FuelCell Energy Expands Project Portfolio
December 13 2016 - 8:30AM
FuelCell Energy, Inc. (Nasdaq:FCEL), a global
leader in the design, manufacture, operation and project
development of ultra‐clean, efficient and reliable fuel cell power
plants, today announced the acquisition of an operating
megawatt-class fuel cell project that generates in excess of 11
million kilowatt hours annually. The installation has been
operating for approximately five years with the owner selling power
and steam to Central Connecticut State University under a
multi-year power purchase agreement. FuelCell Energy captures
recurring and predictable monthly electricity sales by acquiring
the project.
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/ff2157fc-514e-458b-8fb8-64301f359f08
“This fuel cell project is saving the State money on operating
costs, enhancing power reliability which is critical for the safety
of our students, and helping to ensure our sustainability
leadership as it supported the University as being acknowledged as
an “exemplary Green institution” by the Princeton Review,” said Dr.
Richard Bachoo, Chief Administrative Officer, Central Connecticut
State University.
“This project acquisition was structured to avoid an outlay of
cash and we are assuming project-related debt extended by Webster
Bank,” said Michael Bishop, Senior Vice President and Chief
Financial Officer, FuelCell Energy. “With this project, FuelCell
Energy is now recognizing monthly electricity sales from 5
different projects which enhances our financial profile with
approximately $7 million of contracted annual electricity sales and
a portfolio weighted average power purchase agreement term of
approximately 18 years.”
“We value the consistency of the cash flows that this fuel cell
project generates and we are pleased that it contributes to the
State’s clean emission profile and renewable energy portfolio
standards,” said Carolyn Morrison, Vice President Commercial
Banking, Webster Bank.
“The acquisition of this project is a strategic action to expand
the Company’s recurring and predictable revenue,” continued Mr.
Bishop.
Customers value power purchase agreements as the end-user of the
power benefits from the multiple attributes of clean, affordable
on-site fuel cell power generation while avoiding a capital
investment as power is paid for as it is produced. By
retaining fuel cell projects, FuelCell Energy captures additional
margin and predictable multi-year recurring revenue.
The FuelCell Energy project portfolio includes:
- Pharmaceutical R&D and processing campus in Connecticut –
5.6 megawatts
- Medical center in California – 1.4 megawatts
- Municipal wastewater treatment facility in California – 1.4
megawatts
- Municipal correctional facility in California – 1.4
megawatts
- And today’s announcement of a University in Connecticut – 1.4
megawatts
Fuel cells use chemistry to convert a fuel source into
electricity and heat in a highly efficient process that emits
virtually no pollutants as the fuel is not burned. The
combination of near-zero pollutants, modest land-use needs, and
quiet operating nature of these stationary fuel cell power plants
facilitates installation in urban locations where the power is
used. Customers benefit with operating cost reductions
delivered in a manner that supports sustainability goals and
enhances power reliability.
About FuelCell EnergyDirect FuelCell® power
plants are generating ultra-clean, efficient and reliable power on
three continents, affordably providing continuous distributed power
generation to a variety of industries including utilities,
commercial and municipal customers. The Company’s power
plants have generated billions of kilowatt hours of ultra-clean
power using a wide 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 and follow us on Twitter.
Direct FuelCell, DFC, DFC/T, DFC-H2, DFC-ERG and FuelCell Energy
logo are all registered trademarks of FuelCell Energy, Inc.
Contact:
FuelCell Energy, Inc.
Kurt Goddard, Vice President Investor Relations
203-830-7494
ir@fce.com
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