FuelCell Energy Announces Strengthening of Strategic Relationship With POSCO Energy Supporting Global Market Development and ...
May 13 2014 - 08:30AM
- Collaboration on development of global customer
opportunities
- Integrated global supply chain agreement enhances reliability
of supply and supports product cost reductions
- FuelCell Energy sells 5.6 megawatts of fuel cell modules to
POSCO Energy to meet growing Asian demand
DANBURY, Conn., May 13, 2014 (GLOBE NEWSWIRE)
-- 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,
announced further steps to accommodate the increasing global demand
for megawatt-class stationary fuel cell power plants, ensuring
preeminent customer support around the world as well as enhanced
execution of product cost reductions. FuelCell Energy and
POSCO Energy are collaborating to support multi-national customers
expressing interest in fuel cell projects in the other partner's
territory, are further synchronizing the integrated global supply
chain, and executing the sale of four fuel cell modules, totaling
5.6 megawatts to meet rising demand in Asia.
"Even closer collaboration between POSCO Energy and FuelCell
Energy ensures that our respective customers receive the enhanced
value and security for their investment as we reduce costs
and further enhance the overall competitiveness of clean
distributed fuel cell power generation," said Jung-Gon Kim, Senior
Vice President of POSCO Energy.
Increasing interest in stationary fuel cell applications in
different geographic regions from companies with global operations
has led to the broadening of activities between FuelCell Energy and
POSCO Energy. Enhanced collaboration accommodates North
American, European or other non-Asian customers of FuelCell Energy
that are interested in a fuel cell installation in Asia as well as
Asian customers of POSCO Energy that desire a fuel cell
installation outside of Asia. With growing global adoption of
Direct FuelCell® power plants, trends to larger-sized fuel cell
parks, and cross-territorial interest from multi-national
customers, FuelCell Energy and POSCO Energy can support global
customers in each other's local market to ensure consistency of
communication, quality and execution.
The construction of the POSCO Energy cell manufacturing facility
is on schedule with production expected in mid-2015. Once
operational, this facility will double the global manufacturing
capacity of FuelCell Energy's proprietary power plants.
The integrated global supply chain agreement reaffirms the
global supply chain alignment, which is critical for expected
product cost reductions. Decreasing product costs supports
further market adoption as well as margin expansion. The
combined purchasing volume of both organizations results in both
partners benefitting from purchases by each other through lower
product costs. By leveraging the existing supply advantages of
both companies, including POSCO's steel manufacturing capabilities
and mining operations, FuelCell Energy will realize enhanced
security of supply and increasing production volumes in any
one region benefits both partners with lower product costs
globally.
"The relationship we have with POSCO Energy is a differentiator
in the fuel cell industry as we work together to continue to grow
the market while further driving down product costs and improving
project financial returns," said Chip Bottone, President and CEO of
FuelCell Energy. "As a leading global steel manufacturer,
POSCO's investment in market development, manufacturing capacity,
and partial ownership in FuelCell Energy are additional points of
validation for our affordable, ultra-clean, and secure power
generation solutions while manufacturing in more than one location
mitigates risk for the customer base."
During the second quarter of 2014, FuelCell Energy sold four
fuel cell modules totaling 5.6 megawatts to POSCO
Energy. These modules are in addition to the monthly fuel cell
kit shipments under an existing 122 megawatt order. This
second quarter 2014 5.6 megawatt module purchase, as well as
the previously announced first quarter 2014 2.8 megawatt module
purchase, will both support new installations that POSCO is
completing this calendar year for its customers in Korea.
"The timing of these module orders supports specific projects in
Asia as the ability to construct multi-megawatt fuel cell parks in
short time frames of about a year is a differentiator in the power
generation market and the short construction period helps to
minimize capital costs," continued Mr. Bottone. "The ability
to rapidly construct a fuel cell park of ten to sixty megawatts
enables utilities to add clean baseload power where they need it
within their service territory while avoiding the cost and
permitting challenges of transmission lines."
POSCO Energy is a wholly owned 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 3,000
megawatts of power generation including generation assets in
Southeast Asian countries including Indonesia and Vietnam, as well
as a solar park in Nevada, USA. POSCO Energy 2013 sales
totaled $2.8 billion supported by total capital of $1.5 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.
Multi-megawatt fuel cell parks solve power generation challenges
for utilities as the combination of near-zero pollutants, modest
land-use needs, and the quiet operating nature of fuel cell power
plants facilitates their siting in urban locations. Fuel cell
parks offer a multitude of advantages for utilities and neighboring
communities, including:
- Environmentally friendly power generation with virtually zero
nitrogen oxide (NOx) that causes smog, sulfur dioxide (SOx) that
contributes to acid rain, or particulate matter (PM10) that
aggravates asthma, and the power is delivered with a low carbon
footprint
- Distributed power generation places power near where it is
used, enhancing the resiliency of the grid
- Highly efficient power generation process that is
economical
- Continuous renewable power around the clock that is not reliant
on weather or time of day
DFC® power plants utilize carbonate fuel cell technology, which
is well suited for megawatt-class applications due to the
scalability and favorable cost profile. Another
advantage is that carbonate cells operate efficiently without
the need for noble metal catalysts, such as platinum, which are
required by some other types of fuel cell technology.
About FuelCell Energy
Direct 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 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
more than two 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 more information, please visit
www.fuelcellenergy.com
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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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