FuelCell Energy and Korean-based POSCO Energy Announce Strategic Agreement to Globalize the Stationary Fuel Cell Market
21 March 2017 - 11:30PM
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 a
memorandum of understanding with partner POSCO Energy to use an
existing FuelCell Energy subsidiary to directly develop the Asian
fuel cell business for the purpose of expanding Asian market
opportunities. Under this agreement, FuelCell Energy will
immediately commence marketing the entire suite of SureSource™
solutions in Korea as well as the broader Asian markets for the
supply, recovery and storage of energy. POSCO Energy will
continue to service the existing installed base of fuel cell plants
in South Korea and will commit to a specified level of module
purchases from FuelCell Energy to supplement its own local
manufacturing for servicing their existing fleet. Definitive
agreements are expected to be finalized by fall 2017 subject to
completion of due diligence, regulatory approvals, and customary
closing conditions.
“Offering our entire portfolio of solutions throughout Asia
aligns well with our growing list of global customers as well as
sizeable projects with existing customers of POSCO Energy,” said
Chip Bottone, President and Chief Executive Officer FuelCell
Energy. “This revised relationship is structured to rapidly
grow market opportunities and enable project-level investment by
third parties while leveraging the deep relationships of POSCO
Energy.”
“We believe FuelCell Energy will be successful in the
significant Asian utility-scale stationary fuel cell market by now
directly marketing its high quality products,” said Dong Jun Yoon,
President and Chief Executive Officer, POSCO Energy.
The installed fleet in South Korea consists of 18 sites,
totaling more than 170 megawatts with a customer base that includes
15 of Korea’s largest utilities and independent power
producers. The backlog for the underlying service agreements
for these installations includes over 300 megawatts of future fuel
cell module production under existing service agreements.
“We have the capabilities in place for the development,
construction, operation and maintenance of fuel cell projects in
Korea as we leverage our decade-plus working relationship with
POSCO Energy; utilize our global monitoring and control center to
remotely operate and monitor plants worldwide; continue to manage
the joint purchasing from our shared global supply chain; and we
helped design the production process and procured manufacturing
equipment on behalf of POSCO Energy for the fuel cell manufacturing
facility in South Korea,” commented Tony Rauseo, Chief Operating
Officer, FuelCell Energy. “We see this as a natural evolution
for growing the Asian market.”
Fuel cells are well suited for addressing the energy,
environmental and economic goals of the Korean government.
High population density, limited land, and scarce natural resources
that lead to the importation of more than 90 percent of the fuel
needed to generate power and heat requires highly efficient and
affordable power that can be located near where the power is
used. The virtual lack of criteria pollutants and low carbon
footprint of fuel cells combined with affordable economics and
minimal space needs have led to significant fuel cell adoption by
Korean utilities and independent power producers. With high
availability and capacity factors, fuel cell power plants make
meaningful contributions to Renewable Portfolio Standard
targets.
Cautionary Language Regarding Forward-Looking
StatementsThis 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 plans
and expectations regarding the memorandum of understanding. 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.
About FuelCell EnergyFuelCell Energy
(NASDAQ:FCEL) delivers efficient, affordable and clean solutions
for the supply, recovery and storage of energy. We design,
manufacture, undertake project development, install, operate and
maintain megawatt-scale fuel cell systems, serving utilities,
industrial and large municipal power users with solutions that
include both utility-scale and on-site power generation, carbon
capture, local hydrogen production for transportation and industry,
and long duration energy storage. With SureSource™
installations on three continents and millions of megawatt hours of
ultra-clean power produced, FuelCell Energy is a global leader with
environmentally responsible power solutions. Visit us online
at www.fuelcellenergy.com and follow us on Twitter.
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.
Contact:
FuelCell Energy, Inc.Kurt Goddard, Vice President Investor
Relations(+1) 203-830-7494ir@fce.com
Source: FuelCell Energy
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