FuelCell Energy, Inc., has closed a long-term loan facility with specialty finance company, Hercules Capital, in which it will receive up to $25m to support the development of fuel cell projects.

The secured facility runs for 30 months and matures in October 2018, with an interest rate of 9.5% per annum.

FuelCell Energy has drawn the first share of the loan, totalling $15m, with an additional $10m potentially available if the company attains certain performances and financial milestones – although details of these targets were not specified.

Obtaining corporate debt financing enhances our maturing capital structure as our fuel cell projects continue to attract preeminent financial institutions

Michael Bishop, Senior Vice-President and Chief Financial Officer at the US outfit, outlined, “This credit facility provides growth capital as we pursue larger multi-megawatt projects. Obtaining corporate debt financing enhances our maturing capital structure as our fuel cell projects continue to attract preeminent financial institutions.”

The Connecticut-based corporation designs, manufactures, services and operates ultra-clean fuel cell power plants. Its facilities utilise an electro-chemical process to efficiently and cleanly generate power and steam from natural gas or biogas.

The company’s combined power generation capacity of more than 300 megawatts (MWs) in over 50 worldwide locations, serves industrial operations, universities, waste water treatment facilities and various government installations.