Connecticut's Department of Public Utility Control issued final approval to the 16.2 megawatt FuelCell Energy Inc. (FCEL:NASDAQ) project. The project will help Connecticut fulfill the state’s renewable portfolio standards for 800 megawatts of clean power generation by 2020.
Remember, FuelCell shares were riding high until the company initially announced its Connecticut utility contract. The utility commission initially approved 16.2 megawatts for six of the company's fuel cells. But investors were hoping for a bigger contract. The stock took a 22% hit in one day, dropping shares close to $10. Shares are now trading for only $8.44
The Connecticut project will mean an estimated $43 million in potential sales for FuelCell. It also increases the company's backlog by more than 50%. Bottom line: This is an important project, and it will provide important publicity for a potentially industry-changing company.
This is a long term investment.