FuelCell Energy has entered into a definitive agreement to sell the project company that owns the 2.8 mW fuel cell power plant project located at the Tulare Waste Water Treatment Facility in California to NRG Yield.
NRG Yield owns a diversified portfolio of contracted renewable and conventional generation and thermal infrastructure assets in the United States, including fossil fuel, solar and wind power generation facilities that provide the capacity to support more than two million American homes and businesses.
This project has been developed and constructed by FuelCell Energy and will be placed into commercial operations following the sale. The project company, under the new ownership of NRG Yield, will deliver the clean power and heat to the City of Tulare under a multi-year power purchase agreement (PPA). FuelCell Energy will operate and maintain the power plant under a 20-year service agreement with the project company. The sale of this project company and its assets to NRG Yield will result in revenue recognition of product sales out of FuelCell Energy’s generation project assets portfolio.
“We are pleased to enter into another sale transaction with NRG Yield,” said Chip Bottone, President and CEO of FuelCell Energy. “This transaction allows FuelCell Energy to redeploy capital as we execute on growing our installed base, while continuing our core role in operating and maintaining the Tulare plant. The transaction with NRG Yield allows our Company to have a balanced approach to our asset portfolio, growing generation assets over time while selectively creating near-term cash flow.”
“NRG Yield is continuously looking to grow its portfolio of power generation assets that provide customers with cleaner, sustainable, and more resilient ways to meet their energy needs,” said Christopher Sotos, President and CEO of NRG Yield. “The Tulare Waste Water Treatment Facility is just such an opportunity, providing an excellent clean energy and heat customer solution for California as well as a long term contracted cash flow profile for NRG Yield.”
The transaction is expected to close in April upon completion of customary closing conditions.