FuelCell Energy Restructures to Focus on Core Technologies

November 15, 2024

DENVER, Colo., Nov 15, 2024 (247marketnews.com)- FuelCell Energy (NASDAQ: FCEL) is restructuring its operations in in a move that’s designed to “significantly reduce operating costs, realign resources toward advancing the company’s core technologies, and protect the company’s competitive position amid slower-than-expected investments in clean energy.”

FuelCell Energy will reduce its workforce 17% and reduce spending on product development, overhead and other costs. FuelCell Energy expects these changes to reduce operating costs by approximately 15% in fiscal year 2025, compared with fiscal year 2024.

The restructuring will allow FuelCell Energy to prioritize commercially available technologies to reflect changing market opportunities with an updated strategic plan that further expands its molten carbonate technology to offer distributed power solutions, and also continue to pursue strategies for CO2 recovery for food and beverage and industrial uses.

Jason Few, FuelCell Energy’s President and CEO, stated, “We have always known that the energy transition would not be linear, and we have built a portfolio of products and applications that allow FuelCell Energy to pivot when necessary.

“The steps announced today enable us to navigate the current market while maintaining the flexibility to capture tailwinds. These tailwinds are strengthened by power shortages in grids, high voltage transmission needs, and delays in centralized power projects due to lengthy permitting processes, which our distributed energy platforms do not experience. Additional power demand opportunities are driven by data centers, AI, cryptocurrency growth, more resilient and reliable grids, and carbon recovery and capture”

As a result of the workforce reductions, FuelCell Energy expects to book non-recurring accounting charges in the fourth quarter of fiscal year 2024 and the first quarter of fiscal year 2025.

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