FuelCell Energy Announces Approval of Financing for a 3.7 Megawatt Utility-Scale Project
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FuelCell Energy, Inc. (FCEL), a global leader in delivering clean, innovative and affordable fuel cell solutions for the supply, recovery and storage of energy, announced the approval of a $5 million credit facility from the Connecticut Green Bank. This credit facility will support a previously announced utility scale power project in Danbury, Connecticut that will showcase industry leading electrical efficiency, enabling utilities to affordably and cleanly solve power generation challenges in land-constrained areas.
“The Danbury fuel cell project is a great example of Connecticut innovation at work,” said Bryan Garcia, President and Chief Executive Officer, Connecticut Green Bank. “Our ongoing collaboration with FuelCell Energy, and this project in particular, creates a triple-win for the state; increasing power reliability, grid resiliency, and of course, economic development in Connecticut.”
“Our Connecticut-based team of scientists, engineers and manufacturing technicians are focused on addressing power generation challenges globally, and receiving the support of the Connecticut Green Bank for a project in our local market is very gratifying,” said Chip Bottone, President and Chief Executive Officer, FuelCell Energy. “Our distributed generation solutions, such as this high efficiency power plant project, address energy, environmental and economic policy goals of utilities and governments.”
The credit facility will be funded upon commercial operations of the project and is secured by revenues from the sale of electricity, renewable energy credits (RECs), and capacity. The 20 year amortizing facility bears a fixed interest rate. Construction is currently in process and commercial operation is expected in the summer of 2017. The credit facility is subject to execution of definitive documentation and customary closing conditions of the Green Bank.
Multi-megawatt fuel cell installations solve power generation challenges as the combination of near-zero pollutants, modest land-use needs, and the quiet operating nature of fuel cell power plants facilitates their siting in urban locations. Fuel cells provide predictable and environmentally friendly power generation with virtually zero nitrogen oxide (NOx) that causes smog, sulfur dioxide (SOx) that contributes to acid rain, or particulate matter (PM) that aggravates asthma, and the power is delivered with a low carbon footprint. Generating the power near where it is used, enhances the resiliency of the grid and avoids the cost and losses associated with transmission. Given their high capacity factor, fuel cells help governments and utilities make meaningful contributions to clean / renewable portfolio standards goals.