(Source: PrimeNewswire)
DANBURY, Conn., Oct. 28, 2009 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (Nasdaq:FCEL), a leading manufacturer of high efficiency ultra-clean power plants using renewable and other fuels for commercial, industrial, government, and utility customers, today announced the signing of a Licensing Agreement allowing POSCO Power to manufacture fuel cell stack modules from cell and module components provided by FuelCell Energy. These fuel cell modules will be combined with balance-of-plant manufactured in South Korea to complete electricity-producing fuel cell power plants for sale in South Korea. The License Agreement includes an upfront license fee of $10 million which was paid at signing as well as an ongoing royalty, initially set at 4.1% of the revenues generated by sales of the fuel cell stack modules by POSCO Power. Additionally, POSCO Power closed on its previously announced purchase of $25 million in FuelCell Energy common stock at a purchase price of $3.59 per share, the price agreed to on June 9, 2009.
Direct FuelCell (DFC) power plants generate electricity directly for South Korea's power grid. As part of a drive to establish fuel cells as its country's leading form of alternative energy, POSCO Power has ordered more than 68 megawatts (MW) of FuelCell Energy's DFC units to date and built a facility to manufacture balance-of-plant systems in South Korea.
Currently, approximately 23 MW of FuelCell Energy power plants are installed in South Korea, including six DFC3000 megawatt-class power plants. Sites include POSCO Power's headquarters and balance-of-plant manufacturing facility in Pohang; a paper company Natura; independent power producers HS Holdings and MPC; and electric utilities KOMIPO, KOSEP, and EWP, which are members of the KEPCO family of companies in South Korea.
South Korea has committed 2 percent of its gross national product to clean energy projects -- more than any other developed country. FuelCell Energy power plants operating on natural gas and biogases enable South Korean utilities to comply with the country's aggressive clean electricity targets because they emit near-zero pollutants and they are a low-carbon solution. DFC power plants also meet South Korea's need for green technologies that contribute to increased domestic employment. Currently, South Korea is pursuing the passage of an $85.8 billion renewable energy plan that includes a renewable portfolio standard (RPS) mandating 11 percent clean energy by 2030 -- a total of 7,150 MW -- which includes fuel cells on natural gas and further increases the market potential for DFC power plants.
"POSCO Power is excited to enter into a new stage of partnership with FuelCell Energy," said Soung-Sik Cho, President and CEO of POSCO Power.
