Why FuelCell Stock Popped 15% This Morning -- Then Dropped
Shares of fuel cell pioneer and Plug Power rival FuelCell Energy (NASDAQ: FCEL) surged nearly 15% Monday morning after FuelCell announced a new partnership with ExxonMobil (NYSE: XOM) to test a new kind of fuel cell useful for carbon capture.
As of 12:30 p.m. ET, FuelCell had given back most of its gains but remains up 2.9%.
FuelCell will partner with Exxon's Amsterdam, Netherlands subsidiary to demonstrate the new technology, known as carbonate fuel cell (CFC). As for how it works, well, my high school chemistry is a little rusty, but in essence CFC appears to take in methane from natural gas or coal, combine it with water, and create heat, electricity, and (some, less) water as its output. Some carbon dioxide (CO2) is also emitted from the reaction, but part of the CO2 created is recycled to keep the reaction going, resulting in lower CO2 emissions than would otherwise result.
Source Fool.com
