By Sam Boughedda
Investing.com — Despite opening up Monday's session over 6%, FuelCell Energy Inc (NASDAQ:FCEL) has retraced and currently sits down over 1% after news it has reached a settlement agreement with POSCO Energy and its subsidiary, Korea Fuel Cell.
The settlement relates to POSCO claiming a breach of contract regarding FuelCell's Asian market access.
FuelCell — who described the settlement as "favorable" — said the agreement confirms its exclusivity to sell its differentiated platform technology throughout Asia, including South Korea.
In addition, all licenses formerly granted to POSCO are amended so that it has the right to service its existing installed customer base.
All of the claims between the parties are now settled, except for 2 claims being negotiated that have no impact on market access.The settlement will also see a firm order of a minimum 20 SureSource replacement modules to service existing South Korean operating projects during 2022.
Despite the dispute between the 2 companies, FuelCell shares hit a high of $29.44 in February, though it has since declined steadily, with its stock price slide 42% in 2021.