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Profit From The War On Obesity With This Left-For-Dead Stock
StreetAuthority Network By dsterman
1 hour ago
We are losing the battle of the bulge. Though health care practitioners have been trying to raise awareness about the perils of obesity for a decade, the numbers keep getting worse.
According to a survey conducted by Gallup-Healthways, 27.2% of all Americans are classified as obese, up a full percentage point from 2012. A stunning 32.5% of people ages 45 to 64 are considered obese. Those figures go hand in hand with rising rates of diabetes and hypertension.
Although investors had been pinning their hopes on obesity drugs offered by Vivus (Nasdaq: VVUS), Orexigen Therapeutics (Nasdaq: OREX) and Arena Pharmaceuticals (Nasdaq: ARNA), the fact that all three of those stocks still trade below $10 -- despite many years of hype -- shows that pill-based approaches have been underwhelming.
Little-known EnteroMedics (Nasdaq: ETRM) may have come up with a better approach. The company has developed an implantable device that impedes signals coming from the vagus nerve. EnteroMedics' VBLOC (vagal blocking therapy) keeps the stomach from sending the brain a message that it's time to eat.
Though the company has already received regulatory approval in Australia and Europe, it's the U.S. market that represents the holy grail for EnteroMedics, simply because the obesity rate is so high.
Shares of ETRM surged above $30 in 2009 when the company first began discussing VBLOC, but fell below $1 earlier this year when investors grew concerned that the company's promise would never be realized. Yet, in early December, the company released fresh clinical data that helped breathe new life into shares.
[More from StreetAuthority.com: These Biotechs Have Up To 100% Upside In 2014]
On the face of it, the clinical trial data figures are impressive. Fifty-four percent of the patients using the device lost at least 20% of their excess weight (the difference between their current rate and their ideal rate). That compares with just 26% for the control group. Those patients also showed improvements in blood pressure.
News of the study led Northland Capital's Suraj Kalia to boost his price target for ETRM from $3 to $7, suggesting that the company could eventually be acquired for 5 to 10 times forward sales.
You shouldn't discount the buyout scenario. Any company that develops a unique new device and receives FDA approval pops on the radar of buyout firms and major medical device companies. I profiled Given Imaging (Nasdaq: GIVN) on our sister site ProfitableTrading.com back in May, and shares have risen nearly 100% as the company received a buyout offer in early December.
Does the recent clinical data suggest VBLOC will be a huge success? The fact that patients will need to tolerate an implantable device means this approach is more onerous than just taking a pill. However, many obese people have found that pill-based therapy just doesn't work for them.
[More from StreetAuthority.com: Are You Ready For The Great Rotation Of 2014?]
It's this group that is the best candidate for VBLOC. And VBLOC is less invasive than gastric bypass surgery or gastric banding surgery, which requires a four- to six-week post-surgical recovery process.
Analysts at Lake Street Capital Markets, who have a $3 target price, think "EnteroMedics can gain meaningful share of the 350,000 patients that undertake bariatric (weight loss) surgery worldwide each year, a comparatively more drastic and risky treatment option."
Will the FDA approve VBLOC? Investors will soon find out. The company is expected to meet with an FDA advisory panel in the first quarter of 2014, which could lead to FDA approval in the second half of 2014.
"Recent FDA inquiries have focused on post-approval issues like physician training and surveillance studies, implying that the agency is getting closer to wrapping up the application process," notes Lake Street analyst Bruce Jackson.
[More from StreetAuthority.com: 3 Stocks Insiders Are Scrambling To Buy Before The New Year]
Still, a bit of caution is warranted. Even if the FDA approves VBLOC, it will take time for doctors to warm up to this surgical approach. It's also unclear what reimbursement schemes will look like. It's crucial that Medicaid or private insurers get behind VBLOC, and it's incumbent upon the company to make the case that this weight loss approach will reduce spending on health care in terms of other obesity-related ailments such as diabetes and hypertension.
Also, EnteroMedics ended the year with about $20 million in cash and will likely need a capital injection if it proceeds with a U.S. launch. The recent strength in its share price could lead management to pursue an equity offering in the near term, which might pressure shares.
Even with those risks in mind, the upside is huge. The company currently has 60 million shares outstanding, and even if that figure rose to 80 million through fresh share issuance, the company's market value could eventually approach $500 million, implying a price target north of $6. I'm applying a $4 price target to reflect the risk of non-approval by the FDA, a potential double from current prices.
Action to Take -->
-- Buy ETRM up to $2.50
-- Set stop-loss at $1.50
-- Set initial price target at $4 for a potential 60% gain in six months
This article was originally published at ProfitableTrading.com:
Little-Known $2 Weight Loss Stock Could Double Within 6 Months
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FuelCell Energy, Inc. Pre-Market Trading
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8.24% Get FCEL Alerts
Read more: http://www.nasdaq.com/symbol/fcel/premarket#ixzz2nMQWj4tg
Spotlight 2014 Continued - FuelCell Energy, A Low Priced Gem
Dec 13 2013, 9:04 | by The Focused Stock Trader | about: FCEL
Spotlight 2014 continued - FuelCell Energy a Pure Play on the $12 Billion Clean Energy Power Plant Market.
Company Description
FuelCell Energy, Inc. (NASDAQ:FCEL) is an integrated fuel cell company. FuelCell designs, manufactures, sells, installs, operates and services ultra-clean, stationary fuel cell power plants for distributed baseload power generation. FuelCell's Direct FuelCell (DFC) power plants use a range of available fuels to produce electricity electrochemically, without combustion in a quiet, near-zero pollutant process. In June 2012, the Company completed the asset acquisition of select fuel cell assets by its German subsidiary, FuelCell Energy Solutions, GmbH, including fuel cell component inventory and fuel cell manufacturing equipment, and it also completed joint venture with Fraunhofer IKTS. In December 2012, the Company acquired Versa Power Systems, Inc.
Fuel Cell Energy services two primary markets: ultra-clean power and renewable power. The company's stationary power plants are scalable for multi-megawatt utility scale applications or on-site power generation for institutions and industrial applications.
FuelCell's plants are operating in more than 50 locations worldwide and generated more than 1.9 billion kilowatt hours (kWh) of electricity, which is equivalent to powering more than 135,000 average size U.S. homes for one year. FuelCell's installed base and steadily growing backlog exceeds 300 megawatts (MW).
Value Proposition
FuelCell Energy's Direct FuelCell (DFC) power plants have tremendous value propositions offering a number of benefits for FuelCell's customers. DFC is Ultra-Clean. FuelCell's DFC power plants convert fuels, such as clean natural gas or renewable biogas, into electricity, heat, and water through an electrochemical reaction. DFC power generation process is combustion free and creates almost no pollutants compared to the highly pollutant average US Fossil Fuel Plant.
All three of FuelCell Energy's DFC power plants received certification under the California Air Resources Board's distributed generation standards, when operating on natural gas. The DFC1500 and DFC300 are certified for operation on renewable biogas. In the State of California, the CARB 2007 certification allows the local Air Quality Management District to exempt the fuel cell installation from the clean air permitting process accelerating the approval process.
DFC power plants are extremely efficient. DFC power plants generate more power from a given unit of fuel than similar size internal combustion-based power generation. They are 47% electrically efficient and can achieve total thermal efficiency up to 90% in a combined heat and power or cogeneration set up. FuelCell's hybrid power plants can achieve electrical efficiencies up to 70%. The chart below illustrates the emissions on the y axis and electrical efficiency on the x axis. All FuelCell's power plant technologies are much cleaner and more efficient than almost all technologies available.
FuelCell's DFC power plants are ideal distributed generation sources. Instead of traditional centrally generated power with transmission and distribution infrastructure, DFC power plants can be at the point of use. As mentioned, distributed generation avoids the need for transmission & distribution infrastructure. The transmission of power over long distances results in line power losses of 8-10% of the centrally generated power. Distributed generation also allows for increased power quality and reliability by eliminating transmission and distribution. It also increases energy security by eliminating reliance on the electricity grid.
FuelCell's DFC power plants use hydrogen and oxygen to produce electricity. Hydrogen is obtained from a fuel source, such as clean natural gas or renewable biogas, and is created within the fuel cell itself. This allows a number of fuel sources to be used when producing electricity creating savings as the user can select the cheapest possible input.
The chart below illustrates all the benefits of FuelCell DFC power plant compared to a 100% natural gas power plant. The National Fuel Cell Research Center estimates total savings per kWh is 5.2-20.4¢. To date, FuelCells DFC plants generated 1.9 billion kWh. At the mid-point of estimated savings FuelCells DFC plants have saved $244.4 million.
today I'm going shopping for etrm
Hedgefond ?
Float: 156.77M
% Held by Insiders1: 18.34%
% Held by Institutions1: 25.90%
94,8 Mio shares float 20% short
20, 34 Mio Short
Suicide
Short Interest (Shares Short)20,387,000Days To Cover (Short Interest Ratio)11.4Short Percent of Float13.00 %Short Interest - Prior19,206,300Short % Increase / Decrease6.15
FCEL big volume in pre.news?
Fuel Cell Car Market Set to Grow 910.3$ Million by 2018
inShare
Go Green Vehicles
For more than a century, man has been driving his vehicles based on fossil fuels namely petrol and diesel. The oil and the automotive industry have been interdependent on each other for decades together. But now the Automotive industry is slowly switching to alternative fuel source due to rising fuel prices, fast depleting sources of fossil fuel and environmental protocols set by many nations in order to curb greenhouse gas caused by the emission and its effect on the eco-system.
Along with compressed natural gas (CNG) and LPG, the automobile industry is exploring the most advanced and economical energy option is Fuel cell Vehicles also known as hydrogen gas powered Vehicles. Started as a prototype by General Motors in 1966 called the “Electrovan”. A car fueled with pure hydrogen emits very less pollutants and it mainly generates water and heat. Although the production of hydrogen can produce pollutants unless the hydrogen used in the fuel cell is formed by using only renewable energy. The vehicle mainly consists of three parts, an electrolyte, an anode and a cathode. With the growth of the fuel cell technology, the dependence on the fossil fuel will come down radically.
Not only it will cut down the cost, it will also contribute to the momentum of the economy of the developing nations as its dependency on the fossil fuel shall cut short. In addition it will help in conserving the environment and cut emission which is caused by the conventional vehicles. It is anticipated that the fuel cell vehicles will see a three fold growth in the next 10 to 20 years. The products and technology related to fuel cell are being now promoted by various international car manufacturers across the globe especially in countries like the United States, Great Britain, Germany and Japan.
Hence It is needless to say that the future of renewable energy and the fuel that will keep the auto industry going is the Fuel cell Technology.
She lives
how much short still exist?
where will you stand when the FDA says Yes?
Pre Market up News?
EnteroMedics initiated with a Buy at Lake Street
theflyonthewall.comtheflyonthewall.com – 8 minutes ago
http://www.theguardian.com/environment/2013/oct/14/nasa-fuel-cell-technology-al-gore-london" rel="nofollow" target="_blank" >http://www.theguardian.com/environment/2013/oct/14/nasa-fuel-cell-technology-al-gore-london[tag]Nasa fuel cell technology to power Al Gore's new London headquarters
Fuel cell converts gas into heat and electricity without producing carbon emissions[/tag]
would like to add a few under $1.50
Building Smarter and More Reliable Infrastructure
A Case for Fuel Cells
David A Christian | Oct 13, 2013
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The U.S. Department of Energy released a report recently that stated that the nation's entire energy system -- the grid and all of its associated parts -- is vulnerable to severe and costly weather events and that energy disruptions such as those caused by Hurricane Sandy are just the beginning.
"What we've learned from Hurricane Sandy and other disasters is that we've got to build smarter, more resilient infrastructure that can protect our homes and businesses, and withstand more powerful storms," President Barack Obama said recently."
So how do Dominion and other energy companies find ways to improve the resiliency of the nation's grid? What do we need to build today to prepare for an ever-changing future, to keep the lights on and get them back on faster after a natural disaster?
One of many possible answers is being built today on what was an empty lot in downtown Bridgeport, Conn. It is our newest "smart grid green" power station that holds a promise of 24/7 reliable energy, but doesn't depend on fuel combustion or those other familiar but intermittent green power sources such as sun or wind.
The new entry is the Dominion Bridgeport Fuel Cell Power Station, which will be in operation by year's end. Its progress is easily visible to the millions of people who drive along Interstate 95 and travel Amtrak's Northeast Corridor between New York City and Boston. We believe that this facility and others like it can be a key to utilities locating "clean" distributed generation in constrained areas and improving grid resiliency.
Dominion announced in late 2012 that it had acquired the project from FuelCell Energy of Danbury, Conn., Which is providing the fuel cells and services. The facility will produce enough to power approximately 15,000 homes using an electrochemical process that converts natural gas into electricity without combustion. Dominion will sell the output to Connecticut Light & Power under a 15-year fixed power purchase agreement. The facility is part of Project 150, a program sponsored by Connecticut and supported by the Clean Energy Finance and Investment Authority to increase renewable and clean energy projects in Connecticut by 150 megawatts.
The power station will have five proprietary stationary fuel cell systems and an organic Rankine turbine that will use waste heat to generate almost 15 megawatts of electricity.
In essence, fuel cells are electrochemical devices that combine fuel - in this case, natural gas - with oxygen from the ambient air to produce electricity and heat, as well as water. The non-combustion process is a direct form of fuel-to energy conversion, and is more efficient than conventional heat engine approaches. Carbon dioxide is reduced because of the fuel cell's high efficiency, and the absence of combustion significantly reduces the production of nitrogen oxides and particulate pollutants.
Fuel cells incorporate an anode and a cathode, with an electrolyte in between, similar to a battery. The material used for the electrolyte and the design of the supporting structure determine the type and performance of the fuel cell. The process uses molten carbonate and porous nickel catalysts as the anode and cathode. At the end of the process, electrons flow through the external circuit, producing the desired electricity in direct current. An inverter changes the DC output to AC for use on the grid.
Distributed generation such as the Bridgeport project has several advantages. Commercial businesses, universities and military bases can become energy self-reliant. It reduces grid congestion and power transmission issues associated with centralized generation. It makes the grid better able to respond to severe weather events and does so with a process that is clean and efficient and available at all times. It is one of the possible keys to recovering from the next disruptive weather challenge that utilities will face.
This story first appeared in this month's edition of EnergyBiz magazine
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M-8 Train
Commuters exit the Metro North train in New Haven (John Woike / Hartford Courant / March 4, 2011)
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By BRIAN DOWLING, bdowling@courant.com
The Hartford Courant
1:40 p.m. EDT, October 11, 2013
A plan shelved years ago to power the Metro-North railroad with fuel cells, rather than commercial power, is finding renewed attention after a failed transmission cable crippled the rail line last month.
The railroad, which connects thousands of commuters to New York City, restored full service Monday, almost two weeks after a 138,000-volt Con Edison feeder cable knocked out train service in an eight-mile section of the New Haven line.
Connecticut engineers studied the fuel-cell option in 2006. The plan would have reduced, if not eliminated, Metro-North Railroad's dependence on the power grid, and replaced it with its own dedicated power source.
Although it was deemed feasible, the economics of the plan weren't there. But times have changed.
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The fuel cell option today could be both feasible and economically viable, said Chip Bottone, chief executive of FuelCell Energy in Danbury. He's calling to refresh the earlier study and start meetings with Metro-North.
"Oh, and by the way, you can attract private capital to do this," he said in an interview.
Using fuel-cells to power the rail line would make Metro-North a microgrid, an electric network that can run separate from the power grid. Such systems have gained attention — particularly in Connecticut — since large, powerful storms in the Northeast have left hundreds of thousands of people without power for days.
Affording the railroad dedicated power, making it a microgrid, would give the vital transit system the same consideration that a row of storefronts in Hartford or a handful of Wesleyan University campus buildings has received as part of the state's first-in-the-nation microgrid program. The move would also line Connecticut up with other states using distributed power generation to improve the reliability of rail infrastructure.
In New Jersey, state officials are designing a transportation microgrid with the federal Department of Energy and engineers at Sandia National Labs for the state's rail system after it was knocked out of service by Hurricane Sandy last year.
The Connecticut feasibility study, released in August 2007 by the Connecticut Academy of Science and Engineering, concluded that Metro-North could run on fuel cells, though costs would be high. The "applications are feasible," the report said, but the project would need incentives to be cost-competitive.
The answer to how the rail system became so dependent on a few transmission lines is complicated, though it hasn't always been so. The rail line, electrified in 1907, had a dedicated power plant in Greenwich, but the plant was closed decades ago, as Metro-North relied more on commercial power.
A Metro-North spokeswoman declined comment for this story.
The idea to look at fuel cells was floated at a time when the southwest part of the state's electric grid was severely congested and major work was being planned along the rail line. But "very poor economics and significantly higher capital outlays" made the plan difficult, according to the feasibility study.
But the economics of both fuel cells and natural gas have changed since the release of the 2007 study. At current prices, the cost of the energy would come at a premium, but the company's midterm plans would put the energy costs in striking distance of being competitive. Though it's unclear whether a full revival of the plans would be welcomed, that hasn't stopped the industry from making some noise.
"Everything is completely different: returns are better, and expectations are higher," Bottone said.
Cos Cob Power Station
Before Metro-North used commercial power, the rail line had its own dedicated power source: the Cos Cob Power Station, a stately mission-style power plant on the Mianus River in Greenwich.
The plant arose because steam-powered rail into New York proved to be a problem in the Park Avenue Tunnel, which led into Grand Central Station. Smoke and steam filled the underground railways, reducing visibility, which caused train wrecks.
The New York State legislature prohibited steam engines from entering the city, starting in 1908. So Westinghouse Electric and the New Haven Railroad built the Cos Cob Power Station, the first power plant built exclusively for a railroad.
Until then, New York trains ran on direct current, connected with a shoe on a third rail system. But direct current systems couldn't then provide the power needed for heavy trains to go at high speeds for long distances, which the project required. The answer was an alternating current system, delivered overhead.
Durect Corporation When will the spark
Big green Today?
volume come
watch ETRM and DRRX ! next mover
Up Volume is back
EnteroMedics price target raised to $3 from $1.50 at Canaccord
theflyonthewall.comtheflyonthewall.com – Tue, Oct 8, 2013 6:58 AM EDT
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ETRM 1.55
Canaccord said the FDA panel meeting for EnteroMedics' Maestro device is now expected late Q4 2013, or more likely Q1 2014. The firm believes a positive panel result is likely given the relative safety of the device, lack of alternatives for obese patients, and moderate weight loss. The firm views risk/reward as favorable and raised its price target to $3 from $1.50 and reiterates its Buy rating.
last res 1,45 break
ETRM breaks out big volume
5 Stocks Under $10 Making Big Moves
BY Roberto Pedone| 10/09/13 - 08:29 AM EDT
Stock quotes in this article: GLUU, HILL, ELOS, DM, ETRM
Find out if (ETRM) is in Cramer's Portfolio.
DELAFIELD, Wis. (Stockpickr) -- At Stockpickr, we track daily portfolios of stocks that are the biggest percentage gainers and the biggest percentage losers.
>>5 Stocks Set to Soar on Bullish Earnings
Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.
Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.
>>5 Stocks Poised for Breakouts
With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside today.
EnteroMedics
EnteroMedics (ETRM) is a development stage medical device company engaged in design and development of devices that use neuroblocking technology to treat obesity, its associated co-morbidities, and other gastrointestinal disorders. This stock closed up 8.5% to $1.27 in Tuesday's trading session.
Tuesday's Range: $1.20-$1.36
52-Week Range: $0.81-$3.70
Tuesday's Volume: 3.68 million
Three-Month Average Volume: 724,771
>>4 Hot Stocks to Trade (or Not)
From a technical perspective, ETRM spiked sharply higher here right above its 50-day moving average of $1.13 with huge volume. This stock briefly flirted with a breakout above its 200-day at $1.31 and above some more near-term overhead resistance at $1.32. Shares of ETRM closed just below those levels at $1.27 with volume that was well above its three-month average action of 724,771 shares.
Traders should now look for long-biased trades in ETRM as long as it's trending above Tuesday's low of $1.20 or above its 50-day at $1.13 and then once it sustains a move or close above Tuesday's high of $1.36 and above more key resistance levels at $1.37 to $1.47 with volume that hits near or above 724,771 shares. If we get that move soon, then ETRM will set up to re-fill some of its previous gap down zone from February that started at $3.
Definition
This is a major bullish reversal pattern, which is even more significant than a regular Bullish Harami.
Trader’s Behavior
A bearish mood prevails in the market, and a downtrend is in progress. The first day’s candlestick is a black body, which further supports bearishness. However the next day, prices open higher than the close, or at the close of the preceding day. The short traders are alarmed which leads to the covering of many short positions, causing the price to rise further. Moreover, the day closes at the opening price, showing lack of decision among traders. The increasing level of indecision and uncertainty amplifies the likelihood of a trend change and cause a reversal.
18,130,200 mio short ! wow
FuelCell Energy Announces Solid Oxide Fuel Cell Development Updates
GlobeNewswirePress Release: FuelCell Energy, Inc. – 16 minutes ago
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$6.4 million contract award for continued sub-megawatt solid oxide fuel cell power plant development
On-site biogas powered solid oxide fuel cell power plant demonstration at a dairy farm
DANBURY, Conn., Oct. 9, 2013 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (FCEL), a global leader in the design, manufacture, operation and service of ultra-clean, efficient and reliable fuel cell power plants, today announced two updates regarding the development and commercialization of solid oxide fuel cell (SOFC) technology including a $6.4 million cost shared cooperative agreement with the U.S. Department of Energy (DOE) to continue research and development on a demonstration sub-megawatt SOFC power plant. Separately, a DOE supported project to convert agricultural waste into renewable power utilizing an SOFC power plant is preparing for operation at a dairy farm in California in conjunction with the project partner TDA Research, Inc.
"We have a multi-faceted strategy for the commercialization of our solid oxide fuel cell technology including future coal syngas opportunities under a U.S. Department of Energy program as well as adjacent market opportunities to our existing markets including sub megawatt commercial building and wastewater treatment plant applications," said Chip Bottone, President and Chief Executive Officer. "We are evaluating potential partnerships for the commercialization of the technology including discussions with organizations in North America, Asia and Europe."
"We believe our technology is well suited for the market with industry-leading electrical efficiency of approximately 60 percent plus usable heat for combined heat and power applications, resulting in total estimated thermal efficiency between 80 and 85 percent. The technology is also fuel flexible, with the ability to utilize coal syngas, clean natural gas, on-site renewable biogas or directed biogas," said Tony Leo, Vice President Application Engineering & Advanced Technology Development, FuelCell Energy, Inc. "We have increased the size and power density of the individual fuel cells, which is critical to high volume manufacturing of an economically competitive product as we enhance the technology and prepare for commercialization."
"Our customer research on sub-megawatt applications reinforces the value of combined heat and power configurations which use the same unit of fuel to generate both electricity and heat. This supports economics and sustainability initiatives by reducing usage of combustion based boilers and their associated pollutants and greenhouse gases," continued Mr. Leo.
The objective of the DOE award is the demonstration of a sub-megawatt solid oxide fuel cell power plant configured for combined heat & power (CHP) output and connected to the electric grid at FuelCell Energy's Danbury, Connecticut facility. SOFC systems operating on coal syngas, natural gas or biogas can generate clean power with virtually zero pollutants and significant reductions in greenhouse gas emissions, particularly when configured for combined heat and power. The term of the award is 18 months.
Renewable biogas application
A solid oxide fuel cell power plant demonstration is planned for early 2014 at a dairy farm within the Sacramento Municipal Utility District (SMUD) in California, USA utilizing renewable biogas from the anaerobic digestion process to generate electricity and heat. SMUD will facilitate the installation and operation of the SOFC power system. Many agricultural operations generate more biogas and electrical generation potential than they can use for their daily operations, which is why the ability to interconnect to the electric grid is an important part of understanding the future market potential and ability to support sustainability of farms and agricultural industries.
Fuel cells electrochemically convert a fuel source into electricity and heat in a highly efficient process that emits virtually no pollutants due to the absence of combustion. The Direct FuelCell(R) stationary power plants manufactured by FuelCell Energy utilize carbonate fuel cell technology and provide continuous baseload power that is located where the power is used, including both on-site applications and electric grid support. The combination of near-zero pollutants, modest land-use needs, and quiet operating nature of these stationary fuel cell power plants facilitates locating the power plants in urban locations. The power plants are fuel flexible, capable of operating on natural gas, on-site renewable biogas, or directed biogas.
About FuelCell Energy
Direct FuelCell(R) power plants are generating ultra-clean, efficient and reliable power at more than 50 locations worldwide. With more than 300 megawatts of power generation capacity installed or in backlog, FuelCell Energy is a global leader in providing ultra-clean baseload distributed generation to utilities, industrial operations, universities, municipal water treatment facilities, government installations and other customers around the world. The Company's power plants have generated more than 1.7 billion kilowatt hours of ultra-clean power using a variety of fuels including renewable biogas from wastewater treatment and food processing, as well as clean natural gas. For more information, please visit www.fuelcellenergy.com
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Direct FuelCell, DFC, DFC/T, DFC-H2 and FuelCell Energy, Inc. are all registered trademarks of FuelCell Energy, Inc. DFC-ERG is a registered trademark jointly owned by Enbridge, Inc. and FuelCell Energy, Inc.
Contact:
FuelCell Energy, Inc.
Kurt Goddard, Vice President Investor Relations
203-830-7494
ir@fce.com
Fuel cell businesses resurgent a decade after early hype
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Published: Sunday, 6 Oct 2013 | 7:00 AM ET
By: Tom DiChristopher | News Associate
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Bloom Energy CEO K. R. Sridhar at a product launch in 2010 at eBay headquarters in San Jose, Calif.
A new eBay data center in South Jordan, Utah, enables the e-commerce giant to keep its goods flowing, but it is remarkable for another reason entirely. The center is the first facility of its kind to generate all its electricity on site from fuel cells, which are provided by Bloom Energy.
The data center is one more sign that fuel-cell energy companies are in the early stages of a rally. After nearly 10 years of spiraling stock prices, recent technological innovations and improved balance sheets are attracting Fortune 500 companies, both as customers and partners. Now, an industry known for operating in the red shows signs of achieving profitability.
"The market is more and more becoming aware of the attributes of fuel cells and buying into them and all of that is leading to large annual production of fuel cell technology," said Scott Samuelsen, director of the Fuel Cell Research Center at the University of California at Irvine.
Revenue from stationary fuel cells has grown 55 percent this year, to $1.3 billion, according to Navigant Research's Fuel Cells Annual Report 2013.
Fuel cell systems convert fuels such as natural gas, methane and biogas into electricity via an electrochemical process with minimal emissions. While wind and solar provide intermittent power, fuel cells operate continuously.
"In the early 2000s there was a lot of hype around the sector," said Kerry-Ann Adamson, a Navigant fuel cell analyst. "The technology was in the grip of trying to find where the problem in the market was. At the time, it was a solution without a problem."
But Samuelsen at the Fuel Cell Research Center said two developments have emerged since to lay the groundwork for this rally.
The first is the rise of high-temperature fuel cells. Much of the technology popular 10 years ago required expensive rare earth, such as platinum. But the fuel cell systems from companies such as Bloom and FuelCell Energy are made from cheaper and abundant ceramics.
(Read more: Natural gas: Risks and rewards for Gazprom boss)
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US has long way to go: Hofmeister on oil independence
"We have pockets of prosperity" growing all over the country because of energy development, says John Hofmeister, CEO of Citizens for Affordable Energy, who discusses his plan to shift to natural gas fuels to cut oil imports.
Tax credits and state rebates have also reduced the cost of fuel cells by as much as half the sticker cost. Programs in California and New Jersey have made fuel cells competitive with conventional energy, reducing the cost of capital investments by up to half when combined with federal subsidies.
That has lead to increased volume and cost reductions, said Samuelsen. Between 2003 and 2011, the price of producing energy from fuel cells fell from $10,000 per kilowatt to about $2,500, according to FBR Capital Markets research.
Projects like eBay's data center are important confidence boosters for companies exploring fuel cells as an option, said Matt Ross, chief marketing officer for Bloom Energy. The privately held company is based in Sunnyvale, Calif., and is backed by $1 billion in venture capital.
Since shipping its first Bloom Boxes to Google in 2008, the company has sold units and energy to companies including Wal-Mart and AT&T. It has also worked with utilities including California's PG&E and Delmarva in Delaware to provide energy.
"We think eBay is a real leader in the data center sector. They've taken a very bold step," said Bloom Energy's Ross. "I have no doubt that others are going to be following their footsteps."
(Read more: Model S catches fire—in the wrong way)
Bloom declines to disclose its financials. The company told Fortune last year that it expects to reach profit this fiscal year.
Two recent announcements could help Bloom get there. It has begun a leasing program backed by Bank of America that will target Fortune 1,000 companies and customers with medium-capacity needs. It also recently entered a joint venture with Japan's Softbank to help fill the country's energy deficit following the Fukushima nuclear plant disaster.
Another emerging market for fuel cells is South Korea, where the government aims to generate 10 percent of power from renewable sources by 2020. FuelCell Energy, which builds fuel cell energy plants, is currently constructing the world's largest fuel cell park in South Korea with a capacity of 59 megawatts.
FuelCell shares are up about 35 percent this year to $1.25. The median price target now sits at $1.88, according to Thomas One Analytics. FBR Capital Markets believes FuelCell's strong growth in revenue and its backlog of orders—up 126 percent year over year to $410 million—will drive the company to profitability next year.
The road to profitability looks longer for Ballard Power Systems, the leading fuel cell provider for telecoms-backup systems in Asia and South Africa. Ten years ago the company was focused on the nascent electric vehicle sector. It has since focused on money-making ventures like backup energy and powering warehouse forklifts.
Lazard Capital notes that Ballard has reduced its losses, and estimates the company could reach break even in the next few years.
The industry still faces significant risks. It remains largely dependent on government subsidies. If tax credits for renewable energy falter, business could suffer.
Fuel cell companies typically have a narrow portfolio of clients, as well. Just five companies accounted for 86 percent of FuelCell Energy's business in 2012, with South Korean energy company POSCO Energy accounting for 76 percent.
Reception from utilities has so far been mixed, with some companies embracing partnerships and others shunning the potentially disruptive companies. Fuel Cell Research Center's Samuelsen said differences are to be expected during industry shifts. He believes fuel cells will become a needed asset in building smart grids.
"Any fundamental change in a market takes decades. The shift in the energy market to a more resilient, low carbon, distributed energy generation system will take decades to fully deploy," said Navigant's Adamson. "The investment communities are now wise to the fact that the energy markets are in this period of change. Change equals opportunity and they are coming back to the fuel cell industry."
—By CNBC's Tom DiChristopher. Follow him on Twitter @tdichristopher.
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FuelCell Energy Eyes the Grid Support Market
October 3, 2013 at 8:07 pm
Contributed by: Chris
For Greentech Media last week, I explained how FuelCell Energy, the largest of the publicly traded fuel cell makers, is partnering with utility NRG Energy to market and deploy its fuel cells. This is good news, after so much contention between utilities and the makers of smart grid/microgrid/renewable energy equipment. Some utilities are finally figuring out the new business models they’ll need to survive the energy transition, and how to replace conventional baseload power with a cleaner, decentralized alternative.
FuelCell Energy Eyes the Grid Support Market
FuelCell Energy Eyes the Grid Support MarketCredit: FuelCell Energy
The fuel cell producer builds a partnership with NRG while moving toward profitability.
Chris Nelder
September 23, 2013
After decades of struggle, the American fuel cell business may finally have its day in the sun — and then provide critical grid support when the sun goes down.
Greentech Media’s Eric Wesoff has long maintained a tongue-in-cheek list of the top publicly traded profitable fuel cell firms. As of the last such update in April of this year, the list was still blank.
But FuelCell Energy, the biggest of the publicly traded U.S. fuel cell manufacturers, now appears poised to make that list after running losses since its IPO in 1992. According to Bloomberg, the company posted record sales, driving down its net loss on the fiscal third quarter of this year to just $5.6 million on revenues of $53.7 million, down from $9.9 million a year earlier, and its order backlog has ballooned to $380.8 million. The company is now within reach of being in the black.
I spoke with company CEO Chip Bottone and Vice President of Investor Relations Kurt Goddard at the end of July, and they were optimistic that profitability was finally within reach. “Fuel cells have overpromised and undelivered for decades,” Bottone said. “We’re now interested in making money the old-fashioned way: reduce capital costs, make margin, and be competitive with traditional power generation. We’re really trying to build credibility for the industry.”
The company now says its levelized cost of energy (LCOE) is $0.14 to $0.15 per kilowatt-hour, without subsidies, depending on the price of gas. Industrial consumers in the U.S. typically buy gas for around $4.50 per million BTU, the company says, with gas prices on the East Coast closer to $5.50. Wesoff quoted Bottone in April 2012 as saying that, “At $5 gas, we’re at $0.135? per kilowatt-hour, and that every $2 drop in the price of natural gas translates to a penny lower in the price per kilowatt-hour. By those metrics, FuelCell Energy is already grid-competitive without subsides in Hawaii and Alaska in the industrial market, and in at least seven states in the commercial market.
With subsidies, such as the federal investment tax credit and the California state incentive, Bottone says their fuel cell system can produce power for $0.09 to $0.11 per kilowatt-hour, making it competitive with grid power in that state as well.
Bottone isn’t counting on subsidies to be competitive, however. “We don’t need more money from government,” he told me. “We just need to spend it better.”
At those prices, some might look at fuel cells as a potential competitor to other low-carbon technologies like wind and solar, but Bottone doesn’t see it that way. “We compete against people doing nothing, not against wind and solar,” he explained. “There’s no single solution to this stuff. Wind and solar and gas will always be there.”
“We compete with utility programs, and our IRR [internal rate of return] is the metric,” he continued. “On an unlevered basis, we need to make an IRR of 10 percent to 13 percent. With a little leverage, our payback is under three years. People can say yes to that. Adding CO2 offsets can get the payback down to a year.”
Large-scale market
FuelCell Energy is very different from its better-known competitor, Bloom Energy.
FuelCell Energy’s main product line uses a molten carbonate technology, which scales up well. Bloom Energy uses solid-oxide technology, which doesn’t scale well, but whose greater power density makes it attractive for applications where a small physical footprint is important.
FuelCell Energy is focused on large systems (over 1 megawatt in size), where the economics can be more attractive. It sells units with a long-term service contract for about $3,000 per kilowatt of capacity, excluding installation, as compared with Bloom Energy’s reported $8,000 per kilowatt, excluding installation and subsidies.
The larger plants make them better suited to running on fuels like waste gas and biogas, because of the cost of the equipment needed to clean up the gas. Sulfur, siloxanes (which result from things like cosmetics), and water must be removed from the gas. Sulfur is the hardest contaminant to remove, because the gas must have no more than 30 parts per billion of it before it is used in the fuel cell. “You’ve got to have enough gas to pay for the gas cleanup unit,” Bottone explained, a cost which typically runs around three cents per kilowatt-hour. “There isn’t a clean solution below 1 megawatt that will pencil out. It’s marginal at 300 kilowatts — you need to have a lot of intangible benefits.” Generally, Bottone claims that his units are more tolerant of contaminants than are competing fuel cell technologies.
FuelCell Energy has a larger customer base, with around 80 units operating in more than 50 separate locations in nine countries. Bottone expects to have a total portfolio of 150 megawatts to 200 megawatts in operation by the end of the year. The company also has a much longer track record, with 1.8 billion kilowatt-hours of operating time in the field, according to Bottone.
Grid support strategy
Utilities are wringing their hands over the prospect of customers unplugging from grid power and generating their own, as we have documented at length here at Greentech Media. This week, the Wall Street Journal noted that the number of electricity-generation units at commercial and industrial sites has more than quadrupled since 2006. From big-box stores like Wal-Mart and Kroger, to corporate campuses like Google and Apple, to engineering and manufacturing companies like BMW and SAIC, to data center operators and telecom firms like Verizon, more companies are finding cost and reliability benefits in generating their own power from solar, wind, biogas and fuel cells.
As self-generation increases, it’s becoming more difficult for utilities to turn a profit on their large, centralized generation facilities. This year has brought a steady drumbeat of reports of nuclear and coal-fired power plants being shuttered. Utilities are increasingly being challenged to join the distributed energy revolution — or suffer the decline of their businesses.
One major utility took the bit between its teeth two weeks ago. NRG Energy announced a co-marketing agreement with FuelCell Energy in which it will market the fuel cell power plants to its customer base, as well as offering financing and power purchase agreements to interested buyers. For those who want the technology but don’t want to own the plant, NRG Energy will buy the plant, then sell the power to the customer under a power-purchase agreement. FuelCell Energy will install, operate and maintain all the plants, making it easy for customers to adopt the technology.
While such a partnership is still relatively new, it makes perfect sense. Distributed generation from fuel cells offers benefits to both the customer and the utility:
Fuel cell systems are always on, so they function as 24/7 baseload power, making them a suitable replacement for retiring coal and nuclear baseload power stations.
They generate clean and reliable power, so they support utilities in meeting some of their biggest operational challenges: maintaining voltage and frequency within tight parameters. These attributes are extremely important to sensitive facilities like hospitals and manufacturing operations.
Fuel cells generate less emissions than conventional natural-gas fired power generators. Their emissions are not zero (contrary to what you may have read elsewhere), but they’re very low. “We release less CO2 than any other power generation option in our size class per megawatt-hour, due to the high electrical efficiency,” Goddard told me.
They’re very quiet, offering a far more desirable alternative to noisy diesel- or gas-fired generators, especially in urban environments.
They generate power where it is used, reducing the long-term cost of maintaining the transmission and distribution grids.
Due to their size and high operating temperatures, the FuelCell Energy systems can generate hot water as well as electricity, giving them very high overall efficiency (up to 90 percent). When only used to generate power, instead of using the waste heat to make hot water, the efficiency is still high relative to conventional power generation, at around 47 percent.
“Baseload combined heat and power (CHP) fuel cells have virtually zero emissions, making them well suited to provide reliable electricity, hot water, steam or absorption chilling to universities, hospitals, and other large power users,” remarked NRG Solutions President Thomas Gros in a press release.
Bottone believes that creating such partnerships with utilities is a far more desirable way to go than competing with them directly, noting that the German utility giant E.ON set up a separate, unregulated company to provide decentralized solutions as they were forced to shut down some large centralized plants that had become unprofitable.
“If you opt out of the grid, you save 5 euro-cents per kilowatt-hour,” he said. “So E.ON is following the customers opting out of the grid. In the U.S., the investor-owned utilities are only motivated by return on capital, so for them, bigger is better. We’re having discussions with the highest levels at utilities, on the demand side, and saying: ‘Look, instead of me peeling off your customers at substation X, we’ll put the fuel cells in at those substations. How can we work together?’”
The partnership strategy may be particularly attractive at the periphery of the distribution grids, where maintaining required voltage and frequency levels is expensive for utilities. “We’ve got very sophisticated equipment on our plants,” Bottone explained. “We’ve put them in and utilities picked up better quality power, or discovered that customers had issues they weren’t aware of, like low voltage.”
But the utilities and fuel cell manufacturers need to work together. “Multi-megawatt installations need to make sense in supplying baseload power where it’s really needed,” Bottone said. “Centralized power generation of many megawatts is the challenge. Distributed generation can help with the baseload issue in a much more cost-effective way.”
https://dspace.ist.utl.pt/bitstream/2295/1361729/1/13ICE_0113%20_Multi-objective%20optimization%20of%20fuel%20cell%20hybrid%20vehicle%20powertrain%20design_cost%20and%20energy%20(03-10-2013%2003-48-30).pdf" rel="nofollow" target="_blank" >https://dspace.ist.utl.pt/bitstream/2295/1361729/1/13ICE_0113%20_Multi-objective%20optimization%20of%20fuel%20cell%20hybrid%20vehicle%20powertrain%20design_cost%20and%20energy%20(03-10-2013%2003-48-30).pdf[tag]Multi-objective optimization of fuel cell hybrid vehicle powertrain
design – cost and energy[/tag]
PG&E and EVI for the Plug-In REEV
September 24, 2013 in Electric Drive, EVs by Rich Piellisch | No Comments
UQM Motors and Valence Batteries for Range-Extended Class 5
Pacific Gas & Electric and Electric Vehicles International unveiled the California Energy Commission-backed REEV, and said that the Range Extended Electric Vehicle is the utility industry’s first-ever Class 5 plug-in hybrid electric vehicle.
PG&E transportation director Dave Meisel with EVI president Ricky Hanna
The new truck has PowerPhase HD motors from Colorado’s UQM Technologies (NYSE:UQM).
“It’s the same system we use in the UPS and the Frito-Lay [battery electric] trucks,” EVI president Ricky Hanna told F&F, “except obviously there’s two motors, one for the traction side and one for the generation side.”
45 Miles on Batteries Alone, with Exportable Power
The REEV features an all-electric range of 45 miles and fuel savings of up to 30% when the units are operating in hybrid mode. PG&E accepted delivery of the first two REEV units this summer, and purchased two additional units after a successful initial demonstration of the vehicles.
EVI technician with the new high-power Valence battery module
Also according to the companies’ joint release, “PG&E plans to eventually replace all 942 of its conventional fuel Class 5 vehicles, including bucket trucks, flat beds, and other service trucks, with plug-in electric hybrid models, which would save the utility nearly $3.5 million in fuel costs and reduce GHG emissions by over 9,000 metric tons annually.
Valence Technology Batteries
“In addition to the fuel savings and environmental benefits that PG&E anticipates as it deploys these trucks in increasing numbers, the trucks also offer up to 75 kilowatts of exportable power that could be used to provide power to the grid during planned or unplanned outages, and the utility is working closely with EVI to move that number even higher.”
A new high-power battery module is supplied by EVI’s Valence Technology (OTC:VLNCQ) affiliate in Texas.
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Source: PG&E and EVI with Fleets & Fuels follow-up
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Posted in Electric Drive, EVs and tagged Electric Vehicles International, Pacific Gas & Electric, PG&E, PowerPhase HD, REEV, UQM Technologies, Valence Technology
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Zalicus’ Z160 Receives Orphan Drug Designation for the Management of Postherpetic Neuralgia
Business WirePress Release: Zalicus Inc. – 6 minutes ago
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CAMBRIDGE, Mass.--(BUSINESS WIRE)--
Zalicus Inc. (Nasdaq Capital Market: ZLCS), a biopharmaceutical company that discovers and develops novel treatments for patients suffering from pain, today announced that Z160, its first-in-class, oral, state-dependent, selective N-type calcium channel (Cav 2.2) modulator in development for chronic neuropathic pain has received Orphan Drug designation from the U.S. Food and Drug Administration (FDA) for the management of postherpetic neuralgia. Postherpetic neuralgia (PHN) is a painful neuropathic condition resulting from an outbreak of the herpes zoster virus, otherwise known as shingles.
Zalicus announced it had completed patient enrollment in two Phase 2 clinical studies of Z160 for chronic neuropathic pain indications including postherpetic neuralgia and lumbosacral radiculopathy on September 3, 2013. Top-line results of both studies are expected in the fourth quarter of 2013.
"The FDA’s designation of Z160 as having orphan drug status is an important milestone for Zalicus as we continue the clinical development work required for potential FDA approval of Z160," commented Mark H.N. Corrigan, MD, President and CEO of Zalicus. “We look forward to evaluating and reporting the activity of Z160 in chronic neuropathic pain indications later this year, including postherpetic neuralgia and lumbosacral radiculopathy.”
Orphan drug designation is granted by the FDA Office of Orphan Drug Products to novel drugs or biologics that treat a rare disease or condition affecting fewer than 200,000 patients in the U.S. The designation provides the drug developer with a seven-year period of U.S. marketing exclusivity if the drug is the first of its type approved for the specified indication or if it demonstrates superior safety, efficacy, or a major contribution to patient care versus another drug of its type previously granted the designation for the same indication, as well as with potential tax credits for clinical research costs, the potential to apply for annual grant funding, clinical research trial design assistance and waiver of Prescription Drug User Fee Act (PDUFA) filing fees.
About Z160
Zalicus is currently advancing Z160, a first-in-class, oral, state-dependent, selective N-type calcium channel (Cav 2.2) modulator, through Phase 2 clinical development in chronic neuropathic pain. Z160 is designed to selectively target neuronal pain signaling by modulating neurons that are undergoing high-frequency firing. Z160 has demonstrated efficacy in multiple animal models of neuropathic and inflammatory pain, suggesting that it has the potential to treat a broad range of chronic pain conditions. Additionally, clinical trials in over 200 subjects have established Z160 as a safe and well tolerated drug candidate. N-type calcium channels have been recognized as key targets in controlling pain because of their key role in transmitting pain through the spinal nerves to the brain.
About Zalicus
Zalicus Inc. (Nasdaq Capital Market: ZLCS) is a biopharmaceutical company that discovers and develops novel treatments for patients suffering from pain. Zalicus has a portfolio of proprietary clinical-stage product candidates targeting pain such as Z160 and Z944 and has entered into multiple revenue-generating collaborations with large pharmaceutical companies relating to other products, product candidates and drug discovery technologies. Zalicus applies its expertise in the discovery and development of selective ion channel modulators and its combination high throughput screening capabilities to discover innovative therapeutics for itself and its collaborators in the areas of pain, inflammation, oncology and infectious disease. To learn more about Zalicus, please visit www.zalicus.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning Zalicus, its product candidate Z160, its potential and the plans for its clinical development, its status as a designated orphan drug, the Zalicus selective Ion channel modulation technology and related preclinical product candidates and Zalicus’ other business plans. These forward-looking statements about future expectations, plans, objectives and prospects of Zalicus and its product candidates may be identified by words like "believe," "expect," "may," "will," "should," "seek," “plan” or “could” and similar expressions and involve significant risks, uncertainties and assumptions, including risks related to the development and regulatory approval of Zalicus’ product candidates, including risks relating to formulation and clinical development of Z160, the ability of Zalicus to initiate and successfully complete clinical trials of its product candidates, the unproven nature of the Zalicus drug discovery technologies, the Company's ability to obtain additional financing or funding for its research and development, and those other risks that can be found in the "Risk Factors" section of Zalicus' annual report on Form 10-K on file with the Securities and Exchange Commission and the other reports that Zalicus periodically files with the Securities and Exchange Commission. Actual results may differ materially from those Zalicus contemplated by these forward-looking statements. These forward-looking statements reflect management’s current views and Zalicus does not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this release except as required by law.
(c) 2013 Zalicus Inc. All rights reserved.
Contact:
Zalicus Inc.
Justin Renz, CFO, 617-301-7575
JRenz@zalicus.com
or
Gina Nugent, 617-460-3579
gnugent@zalicus.com
Perhaps negotiating with big pharma!? too much is not good press