FuelCell Energy Announces Construction Financing for Project at the U.S. Navy Submarine Base in Groton, Connecticut
March 04 2019 - 8:00AM
FuelCell Energy, Inc. (Nasdaq: FCEL), a global leader in delivering
clean, innovative and affordable fuel cell solutions for the
supply, recovery and storage of energy, today announced the signing
of a construction financing facility with Fifth Third Bank. The
proceeds will be used by FuelCell Energy to finance the
construction, installation and commissioning of the fuel cell power
plant being built by the Company at the U.S. Navy Submarine Base
located in Groton, Connecticut. The facility structure provides for
aggregate principal commitments of up to $23 million. The initial
draw amount under this facility, funded at closing, was
approximately $10 million.
This financing enables the installation of two SureSource 4000™
power plants for the long-term supply of power. These power plants,
with total output of 7.4 megawatts and located on the submarine
base will supply an existing electrical substation of the
Connecticut Municipal Electric Energy Cooperative (CMEEC) and
Groton Utilities under a 20-year power purchase agreement. The fuel
cell plant is part of a multifaceted plan to provide new power
resources and add resiliency and grid independence to key military
installations.
“This construction financing facility marks another important
step for FuelCell Energy as we work to bring in cost efficient
capital to support our project development and ownership. Fifth
Third is a new financing partner for FuelCell Energy, and we
certainly look forward to growing our relationship with Fifth Third
further as we move forward,” said Chip Bottone, President and Chief
Executive Officer, FuelCell Energy.
In conjunction with this loan closing, the Company also obtained
commitment letters for $23.0 million of 15-year term financing to
be funded upon completion of construction, subject to negotiation
and execution of definitive agreements, lender due diligence, and
customary closing conditions. This financing will be provided by a
consortium of banks. The Connecticut Green Bank and Inclusive
Prosperity Capital, a spinout and strategic partner of the Green
Bank, were engaged to source the construction and permanent
financing for this project.
“We are pleased to have run a successful process for FuelCell
Energy, securing competitive bank financing for this project,” said
Bert Hunter Chief Investment Officer, Connecticut Green Bank. “This
financing demonstrates FuelCell Energy’s ability to attract
traditional project finance capital long available for solar PV,
wind and hydroelectric power plants. With its vital resiliency and
clean energy benefits to the CMEEC, the Navy subbase and
Connecticut, we look forward to supporting the completion and
operation of the project over the next fifteen plus years.”
SureSource™ power plants solve energy, environmental and
business-related power generation challenges by providing
ultra-clean, efficient and reliable distributed power generation.
The fuel cells combine a fuel such as renewable biogas, directed
biogas or clean natural gas with oxygen from the ambient air to
efficiently produce ultra-clean electricity and usable high-quality
heat via an electrochemical process. Customers benefit with
operating cost reductions delivered in a manner that supports
sustainability goals and enhances power reliability. With high
availability and capacity factors, fuel cell power plants make
meaningful contributions to Renewable Portfolio Standard
targets.
About FuelCell Energy
FuelCell Energy, Inc. (NASDAQ: FCEL) delivers
state-of-the-art fuel cell power plants that provide
environmentally responsible solutions for various applications such
as utility-scale and on-site power generation, carbon capture,
local hydrogen production for both transportation and industry, and
long duration energy storage. Our systems cater to the needs of
customers across several industries, including utility companies,
municipalities, universities, government entities and a variety of
industrial and commercial enterprises. With our megawatt-scale
SureSource™ installations on three continents and with more than
8.0 million megawatt hours of ultra-clean power produced, FuelCell
Energy is a global leader in designing, manufacturing, installing,
operating and maintaining environmentally responsible fuel cell
distributed power solutions. Visit us online at
www.fuelcellenergy.com and follow us on Twitter
@FuelCell_Energy.
SureSource, SureSource 1500, SureSource 3000,
SureSource 4000, SureSource Recovery, SureSource Capture,
SureSource Hydrogen, SureSource Storage, SureSource Service,
SureSource Capital, FuelCell Energy, and FuelCell Energy logo are
all trademarks of FuelCell Energy, Inc.
Cautionary Language
This news release contains forward-looking
statements within the meaning of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, including,
without limitation, statements with respect to the Company’s
anticipated financial results and statements regarding the
Company’s plans and expectations regarding the continuing
development, commercialization and financing of its fuel cell
technology and business plans. All forward-looking statements are
subject to risks and uncertainties that could cause actual results
to differ materially from those projected. Factors that could cause
such a difference include, without limitation, changes to projected
deliveries and order flow, changes to production rate and product
costs, general risks associated with product development,
manufacturing, changes in the regulatory environment, customer
strategies, unanticipated manufacturing issues that impact power
plant performance, changes in critical accounting policies,
potential volatility of energy prices, rapid technological change,
competition, and the Company’s ability to achieve its sales plans
and cost reduction targets, as well as other risks set forth in the
Company’s filings with the Securities and Exchange Commission. The
forward-looking statements contained herein speak only as of the
date of this press release. The Company expressly disclaims any
obligation or undertaking to release publicly any updates or
revisions to any such statement to reflect any change in the
Company’s expectations or any change in events, conditions or
circumstances on which any such statement is based.
Contact: |
Contact:FuelCell Energy203.205.2491ir@fce.com
Source: FuelCell Energy |
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