial success post-demonstration, the strategic moves being made by FuelCell Energy suggest a proactive approach to capitalizing on the growing demand for sustainable energy solutions. As such, investors may view these developments as a positive indicator of the company's future performance and its potential to generate long-term value.
- Carbonate fuel cell technology captures CO2 emissions from industrial sources, while simultaneously generating electricity and hydrogen, valuable co-products that can reduce the cost of carbon capture and storage.
- Updated terms of agreement provide that FuelCell Energy can market its original generation of carbon capture technology in addition to a modified version of its original technology that has been enhanced with innovations from the companies’ jointly developed design.
- Pilot project to test jointly developed carbon capture technology proceeding at Esso Nederland BV’s Rotterdam Manufacturing Complex; project start-up expected in early 2026.
DANBURY, Conn., April 08, 2024 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (Nasdaq: FCEL) and ExxonMobil Technology and Engineering Company (EMTEC) have updated and extended a joint development agreement (JDA) governing the companies’ development of unique technology that captures CO2 emissions directly from industrial sources while producing electricity and hydrogen simultaneously. As a result, access to the technology could be accelerated for commercial customers.
The JDA between FuelCell Energy and EMTEC has been extended through December 31, 2026, to allow for continued development work for the technology, including support of the pilot project at the Esso Nederland BV Rotterdam Manufacturing Complex. The pilot project is co-funded by the European Union under the Emissions Trading System Innovation Fund and by the Netherlands Enterprise Agency by means of a Demonstration Energy and Climate Innovation (DEI+) grant.
The agreement allows FuelCell Energy to incorporate elements of the jointly developed technology into existing carbon capture products currently being marketed to customers. This is expected to accelerate delivery of the technology to the market while the next generation cell and module design is being demonstrated in Rotterdam.
The jointly developed carbon capture fuel cell technology to be demonstrated in Rotterdam features an optimized design for large scale installations. The technology, which captures carbon while simultaneously generating electricity and hydrogen, could improve the economics of carbon capture and could potentially lower the barrier to broader adoption of carbon capture in the marketplace.
Jason Few, CEO and president of FuelCell Energy said, “Through this updated agreement, we can move more quickly to provide access to this superior technology in our existing platform targeting small to mid-scale opportunities while we demonstrate large scale carbon capture at Esso’s refinery in Rotterdam.”
He added, “Reaching this stage is a significant milestone for FuelCell Energy, as the technology so far has met or exceeded key technical performance criteria, and that’s a victory for the talented scientists and engineers from both of our companies. It also reinforces our view that there are significant commercial possibilities for this technology to enable a world empowered by clean energy.”
JDA to Help Accelerate Delivery of Technology’s Jointly Developed Innovations
The JDA extension provides FuelCell Energy the opportunity to pursue carbon capture opportunities with customers using the optimized carbon capture cell architecture within our current generation module design incorporating select improvements derived from our joint development work. We believe this will accelerate delivery of the benefits of the technology to market while the next generation cell and module design are being demonstrated in Rotterdam. In addition, it will support future pioneer project deployments of the jointly developed technology that the companies anticipate pursuing with select customers.
We believe the ability to incorporate improvements from the JDA into FuelCell Energy’s current generation modules will enhance the capabilities of our power, hydrogen, and carbon recovery solutions and provide the ability to offer more attractive near-term carbon capture solutions.
Commercial Framework to be Outlined
Along with the execution of the JDA extension, FuelCell Energy and ExxonMobil intend to negotiate a commercial framework aimed at enabling deployments of the carbonate fuel cell technology for carbon capture.
In addition, FuelCell Energy and ExxonMobil will continue engaging the industrial emitter market, with a focus on demonstrating the unique value proposition offered by the ability to capture CO2 emissions from an external source and produce electricity and hydrogen simultaneously.
Manufacturing of the modules for the Rotterdam demonstration has begun in FuelCell Energy’s Torrington, Connecticut, manufacturing facility.
Jointly Developed Technology
FuelCell Energy and ExxonMobil’s 10-year-long working relationship has focused on innovating technology that can significantly reduce CO2 emissions from emission-intensive sectors while generating electricity and hydrogen in the process, something that no other fuel cell technology or conventional absorption systems can do.
CO2-containing flue streams, such as combustion exhaust, can be directed to the fuel cell, where electrochemical reactions produce electricity and hydrogen, while capturing and concentrating carbon dioxide for utilization or permanent sequestration and destroying NOx. By comparison, other carbon capture technologies consume energy from the host plant, grid, or onsite generation decreasing efficiency and presenting a barrier to broader adoption. CFC technology is also modular, potentially enabling carbon capture across a wide range of deployment scales.
About FuelCell Energy
FuelCell Energy, Inc. is a global leader in sustainable clean energy technologies that address some of the world’s most critical challenges around energy, safety, and global urbanization. It collectively holds 531 fuel cell technology patents in the United States and globally. As a leading global manufacturer of proprietary fuel cell technology platforms, FuelCell Energy is uniquely positioned to serve customers including businesses, utilities, governments, and municipalities with sustainable products and solutions. The company’s solutions are designed to enable a world empowered by clean energy, enhancing the quality of life for people around the globe. Learn more at fuelcellenergy.com.
Contacts:
ir@fce.com
203.205.2491
Kathleen Blomquist
kblomquist@fce.com
203.546.5844
Source: FuelCell Energy
FAQ
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