FuelCell Energy, Inc. (Nasdaq: FCEL) has extended its agreement with ExxonMobil to develop carbon capture technology for another six months. Thus, the agreement is now set to continue until April 30, 2022.
FuelCell Energy is one of the world’s leading providers of fuel cell technology designed to advance the use of clean energy. FuelCell’s technology relies on its own proprietary, state-of-the-art fuel cell platforms.
And together with oil and gas giant ExxonMobil, both sides in the agreement are collaborating to adapt this fuel cell technology for capturing CO2 emissions from industrial facilities and power generation.
Currently, the parties are considering a pilot project in Rotterdam, the Netherlands, and potentially other locations where FuelCell Energy’s platform may be deployed.
A final decision in regards to the project in Rotterdam is expected to be made in 2022, although it will largely be dependent on the developments over the next six months.
Reaching certain technical milestones will be critical to moving further.
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Speaking of future developments, discussions are currently held about the next phase of carbon capture development, as well.
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Both ExxonMobil and FuelCell Energy acknowledge the great opportunity they have to together scale and commercialize this new carbon capture solution, which is critical to tackling the climate crisis.
Once made available at commercial scale, their solution will capture harmful CO2 emissions from different exhaust streams, whereas also generating power.
That is a significant improvement on existing carbon capture technology that typically consumes significant amounts of power.
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So far, testing results are encouraging and there is great potential for the fuel cell stacks to find application far beyond the initially planned projects.
Namely, ExxonMobile is currently studying the deployment of carbon capture, utilization and storage (CCUS) and hydrogen technologies in Indonesia together with the state-owned oil firm Pertamina.
The oil and gas corporation is also looking to extend its reach even further and possibly build carbon capture hubs in other heavy industrial areas in southeast Asia, such as, for example, Singapore.
