FuelCell, EMTEC update, extend joint development agreement

FuelCell Energy (FCEL) and ExxonMobil Technology and Engineering Company (XOM) have updated and extended a joint development agreement governing the companies’ development of unique technology that captures CO2 emissions directly from industrial sources while producing electricity and hydrogen simultaneously. As a result, access to the technology could be accelerated for commercial customers. The JDA between FuelCell Energy and EMTEC has been extended through December 31, 2026, to allow for continued development work for the technology, including support of the pilot project at the Esso Nederland BV Rotterdam Manufacturing Complex. The pilot project is co-funded by the European Union under the Emissions Trading System Innovation Fund and by the Netherlands Enterprise Agency by means of a Demonstration Energy and Climate Innovation grant. The agreement allows FuelCell Energy to incorporate elements of the jointly developed technology into existing carbon capture products currently being marketed to customers. This is expected to accelerate delivery of the technology to the market while the next generation cell and module design is being demonstrated in Rotterdam. The jointly developed carbon capture fuel cell technology to be demonstrated in Rotterdam features an optimized design for large scale installations. The technology, which captures carbon while simultaneously generating electricity and hydrogen, could improve the economics of carbon capture and could potentially lower the barrier to broader adoption of carbon capture in the marketplace. The JDA extension provides FuelCell Energy the opportunity to pursue carbon capture opportunities with customers using the optimized carbon capture cell architecture within our current generation module design incorporating select improvements derived from our joint development work. We believe this will accelerate delivery of the benefits of the technology to market while the next generation cell and module design are being demonstrated in Rotterdam. In addition, it will support future pioneer project deployments of the jointly developed technology that the companies anticipate pursuing with select customers. Along with the execution of the JDA extension, FuelCell Energy and ExxonMobil intend to negotiate a commercial framework aimed at enabling deployments of the carbonate fuel cell technology for carbon capture. In addition, FuelCell Energy and ExxonMobil will continue engaging the industrial emitter market, with a focus on demonstrating the unique value proposition offered by the ability to capture CO2 emissions from an external source and produce electricity and hydrogen simultaneously. Manufacturing of the modules for the Rotterdam demonstration has begun in FuelCell Energy’s Torrington, Connecticut, manufacturing facility.