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FuelCell Energy: 55 Years, Zero Profits, Endless Illusions
The strange longevity of hydrogen fuel cell firms that defy economics, logic, and common sense
How can a company never make a profit for over 50 years and still be around? How can it still find investors? FuelCell Energy is that company, and its continuing existence, like that of other perpetual money losing hydrogen fuel cell firms Ballard Power and Plug Power, is deeply perplexing. Thankfully, it’s unlikely to be a question much longer.
Founded in 1969, FuelCell Energy was originally branded Energy Research Corporation (ERC). Like Ballard Power, it began as a developer of advanced battery technology before making exactly the wrong strategic decision and shifting its focus to fuel cells in the 1980s. The company even picked an also ran fuel cell technology, molten carbonate fuel cells (MCFCs) for stationary power generation. Throughout the 1980s and 1990s, ERC secured government research contracts and industrial partnerships that never went anywhere.
In 1992, ERC went public on the Nasdaq stock exchange, using the capital for its fuel cell research and commercialization efforts. By 1999, ERC completed its transition, rebranding as FuelCell Energy, committing itself fully to the dead end technology.
