FuelCell Energy Inc ( FCEL ) shares are trading higher. The company on Thursday announced that it began testing its electrolyzer for a potential commercial nuclear power opportunity.

What Happened: FuelCell announced its solid oxide electrolysis cell (SOEC) system has started a testing and validation period at the U.S. Department of Energy’s Idaho National Laboratory (INL).

The project will study how hydrogen production operations can help nuclear plants diversify and increase their profitability by switching between electricity production and hydrogen generation. The testing will also investigate the potential of advanced small modular reactors paired with FuelCell’s utility-scale electrolyzers.

“Pairing FuelCell Energy’s electrolyzer with nuclear plants is an excellent example of the ‘all-of-the-above’ energy strategy that is necessary to meet the needs of a strained electric infrastructure,” said Jason Few, president and CEO of FuelCell Energy ( FCEL ).

“Nuclear energy is a baseload power source that when paired with FuelCell Energy’s electrolyzer can ensure that every kilowatt of power is converted into a usable or stored energy resource. FuelCell Energy’s electrolysis platform can enable 100% smart energy utilization.”

The testing is expected to show that the technology can reduce the cost of clean hydrogen production by converting 100% of the electricity and water fed into the system into zero-carbon hydrogen. 

The FuelCell Energy ( FCEL ) system will be exhibited to members of the global energy industry who visit INL. Additionally, hydrogen produced by the FuelCell system will be used for ongoing research at the facility.

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FCEL Price Action: FuelCell shares were up 1.72% at $7.73 at the time of publication Thursday, according to Benzinga Pro.