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DANBURY, Conn. and SEOUL, South Korea - FuelCell Energy, Inc. (NASDAQ:FCEL) and Inuverse have signed a Memorandum of Understanding to explore deploying up to 100 megawatts of fuel cell-based power at the AI Daegu Data Center (AI DDC) in South Korea, according to a press release issued Thursday. InvestingPro analysis shows the company currently trades below book value with a P/B ratio of 0.21, suggesting potential undervaluation despite challenging market conditions.
The proposed phased deployment would begin in 2027 at what Inuverse aims to develop as Korea’s largest data center. The project would utilize FuelCell Energy’s thermal capabilities to drive absorption chilling for data center cooling requirements.
FuelCell Energy currently operates a 58 MW fuel cell park in Korea, which the company describes as the largest single-site fuel cell installation in the country.
"Our clean, reliable, and scalable platform is purpose-built for the data center market," said Mike Hill, Executive Vice President and Chief Commercial Officer of FuelCell Energy.
David Kim, Executive Vice President of Inuverse, stated the collaboration would help address "surging data processing demands of the AI era while proactively achieving our renewable energy and ESG objectives."
The modular systems are designed for rapid deployment, allowing for phased implementation as project demands grow, according to the company.
The non-binding agreement represents a potential expansion of FuelCell Energy’s presence in the Asian market. The company’s technology provides baseload power that can be configured as a microgrid solution.
The announcement comes as data centers face increasing pressure to reduce carbon emissions while meeting growing energy demands from artificial intelligence applications. With a high current ratio of 5.62 and more cash than debt on its balance sheet, FuelCell Energy appears positioned to pursue growth opportunities, though investors should note its weak overall financial health score according to InvestingPro’s comprehensive analysis, which includes over 30 additional financial metrics and insights available to subscribers.
In other recent news, FuelCell Energy reported a significant increase in revenue for the second quarter of fiscal year 2025, with earnings rising to $37.4 million from $22.4 million in the previous year. Despite this growth, the company experienced a net loss of $38.8 million, or $1.79 per share. The firm has undertaken restructuring efforts, including a 22% workforce reduction and a shift in focus to molten carbonate fuel cell technology, while temporarily halting its solid oxide product line. KeyBanc Capital Markets maintained a Sector Weight rating on FuelCell Energy, noting the positive revenue figures but highlighting the margin shortfall and restructuring as indicators of a transitional period for the company. Additionally, FuelCell Energy announced a strategic partnership with Korean data center developer Inuverse to explore deploying up to 100 megawatts of fuel cell-based power systems. The company also expressed support for the One Big Beautiful Bill Act, which includes tax credits beneficial to the fuel cell industry. CEO Jason Few emphasized the importance of these legislative provisions in maintaining U.S. leadership in data center infrastructure and grid resilience.
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