FuelCell Energy, Inc. (Nasdaq: FCEL), the global leader in molten
carbonate fuel cell technology with its purpose being to utilize
its proprietary, state-of-the-art fuel cell platforms to enable a
world empowered by clean energy, announced today that the Company
closed on a tax equity sale-leaseback financing transaction for the
2.8 MW Tulare BioMAT Project in Tulare, California with Crestmark
Equipment Finance (“Crestmark”), a division of Metabank®.
Crestmark’s commitment totals $14.4 million through a ten-year
sale-leaseback structure and further demonstrates the market’s
interest in FuelCell Energy and our sustainable energy
platforms.
“We are thrilled to team up with Crestmark to
add this important financing solution to our commercial deployment
platform,” said Michael Bishop, Executive Vice President and Chief
Financial Officer of FuelCell Energy. “Financing from Crestmark
broadens FuelCell Energy’s financing relationships. Crestmark has a
deep understanding of the quality solutions delivered by our
products, including carbon neutral projects directly leveraging
on-site biofuels. This efficient sale-leaseback financing structure
enables FuelCell Energy to retain the Tulare BioMAT project in our
generation portfolio, enhancing the Company’s recurring cash flows
and margin.”
Adding this operating asset to the Company’s
generation portfolio is expected to yield recurring revenue in
excess of $2.5 million per year and increases the Company’s
operating assets to 28.9 MW. The Company has another 44.3 MW in
backlog, in various stages of development and construction with
commercial operation dates ranging from 2020 through 2022.
“Crestmark is excited to add FuelCell Energy to
our growing list of clean tech and alternative energy clients,”
said Jon Ellis, Renewable Energy Vice President of Crestmark.
“Crestmark is committed to all forms of alternative energy,
dedicating resources to build expertise and deliver customized
financial solutions to the energy industry. As a leader in megawatt
scale class deployments of clean, efficient baseload power plants,
FuelCell Energy is an important alliance for us, and we look
forward to developing this relationship further.”
Prior to FuelCell Energy’s
SureSource™ Combined Heat and Power (CHP) Power Plant being
installed, the Tulare wastewater treatment plant’s methane rich
biogas was flared (Video Link), which wasted energy and produced
greenhouse gases. The fuel cell is now using that biogas to produce
clean, renewable, carbon neutral power. The City of Tulare benefits
by monetizing the sale of biogas to the project, improving air
quality, and significantly lowering its emissions profile.
The fuel cell uses a chemical reaction versus a combustion approach
to generate energy, significantly reducing the NOx, SOx,
particulate matter, and carbon emissions profile in the San Joaquin
Valley. The electricity generated by the Tulare BioMAT Project is
sold to Southern California Edison through the BioMAT tariff under
a twenty-year power purchase agreement. The fuel cell power plant
is expected to generate enough energy to meet the consumption of up
to 3,000 California homes.
“The Tulare BioMAT project, which began
operation in December 2019, is a milestone project for FuelCell
Energy, demonstrating our strength as a leader in deploying fuel
cell power generation plants that run directly on renewable
biogas,” said Jason Few, President and Chief Executive Officer,
FuelCell Energy. ”FuelCell Energy is committed to helping the world
transition to a low carbon economy by offering innovative energy
platform solutions such as this one. This is our seventh active
energy platform leveraging biofuels; and we are in the process of
initiating our eighth biofuels project at the San Bernardino
Municipal Water Department (SBMWD) in San Bernardino California.
FuelCell Energy will continue to focus on winning opportunities
leveraging biofuels and is competitively advantaged by our
proprietary gas clean-up skid and highly efficient, multi-featured
carbonate fuel cell technology,” Few added.
The net proceeds to the Company from the
financing, after deducting an initial down payment on the lease,
taxes and transaction costs, totaled approximately $10.5 million.
Under the terms of the Company’s senior secured credit facility
with Orion Energy Partners Investment Agent, LLC and its affiliated
lenders (“Orion”), the net proceeds of $10.5 million were deposited
into a restricted cash account for future distribution at the
discretion of Orion for use to construct another project, for
working capital support or for repayment of principal under the
Orion facility. Initial distributions will include $1 million to a
module reserve account for the benefit of Orion under the terms of
the credit agreement. In addition, approximately $3.0 million of
proceeds will be released to fund interest due under the Orion
credit facility as well as certain reserves, interest and accrued
and unpaid dividends for on the Series B Preferred Stock issued by
the Company and the Series 1 Class A Preferred Stock Shares issued
by FCE FuelCell Energy Ltd. and guaranteed by the
Company.
Cautionary Language
This news release contains forward-looking
statements within the meaning of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, including,
without limitation, statements with respect to the Company’s
anticipated financial results and statements regarding the
Company’s plans and expectations regarding the continuing
development, commercialization and financing of its fuel cell
technology and its business plans and strategies. 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, changes to projected deliveries and order flow,
changes to production rate and product costs, general risks
associated with product development, manufacturing, changes in the
regulatory environment, customer strategies, ability to access
certain markets, unanticipated manufacturing issues that impact
power plant performance, changes in critical accounting policies,
access to and ability to raise capital and attract financing,
potential volatility of energy prices, rapid technological change,
competition, the Company’s ability to successfully implement its
new business strategies and achieve its goals, 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.
About Crestmark
Crestmark provides innovative financial
solutions for businesses nationwide. Financing solutions include
asset-based lending, accounts receivable financing, lines of
credit, term loans, factoring, machinery/equipment financing and
equipment leasing. Crestmark has extensive experience in helping
many industries including transportation, manufacturing, staffing,
petrochemical, renewable energy, medical receivables, government
contractors, hospitality/hotels, insurance agencies, and technology
hardware/software. Crestmark, a division of MetaBank®, is
headquartered in Michigan, with additional offices in California,
Florida, Louisiana, Tennessee, and representatives nationwide; and
a Canadian foreign representative office. www.crestmark.com
About FuelCell Energy
FuelCell Energy, Inc. (NASDAQ: FCEL) is a global
leader in developing environmentally responsible distributed
baseload power solutions through our proprietary molten-carbonate
fuel cell technology. We develop turn-key distributed power
generation solutions and operate and provide comprehensive services
for the life of the power plant. We are working to expand the
proprietary technologies that we have developed over the past five
decades into new products, markets and geographies. Our mission and
purpose remains to utilize our proprietary, state-of-the-art fuel
cell power plants to reduce the global environmental footprint of
baseload power generation by providing environmentally responsible
solutions for reliable electrical power, hot water, steam,
chilling, hydrogen, microgrid applications, and carbon capture and,
in so doing, drive demand for our products and services, thus
realizing positive stockholder returns. Our fuel cell solution is a
clean, efficient alternative to traditional combustion-based power
generation and is complementary to an energy mix consisting of
intermittent sources of energy, such as solar and wind
turbines. Our systems answer the needs of diverse customers
across several markets, including utility companies,
municipalities, universities, hospitals, government entities and a
variety of industrial and commercial enterprises. We provide
solutions for various applications, including utility-scale
distributed generation, on-site power generation and combined heat
and power, with the differentiating ability to do so utilizing
multiple sources of fuel including natural gas, Renewable Biogas
(i.e., landfill gas, anaerobic digester gas), propane and various
blends of such fuels. Our multi-fuel source capability is
significantly enhanced by our proprietary gas-clean-up skid.
SureSource, SureSource 1500, SureSource 3000,
SureSource 4000, SureSource Recovery, SureSource Capture,
SureSource Hydrogen, SureSource Storage, SureSource Service,
SureSource Capital, FuelCell Energy, and FuelCell Energy logo are
all trademarks of FuelCell Energy, Inc.
Contact: |
FuelCell
Energy203.205.2491ir@fce.comSource: FuelCell
Energy |
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