Stewardship International reaps rewards from alternative energy

American company Fuelcell Energy, one of the more speculative holdings within the ethical Stewardship International Fund, proved its commercial viability last week when its share price skyrocketed by 20 per cent on the back of a lucrative contract with the state of Connecticut’s Clean Energy Fund. Sophie Horsfall, manager of the Stewardship International Fund, said the company is moving from being an early stage business to one which could generate significant profits for its investors.

“Fuelcell Energy is part of our portfolio of alternative and clean energy technology companies. The company develops and commercialises ultra clean fuel cell power plants for electricity generation customers including hotels, hospitals, universities and utilities. It also has a competitive edge over other alternative energy sources in its ability to provide uninteruptable electricity generation 24/7 at a cost parity with electric utility prices,” said Horsfall.

“Connecticut is one of 23 US states with renewable energy portfolio standards. News that the state’s renewable energy initiative has awarded Fuelcell 68MW of electricity generation, is a real endorsement of the company’s technology and proof of its commerciality,“ she added. Horsfall said the initiative, which provides a revenue opportunity of some $200m, was still awaiting approval by the Public Utilities Commission but it is widely expected to get the go ahead for launch in 2008.

“Crucially there are another 22 states, as well as Washington DC, that are yet to launch similar initiatives in line with their commitment to increase renewable energy production and Fuelcell is well positioned to be one of the main benefactors. The company has also announced a deal with Posco Power in South Korea, where the government has identified fuel cells as one of ten key drivers for its economy. We believe the stock has yet to fully discount these new deals, giving it a lot more potential with the market,” concluded Horsfall.