FuelCell Energy [Nasdaq: FCEL] has finally closed the chapter on its partnership with Posco. It seemed like a story with no winner.
Carbon dioxide may be a greenhouse gas, but it can also be a raw material source in industries such as plastics processing and renewable energy generation, where it could gradually replace natural gas and crude oil. Capturing carbon dioxide directly from air provides several advantages for combatting climate change. While limiting the atmospheric concentration of CO2, it offers new opportunities in the chemical industry and in transportation and could dramatically lower harmful emissions by cutting into fossil fuel demand.
During the industry conference Energy – Think Outside the Box in Berlin, William M. Colton, vice president corporate strategic planning at ExxonMobil, talked about the big potential of a technology called “carbon capture.” By that, he meant the option to add CO2 to hydrogen to create methane and convert the result into power and heat inside a fuel cell. ExxonMobil’s partner for generating energy from emissions is FuelCell Energy (NASDAQ: FCEL). Days later, U.S. President Donald Trump said in a speech that he intended to “end the war on coal” and that the United States was going to have “clean coal.”
Who would have thought that the world’s largest oil corporation and biggest US gas company is having a change of heart? In May this year, ExxonMobil concluded a research agreement with FCEL to develop the carbon capture technology into something that created a “more economical pathway.” Carbon dioxide from chemical and coal plants is said to be added together with hydrogen to produce methane, which would then be converted at high efficiency into electricity and heat. What is most important here is the technology‘s economic benefit