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FCEL: FuelCell Energy, Inc. and its Key Role as Part of a Diversified Clean Energy Portfolio

IN FOCUS: FUELCELL ENERGY, INC. AND ITS KEY ROLE AS PART OF A DIVERSIFIED CLEAN ENERGY PORTFOLIO

The alphaDIRECT Insight

In our opinion fuel cells can be an attractive solution as part of broader power portfolio for a number of reasons including technical, financial and environmental advantages. Within a baseload power portfolio, there are a number of advantages and disadvantages to each asset type and we believe utilities and power users will continue to adjust and expand their strategies to find an optimal mix that could include more fuel cells. Broad commercialization of intermittent sources of renewable power such as solar and wind have become significant components in portfolios, but the need for an environmentally compliant source with reliability, high power density and lower land cost clearly exists. To this end we believe Fuel Cell Energy, Inc. (FCEL) can help power suppliers and users solve this problem. Another advantage fuel cells can bring to users is the ability to generate up to four times the REC’s in specific regions, creating a higher revenue stream and return on the project. In addition, fuel cells are often placed near the electrical substations or directly on-site where the power is used, thus reducing the high transmission costs. In summary, we believe this technology will be increasingly considered to play a role in power portfolios, which should provide FuelCell Energy, Inc. with a significant market opportunity.

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