FuelCell Energy to Acquire 14.9 Megawatt Bridgeport Fuel Cell Park from Dominion Energy
November 05 2018 - 8:30AM
FuelCell Energy, Inc. (Nasdaq: FCEL), a
global leader in delivering clean, innovative and affordable fuel
cell solutions for the supply, recovery and storage of energy,
today announced that it has entered into an agreement to acquire
the existing 14.9 megawatt fuel cell park in Bridgeport, CT from
Dominion Energy. FuelCell Energy developed, constructed and
commissioned the Bridgeport fuel cell park in December of 2013.
FuelCell Energy has operated and maintained the plant under a
service agreement with Dominion Energy since it was commissioned.
FuelCell Energy intends to own and operate the plant as part of
its generation portfolio. The transaction is expected to:
- Add annual revenue in excess of $15 million per year;
- Deliver EBITDA margins in excess of 50%, and
- Be accretive to FuelCell Energy’s earnings per share.
Under the terms of the agreement, FuelCell Energy will acquire
100% of the equity interest in Dominion Bridgeport Fuel Cell, LLC,
the owner of the 14.9 MW project asset, whose parent is currently
Dominion Energy. This agreement is the result of a competitive bid
process undertaken by Dominion Energy.
“The purchase of the Bridgeport fuel cell park project from
Dominion Energy is strategically important for FuelCell Energy,”
said Chip Bottone, President and Chief Executive Officer, FuelCell
Energy, Inc. “We undertook the construction of this project in 2012
with the support of Dominion Energy, leading to substantial
benefits for numerous stakeholders.”
Mr. Bottone continued, “Having been the operator of the
Bridgeport fuel cell park for the past five years, we are uniquely
positioned to acquire and benefit from this established project.
This important acquisition will materially accelerate our strategy
to retain generation assets and to benefit from their financial
profile of consistent revenues, operating profits and cash
generation. Lastly, I would like to acknowledge the continued
support of the Connecticut Green Bank who supported us five years
ago in the construction of this project, and is playing a key role
in financing this acquisition.”
Total cash consideration to be paid is $36.6 million. FuelCell
Energy expects to fund the acquisition with a combination of third
party financing and $15 million of restricted cash on hand that is
tied to the project and would be released at closing. Financing for
this acquisition is expected to include a term lender and the
Connecticut Green Bank, who also participated in the initial
financing of the construction of the project. The closing of this
transaction is expected to happen on or before December 31, 2018,
subject to customary closing conditions and contingencies including
closing third party financing.
“We were excited to play an integral part in this project since
its inception, development, and commissioning, and are equally
thrilled to have the opportunity to help FuelCell Energy purchase
the project,” said Bryan Garcia, President and CEO of the
Connecticut Green Bank. “This project is important to the
Connecticut Green Bank as it uses a technology manufactured in our
state which creates jobs, is located on a remediated brownfield in
an industrial zone, is helping our largest city with economic
development through private investment in green energy, and is
reducing greenhouse gas emissions that cause climate change.
The fuel cell park is one of the largest in the world bringing
reliable and resilient power to our electric grid.”
This acquisition will bring Fuel Cell Energy’s generation
portfolio to 26.1 MW, which coupled with 83 MW of new project
awards and backlog, provides a line of sight to achieving the
company’s long-term generation portfolio milestone of 60 MW.
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 business plans. 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, unanticipated manufacturing issues that impact
power plant performance, changes in critical accounting policies,
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.
About FuelCell EnergyFuelCell Energy, Inc.
(NASDAQ: FCEL) delivers efficient, affordable and clean solutions
for the supply, recovery and storage of energy. We design,
manufacture, undertake project development of, install, operate and
maintain megawatt-scale fuel cell systems, serving utilities and
industrial and large municipal power users with solutions that
include both utility-scale and on-site power generation, carbon
capture, local hydrogen production for transportation and industry,
and long duration energy storage. With SureSource™
installations on three continents and millions of megawatt hours of
ultra-clean power produced, FuelCell Energy is a global leader in
designing, manufacturing, installing, operating and
maintaining environmentally responsible fuel cell power
solutions. Visit us online at www.fuelcellenergy.com and
follow us on Twitter @FuelCell_Energy.
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: |
Contact:FuelCell
Energy203.205.2491ir@fce.com Source: FuelCell
Energy |
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