FuelCell Energy Commences Expansion of North American Manufacturing Facility
November 19 2015 - 10:30AM
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 the
commencement of the previously disclosed North American
manufacturing facility expansion, and closing on an Assistance
Agreement with the Connecticut Department of Economic and Community
Development. A groundbreaking ceremony was held earlier today
to highlight the expansion project, which will increase the size of
the facility by approximately 102,000 square feet to approximately
167,000 square feet in total. The project will enhance and
streamline logistics functions and manufacturing processes and
prepare for subsequent manufacturing capacity expansion.
"We are proud that FuelCell Energy is continuing to grow its
presence in Connecticut, particularly because it is a company that
is nurturing and creating the type of cutting edge, innovative jobs
that are leading the 21st century economy, all while helping to
advance our environmental goals. These are the advanced
technologies that are helping our state, our nation, and our world
reduce its carbon pollution, and truly helping make a positive
impact," said Governor Malloy.
The expansion is being undertaken in two phases with the first
stage increasing the size of the manufacturing facility and the
second stage increasing annual manufacturing capacity from the
current 100 megawatts to at least 200 megawatts. The State of
Connecticut has extended a financial package through the Department
of Economic and Community Development for both stages, including
$20 million of low interest long-term loans and up to $10 million
of tax credits, predicated on certain terms and conditions,
including the forgiveness of up to 50 percent of the loan principal
if certain job retention and job creation targets are
reached. The State has advanced $10 million to date under the
Phase 1 loan agreement. Principal payments are deferred for four
years and interest is payable monthly at a fixed rate of 2.0
percent. The loan is secured by certain equipment and facilities of
the Company.
Initially, the added space will be used to enhance and
streamline logistics functions and provide the space needed to
reconfigure the existing production process to improve
manufacturing efficiencies and realize cost savings. As
demand supports, manufacturing equipment will be added to increase
annual capacity. Additionally, plans for the second stage
include the installation of a megawatt scale tri-generation fuel
cell plant to power and heat the facility as well as provide
hydrogen for the manufacturing process of the fuel cell components,
and the creation of advanced technology testing and prototype
manufacturing. Under the first phase of the expansion, the Company
expects to add 165 positions to its existing workforce of over 500
employees. In phase two, the Company would add another 160
positions.
“We are experiencing increasing interest in our affordable and
highly efficient on-site power generation solutions and this phased
expansion is positioning us for further growth,” Chip Bottone,
Chief Executive Officer, FuelCell Energy, Inc. said. “We value the
highly talented and motivated work force available in Connecticut
and the close coordination between government, industry and the
university system to align for economic growth and business
success.”
FuelCell Energy designs, manufacturers, installs and services
highly efficient and environmentally friendly power generation with
easy-to-site stationary fuel cell power plants. These clean
and affordable power generation solutions provide megawatt-class
scalable on-site power and utility grid support, helping customers
solve their energy, environmental and business challenges.
The power plants are located in populated areas as they are
virtually pollutant free, operate quietly and without vibrations,
and have only modest space requirements. Locating the power
generation near the point of use provides many advantages,
including less reliance or even avoidance of the transmission grid,
leading to enhanced energy security and power reliability.
Deployments range in size from 1.4 megawatt university and hospital
campus installations to 60+ megawatt utility scale fuel cell
parks. Multi-megawatt fuel cell parks under development for
grid support combined with the potential for multi-megawatt fuel
cell parks located at existing coal and gas fired power plants for
carbon capture are factors in the planning for manufacturing
capacity expansion.
FuelCell Energy global headquarters are in Danbury, Connecticut
with North American manufacturing in Torrington, Connecticut.
European markets are served from a facility in Germany and
supported by the Torrington manufacturing facility. Asian
markets are served through a partnership with the largest
independent power producer in South Korea, POSCO Energy.
Research and development labs are located in Danbury as well as
research facilities in Colorado and Canada.
Fuel cells electrochemically convert a fuel source into
electricity and heat in a highly efficient process that emits
virtually no pollutants due to the absence of combustion. The
Direct FuelCell® (DFC®) stationary fuel cell power plants
manufactured by FuelCell Energy utilize carbonate fuel cell
technology and provide continuous power located where the power is
used, including both on-site applications and electric grid
support. The power plants are fuel flexible, capable of
operating on natural gas, on-site renewable biogas, or directed
biogas.
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 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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