FuelCell Energy closes tax equity financing with East West

DANBURY, Connecticut, Aug 09, 2021 (GLOBE NEWSWIRE) – FuelCell Energy, Inc. (Nasdaq: FCEL) – a global leader in fuel cell technology with the aim of using its proprietary state-of-the-art fuel cell platforms to enable a clean energy world – today announced that the company has entered into a tax equity financing transaction with the East West Bank for the 7.4 megawatt (“MW”) fuel cell project located at the US Navy’s submarine base in Groton, Connecticut, also known under the name of Submarine Force. The eastern West Bank’s tax fairness pledge amounts to $ 15 million. We believe this commitment once again demonstrates the market’s interest in funding FuelCell Energy’s distributed sustainable energy platforms as the company works with its customers to achieve their goals of decarbonizing and improving the resilience of the fuel cell. network.

“We are delighted to team up with East West Bank, partner with this important financing solution and support the deployment of our business platform,” said Michael Bishop, Executive Vice President and Chief Financial Officer of FuelCell Energy. “This efficient financing allows FuelCell Energy to retain most of the long-term recurring cash flow from this project and creates a structure that will facilitate additional capital opportunities that should allow the company to further leverage the company and improve the overall return on equity for this project. . “

The Company continues to advance the project to mechanical completion and expects commercial operation to commence by the end of September 2021. Following commercial operation, the Company plans to add debt financing leveraged to complement the capital structure of the project.

“East West Bank is delighted to partner with FuelCell Energy on the fuel cell project located at the US Navy Submarine Base in Connecticut,” said Christopher Simeone, senior vice president of East West Bank. “As a leader in clean and alternative energy funding, we look forward to seeing the US Navy and the community of Groton benefit from this important project. “

“The US Navy Submarine Base Project is a landmark project for FuelCell Energy, demonstrating our reliable, high-quality clean energy solution that enables electrical resilience with the country’s most critical infrastructure, while supporting the Navy’s decarbonization goals, ”said Jason Few, President and CEO. Officer, FuelCell Energy. “The United States Defense Critical Electricity Infrastructure initiative is important to national security, and we are honored to have the opportunity to deploy our platform in a micro-grid configuration for this mission,” added Few. “We are optimistic that the current infrastructure-focused policy should provide additional opportunities to deploy our SureSource ™ platform in support of the Defense Critical Power Infrastructure initiative. “

FuelCell Energy installed 7.4 MW of SureSource ™ power platforms at the US Navy Submarine Base in Groton, Connecticut to provide long-term power supply to an existing electrical substation . The fuel cell plant is part of a multi-faceted Connecticut Municipal Electric Energy Cooperative (“CMEEC”) plan to deliver new energy resources and support the Department of Defense’s desire to add resilience and network independence at key military installations. The highly efficient fuel cell power generation project minimizes carbon production while providing continuous power to the strategic military base. The U.S. Navy continues to purchase power from CMEEC and Groton Utilities, which in turn purchase power from FuelCell Energy under a 20-year power purchase agreement. This pay-as-you-go structure allows the CMEEC and the Navy to avoid direct investment in the ownership of the power plant which will be operated and maintained by the Company.

About the Eastern West Bank

East West Bank provides financial services that help clients go further and connect to new opportunities. The bank is 100% owned by East West Bancorp, Inc., which has total assets of $ 59.9 billion and is listed on the Nasdaq Global Select Market under the symbol “EWBC”. East West Bank operates more than 120 locations in the United States and China. In the United States, East West Bank has branches in California, Georgia, Massachusetts, Nevada, New York, Texas and Washington. In China, East West’s presence includes full-service branches in Hong Kong, Shanghai, Shantou and Shenzhen, as well as representative offices in Beijing, Chongqing, Guangzhou and Xiamen. For more information on East West, visit www.eastwestbank.com.

About FuelCell Energy

FuelCell Energy, Inc. (NASDAQ: FCEL): FuelCell Energy is a global leader in clean, sustainable energy technologies that address some of the world’s most critical energy, security and urbanization challenges. As the world’s leading 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. . Our solutions are designed to enable a world powered by clean energy, improving the quality of life for people around the world. We are targeting large-scale electricity users with our megawatt class facilities around the world and currently offer sub-megawatt solutions for small electricity consumers in Europe. To provide a baseline, one megawatt is sufficient to continuously power approximately 1,000 mid-size US homes. We develop turnkey distributed power generation solutions and operate and provide full service throughout the life of the power plant. Our fuel cell solution is a clean and efficient alternative to traditional combustion-based electricity generation, and is complementary to an energy mix made up of intermittent energy sources, such as wind turbines and solar. Our customer base includes utility companies, municipalities, universities, hospitals, government entities / military bases, and a variety of industrial and commercial companies. Our main geographic markets are currently the United States and South Korea, and we are looking for opportunities in other countries around the world. Connecticut-based FuelCell Energy was founded in 1969.

SureSource, SureSource 1500, SureSource 3000, SureSource 4000, SureSource Recovery, SureSource Capture, SureSource Hydrogen, SureSource Storage, SureSource Service, SureSource Treatment, SureSource Capital, FuelCell Energy and the FuelCell Energy logo are all trademarks of FuelCell Energy, Inc.

Warning language

This press 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 our future financial performance that involve certain contingencies and uncertainties. Forward-looking statements include, without limitation, statements regarding the Company’s anticipated financial results and statements regarding the Company’s plans and expectations regarding the continued development, commercialization and financing of its fuel cell technology. and its business plans and strategies. These statements are not guarantees of future performance, and all forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those projected. Factors that could cause such a difference include, but are not limited to: general risks associated with the development and manufacture of the product; general economic conditions; changes in the regulatory environment for public services; changes in the utility industry and markets for distributed generation, distributed hydrogen, and fuel cell power platforms configured for carbon capture or sequestration; potential volatility of energy prices; the availability of government subsidies and economic incentives for alternative energy technologies; our ability to remain in compliance with United States federal, state and foreign laws and regulations and the Nasdaq Stock Market listing rules; rapid technological change; competetion; the risk that our tenders do not turn into contracts or that our contracts do not turn into revenue; market acceptance of our products; changes in accounting policies or practices adopted voluntarily or as required by accounting principles generally accepted in the United States; factors affecting our liquidity and financial position; government credits; the ability of government and third parties to terminate their development contracts at any time; the government’s ability to exercise import rights in respect of some of our patents; arbitration and other legal proceedings with POSCO Energy Co., Ltd. ; our ability to implement our strategy; our ability to reduce our discounted energy cost and our overall cost reduction strategy; our ability to protect our intellectual property; litigation and other proceedings; the risk that the commercialization of our products will not proceed as intended; our need for and availability of additional funding; our ability to generate positive operating cash flow; our ability to service our long-term debt; our ability to increase the efficiency and longevity of our plants and to meet the performance requirements of our contracts; our ability to expand our customer base and nurture relationships with our largest customers and strategic business allies; changes made by the United States Small Business Administration or other government authorities to, or with respect to the implementation or interpretation of, the Aid, Relief and Economic Security Act coronavirus, the paycheck protection program or related administrative matters; and concerns about the threats or consequences of pandemics, contagious diseases or health epidemics, including the novel coronavirus, and the resulting supply chain disruptions, changes in demand for clean energy , impacts on our clients’ investment budgets and investment plans, impacts on our project schedules, impacts on our ability to serve existing projects and impacts on demand for our products, as well as other risks set out in documents filed by the Company 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 commitment to publicly post any update or revision to any such statement contained or incorporated by reference herein to reflect any change in the expectations of the Company or any change in events, conditions or circumstances on on which such a statement is based.

Contact:

FuelCell Energy, Inc.
[email protected]
203.205.2491
Source: Fuel cell energy


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Carol M. Barragan

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