FuelCell Energy Completes Sale of University Micro-grid Project to NRG Yield
February 27 2015 - 9:00AM
- NRG Yield purchased from FuelCell Energy, the previously
announced 1.4 megawatt fuel cell power plant project at University
of Bridgeport
- First-ever fuel cell project placed into a yieldco
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 reported the closing of its
previously announced definitive agreement to sell a 1.4 megawatt
fuel cell power plant project at the University of Bridgeport to
NRG Energy, Inc. (NYSE:NRG). Concurrent with the closing, a
subsidiary of NRG, NRG Yield, Inc. (NYSE:NYLD), acquired the
project; the first-ever fuel cell project placed into any yieldco.
The University of Bridgeport will buy the electricity and
heat produced by the fuel cell power plant under a multi-year power
purchase agreement (PPA). FuelCell Energy developed the
project and is in the process of completing the installation of the
power plant. FuelCell Energy will perform operation and
maintenance services for the installation over the multi-year term
of NRG Yield's PPA with the University. The power plant
construction is mechanically complete and commercial operation is
expected in March 2015.
"This project is a compelling model where the University pays
NRG Yield for the clean power it receives while averting the need
to invest in the power generation asset itself," said Michael
Bishop, Chief Financial Officer, FuelCell Energy, Inc. "The
University also benefits by enhancing the resiliency of its power
supply in a low carbon manner that is almost completely absent of
the pollutants that generate smog, acid rain and that can aggravate
asthma."
The fuel cell power plant provides ultra-clean electricity and
heat to approximately 80 percent of the campus including the
student center, the dining hall, the recreation center, two
dormitories and the on-campus police station, and is configured as
a micro-grid to operate independently of the electric grid in the
event of a grid disruption. The ability to continue to provide
power to these campus facilities despite the weather, provides
energy security to the University administration as well as the
students.
"We are working to replicate this model where the installation
hosting the fuel cell installation and using the power benefits
from the multiple attributes of our clean and affordable on-site
power generation solutions utilizing a pay-as-you-go model with a
financial intermediary owning the power generation asset,"
continued Mr. Bishop. "We can offer a variety of ownership and
financial structures that best meet the needs of the site host that
is using the power."
A yieldco is a publicly traded company that is formed to
own long-term operating assets that produce a predictable cash
flow, such as power generation and transmission assets.
Critical installations such as universities and hospitals
benefit from micro-grid installations such as this project for a
number of reasons, including:
- Enhanced energy security from on-site power that is not
dependent on weather or time of day
- Combined heat and power capabilities enhance economics and
support sustainability initiatives
- Environmentally friendly power generation that is virtually
absent of pollutants, facilitating the air permitting process
- Low carbon footprint due to the highly efficient power
generation process
- The quiet and vibration free operation of fuel cell power
plants combined with modest space requirements and minimal
emissions enables fuel cell plants to be located next to or within
buildings
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 3 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.
See us 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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