FuelCell Energy has signed a construction loan facility with San Francisco-based financier of distributed energy and resource infrastructure Generate Capital.
The facility will be used by FuelCell Energy to finance the construction, installation and commissioning of the company’s current and future project backlog and awards.
Under the terms of the agreement, FuelCell Energy will submit projects to Generate Capital over a 36-month period.
Once an individual project is funded, the construction loan will remain outstanding until the project becomes commercially operational.
The facility structure provides for aggregate principal commitments up to $100m, with accordion features enabling expansions up to $300m, if certain performance criteria are met, subject to funding availability.
The initial draw amount under this facility, funded at closing, is $10 million. The initial draw reflects loan advances for the first approved project under the facility, the Bolthouse Farms five-megawatt project in California.
FuelCell Energy expects to use this project finance facility to fund the construction of its utility-scale backlog, including the three projects totalling 39.8MW with PSEG Long Island and the two projects awarded pursuant to the Connecticute DEEP RFP, totalling 22.2MW.
“This facility establishes a clear pathway to execute and build out our project backlog,” said Chip Bottone, FuelCell Energy’s President and CEO.
“Importantly, this facility can be used for multiple projects, streamlining the time-consuming process of financing and asset deployment. With available capital for much of our backlog now put in place, we can concentrate on project execution and implementation of our growth strategy for our fuel cell solutions.”