Italian gas company Snam announced today that it has won a contract from Italy’s Torino Airport in partnership with FuelCell Energy for the construction of a 1.2 megawatt hydrogen-ready fuel cell.
The project is part of the airport’s efforts to reduce its carbon footprint and will use blended natural gas and hydrogen for power generation and heating at the airports facilities.
Delivery and installment of the hydrogen fuel cell are slated for Q2 of 2023.
This is the first project of its kind and could indicate that other airports in Italy and Europe are looking at hydrogen as an option to reach their emissions goals.
Relevant: Hydrogen Can Use Existing Gas Pipelines
Earlier this year Snam announced that its working on developing hydrogen technologies in an effort to reduce its own carbon emissions. Snam CEO Marco Alverà has previously shared he envisions the use of green hydrogen produced in North Africa.
Is FuelCell Hydrogen Belief Paying Off?
The news comes on a particularly negative day for the share price of FuelCell and news of a new hydrogen project couldn’t turn the tide.
FCEL dropped 13.73% to $5.07 per share after it announced losses per share of $0.07 (vs $0.04 expected) and revenue of $13.9 million ($21.9 expected) caused many investors to question the ability of the company to deliver on its guidance.
From a technical perspective the chart doesn’t look good for the bulls. This latest drop broke the support line at $5.4 which was reached in mid-September and was followed by a 100% rally.
The gains from that rally have been entirely erased and the downtrend that started on February 10th has seen another confirmation.
We have to go back to August and October 2020 (marked with red circles on the bottom left) to locate the next levels to watch on the downside. The first support is around $3.48 and the second appears to be at $1.62.
A quick rebound could see retests of the resistance levels at $5.41 and $6.88 but with bad news being taken in this manner, a change in course seems less likely in the short-term.
