FuelCell Energy, Inc. (Nasdaq:FCEL), a global leader in
the design, manufacture, operation and service of ultra‐clean,
efficient and reliable fuel cell power plants, today announced a
market and manufacturing update regarding the Asian market,
including the commencement of construction of a 20 megawatt fuel
cell park in Seoul, South Korea. Fuel cells are well suited
for meeting South Korea’s demand for clean power as they are
easy-to-site in high density urban locations, using minimal land,
generally avoiding the need for clean air permitting due to their
ultra-clean emission profile, and the continuous power profile
maximizes the power output generating substantial renewable energy
credits that are utilized by electricity suppliers. POSCO
Energy, the South Korean partner of FuelCell Energy has constructed
and operates more than 20 sites in South Korea in excess of 150
megawatts.
The project owner of the referenced 20 megawatt fuel cell park
is Noeul Green Energy Co., Ltd., whose majority shareholder is
Korea Hydro & Nuclear Power (KHNP), a repeat customer of the
POSCO Energy fuel cell division and the largest utility in South
Korea. The ultra-clean power produced by the fuel cells will
be sold to KPX (Korea Power Exchange). The high-quality heat
generated by the fuel cell park will be sold to Korea District
Heating Company, the largest heat supplier in South
Korea.
Fuel cell projects attract capital reflecting the strong credit
profiles of the electricity and heat purchasers, the market value
of clean power in the form of renewable energy credits, and the
continuous power profile of fuel cells that is not dependent on
weather or time of day, ensuring consistent financial
returns.
Fuel cell parks are constructed in short time frames of a year
or less and this facility is expected to be fully operational by
the end of 2016, or an expected 9-10 month construction
period. The fuel cell power plants are located in an urban
park, utilizing only about 1.7 acres of land to cleanly generate
power for approximately 43,000 Korean households and heat for
approximately 9,000 households.
Highly efficient and clean fuel cell power generation such as
the Noeul Green project supports the Seoul City sustainable energy
action plan, which promotes decentralized energy production,
delivered efficiently and with low emissions, in a manner that
creates jobs in Korea. Intermittent renewable energy
production requires significantly more land and larger project
sizes to generate the same amount of renewable energy credits as
fuel cell projects, which is challenging in areas with limited land
resources. With relatively modest footprints, ten megawatts
of fuel cells can be sited on only one acre of land, whereas a
solar array would need approximately 375 acres to generate the same
megawatt hours of power annually, or in other words, generate an
equivalent number of renewable energy credits (REC’s). This
land requirement would not be available within a city so would
require electrical transmission towers, requiring permitting,
construction and maintenance costs, and result in power losses
during transmission, which can be in the range of 6-8 percent
depending on location and weather.
The suitability of fuel cells for the Asian market is
illustrated in a sizeable project pipeline in excess of 400
megawatts in South Korea alone. This pipeline represents
prospective projects that have advanced beyond a series of stages
including preliminary confirmation of project site control,
supportive economics, and identification of a potential customer or
customers for the energy. Carbon capture and distributed
hydrogen fuel cell configurations reflect future potential market
expansion opportunities in Asia.
“We are pleased to be working with a repeat utility customer to
add another fuel cell park to their power generation portfolio,”
said Sung-Gyu Han, Senior Executive Vice President, POSCO
Energy. “As we work to expand our installed base and
integrate local manufacturing, we need to optimize our resources
including a review of operating expenses and staffing levels.”
POSCO Energy operates a manufacturing campus in Pohang, South
Korea that manufactures the entire fuel cell plant locally, under
license from FuelCell Energy. The two partners have worked
together closely to optimize the production line lay-out,
incorporate material handling automation, and foster a culture of
continuous improvement.
“Asian markets represent sizeable opportunity for clean and
affordable fuel cell solutions in a variety of configurations,”
said Chip Bottone, Chief Executive Officer, FuelCell Energy, Inc.
“Asian manufacturing supports local economic development and
manufacturing in both Asia and North America provides redundancy
and a second source of supply for each partner.”
The DFC® stationary fuel cell power plants utilize a common
global technology platform and provide continuous power located
where the power is used, including both on-site applications and
electric grid support. The plants provide combined heat and power
(CHP) capabilities that support sustainability initiatives and
economics. The plants are fuel flexible, capable of operating
on clean natural gas, on-site renewable biogas or directed biogas.
Power is produced by an electrochemical reaction, and by avoiding
combustion, fuel cells are virtually absent of pollutants such as
nitrogen oxide (NOx), which causes smog, sulfur dioxide (SOx),
which contributes to acid rain, or particulate matter, which can
aggravate asthma.
POSCO Energy is a subsidiary of POSCO, a leading global steel
producer headquartered in Pohang, South Korea. POSCO Energy is an
independent power producer with power generation assets in South
Korea that provide power to POSCO and to the electric grid. POSCO
Energy owns more than 4,000 megawatts of power generation including
generation assets in Southeast Asian countries including Indonesia
and Vietnam. POSCO Energy 2015 sales totaled approximately $1.7
billion, supported by total capital of approximately $1.4 billion.
The parent, POSCO, is publicly traded on the Korean Stock Exchange
under the symbol 005490 and on the New York Stock Exchange under
the symbol PKX.
About FuelCell EnergyDirect FuelCell® power
plants are generating ultra-clean, efficient and reliable power at
more than 50 locations worldwide. With more than 300
megawatts of power generation capacity installed, ready for
installation, or in backlog, FuelCell Energy is a global leader in
providing ultra-clean baseload distributed generation to utilities,
industrial operations, universities, municipal water treatment
facilities, government installations and other customers around the
world. The Company’s power plants have generated over four
billion kilowatt hours of ultra-clean power using a variety of
fuels including renewable biogas from wastewater treatment and food
processing, as well as clean natural gas. For additional
information, please visit www.fuelcellenergy.com, follow us on
Twitter and view our videos on YouTube.
Direct FuelCell, DFC, DFC/T, DFC-H2 and FuelCell Energy, Inc.
are all registered trademarks of FuelCell Energy, Inc.
DFC-ERG is a registered trademark jointly owned by Enbridge, Inc.
and FuelCell Energy, Inc.
Contact:
FuelCell Energy, Inc.
Kurt Goddard, Vice President Investor Relations
203-830-7494
ir@fce.com
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