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Dots, I smell something big.
Shell, Toyota, FCEL
https://www.shell.com/energy-and-innovation/the-energy-future/future-transport/hydrogen/_jcr_content/par/textimage.stream/1523053290426/7f6f0204b00977e65cf4fa026a35ce41552be0f2430d953c4ecc80ef4bc9cdee/path-toward-competitive-refueling-infrastructure-for-hydrogen-brochure.pdf
The world in the 21st century
must transition to widespread low
carbon energy use… Hydrogen is an
indispensable resource to achieve this
transition because it can be used to
store and transport wind, solar and
other renewable electricity to power
transportation and many other things.
The Hydrogen Council has identified
seven roles for hydrogen, which is why
we are encouraging governments and
investors to give it a prominent role in
their energy plans. The sooner we get
the hydrogen economy going, the better,
and we are all committed to making this
a reality.”
Takeshi Uchiyamada
Chairman,Toyota Motor Corporation and
Co-Chair, Hydrogen Council
Selection of a Hydrogen-Powered Freight Infrastructure Project under GFO 17-603
On April 5, 2018, the Energy Commission announced the recommendation of award for three projects in
its Advanced Freight Infrastructure solicitation. One of the selected projects was for the development of a
hydrogen fueling facility at the Port of Long Beach. The project is a collaborative effort between Shell (doing
business as Equilon Enterprise, LLC), Toyota, and FuelCell Energy. The refueling facility will be supplied by an
on-site tri-generation facility with the capability to produce hydrogen for transportation fueling, electricity
for on-site facility use, and thermal energy for other local heating uses. These on-site resources are produced
via a Molten Carbonate Fuel Cell operating on directed bio-waste gas produced by agricultural processes
in California’s Central Valley. The fueling infrastructure in this project will be used to fuel trucks provided by
Toyota (the previously-announced Project Portal Class 8 freight hauling truck), smaller FCEV trucks in drayage
service, and light-duty Mirai FCEVs as they are delivered via cargo ship and then transported to dealerships
throughout California. In total, the facility will be developed to provide fueling capacity of 1,270 kilograms
per day, 1,000 of which is intended for the heavy-duty truck pilot and demonstration.
https://www.arb.ca.gov/msprog/zevprog/ab8/ab8_report_2018_print.pdf
Couple of tidbits out of CT PURA. Looks like an orderly process to contracts for the recent RFP awards.
http://www.dpuc.state.ct.us/dockcurr.nsf/8e6fc37a54110e3e852576190052b64d/a9858719b5b858728525830500529843/$FILE/Best%20In%20Class%20Technical%20Conference%20Presentation.pptx
http://www.dpuc.state.ct.us/dockcurr.nsf/8e6fc37a54110e3e852576190052b64d/de52a2e139d46176852582ff0057f79a/$FILE/FuelCell%20Energy,%20Inc.%20-%20Docket%20No.%2018-06-37%20-%20PURA%20Motion%20to%20Intervent.docx
The application was filed last year but just published a few days ago. Patent applications do not become public until published by USPTO. Patent has not been issued, but is docked for examination.
Newly published patent application.
These guys have some remarkable technology. Remains to be seen if they can bring it to the market successfully.
****************
FUEL CELL-FUEL CELL HYBRID SYSTEM FOR ENERGY STORAGE
The present disclosure provides for an energy storage system that may be charged during periods in which power production exceeds power demand and discharged to support an electrical grid system during periods in which power production is lower than power demand. The energy storage system utilizes a fuel cell-fuel cell hybrid system having a modular design that allows for flexible storage capacity and rapid response time for distributed energy reserve. In addition to providing grid support, the system is capable of supporting ancillary services (e.g., frequency regulation, reactive power support, capacity support, demand response) to electric power utilities to increase grid power quality and overall production capabilities. For example, the modular design of the energy storage system allows for the supply of three power generation types, baseload power generation (slow-response type), load-following power generation from hydrogen storage (medium-response type), and load-following power generation from a battery (fast-response type). Each of these types addresses different power quality advantages and together allow for an advantageous mix of dynamic reserves. This provides a system that is capable of providing power generation to meet required frequency response, including an inertial response (e.g., up to a few seconds), a primary or governor response (e.g., one second to about ten seconds), and a secondary response (e.g., about tens of seconds to about tens of minutes), due to the extra capacity made available by the system when needed. In certain embodiments, the system includes power generation capabilities from multiple baseload sources and multiple storage sources of different chemistries and technologies to maximize redundancy and flexibility. In addition, the modular design of the system allows the system the ability to decouple power, energy, and storage components. Thus, embodiments of the energy storage system provides a significant increase in grid support capabilities without stranded assets to the extent that all equipment assets of the system can typically be used daily without increased losses, unlike conventional spinning reserves. Embodiments of the energy storage system also allows use of on-site power generation for both exporting and storing power at the same time via fuel from a waste stream, unlike renewable energy sources, such as solar or wind sources, which have to reduce primary baseload power in order to store energy.
http://appft1.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PG01&p=1&u=/netahtml/PTO/srchnum.html&r=1&f=G&l=50&s1=20180254498.PGNR.&OS=DN/20180254498&RS=DN/20180254498
Quick search of Vancouver boats registered with pv installations and electric drives return no results.
Someone told me once that working on a boat and owning a boat are two different things.
I’m not so sure Max,
when you have some time to kill, review these stories and tell me if you believe there are dots to connect here.
giligan showed up, made a couple posts about something going on “down under”. Got me looking a little deeper.
The sciencemag article references a pilot project in late stage discussions. TM shows up to fuel a Mari with H2 carried in NH3.
More questions than answers at this point.
*************
One additional project involves an electrochemical device that will be able to work on a “reversible” basis, both synthesizing ammonia from nitrogen and water, and using stored ammonia to generate electricity. The project, “Protonic Ceramics for Energy Storage and Electricity Generation with Ammonia”, proposed by FuelCell Energy of Danbury, CT, drew the second largest award at $3.1 million. The heart of the technology is an electrode that incorporates ruthenium catalyst. As notable as the device’s reversible nature is, an additional goal is just as striking: an increase in ammonia production rates by two orders of magnitude vs. “current electrochemical methods”. FuelCell Energy is one of the United States’ oldest companies in the fuel cell space. It was founded in 1969 and installed its first “commercial power plant”, consisting of a 250 kW fuel cell stack, in 2003. Earlier this year, the company completed installation of a 5.6 MW plant. In October the company announced that it would enter into a $3.0 million cost-share contract with the U.S. Department of Energy for a technology that “affordably and efficiently converts power during periods of low demand into hydrogen, an energy carrier, through high efficiency electrolysis using solid oxide electrolysis cells.”
http://www.ammoniaenergy.org/refuel-ammonia-use-side-funding-awards/
https://arpa-e.energy.gov/sites/default/files/11_FCE-CSM%20REFUEL%20Kick-off%208-13-17.pdf
http://www.sciencemag.org/news/2018/07/ammonia-renewable-fuel-made-sun-air-and-water-could-power-globe-without-carbon
http://www.manmonthly.com.au/news/csiro-tech-accelerates-hydrogen-vehicle-future/
Perhaps Nikola wants the fuel cell generated electricity to power their new plant as the main driver. Since hydrogen happens to be a byproduct, they might as well use it to fuel their trucks at the Nel built h2 station prior to delivery. Maybe even use the water generation to make sure they are clean in a new truck wash.
Wow,
You realize that 1.38 represents the maximum conversation price and there is no minimum don’t you?
Never mind, shelf life says it all!
PPS equals market perception of value divided by os. Who knows where os will land given the history of FCEL financing practices? You are at risk of losing all of your investment regardless of the companies value.
I don’t want to have to say “I told you so”. I am heavily invested here, but FCEL is rapidly losing my confidence as an investor.
I don’t do grandiose. Even the browns have cheerleaders.
Anyone else notice the 2.3MW Hydrogen station in both of these announcements? I thought Nikola had an exclusive agreement with Nel but now I’m wondering.
Is it a possible tri-gen installation?
I’m at a crossroad, either going to cut my position by a third or increase by 1/3. Not very happy with the latest floorless convertible offering.
https://www.ajot.com/insights/full/toyota-wins-port-of-long-beach-approval-for-fuel-cell-powered-auto-terminal
https://www.electrichybridvehicletechnology.com/news/charging-technology/nikola-motors-announces-showcase-event-for-truck-4x4-and-refueling-station-technology.html
Just wondering, on a lazy Sunday, what the most efficient method of producing hydrogen might be?
H2O. - Electrolysis from wind and solar
NH3 - Ammonia as a hydrogen carrier
CH4 - Methane converted to electricity, hydrogen, heat, and carbon.
Captured Carbon is now worth how much per ton?
Thanks Max, appreciate your input.
Stay tuned, more to follow.
Several potentially material events on tap.
Full disclosure, I always make investment decisions (buy or sell) prior to posting anything on a message board.
Also, I don’t always post what I come across in a public disclosure. I view the Barry project as neutral.
Barry plant project update available.
Project is on schedule and Techno-Economic analysis looks very promising.
https://www.netl.doe.gov/File%20Library/Research/Coal/carbon%20capture/post-combustion/FE0026580-Review-07132018.pdf
Is hydrogen distribution a problem or a huge opportunity for FCEL?
*************
This technology could easily change the preferred method of hydrogen production. Because it is fully scalable it can be sized to provide the exact amount of hydrogen needed at a given site, eliminating the need for hydrogen transportation. Transportation costs can easily double or triple the cost of hydrogen at many sites and greatly increase CO2 emissions due to emissions from trucks or other transportation means. A single DFC® stack of the size currently used for power generation can produce over 1,500 kg per day of hydrogen when operated in this mode. FuelCell Energy’s standard large fuel-cell system incorporates 8 of these fuel-cell stacks which would thus have the potential to produce over 12,000 kg per day of hydrogen. Thus large industrial scale hydrogen can be generated with this system.
On the other end of the scale, the system will maintain efficiency even as it is scaled down. FuelCell Energy is looking at a home refueling system concept which would scale this technology down to the 1 to 2 kg/d production level needed for typical fuel-cell vehicles. Such a system could potentially solve the hydrogen infrastructure problem which is a concern for these vehicles. FuelCell Energy is also developing an electrochemical hydrogen compression system which compresses and purifies the H2 in one step. By combining these two technologies, the high pressure high purity hydrogen needed by the vehicles can be easily and cost-effectively generated at this small scale.
https://www.osti.gov/scitech/servlets/purl/1348835
http://www.google.com/patents/US20160351930
FCEL gonna get a piece of this story?
https://premium.goauto.com.au/aussie-scientists-create-energy-bonanza/amp/
Demonstrably false statement.
I appreciate your knowledge of FCEL technology, company projects, and prospects, but I wish you would refrain from analysis of the financial tools they are deploying. You clearly don’t understand the terminology or the potential consequences of various instruments.
*************
We may from time to time offer and sell, in one or more series or issuances and on terms that we will determine at the time of the offering, any combination of common stock, preferred stock, debt securities, and warrants, either separately or in units, up to an aggregate amount of? $200,000,000.
https://www.sec.gov/Archives/edgar/data/886128/000157104918000432/tv500529-s3.htm
Pretty apparent that FCEL could use a bit of good news.
Welcome to the asylum, I’m sure you’ll fit right in.
4:00 p.m.
Pilot Test of Novel Electrochemical Membrane System for Carbon Dioxide Capture and Power Generation (FE0026580) Hossein Ghezel-Ayagh, FuelCell Energy Inc.
https://www.netl.doe.gov/File%20Library/Events/2018/co2%20capture/Final-Agenda-5.pdf
New CT RFP is for zero carbon class 1 resources for which FCEL does not qualify so you can scratch that one.
Alabama update comes out tomorrow.
Possible explanations
Exxon wants to take an equity stake (40% for $100m) and provide a market for every stack available.
FCEL will purchase posco Korean operations including manufacturing facility and unrestricted access to Asian market.
FCEL will self finance the $1b backlog and pay cash for the balance of the preferred debt.
Toyota wants an equity stake and exclusive rights to tri-gen hydrogen.
FCEL will buy out BE assume the market valuation
BE will buy out FCEL and own the us market
Doosan wants an equity stake.
Milk every penny possible out of the common shareholder, run up the os and then do a reverse split so we can keep the scam coming.
All I can come up with at the moment. Feel free to add to the list or vote for your favorite.
More information here. Looks like $26.5m to development of digester infrastructure on dairy farms as the primary methane mitigation. All that renewable gas would make a lot of hydrogen, electricity, and heat for SoCal gas to market.
https://www.arb.ca.gov/html/aliso-canyon/aliso-canyon-mitigation-agreement.pdf
SoCal Gas agrees to $119.5-million settlement for Aliso Canyon methane leak
Lengthy article via Google translate, not sure how it will post
http://www.h2news.kr/news/article.html?no=6885
Development company, RPS to achieve fuel cell construction 'Rush'
Ratio of RPS to 28% in 2030 Upward revision of
REC weight (2.0) Fuel cell installation is expected to be expanded
Fuel cell charge plan needs to be introduced to secure economical efficiency
Jongsu reporter jslee@h2news.se
Registration 2018.08.01 17:57:4
[Moon Hydrogen Economy Lee Jong - soo] Rep. Moon Jae - in announced the 'energy conversion' to reduce nuclear power and coal thermal power generation after the inauguration last May and to greatly increase the proportion of renewable energy. The fuel cell industry expects a plan to revitalize fuel cells, an environmentally friendly distributed power source. However, the government has been rumored that the fuel cell will be excluded from the detailed implementation plan, and this concern has become reality.
The government announced the 'Implementation Plan for 3020 Renewable Energy', which will increase the proportion of renewable energy generation to 20% by 2030, focusing on solar and wind power on December 20 last year. In this plan, as indicated by 'renewable energy', fuel cells, which are new energy, are only reflected in the spread of installing fuel cell power plants in urban areas that are underdeveloped and underdeveloped, in order to foster new energy industries based on distributed power.
Before the plan came out, the Ministry of Commerce, Industry and Energy spoke at the debate about fuel cell industry. On December 4, last year, Kim Kyu-hwan, a member of the National Assembly, held a policy debate on sustainable development of fuel cells held at the Future Fuel Cell Power Generation Forum and the first seminar.
In the meantime, Jeon Byeong-geun, head of renewable energy department of the Ministry of Commerce, Industry and Energy, said, "If we reduce the REC weighting for waste and wood pellets and exclude non-renewable wastes from renewable energy considering international standards and domestic circumstances, fuel cell demand will increase "It has given hope to the fuel cell industry.
As a result, although the renewable energy 3020 project has been suffering from the exclusion of fuel cells, the fuel cell industry expects the advantages of fuel cells to become more prominent as fuel cells can complement the limiting characteristics of renewable energy.
Fuel cells are highly efficient distributed generation facilities that can produce electricity at more than 90% of the year, and can be produced and used where electricity and heat are needed without additional infrastructure such as transmission and distribution. It is also an eco-friendly power generation system with little noise and dust.
The renewable energy such as solar power and wind power is limited in the installation site, but the fuel cell is expected to be newly installed as a complementary environmentally friendly power generation facility for renewable energy because it can be installed even in a small area of ??the city center. .
Prospects for the construction of fuel cell power generation facilities
Public generation companies that are well aware of the advantages of such fuel cells are expected to actively build fuel cell power generation facilities to achieve 'RPS 3020 Implementation Plan' and 'RPS' performance.
The RPS, which has been in operation since January 2012, is mandated to supply a certain percentage of total electricity generation to renewable energy sources for power generation companies with facilities capacity of 500 MW or more excluding renewable energy. .
If you do not fulfill RPS goals, you will have to pay a penalty. The amount of RPS will be increased from 4% in 2017 to 28% in 2030, and it is urgent to expand renewable energy facilities.
In particular, in the first half of this year, the weight of the new and renewable energy supply certificate (REC) related to the mandatory renewable energy (RPS) system was revised (RPS Notice, June 26) Woodchip and Bio-SRF (Waste Wood) were excluded from the weighting or weighed, while the fuel cell maintained its current weighting of 2.0.
The weighted value 2.0 is the next highest among renewable power sources, followed by ESS and offshore wind power. Fuel cells are an attractive power generation equipment to achieve RPS performance from the development stage .
Plans to Install
Fuel Cells for Power Generation Fuel cell power generation facilities built by six public companies including Southeast, Central, Western, South, East-West, and KHNP are planned to be expanded to a total of 2,844 MW by 2030, totaling 148.4 MW.
First, KOMIPO completed the 5th phase (5.72MW) in February 2006, starting with the first stage fuel cell power plant (300kW) in Bundang Power Generation Headquarters in 2006, and the total 17.46MW capacity including the Ansan Fuel Cell (2.64MW) The facility is in operation.
Namdong Power is currently under construction at the Bundang headquarters in the 4th stage (16.72MW) and the 6th stage (8.35MW), scheduled to be completed in August and October, respectively. The LH Daejeon Fuel Cell Power Plant in the LH Daejeon Project is under construction in December.
Namdong Power plans to advance fuel cell power generation 7 ~ 10 times per minute in order to fill the shortage of renewable energy supply every year. The goal is to achieve a total of 370MW by 2030.
An official of Namdong Power said, "Fuel cell power plants are the best means of short-term implementation for achieving a 25% share of new and renewable energy in 2030, a new vision of South East Power." The mandatory ratio of annual RPS system rises sharply As a result, we believe that it will be possible to implement efficient systems by expanding installation of fuel cells with higher REC weights than other renewable power sources. "
KOMIPO signed a business agreement with SK Corporation in April last year to jointly promote the Incheon Hydrogen Fuel Cell Power Generation Project with Doosan and its subsidiary hydrogen.
KOMIPO is constructing and operating its own fuel cells at Boryung Power Station (0.3MW) and Shin Boryeong Power Station (7.5MW). In addition, Incheon Power Station (15MW), Sejong Power Station (5MW) ).
KOMIPO plans to develop a variety of fuel cell business models that use hydrogen and LPG as fuel as well as natural gas. In April last year, SK E & C concluded a business agreement to jointly promote Incheon Fuel Cell Power Generation Project using Doosan and its subsidiary hydrogen. Until now, there is no fuel cell facility that is commercialized in this way in Korea, so the pilot facility will be operated for one year and will be expanded to 20 MW hydrogen fuel cell.
In addition, it plans to strengthen cooperation with municipalities and public institutions to install fuel cell power generation centering on the development of large-capacity renewable energy complex complex, and to expand it to 130MW by 2030. It will select the best model from among four models: solar power, wind power, ESS, solar power, wind power, fuel cell, solar power, fuel cell, and solar power, reflecting government policies and internal capabilities.
KOMIPO is promoting 'Namyangsan Fuel Cell Power Generation Project (20MW)', which will be installed on the idle site of Korea Highway Corporation, Kyungdong City Gas, SK E & C, and Yangsan, Namyangsan IC in Gyeongnam Province.
Korea West Power is operating a total of 34.2MW of fuel cell power in the first and third stages of the Seoincheon Power Generation Headquarters. Currently, the Seocheon 4th stage (22MW) fuel cell project is under consideration, and the project is scheduled to begin in January next year and complete in December. The company plans to install the Cheonan Cheongsu Fuel Cell Power Plant (5MW) in the central city gas site (start construction in January next year and complete construction in June 2020).
Western power is a strategy to build a large-scale fuel cell complex centered on the demand side of the Seoul metropolitan area. In the short term, we plan to build a total 60MW fuel cell power plant in the Seoincheon Power Generation Headquarters and, in the long run, to build a total of 606MW of fuel cell power generation facilities by 2030 by promoting a large scale fuel cell complex project through joint development with the private sector .
An official at the West Power said, "In order to meet the government's plan to implement the 3020 renewable energy, we will make efforts to secure the RPS demand for the high efficiency fuel cell power plant."
The official said, "There is no concrete plan for the installation of a fuel cell power plant in urban areas, which is reflected in the government's" Renewable Energy 3020 Implementation Plan. "However, in order to play a role as a public enterprise, I am willing to review the project in connection with the project. "
Korea Southern Power signed an agreement with Daejeon City, Chungnam City Gas, and Hansol Paper in September last year to promote fuel cell power generation projects and is planning to construct a 30MW fuel cell facility in Hansol Paper Plant in Daejeon.
? KOSPO has concluded an agreement with Daejeon City, Chungnam City Gas and Hansol Paper in September last year to promote the fuel cell power generation business, and is planning to construct a 30MW fuel cell facility in the Hansol Paper Plant in Daejeon.
KOSPO is aiming to build a total of 358MW of fuel distribution facilities by 2030, utilizing the existing infrastructure of the power plant (using LNG and securing grid)
In September last year, NSC signed a business agreement with Daejeon City, Chungnam City Gas, and Hansol Paper to develop a fuel cell power plant project, and constructed a 30MW fuel cell facility in Hansol Paper Plant in Daejeon City. And plans to build a total of 50 MW of fuel cells.
Korea East-West Power will build on the idle site of Ilsan Thermal Power Plant in the first stage (2.4MW) in 2009, the second stage (2.8MW) in 2011, the third stage (2.8MW) ) To build a large-capacity fuel cell power plant with a total capacity of 13.28MW. Ulsan fuel cell (2.8MW) is also in operation.
East-West Power plans to utilize fuel cells to expand renewable energy facilities to 25% of total power generation by 2030. It aims to achieve a total capacity of 420MW by 2030 by constructing a large-capacity fuel cell using idle hydrogen of chemical plant and idle sites of Ilsan-Ulsan combined-cycle power plant.
Currently, Daesan Hydrogen Fuel Cell (50MW) and Donghae Large Capacity Fuel Cell (100MW) are being developed.
Fuel cell power plant installed in Ilsan Thermal Power Station, Korea East - West Power Plant.
A fuel cell is an eco-friendly and highly efficient power generation system that generates electricity by using hydrogen and oxygen in the air generated from the reaction of natural gas and water." The facility is simple and has a small footprint for short-term construction. And it is easy to expand the capacity of the fuel cell due to its high energy density and subsequent capacity expansion, so that the fuel cell will be in the spotlight continuously in the future. "
KHNP is operating a fuel cell power plant with 58.8MW of fuel economy, 20MW of fuel cell, 30.8MW of Busan fuel cell, and 109.6MW of fuel cell. By 2019, 40MW in Incheon, 20MW in Iksan, and 20MW in Amma will be completed. The company plans to build a 220MW fuel cell power plant by 2020. The goal is to achieve a total of 960 MW by 2030.
Providing a fuel cell only plan urgently
However, the biggest difficulty for the fuel cell power generation business matters is that the fuel is greater risks.
An official of a development company said, "In order to secure the economical efficiency of the fuel cell power generation business, it is urgent to prepare fuel cell charge plan."
Busan Green Energy Fuel Cell Power Plant operated by KHNP.
? Busan Green Energy Fuel Cell Power Plant operated by KHNP.
In addition to high initial investment costs, fuel cells require fuel supply unlike renewable energy such as solar power and wind power , resulting in additional fuel cost risk due to fluctuations in LNG prices as fuel. The fuel cost (natural gas ) accounts for 50 ~ 70% of the power generation cost .
Currently, the cogeneration charge applied to fuel cells reflects the characteristics of cogeneration with severe seasonal and time-dependent load fluctuations (demand fluctuation). This is not consistent with the demand pattern of fuel cells with almost constant demand (near base power generation) Of the total.
There are cases in which three fuel cell power generation projects that were actually approved for power generation business were withdrawn due to fuel cost problems. The Ministry of Commerce, Industry and Energy is considering the introduction of a fuel cell dedicated charge system through related research services.
Reporter Lee, Jong - Su
My last post on the topic.
Our common stockholders may experience significant dilution upon the issuance of common stock upon conversion or redemption payments under the Series C Preferred Shares.
The issuance of common stock as mandatory redemption payments or upon conversion of some or all of the Series C Preferred Shares will dilute the ownership interests of our existing holders of our shares of common stock. If the initial aggregate stated value of the Series C Preferred Shares is converted into our common stock at its initial conversion price, we would issue 18,206,522 shares of common stock upon their conversion (without giving effect to any limitation on conversions). This excludes the effect of any common stock we may issue in lieu of paying bimonthly redemption amounts in cash, which may be made at a price lower than the initial conversion price. The initial conversion price of the Series C Preferred Shares is adjustable based on certain events.
Installment Amounts paid in shares will be that number of shares of Common Stock equal to (a) the applicable Installment Amount, to be paid in Common Stock divided by (b) the least of (i) the then existing Conversion Price, (ii) 87.5% of the volume weighted average price (“VWAP”) of the Common Stock on the trading day immediately prior to the applicable Installment Date, and (iii) 87.5% of the arithmetic average of the two lowest VWAPs of the Common Stock during the ten consecutive Trading Day period ending and including the Trading Day immediately prior to the applicable Installment Date as applicable, provided that the Company meets standard equity conditions. The Company shall make such election no later than the eleventh (11th) trading day immediately prior to the applicable Installment Date.
https://www.sec.gov/Archives/edgar/data/886128/000114420417046467/v474485_424b5.htm
If the company paid those installments in cash vs shares at a deep discount to wherever the share price is at when the installment is due, (85% of vwap) then I would believe that maybe they held their shareholders interest in high regards. Until then, I stand by my comment that they don’t. They got their $33m in financing but couldn’t care less how many shares enter the float to cover it without “paying” it back. I’m going to ask that very question to IR.
There is minimally 2 million $ a month in dilution going on. Do some research on the series C convertible preferred, and pay special attention to the term “deemed dividend”. That represents the additional shares being issued to cover the share price below the stated issue price of $1.84. It’s all in the q filings. I mistakenly called out Hercules a few days ago but I believe that Hudson Bay Capital has at least a large share of the series C and warrants. They filed as a 10% owner last year. The lower the price, the more shares that are issued to cover the bi-monthly installments of $1 million On the first and 15th of every month.
https://www.sec.gov/Archives/edgar/data/886128/000156459018015202/fcel-10q_20180430.htm
https://www.sec.gov/Archives/edgar/data/886128/000139382518000031/0001393825-18-000031-index.htm
You guys should do some research on Hercules Capital and convertible debt. You’ll find your answers there. Imo
When you are guaranteed shares at a market discount regardless of the vwap, you make a lot more money shorting the stock of the company you “invested” in.
FCEL knew full well that if you get in bed with the devil, your stockholders will pay the price.
If they pay off that debt, the stock price would skyrocket and that’s the PR I’m wanting to see.
Additional flavor on POSCO. prior agreements limit FCEL’s ability to market their products in Asia.
We contract with a concentrated number of customers for the sale of products and for research and development contracts. This includes POSCO Energy, which is a related party and owns approximately 5% of the outstanding common shares of the Company. POSCO Energy accounted for 48% of the Company’s total revenues in fiscal year 2016.
We entered into manufacturing and technology transfer agreements 2007, 2009 and 2012 with POSCO Energy. The Cell Technology Transfer Agreement (“CTTA”), executed in October 2012, provides POSCO Energy with the technology to manufacture SureSource power plants in South Korea and the market access to sell power plants throughout Asia. In October 2016, the Company and POSCO Energy extended the terms of the 2007 and 2009 license agreements to be consistent with the term of the CTTA which expires on October 31, 2027. The term of these agreements may be extended beyond 2027 through future extensions, each for a period of five (5) years, by mutual agreement of the Company and POSCO Energy. In conjunction with the CTTA, the Company receives a 3.0% royalty on POSCO Energy net product sales as well as a royalty on each scheduled fuel cell module replacement under service agreements for modules that were built by POSCO Energy and installed at any plant in Asia under terms of the Master Service Agreement between the Company and POSCO Energy. As a result, we have been historically reliant on POSCO Energy to develop and grow the Asian market. In March 2017, we entered into a memorandum of understanding in the POSCO Energy to permit us to directly develop the Asian fuel cell business, including the right for us to sell SureSource solutions in Korea and the broader Asian market. We and POSCO Energy also agreed to undertake to amend the CTTA and other agreements by September 30, 2017, to reflect our new relationship. The Korean and Asian markets are complex and we may not succeed in our efforts to access them independently. Any new or amended agreements with POSCO Energy may be on terms that are less favorable than existing agreements.
https://www.sec.gov/Archives/edgar/data/886128/000156459017012328/fcel-10q_20170430.htm
Worth a reread! Home hydrogen dispensers providence by FCEL.
On the other end of the scale, the system will maintain efficiency even as it is scaled down. FuelCell Energy is looking at a home refueling system concept which would scale this technology down to the 1 to 2 kg/d production level needed for typical fuel-cell vehicles. Such a system could potentially solve the hydrogen infrastructure problem which is a concern for these vehicles. FuelCell Energy is also developing an electrochemical hydrogen compression system which compresses and purifies the H2 in one step. By combining these two technologies, the high pressure high purity hydrogen needed by the vehicles can be easily and cost-effectively generated at this small scale.
https://www.osti.gov/servlets/purl/1348835
Well jack, what does that mean?
Most of us know there were two separate pr’s announced by the company today on this topic. Some here obviously don’t- can’t say I’m surprised.
Old article, but may add flavor to the conversion. Looks like POSCO loses the right to sell power plants “worldwide” except for...
I would rather see FCEL making those sales anyway.
In addition to Korea, “POSCO has the right to sell DFC power plants worldwide” except in North America, Europe, the Middle East and Japan. Capitalizing on POSCO's strong manufacturing capabilities and economies of scale, FuelCell Energy also has the option to purchase POSCO Power's balance of plants for sale to FuelCell Energy's customers in other parts of the world.
https://www.thefreelibrary.com/amp/FUELCELL+ENERGY+SIGNS+10-YEAR+PACT+WITH+KOREA%27S+POSCO+POWER.-a0160693323
July 15 constitutes the required 30 day notice. I am wondering what the implications are myself. Almost reads like you have 30 days to lock up any deal you may have in the works then you are out? The MOU specifically addresses the right to market in Asia as a whole. Does the lack of an MOU prohibit that activity? No question that FCEL owns the intellectual property for the existing base and that POSCO is/was paying royalties. Glad to see you still watch the board. Always valued your input.