FuelCell Energy (FCEL) - Get Report , a servicer of stationary fuel cell power plants, will report first-quarter fiscal 2016 earnings results after the closing bell Wednesday.

For the quarter that ended in January, the average analyst earnings estimate calls for a loss of 35 cents per share, which would widen from a 24 cent loss a year ago. Revenue is expected to be $35.21 million, down 15.5% year over year. For the full year, ending October, the loss is expected to narrow from $1.33 per share to $1.06, while full-year revenue of $194.9 million would mark a year-over-year rise of 19.5%.

FuelCell has seen its stock rise almost 35% in 2016, which has crushed the 2% decline in the S&P 500 (SPX) . The reason for the jump? The Danbury, Conn.-based company has improved its ability to produce hydrogen from biogas -- a technology that's crucial to industrial power. And this technology is about to make FuelCell tons of money.

In January, the company was granted approval by the Connecticut Siting Council to build a 63.3 megawatt fuel cell park, which is projected to be the world's largest once it's completed. Analysts at Cowen have placed a $23 price target on the stock and estimate the project to be valued at around $500 million.

FuelCell stock is currently priced at between $6 and $7 per share on the Nasdaq. It has surged some 20% on this news alone. And the stock has increased more than 41% since reaching its January 52-week low of $4.51. FuelCell has a consensus buy rating and an average analyst 12-month price target of $19.

Why the optimism? Fuel cell demand. The company's backlog of $381 million (twice its 2015 revenue) implies tons of pent-up demand. That suggests strong revenue in the quarters ahead -- and momentum.

If FuelCell Energy can win more projects like the newly approved fuel cell park, its money-making has just begun. Buy FuelCell ahead of Wednesday's results.

Note: This article contains one or more stocks with a market cap between $200 million and $2 billion. Such small-cap stocks tend to be volatile.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.