Nov. 3--Danbury-based FuelCell Energy Inc. last week closed a licensing agreement with Posco Power to allow the South Korean energy company to make fuel-cell stack modules from components provided by FuelCell Energy.

"This is an opportunity for a good company here in Connecticut to export clean technology on a global basis and grow jobs locally here in Connecticut," said R. Daniel Brdar, FuelCell Energy's chief executive officer.

The fuel-cell modules will be combined with parts manufactured in South Korea to complete electricity-producing fuel-cell power plants for sale in South Korea.

The agreement also includes an upfront license fee of $10 million for FuelCell, which was paid at signing, and an ongoing royalty initially set at 4.1 percent of the revenues from Posco Power's sale of the modules. Posco Power also closed on a previously announced purchase of $25 million in FuelCell Energy common stock at $3.59 per share, agreed to in June 2009.

"This really solidifies the relationship, and I expect more sizeable orders going forward in the future," said Michael Lew, a FuelCell Energy analyst with ThinkPanmure LLC in New York City.

Posco Power has ordered more than 68 megawatts of FuelCell Energy's units to date and built a facility to manufacture the complete systems in South Korea. About 23 megawatts of FuelCell Energy power plants are installed in South Korea, including six DFC3000 megawatt-class power plants.

"Posco Power is excited

to enter into a new stage of partnership with FuelCell Energy," Posco Power President Soung-Sik Cho said in a statement. "We view the partnership with FuelCell Energy as critical to accomplishing our goal to make South Korea a world leader in clean-energy technology."

South Korea is pursuing the passage of an $85.8 billion renewable energy plan mandating 11 percent clean energy by 2030.

FuelCell Energy, which was founded in 1969 as Energy Research Corp., owns and operates a 65,000-square-foot Torrington plant with about 250 workers.

The company posted a net loss of $15.7 million for this year's third quarter, compared with a net loss of $26.8 million for the same period last year. Revenues were $23 million, compared with $27.9 million.

The company's stock, which trades on the New York Stock Exchange as FCEL, declined 26 cents to close at $3.33.

-----

To see more of the Connecticut Post, or to subscribe to the newspaper, go to http://www.connpost.com/.

Copyright (c) 2009, Connecticut Post, Bridgeport

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NASDAQ-NMS:FCEL,

A service of YellowBrix, Inc.