DANBURY, Conn., June 9, 2009 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (Nasdaq:FCEL), a leading manufacturer of high efficiency ultra-clean power plants using renewable and other fuels for commercial, industrial, government, and utility customers, today announced that POSCO Power, South Korea's leading independent power producer, ordered 30.8 megawatts (MW) of FuelCell Energy Direct FuelCell(r) (DFC(r)) modules and components. The order represents an estimated sales value to the Company of $58 million and calls for delivery during 2010 and early 2011.
POSCO Power and FuelCell Energy also signed a Memorandum of Agreement whereby the parties agree to pursue a licensing agreement to allow POSCO Power to assemble FuelCell Energy cell and module components into stack modules for sale in South Korea. As part of the transaction, POSCO Power will purchase $25 million in FuelCell Energy common stock at $3.59 per share (the 10-day average FuelCell Energy stock closing price through June 8, 2009) once the licensing agreement is finalized.
South Korea is a leading proponent of clean energy generation, and has declared stationary fuel cell deployment a top priority. Its $38 billion "Green New Deal" plan encourages green technology deployment to improve the country's economic health. Additionally, Korea imports 90 percent of its fuel so efficiency is important.
"We are increasing our commitment to FuelCell Energy power plants because they are ideal for generating highly efficient, ultra-clean electricity and they help us achieve greater energy independence," said Soung-Sik Cho, President and CEO of POSCO Power. "Because these power plants produce power electrochemically, they produce near-zero pollution and are a low-carbon solution -- perfect for South Korea where we have a mandate to reduce our carbon footprint."
DFC power plants are more electrically efficient than any other distributed generation combustion-based technology. DFC power plants' high efficiency means less fuel is needed to generate electricity and they produce lower CO2 than engines and turbines. The result is fuel cost savings while producing ultra-clean electricity, which meets South Korea's desire for low-carbon green technology.
"With South Korea's need for clean electricity to power its economic growth and for greater energy independence, it has quickly become our largest market," said R. Daniel Brdar, Chairman and CEO of FuelCell Energy. "We have more installations and backlog in Asia than any other fuel cell company in the world."
POSCO Power has ordered 68 MW of FuelCell Energy power plants and modules since it became a FuelCell Energy marketing and distribution partner in 2007. Currently, approximately 18 MW of DFC fuel cells are operating or are in various stages of installation in South Korea. Sites include POSCO Power's headquarters and balance-of-plant manufacturing facility in Pohang, a paper company Natura, independent power producers KOMIPO, KOSEP, HS Holdings and MPC, and Korea's utility KEPCO.
About FuelCell Energy
FuelCell Energy is the world leader in the development and production of stationary fuel cells for commercial, industrial, municipal and utility customers. FuelCell Energy's ultra-clean and high efficiency DFC(r) fuel cells are generating power at over 50 locations worldwide. The company's power plants have generated over 315 million kWh of power using a variety of fuels including renewable wastewater gas, biogas from beer and food processing, as well as natural gas and other hydrocarbon fuels. FuelCell Energy has partnerships with major power plant developers and power companies around the world. The company also receives funding from the U.S. Department of Energy and other government agencies for the development of leading edge technologies such as fuel cells. 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 and commercialization of its fuel cell technology. 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, general risks associated with product development, manufacturing, changes in the utility regulatory environment, 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 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.