DANBURY, Conn., Oct. 22 FuelCell Energy (NASDAQ:FCEL) said Tuesday it signed a memorandum of understanding with Korea Hydro & Nuclear Power Co. (KHNP) in jointly investigating hydrogen energy projects in South Korea. Pre-market FuelCell shares jumped 2.7% higher after the announcement.

Combining FuelCell's solid oxide electrolysis hydrogen technology with KHNP's large network of power plants, which cover nuclear, hydroelectric, renewable energy, and fuel cellsthe cooperation seeks to utilize both effectively. The companies want to concentrate on creating and using innovative energy solutions that increase efficiency and sustainability.

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The businesses said, "this cooperative approach presents a chance to create new technologies and solutions that can greatly improve energy efficiency." The alliance highlights FuelCell's will to increase its sustainable energy portfolio in Asia and enhance its footprint in worldwide hydrogen markets. Through its varied energy infrastructure, South Korea's top power operator, KHNP, is expected to be instrumental in supporting these projects.

This article first appeared on GuruFocus.