A Solution to the Serious Climate Change Problem is Known & Cost Effective Already

Angel Publishing- Investment Research

ExxonMobil chairman and CEO Darren Woods may have said it best in an interview:

I believe, and my company believes, that climate risks warrant action and it’s going to take all of us — business, governments and consumers — to make meaningful progress...

Again, that’s the CEO of the world’s largest oil company. 

A recent report from the Intergovernmental Panel on Climate Change predicts that another half-degree temperature jump (estimated to happen by 2040) will lead to severe droughts, intense hurricanes, and the loss of most of the world’s coral reefs.

Since 1970, there have been an average of six Atlantic hurricanes per year. Yet that average has been increasing — 2017 saw 10 Atlantic hurricanes.

These massive superstorms cause a huge loss of life and property. Hurricanes Harvey, Maria, and Irma alone cost a combined $265 billion, much of which was supported by — you guessed it — taxpayer money.

The point is we need to get our atmosphere back in check and throw ideas like “emissions reduction” in the garbage because they aren’t working. At the very least, we need something better.

That’s why governments around the world are moving into a new age... the age of “geoengineering.”

In other words, the time for negative emissions has arrived.

Forget Carbon Reduction: These Scientists Just Invented CARBON DELETION

To the dismay of many green energy advocates, there exists a sobering fact:

Reducing the amount of carbon being released put into the atmosphere won’t make a lick of difference — or at least not enough.

As you’ve already seen, the amount of CO₂ in the atmosphere currently sits at unprecedented levels — over 400 million parts per million, double the average for all of recorded history.

And that’s after decades of investment in emissions reduction technologies. Wind, solar, hydro... you name it. It’s just not making a big enough dent.

That’s why governments around the world have decided to up the ante.

The same governments and organizations that spent billions pushing the use of solar, wind, and other renewables have already started sounding the alarm. They know that no matter how much we reduce carbon emissions, it won’t be enough.

Despite all the money and tax credits they’ve given away, the Intergovernmental Panel on Climate Change is now admitting that cutting CO₂ emissions over the next few decades won’t be enough to fully stop climate change.

“It's not a question of ‘Maybe we'll need negative emissions technologies’...” — E. Burns, Senior Policy Advisor

“We have no option [but] to remove the CO2 we have already emitted.” — Sarang Supekar, Systems Engineer at University of Michigan 

The U.S. Department of Energy, EPA, National Oceanic and Atmospheric Administration, and the U.S. Geological Survey have all pitched in researching potential solutions. And while obvious ways to help get things back into balance include reducing the amount of CO₂ released into the atmosphere, it won’t be enough.

The Worldwatch Institute, the IPCC, and Columbia University have all started pounding the table on the need for a new method of fighting CO₂: climate engineering.

Which is why they’ve all started taking a close look at a technological breakthrough being pioneered by the tiny $0.50 stock I’m going to tell you about today.

Even U.S. congressional leaders are waking up. 

Despite all the partisanship in modern American politics, an agreement was reached in 2018, when our congressional leaders passed the FUTURE Act (Furthering Carbon Capture, Utilization, Technology, Underground Storage, and Reduced Emissions Act).

This bipartisan legislation doubled the tax credits available for this new technology and sent the message loud and clear to business leaders that capturing and using the very carbon dioxide we cast off into our air is the way to go.

After passage of the FUTURE Act, Stanford University analyzed its implications and quickly realized that it would now be profitable for companies to target negative emissions.

That’s why governments around the world are practically throwing money at this new technology.

Negative Emissions Breaks into “The Green”

Believe it or not, for almost 50 years, oil companies have been preventing carbon from entering the atmosphere.

This is what we call “conventional carbon capture.” And they didn’t do it for environmental reasons — they did it for economic ones.

Back then, scientists from big oil firms like ExxonMobil realized that if they could capture the carbon they were producing, they could use it to get even more oil out of the ground.

This is what we know today as “fracking” — using a substance like water or carbon dioxide to force hard-to-reach oil to the surface.

And it wasn’t long before practically everyone realized that conventional carbon capture could be used for so much more than finding oil.

By capturing the CO₂ emitted by natural gas processing, steel mills, and dozens of other industrial activities and then burying it in the ground, we could massively reduce the amount of carbon in the atmosphere.

Today, there are 17 large-scale CCS plants capturing and burying 40 million metric tons of carbon per year. Now, that’s just 0.1% of the world’s emissions, but the proof is there.

The only problem is that to truly make a difference to our planet, the International Energy Agency calculates that we’ll have to bury about 6 billion tons of carbon dioxide annually by the year 2050 — 150x our current rate.

Which brings us to FuelCell Energy, Inc. (NASDAQ: FCEL).

FuelCell Energy, Inc. (NASDAQ: FCEL): A Pioneer of Negative Emissions

Oil companies, car manufacturers, and even the second-largest utility operator in the U.S. want a direct line to this company’s CEO. Other companies are now following their lead and have similar technology.

In fact, they're already teaming up with FuelCell Energy because it has taken a process they had been using for 50 years a step further. The resulting technology was the world’s first negative emissions process. 

The truth is that conventional carbon capture isn’t cheap enough. It costs $60 per metric ton, and it only works because of tax credits and subsidies. Which is why the breakthrough technology created by this company is so exciting.

FuelCell Energy's proprietary process works rain or shine and has even proven reliable in heavy storms, potentially eliminating power outages during even the worst of hurricanes. And it does it all by using the very carbon produced by power plants to generate more electricity.

You see, thousands of companies and dozens of governments have been looking at the problem wrong. For decades, they were focused on “moon shot” energy sources to power our world. Things like nuclear fission would be great, if only we could get them to work.

FuelCell Energy turned the problem on its head and found a way to make our current energy sources — oil, natural gas, and coal — work for us in returning the atmosphere to balance.

It’s nothing short of a “potential game changer,” in the words of a research scientist with the MIT Energy Initiative.

The company's negative emissions technology has already proven to:

1. Instantly reduce carbon emissions by 90%.
2. Cut NOx gas from coal and natural gas power plants by 70%.
3. All while generating extra power for the grid.

The remaining 10% of CO₂ can easily be captured by conventional technologies, all with excess profits to spare.

The proprietary process is relatively simple. Picture a coal-fueled power plant:

It’s worth mentioning that the world still gets 40% of its electricity from coal-burning power plants — which is exactly why FuelCell Energy's negative emissions technology is so powerful.

A power plant burns its fuel source — natural gas, coal, and even radioactive fuel rods — and uses that heat to boil water in its furnace. This produces steam, which is then used to turn massive turbines to generate electricity.

Up until now, carbon capture technologies have been looking at the problem all wrong. They sought to capture the carbon after it’s been used to heat up the water inside the boiler.

But what if the carbon dioxide was used to create electricity at the very beginning?

Well, that’s what FuelCell Energy managed to pull off.

By taking a fuel source, say natural gas, and combining it with methane and water, something very special happens when applied to a metal catalyst: The system produces hydrogen and concentrated carbon dioxide.

This may not sound like a big deal, but believe me, nothing could be bigger.

Remember: It costs at least $60 per metric ton to capture carbon dioxide emissions — far too high to be economic. That’s because the CO₂ being put out by industry is mixed up with a whole bunch of other gases — that’s why they call it “carbon capture” and not “carbon retrieval.”

If we could generate power and simply snatch up CO₂ in a concentrated form, then the cost of becoming a negative emission civilizationdrops dramatically.

The whole process revolves around simple chemical reactions set off in the right order. As the process is carried out, electrons are thrown off — electricity to power our homes, computers, and phones.

What’s most important about all of this is that there’s just one waste product: concentrated CO₂.

Now that CO₂ is so easy to retrieve, industry leaders are already dreaming up a host of uses. It can be...

• Sold to beverage makers like Coca-Cola (just imagine, CO₂ from a power plant continuing life in a can of Coca-Cola!).
• Stored underground.
• Used by oil exploration companies to force oil out of the ground.

By now, it should be clear that we’re at the dawn of solving one of the biggest problems our world faces today.

In case you need more convincing, though, consider the following:

Fact #1: Negative Emissions Saves Energy

There are three primary ways to generate most of the power we need for our modern world:

1. A conventional natural gas or coal plant
2. A plant with conventional carbon capture
3. This company’s negative emissions technology, which can be installed in any coal or natural gas plant starting today

Option #3 is the clear winner.

Here’s the simple math that proves what I’m talking about...

A 500 MW coal-fired power plant generates approximately 3.6 million tons of carbon per year — the same amount as 685,000 cars. Right now, all of that CO₂ goes straight into our atmosphere.

We can use tried-and-true coal capture to mitigate this risk. It costs a lot of money, but we can actually capture approximately 90% of the carbon emitted by every single coal plant in the world.

But by installing conventional carbon capture technologies, the electricity generated is actually reduced by 20%. This, combined with the cost of the equipment to capture the CO₂, leads to an 80% higher utility bill for average Americans.

Or we can install FuelCell Energy's incredible negative emissions technology starting today. Once utility companies and energy executives realize the benefits of doing so, it’ll be just a matter of time. That’s because by capturing the same amount of carbon as conventional methods do, this tiny company’s process allows a typical 500 MW coal plant to produce 80% MORE POWER.

That’s right: The power output of such a station instantly rises to 900 MW, all for the same costs as today’s best carbon capture methods.

All that excess power can be put to good use powering our homes and eliminating the remaining pollutants.

Fact #2: Negative Emissions Is Cost Effective

Let’s face it: One of the reasons the industry hasn’t made a major push into reducing and/or eliminating carbon in our atmosphere is because of the cost.

We’ve simply invested too much money in fossil fuel usage.

Currently, the world consumes 98 million barrels of oil per year. At $70 per barrel, that equates to a whopping $2.5 TRILLION-per-year industry. Taking into account natural gas, coal, real estate for gas stations, and all the other ancillary industries, it’s clear that tens of trillions have been invested in a carbon-powered world.

Which is why this small stock with a market capitalization below $100 million is so powerful. Its system, which is already being installed in a few select power plants, is simply an add-on to our global energy infrastructure.

No need to tear coal power plants down or install solar panels on your roof.

That’s a big deal. And it explains perfectly why companies like ExxonMobil and mega-utility Southern Company have both started pounding on FuelCell Energy's door.

As we’ve covered, the world is already starting to cut back big time on carbon emissions. And typical power plants, just like the ones Southern Company owns, are some of the biggest "polluters" there are. Remember, just one 500 MW coal-fired plant produces the same amount of carbon dioxide in a year as 635,000 cars.

At last count, ExxonMobil had a balance sheet with a whopping $348 billion in assets. Southern Company has over $110 billion invested in traditional carbon-emitting energy plants. Just by offering companies like this the chance to protect all the money they’ve invested, this company stands to make a killing.

Fact #3: Negative Emissions Can Scale Enormously

The sheer scale of it.

FuelCell Energy's negative emissions technology doesn’t just apply to power plants.

It can be installed in anything that uses fossil fuels to generate heat or power for industry. That includes refining, power generation, and countless industrial applications, including the manufacturing of things like steel and cement.

All told, this technology can easily apply to the causes of two-thirds of the world’s carbon emissions. This is an unimaginably huge potential market. In 2017, the world produced 32.5 gigatons of carbon. That’s 32,500,000,000 metric tons of carbon.

What’s the ability to eliminate that much carbon worth?

How much would you pay for a technology capable of eliminating so much carbon right out of the gate, only to go on and start reducing the amount of carbon in our atmosphere?

We’re about to find out. Because some of the biggest companies in the world are signing up to do business with this once-in-a-generation stock.

When asked about his company’s recently announced deal with this tiny stock, ExxonMobil chairman and CEO Darren Woods had this to say:

We ask why not capture the CO₂ in producing energy? To do this, it'll require new materials and new processes right in our area of expertise... Think of that, concentrating CO₂ while generating power. That really is transformative. Once again, we're working with partners here and we're working with companies like [the negative emissions stock].

Thanks to their joint pilot program, which saw the installation of this company’s negative emissions technology at over 50 locations across the U.S., even mighty ExxonMobil has become convinced of the cost savings compared with traditional carbon-reduction technologies — all while generating power and capturing carbon right at the source.

Exxon has estimated that its own 500 MW power plant with this company’s negative emissions technology added on will generate at least 620 MW of extra power — a nearly 40% swing in its favor compared to the 450 MW a carbon-capture plant would yield.

Vijay Swarup, VP of R&D at Exxon, had this to say:

Our scientists saw the potential for this exciting technology for use at natural gas power plants to enhance the viability of carbon capture and sequestration while at the same time generating additional electricity. We sought the industry leaders in carbonate fuel-cell technology to test its application in pilot stages to help confirm what our researchers saw in the lab over the last two years.

As of December 31, 2017, the United States had over 8,600 power plants. What if each one paid FuelCell Energy $1 million to simply license its incredible technology?

Its shareholders would be sitting on an $8.6 BILLION mega-opportunity.

That would just be the beginning.

Because industrial-scale plants built by this company run into the tens of millions. This also says nothing of the global opportunity to service the estimated 63,000 power plants that electrify our world.

Now that years of successful testing have finally been completed, the time has come for industrial-scale use. Already, construction of massive facilities that use this company’s key technology is already underway. By this year, construction will be complete — just in time for savvy investors to get in before word gets out on this company’s revolutionary technology.

Earn Some Major Green... By Being Green

FuelCell Energy is seeing surging demand for its negative emissions platform as are other companies with this technology.

And not just because it generates electricity while eliminating the carbon dioxide — it also generates hydrogen that can be used for things like fuel cells in buses, industrial lifts, and cars.

The year 2018 marked the first year that its negative emissions technologies have been commercially available on any scale. In spite of the fact that it’s just getting started and that its industrial-scale technologies remain in the construction stage, revenues surged a whopping 1,262% in the first nine months of 2018.

It is also lined up to earn service fees for decades into the future on its world-changing proprietary negative emissions technology. A prime example is a recent deal to build a small-scale plant in South Korea... and service that same project for 20 years!

Not to mention, FuelCell Energy is currently sitting on a backlog of $1.8 billion.

This backlog includes:

• A clean-power generation deal at a Pfizer executive campus
• A power plant revitalization and modernization contract with Dominion Energy
• A resiliency-enhancement deal with a solar energy producer in New England

This is just a sample of what’s to come. As more and more orders pile onto the company’s $1.8 billion mountain of backlog, the profits will start to roll in.

As the company highlighted in a recent investor presentation, it has four key drivers of future profitability:

1. Negative emissions project sales
2. Company-owned negative emissions plant revenues
3. Recurring revenues from service contracts
4. Further technological advances

Simply put, we’re on the verge of a negative emissions revolution, and FuelCell Energy is proving its tech through partnerships with some of the biggest corporations in the world.

FuelCell Energy's Top 3 Negative Emission Projects

1. ExxonMobil Joint Venture

Back in 2016, FuelCell Energy partnered with the largest oil company in the United States: ExxonMobil.

The news could not have been more shocking.

It involved the installation of a megawatt-class negative emission technological addition to a power plant owned by Alabama Power. The U.S. government was also part of the project, awarding millions via the U.S. Department of Energy to design and build the world’s first utility-scale negative emission system.

The project, which will be completed in a matter of months, has already attracted attention. In addition to industry groups and national media shining a spotlight on the project, some very big players are following ExxonMobil’s lead.

Oil sands producers Cenovus Energy and Alberta Innovates (a Canadian oil industry trade group) dove in to test this same technology on oil sands processing.

2. Using Negative Emissions to Produce Hydrogen for Toyota

Big oil isn’t the only player to come knocking on this company’s door.

Toyota, the world’s second-largest automaker, approached FuelCell Energy two years ago. Soon a deal was struck to construct the largest carbonate-based negative emissions plant in North America.

Why would a car manufacturer care about a power plant, you ask? Think back to what I mentioned a bit ago — one of the by-products of this company’s proprietary technology: hydrogen.

It just so happens that Toyota is leading the charge for a hydrogen-powered world. It doesn’t buy Elon Musk’s battery-powered car argument and has opted to fuel our cars not with gasoline but with hydrogen.

The plant, which will come online in 2020 and be built right on American shores, will produce 1.2 tons of hydrogen per day. This hydrogen will be used as fuel for a wave of hydrogen-powered vehicles Toyota has rolling off the assembly line. Soon, you’ll be able to buy a Mirai sedan or even a heavy-duty truck powered not by electricity or gasoline but by hydrogen produced from this one-of-a-kind energy plant.

It doesn’t stop there.

The cars Toyota hopes to sell will be powered by what is essentially a waste product: excess hydrogen from a chemical process. The electricity produced by the plant will make a profit by being sold back to California’s power grid.

All this means thousands of cars could be fueled and electricity generated for the grid, all while eliminating the amount of carbon in the atmosphere.

3. This Groundbreaking South Korean Power Plant (KOSPO)

The potential of FuelCell Energy's negative emissions technology hasn’t gone unnoticed overseas.

In fact, this might just be the most promising of the three projects I’m describing today.

As we speak, far away in the North Chungcheong Province of South Korea, the world’s largest negative emissions power plant is currently under construction.

It may not look like much, but what you see here is a whopping 11.2 megawatts of negative emissions electricity generation.

Don’t let its size fool you — therein lies the beauty of this company’s proprietary technology. Unlike wind and solar, which require huge amounts of space to generate meaningful amounts of electricity, negative emissions technology requires little space at all.

Which is exactly why South Korea’s power company has taken to a technology that, until recently, remained untested.

Seoul, South Korea, isn't the only place dealing with pollution problems. The country itself is about the size of the state of Kentucky, yet it has a population of 52 million — 12 times the population of Kentucky and five times the population of the New York metropolitan area.

Upon completion, the project will produce 80 megawatts of power using the patented technology of FuelCell Energy.

A Bright Future Ahead

As of the most recent quarter, FuelCell Energy completed the first-phase design and engineering of its first carbon capture configured SureSource (negative emissions) power plant. This is planned to be located at a mixed coal/gas-fired power station owned by a subsidiary of Southern Company.

The project is partially funded by the U.S. Department of Energy and ExxonMobil. The next phase of the project includes construction of the carbon capture fuel cell plant.

With this technology still in the early stages of commercialization, investors will need to be patient as they wait for FuelCell Energy to take off, but as a long-term position, this is a potential lottery ticket for those willing to take on a bit of risk.