POSCO
Power Orders 25.6 Megawatts of FuelCell Energy
Power Plants and Fuel Cell Modules
Approximately $70
Million Order Includes Both DFC1500 and DFC3000 Power Plants and Modules for
Delivery in 2009
DANBURY, Conn., Apr 23, 2008 (PrimeNewswire
via COMTEX News Network) -- FuelCell Energy, Inc. (Nasdaq:FCEL), a leading manufacturer of high-efficiency,
ultra-clean power plants using renewable and a variety of other fuels for
commercial, industrial and utility customers, today announced that POSCO
Power, South Korea's leading independent power producer, has ordered 25.6 MW
of FuelCell Energy Power Plants and fuel cell
modules. The order more than doubles FuelCell
Energy's product backlog and represents nearly $70 million of sales scheduled
for delivery in 2009.
"South Korea
is a world-leading market for renewable energy and our company is committed
to producing green energy and being the leading alternative energy equipment
supplier," said Mr. Seung-Woo Lee, President
and CEO of POSCO Power. "We have been researching the problem of rising
greenhouse gas emissions for several years and we are convinced that fuel
cells are a critical part of the solution with their 24/7, efficient, and
ultra-clean operation. The demand for clean energy continues to grow and we
expect DFC fuel cells will continue to generate substantial orders from our
customer base, both utilities and independent power producers."
In a market that
imports 90 percent of its fuel, the Korean Ministry of Knowledge Economy is a
strong proponent of Korean energy independence. Backed by the country's
commitment to energy independence and green power, POSCO Power signed a
10-year manufacturing and distribution agreement with FuelCell Energy in
February, 2007. With this order, POSCO Power has ordered 38.2 MW of FuelCell
Energy products to date.
DFC power plants meet
South Korea's goals for clean air based on high-efficiency, environmentally
friendly operation, and their ability to use multiple fuels including natural
gas and biogas produced from waste. They produce power electrochemically and
are 47 percent electrically efficient compared to similar-sized fossil fuel
power plants that achieve only 30-35 percent efficiency. The absence of
combustion virtually eliminates pollutants like NOX, SOX and particulate
matter, and DFC power plants' higher efficiency means they deliver more
ultra-clean power for each unit of fuel used, substantially reducing power
costs and CO2 emissions. When operated in a combined heat and power
configuration, where the fuel cells' byproduct heat is used for space or hot
water heating, efficiency increases to as much as 80 percent, resulting in
even more energy savings.
In 2006, the Korean
government created a renewable energy program designed to encourage the
installation of clean energy generation like fuel cells. In addition, the
government required that the power first be exported to the grid, favoring
the installation of larger power generation systems, with the intent to
provide clean, reliable and more-economical electricity.
This order calls for
FuelCell Energy to initially ship complete power plants while POSCO Power
completes the construction of its own 50 MW fuel cell balance of plant (the
non-fuel cell module part of the power plant) manufacturing facility,
expected in the second half of 2008. By mid-2009, all balance of plant
manufacturing for the Korean market will be transitioned to POSCO Power and
FuelCell Energy will supply its proprietary fuel cell module to POSCO Power.
FuelCell Energy and
POSCO Power also signed a Master Service agreement covering all POSCO Power
installations. Executing this service agreement, FuelCell Energy and POSCO
Power will jointly provide service for customers in Korea market.
"This is the next
step for FuelCell Energy and POSCO Power to further penetrate
the South Korean market for sustainable power generation," said Ben Toby,
Vice President Global Business Development, of FuelCell Energy. "With
our 24/7, highly-efficient and ultra-clean fuel cells, and POSCO Power's
manufacturing capabilities, local presence and customer relationships, we are
confident that South Korea will continue to be among our strongest
markets."
About FuelCell Energy
Inc.
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 40 locations worldwide. The company's power plants have generated more
than 200 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, trading companies and power companies around the
world. The company also receives substantial funding from the US Department
of Energy and other government agencies for the development of leading edge
technologies such as hybrid fuel cell/turbine generators and solid oxide fuel
cells. For more information please visit our website at www.fuelcellenergy.com.
About POSCO Power
POSCO Power (http://www.poscopower.co.kr) became a wholly owned subsidiary company of POSCO (NYSE:PKK) in
March 2006. POSCO Power's former name was Kyung In Energy Co., Ltd. which was
established in 1972 as the first Korean Independent Power Producer.
As the biggest
Independent Power Producer ("IPP") in Korea with more than 30 years
of experience and in-depth know-how, POSCO Power is renowned as one of the
most reliable power generators in Korea with a total generating capacity of
1,800 MW, and plays a major role meeting the peaking demand of the Seoul
Metropolitan area (geographic advantages). It has secured profitability under
PPA (Power Purchase Agreement) with KEPCO (Korea Electric Power Corp.) and it
is rated Excellent Credit Rating (AA+) and Financial Condition.
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.
This news release was
distributed by PrimeNewswire, www.primenewswire.com
SOURCE: FuelCell
Energy, Inc.
FuelCell Energy,
Inc.
Lisa Lettieri
203-830-7494
ir@fce.com