DANBURY, Conn., June 26, 2012 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (Nasdaq:FCEL) a leading manufacturer of ultra-clean, efficient and reliable power plants, today announced the completion of the previously announced asset acquisition of select fuel cell assets by its German subsidiary, FuelCell Energy Solutions, GmbH, including fuel cell component inventory and fuel cell manufacturing equipment. Additionally, the previously announced joint venture with Fraunhofer IKTS has been completed, with Fraunhofer contributing intellectual property and capital to FuelCell Energy Solutions, GmbH in return for 25 percent ownership.
"We have integrated research and development assets as well as the fuel cell patent portfolio that we received and will be applying our research expertise to further enhance the fuel cell technology as well as working to reduce product costs," said Prof. Dr. Alexander Michaelis, director, Fraunhofer IKTS. "We are also preparing and submitting grant proposals with FuelCell Energy Solutions to government agencies to promote the adoption of ultra-clean stationary fuel cell power generation. With this joint effort we can make a significant contribution to the aspired 'Energiewende' (new energy age) in Europe."
"We have the right partner in Fraunhofer to help us develop and grow the European market and our variable cost strategy, including production assets and inventory acquired at no cost, allows us to create the foundation for growth with subsequent investment predicated on order volume," said Chip Bottone, President and Chief Executive Officer for FuelCell Energy, Inc. "I remain encouraged with the outlook for clean baseload distributed generation in Europe despite the macro-economic challenges the region is facing and I say this based on recent discussions with prospective customers and government officials."
The headquarters of FuelCell Energy Solutions, GmbH is based in Dresden, Germany and manufacturing is located in Ottobrunn, Germany. Local manufacturing capabilities consist of power plant assembly and stacking of fuel cell components. FuelCell Energy Solutions is consolidated in the financial statements of FuelCell Energy, Inc.
Direct FuelCell® (DFC®) plants provide ultra-clean electricity and usable high-quality heat in an efficient and reliable manner. Fuel cells generate power through an electrochemical reaction that does not require combustion. Due to this lack of combustion, fuel cells emit virtually no pollutants, resulting in the generation of ultra-clean electricity. Fuel cells can achieve up to 90 percent efficiency when configured to use the high quality heat generated by the power plant in a combined heat & power (CHP) mode. High efficiency reduces fuel costs and carbon emissions and producing both electricity and heat from the same unit of fuel drives economics while simultaneously promoting sustainability.
DFC plants provide continuous baseload power and can be sited where the power is used, including both on-site applications and electric grid support. The combination of near-zero pollutants, modest land-use needs, and quiet operating nature of DFC plants facilitates their siting in urban locations. Sales opportunities across the European Union are being targeted with an initial emphasis on Germany.
Founded in 1949, Fraunhofer is Europe's largest application-oriented research organization with an annual research budget of €1.8 billion (approximately $2.3 billion) and more than 18,000 staff, primarily scientists and engineers. Fraunhofer has research centers and representative offices in Europe, USA, Asia and the Middle East, and more than 80 research units, including 60 Fraunhofer Institutes, at different locations in Germany. The Fraunhofer IKTS with its staff of 400 highly educated engineers, scientists and technicians is a world leading institute in the field of advanced ceramics for high tech applications. The primary markets for IKTS include energy and environmental technology with a focus on fuel cell development and commercialization.
Website: www.ikts.fraunhofer.de/en
About FuelCell Energy
Direct FuelCell® power plants are generating ultra-clean, efficient and reliable power at more than 50 locations worldwide. With approximately 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 over one billion kilowatt hours of 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
The FuelCell Energy, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3284
The FuelCell Energy Solutions logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=13430
The Fraunhofer IKTS logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11748
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, 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.
