2024-01-23 13:09:08 ET
Summary
- Despite reaching nearly 50 MW installed PPA capacity, FCEL has not achieved profitability, reaffirming our previous concerns about its structural product issues.
- Molten Carbonate Fuel Cell technology has seen modest improvements over the decades. Concerns over durability and ownership costs persist.
- The company incurs a significant financial burden under warranty and service contracts to keep its fuel cells running.
Investment Thesis
In previous articles , at the height of the pandemic rally, we argued that while the hydrogen economy presents growth opportunities, FuelCell Energy ( FCEL ) grappled with an uncertain future, primarily due to low-profit margins, capital-intensive Power Purchasing Agreements 'PPA,' and obsolete technology....
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FuelCell Energy Troubles: Profitability Woes Mount