FuelCell Energy has secured a $23 million financing facility to support the 7.4 megawatts (MW) power plant being built for the US Navy Submarine Base in Groton, Connecticut.
The financing is being provided by Fifth Third Bank and will be used by FuelCell Energy to finance the construction, installation and commissioning of the fuel cell power plant.
The facility structure provides for aggregate principal commitments of up to $23m and the initial draw amount under this facility, funded at closing, was approximately $10m.
This financing enables the installation of two SureSource 4000™ power plants for the long-term supply of power located on the submarine base. They will supply an existing electrical substation of the Connecticut Municipal Electric Energy Cooperative and Groton Utilities under a 20-year power purchase agreement.
The fuel cell plant is part of a multifaceted plan to provide new power resources and add resiliency and grid independence to key military installations.
“This construction financing facility marks another important step for FuelCell Energy as we work to bring in cost efficient capital to support our project development and ownership,” said Chip Bottone, President and Chief Executive Officer, FuelCell Energy.
“Fifth Third is a new financing partner for FuelCell Energy, and we certainly look forward to growing our relationship with Fifth Third further as we move forward.”
In conjunction with this loan closing, FuelCell Energy also obtained commitment letters for $23m of 15-year term financing to be funded upon completion of construction, subject to negotiation and execution of definitive agreements, lender due diligence, and customary closing conditions.
Connecticut-based FuelCell Energy delivers fuel cell power plants for various applications such as utility-scale and on-site power generation, carbon capture, local hydrogen production for both transportation and industry, and long duration energy storage.