POSCO
Power Orders 30.8 MW of FuelCell Energy Modules and Components With Estimated
Value of $58 Million
POSCO Power Also Plans
to Purchase $25 Million in FuelCell Energy Common Stock
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.
CONTACT: FuelCell Energy
Lisa Lettieri
(203) 830-7494
ir@fce.com