FuelCell Energy (FCEL) - Get FuelCell Energy, Inc. Report was climbing Friday after the clean-power producer and storage company said it had been awarded an $8 million contract by the U.S. Department of Energy.
Shares of the Danbury, Conn., company at last check were up 6.7% to $2.54.
FuelCell Energy said the contract supports design and manufacture of a SureSource electrolysis platform that can produce hydrogen.
The project will be the first multistack electrolysis system produced with its solid oxide technology.
The system will be equipped with an option to receive thermal energy, thus increasing the electrolysis electrical efficiency to more than 90%.
After the system is designed and built at the FuelCell Energy's Danbury facility, it will be delivered to Idaho National Laboratories for testing.
"This highly efficient electrolysis platform is expected to provide much needed flexibility to base-load nuclear power generation," the company said in a statement.
"Additionally, beyond validating the efficiency performance levels, this demonstration project will accelerate the control schemes and integration design."
The project, the statement continued, "represents a key step in FuelCell Energy’s path to commercialize its high efficiency solid oxide electrolysis technology."
Electrolysis technology can support the hydrogen economy by providing carbon-free, clean hydrogen for transportation, power generation, agriculture and other industrial applications, the company said.
The awarding of contracts has been an issue for the company recently.
Earlier in the week, FuelCell Energy said it "emphatically denies" allegations made by a short seller that it had lost two contract awards.
Meanwhile, J.P. Morgan analyst Paul Coster began coverage of the company's stock Thursday with an overweight rating and $3 price target, saying FuelCell Energy is set to “pivot into profitability.” They shares jumped 10% on Thursday.