FuelCell Energy, Inc. has announced the acquisition of an operating megawatt-class fuel cell project that generates in excess of 11m kilowatt hours annually.
The installation has been operating for approximately five years with the owner selling power and steam to Central Connecticut State University under a multi-year power purchase agreement. FuelCell Energy captures recurring and predictable monthly electricity sales by acquiring the project.
Dr. Richard Bachoo, Chief Administrative Officer, Central Connecticut State University, said, “This fuel cell project is saving the State money on operating costs, enhancing power reliability which is critical for the safety of our students, and helping to ensure our sustainability leadership as it supported the University as being acknowledged as an ‘exemplary Green institution’ by the Princeton Review.”
Michael Bishop, Senior Vice President and Chief Financial Officer, FuelCell Energy, said, “This project acquisition was structured to avoid an outlay of cash and we are assuming project-related debt extended by Webster Bank.”
“With this project, FuelCell Energy is now recognising monthly electricity sales from five different projects which enhances our financial profile with approximately $7m of contracted annual electricity sales and a portfolio weighted average power purchase agreement term of approximately 18 years.” Bishop added.
Carolyn Morrison, Vice President Commercial Banking, Webster Bank, commented, “We value the consistency of the cash flows that this fuel cell project generates and we are pleased that it contributes to the State’s clean emission profile and renewable energy portfolio standards.”