FuelCell Energy, Inc. (NASDAQ:FCEL) shares are trading higher on Tuesday. The company inked a memorandum of understanding (MOU) with Korea Hydro & Nuclear Power Co., Ltd. (KHNP) to collaborate on hydrogen energy business initiatives.
The agreement marks the beginning of their joint efforts to advance hydrogen energy solutions.
The partnership will focus on developing advanced energy solutions using FuelCell Energy’s solid oxide electrolysis hydrogen platform and KHNP’s nuclear power plants, following all regulations.
This initiative aims to integrate South Korea’s clean energy sources with FuelCell Energy’s technology to produce low-cost, domestic clean hydrogen and diversify the nation’s hydrogen supply beyond imports.
FuelCell Energy’s solid oxide electrolyzer cell produces hydrogen at nearly 90% electrical efficiency without excess heat and can reach 100% efficiency when using excess heat.
The oxide electrolyzer takes in electricity and cold water and produces dry hydrogen at high efficiency. Although, external heat is never needed if it is added as an input FuelCell Energy’s electrolyzer platform converts water and electricity at 100% efficiency.
Kong, Young-gon, Vice President of Hydrogen & Smart Business Department of KHNP, said, “This collaboration aligns with our commitment to innovation and sustainability, and we look forward to working together to develop advanced energy solutions that will benefit both our companies and the communities we serve.”
Investors can gain exposure to the stock via Global X Hydrogen ETF (NASDAQ:HYDR).
Price Action: FCEL shares are up 2.59% at $0.3326 at the last check Tuesday.
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