FuelCell Energy, Inc., has signed the first of three long-term power purchase agreements, under the Fuel Cell Resources Feed-In Tariff IV programme administered by PSEG Long Island.

The agreement stems from the selection of a 7.4 megawatt fuel cell project located in Yaphank, New York, by PSEG Long Island under a solicitation for 40 megawatts of fuel cell-based power resources.

The solicitation saw NY Clean Energy Standard (NY CES) qualify fuel cell resources from one megawatt to under 10 megawatts in nine designated electrical distribution development areas, and up to 20 megawatts at the transmission level at 10 key substation locations across Long Island.

The Yaphank 7.4megawatt project is one of the three totalling in 39.8 megawatts awarded to FuelCell Energy as part of the FIT IV competitive bid process.

Power from the project will be sold under a 20-year power purchase agreement. FuelCell Energy’s wholly-owned special purpose project entity, Yaphank Fuel Cell Park, LLC, will own, operate and maintain the fuel cell power plants, which are being installed by FuelCell energy. 

“We have finished the permitting, engineering and site design required to progress this innovative 7.4megawatt project in Long Island to construction,” said Chip Bottone, President and Chief Executive Officer of FuelCell Energy, Inc.

“Fuel cells are a great fit to provide grid modernisation by delivering increased security, enhanced sustainability and capital efficiency. One of the most space-efficient clean energy technologies qualified under the CES, this project, along with the other two FIT IV projects that are nearing this same stage of development, demonstrate the many benefits of integrating clean and predictable fuel cells into New York’s energy mix,” Bottone continued.

Other projects include an 18.5 megawatt project located the Brookhaven Rail Terminal in Yaphank, NY, and a 13.9 megawatt project located at an industrial park in Yaphank, NY have make substantial progress though completing the prerequisite items leading to PPA executing.

FuelCell Energy expects to complete the remaining items in the near term, allowing FuelCell Energy to execute power purchase agreements for the remaining 32.4 megawatts of projects. Construction for the projects is planned to start in 2019.

The combined fuel cell facilities will defer millions of dollars in local transmissions and distribution upgrades other needed to maintain reliability in the Yaphark area.

PSEG Long Island operates the Long Island electric power delivery system for LIPA, a subdivision of the State of New York that owns the electric transmission and distribution system serving Long Island and the Rockaways, with a mission to enable, clean, reliable, and affordable electric service for its customers. 

With initiatives to meet Governor Cuomo’s New York State’s aggressive clean energy goals, LIPA and PSEG Long Island lead New York with the largest commitment to clean fuel cell technology.

“LIPA and PSEG Long Island are leaders in clean energy deployment, taking visionary steps forward in its programmes to develop the use of fuel cell power systems as part of its energy technology mix,” said Bottone.

“LIPA and PSEG Long Island’s commitment to meet Long Island’s growing need for clean electricity and their focus on installing resilient power generation contribute to the overall reliability and performance of LIPA’s electric grid,” Bottone concluded.