FCEL FuelCell Energy Inc

FuelCell Energy, Inc. (Nasdaq: FCEL) and Oando Clean Energy Limited (OCEL), the renewable energy subsidiary of Oando Energy Resources (OER), a part of the Oando PLC group of companies, are pleased to announce the signing of a memorandum of understanding (MOU) to collaborate on the development of a 5 to 15-Megawatt (MW) power plant.

In addition to FuelCell Energy’s fuel cell and electrolyzer technology, the agreement also includes the potential for the use of FuelCell Energy’s carbon capture and sequestration technologies. Unlike other carbon capture technologies that require power to capture carbon dioxide, FuelCell Energy’s platforms can produce power while simultaneously capturing carbon dioxide. The signing of this MOU is an integral part of OCEL’s drive to strengthen electricity access in African markets via low-carbon renewable energy sources starting in its home country, Nigeria.  

Today, Nigeria relies heavily on generators to support power generation at a local and commercial level. Specifically, around 84% of urban households use back-up power supply systems such as diesel/gasoline generators and/or solar-based systems, while about 86% of the companies in Nigeria own or share a generator. These fossil fuel generators create noise, particulate pollutants and are substantial contributors to greenhouse gas emissions.  

Furthermore, there is a significant dearth in access to power, with 85 million Nigerians – representing approximately 43% of the country’s population - unconnected to the national grid.

The Nigerian Federal Government’s Renewable Energy Master Plan seeks to increase the share of renewable electricity from 13% of total electricity generation in 2015 to 23% in 2025 and 30% by 2030. In addition, in 2021, Nigeria passed the Climate Change Act to lower greenhouse gas emissions and implement a supporting framework to meet the country’s commitment to net zero emissions by 2060.   

FuelCell Energy's platforms are helping utilities and independent power producers transition to net zero while strengthening grid reliability with zero particulate matter emissions. These platforms can enhance grid resiliency by adding a reliable source of on-site power generated right where it is needed. 

“The opportunity to bring our technology to Nigeria is a critical moment for FuelCell Energy,” said Jason Few, CEO and president of FuelCell Energy. “Nigeria has an abundance of renewable energy sources that can be harnessed with the power of fuel cell technology. We are proud to have the opportunity to collaborate with OCEL to deliver stable electricity supply, better grid reliability, and security while contributing to Nigeria’s goal of net-zero emissions by 2060.”  

“As a company, Oando has always been a proponent of using energy as a lever to move Nigeria forward. With an understanding of how the gaps within our current power infrastructure impede the nation’s development, we see this MOU signing as an opportunity for us to accelerate the country's industrialization via increased access to power.

“The increased awareness and acceptance of renewable energy as a sustainable and long-term approach to the world’s power needs has led to lower prices and increased innovative and more accessible solutions, including FuelCell Energy’s solutions. Their flexible, cost-effective, and state-of-the-art scalable technology gives us confidence that we have chosen a good partner to help Nigerians access reliable low-carbon energy. Beyond access to power, this collaboration is in tandem with OCEL’s overarching strategy of building a clean energy ecosystem whilst supporting the Federal Government’s vision of net zero emissions by 2060.

“We are excited, not just by signing this MOU, but the progress we continue to make in identifying and deploying solutions that show Nigeria and the continent as committed to a cleaner and more sustainable future,” said OCEL Chairman, Adewale Tinubu.

The MOU signing occurred during the ongoing roadshow being hosted by the U.S. Agency for International Development (USAID) Mission in Nigeria, U.S. Government Prosper Africa, and Power Africa initiatives to expose U.S. investors to opportunities and the investment ecosystem in Nigeria.

The roadshow made up of 12 executives from leading U.S. pension funds, and financial service providers, managing over $1 trillion in assets, including Daniel Miller, Deputy Executive Director, New York City Board of Education Retirement System and Kola Aina, Senior Vice President, Strategy and Operations North America, MasterCard, were present at the MOU signing with Mark Feasel, Executive Vice President and Chief Commercial Officer, FuelCell Energy.

About FuelCell Energy:FuelCell Energy, Inc. (NASDAQ: FCEL): FuelCell Energy is a global leader in sustainable clean energy technologies that address some of the world’s most critical challenges around energy, safety, and global urbanization. It collectively holds more than 450 fuel cell technology patents in the United States and globally. As a leading global manufacturer of proprietary fuel cell technology platforms, FuelCell Energy is uniquely positioned to serve customers worldwide with sustainable products and solutions for businesses, utilities, governments, and municipalities. The Company’s solutions are designed to enable a world empowered by clean energy, enhancing the quality of life for people around the globe.

About Oando Clean Energy Limited:Headquartered in Lagos, Nigeria, Oando Clean Energy Limited (OCEL) is the renewable energy business subsidiary of Oando Energy Resources, a part of the Oando PLC group of companies. OCEL’s agenda is to invest in climate friendly and bankable energy solutions across the African continent; thus meeting the continent’s demand through the exploitation of green and renewable sources, as we strive towards the achievement of a carbon neutral Africa. OCEL’s core areas of interest include Sustainable Transport, Solar Energy Solutions, Gas & Biofuels, Waste to Energy, Wind Farms, Geothermal Power Plants, Hydro Energy and other emerging technologies.

With roots dating back to 1956, Oando has been in the energy value chain with a track record of operation excellence and investments in projects that proffer solutions to some of Africa's energy challenges.

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, the Company’s plans and expectations regarding the continuing development and commercialization of its carbon capture technology. 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 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, 2022. 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.

Contacts:

FuelCell Energy

ir@fce.com 203.205.2491

Kathleen Blomquistkblomquist@fce.com203.546.5844

Oando

Alero Balogunalbalogun@oandocleanenergy.com+234 (1) 270400, ext. 6761