Growing Demand in Asia for Clean Baseload Fuel Cell Power Generation Drives Order Acceleration
DANBURY, Conn., May 8, 2012 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (Nasdaq:FCEL), a leading manufacturer of ultra-clean, efficient and reliable fuel cell power plants, today announced that the delivery schedule of the previously announced 70 megawatt (MW) order with POSCO Energy will be accelerated to meet growing demand in Asia for ultra-clean, efficient and reliable fuel cell power plants. Under the revised terms, an additional 1.4 MW of fuel cell kits will be delivered monthly for a total of 4.2 MW per month, beginning in July 2012. The original terms called for the delivery of 2.8 MW of fuel cell kits monthly beginning in October 2011 and through October 2013. With the acceleration of deliveries, the 70 MW order will conclude in April 2013 at which time deliveries are expected to begin under the previously announced memorandum of agreement for 120 MW of fuel cell kits.
"POSCO Energy requested this acceleration of deliveries to meet increasing demand in South Korea under the Renewable Portfolio Standard that mandates a certain percentage of new and renewable energy by electric utilities and major independent power producers," said Ben Toby, Vice President, Eastern Region and International Sales for FuelCell Energy, Inc. "This Renewable Portfolio Standard program is creating real market traction and benefit to the country's electricity supply, enabling low carbon economic growth and diversification based on advanced technology, ultra-clean power generation solutions."
Ultra-clean and highly efficient fuel cells are an ideal clean energy solution for South Korea due to the need to import fuel for generating electricity and the poor wind and solar profiles of the Korean Peninsula. South Korea's 'green growth' energy strategy is designed to stimulate economic growth and job creation while increasing demand for clean and low carbon power generation, spurring fuel cell adoption. Under the Renewable Portfolio Standard that took effect at the beginning of 2012, electric utilities and independent power producers with more than 500 MW of generating capacity must install qualifying technologies such as stationary fuel cells or buy renewable energy credits to meet the mandates of the program and avoid penalties.
The distributed generation attribute of fuel cells provides continuous power at the point of use, easing congestion of the transmission grid and enhancing power reliability. DFC power plants are scalable, supporting incremental additions of power generation throughout an electric utility service network. Two fuel cell parks, each in excess of 10 MW, are operating in South Korea, providing ultra-clean power to the electric grid.
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. DFC power plants are fuel flexible, capable of operating on natural gas or renewable biogas. Efficiency of up to 90 percent can be achieved when the DFC plant is configured for combined heat and power (CHP) and the heat used by the customer. High efficiency reduces fuel costs and carbon emissions and producing both electricity and heat from the same unit of fuel can reduce the use of combustion based boilers used for heating, further reducing costs and pollutants.
About FuelCell Energy
Direct FuelCell® power plants are generating ultra-clean, efficient and reliable power at more than 50 locations worldwide. With over 180 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 one 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 our website at www.fuelcellenergy.com
This news release contains forward-looking statements, including 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, whether the Company is able to reach definitive agreements on the terms contemplated in the recently announced memorandums of understanding with POSCO Energy, general risks associated with product development, manufacturing, changes in the regulatory environment, customer strategies, 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.
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