FuelCell Energy Announces $160 Million Contract to Support Hartford Area Grid
DANBURY, Conn., Jan. 22, 2025 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (NASDAQ:FCEL), a Connecticut-based global leader in delivering clean, innovative fuel cell solutions for the supply, recovery, and storage of energy, announced that it will build a 7.4 MW fuel cell power plant in Hartford, Conn. The project will deliver Class 1 renewable baseload power to the local grid in support of the state's Renewable Portfolio Standard.
The power produced by the fuel cell plant will be sold to the local distribution utilities, Eversource and United Illuminating, under a 20-year power purchase agreement ("PPA"). As a PPA, the project is expected to add more than $160 million of future revenue to FuelCell Energy's generation backlog, a queue of new power generation projects.
Connecticut has been a leader in evolving U.S. energy policy and deployment of clean distributed power generation while modernizing the grid. Once complete, the Hartford project will improve the strength of the public electricity grid in an important load area that serves significant commercial and industrial sections of the region.
FuelCell Energy President & CEO Jason Few commented, "Fuel cells are ideal for urban settings because they deliver space-efficient, quiet, and emission-free distributed resilient and reliable energy."
He added, "Society is increasingly reliant on always-available electric power to meet data center, streaming, and cloud computing demand, as well as the proliferation of electric-hungry devices from cell phones to cars and trucks. We appreciate the state's goal of increasing ‘always on' electric supply--especially from sources that use low-emission natural gas and avoid combusting the fuel, virtually eliminating SOx, NOx, and other particulate matter from emissions for better air quality.
Few concluded, "FuelCell Energy is proud to support Connecticut's grid and demonstrate our distributed technology's ability to deliver faster time to power. We are well positioned to participate in the renaissance of infrastructure investments occurring in the U.S. at a time when the federal government is clearly signaling a focus on how AI will impact our electrical grid."
FuelCell Energy designs, builds and maintains the world's largest fuel cell plants used around the world. In Connecticut, the systems are supporting the grid, a microgrid at the US Subbase New London, and various distributed power solutions.
Large project examples include:
- Bridgeport, Conn.: 15 MWs power plant in operation since 2012 supplying Connecticut Light and Power Company.
- Derby, Conn.: 14 MWs power plant in operation since 2023 supplying Eversource and United Illuminating.
- South Korea: The Hwaseong Baran Industrial Complex fuel cell power plant, in operation since 2013, has the capacity to produce 58.8 megawatts of electricity from 42 fuel cell modules that can provide power to about 135,000 homes and generate about 250 billion kilocalories of hot water for heating approximately 20,000 homes annually.
The Hartford project will be another example of FuelCell Energy's distributed technology and its capability to meet the emerging time-to-power opportunity for microgrids demand in support of large-scale data center growth. The Hartford project is subject to certain customary project development conditions including grid interconnection.
About FuelCell Energy
FuelCell Energy, a pioneer in clean energy, provides efficient and sustainable power, carbon capture, and hydrogen solutions worldwide. The company's fuel cells have been in commercial operation for more than 20 years and are able to run on various fuels including natural gas, hydrogen, and biofuel. Currently being demonstrated at Idaho National Laboratory, the company's solid oxide electrolysis technology holds the promise of aiding industries in reducing carbon footprints with efficient hydrogen production.
Founded in 1969 in Danbury, Conn., the company continues to maintain its headquarters there and has a manufacturing facility in Torrington, Conn., as well. The company's heritage and in-state manufacturing led it to proudly adopt the new "Make It Here" state branding and messaging unveiled in 2023.
FuelCell Energy holds more than 450 patents, advancing the global energy transition.
Learn more about our groundbreaking technology at fuelcellenergy.com.
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Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 regarding future events or the Company's future performance that involve certain contingencies and uncertainties. The forward-looking statements include, without limitation, statements regarding the Company's completion of the project described above and resulting increase in generation backlog, its business plans and strategies, the capabilities of the Company's products, the markets in which the Company expects to operate, and the development of, and demand for, the Company's products. These forward-looking statements are not guarantees of future performance, and 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, the risk that the Company's restructuring plan, revised strategic plan, and workforce reduction will not result in the intended benefits or savings; the Company's ability to reduce operating costs; and the other risks set forth in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2024. The forward-looking statements contained herein speak only as of the date of this release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement contained herein to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.
