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Fuelcell Energy (FCEL) Gains After Sale Of Fuel Cell Park To Dominion (D)

 December 14, 2012 09:22 AM

(By Balaseshan) FuelCell Energy Inc. (NASDAQ: FCEL) shares jumped 9.24% in premarket after announcing sale of a 14.9 megawatt fuel cell park in Bridgeport, Connecticut to Dominion Resources Inc. (NYSE: D).

FuelCell is providing a turn-key distributed power generation solution for the engineering, procurement and construction of a 14.9 MW fuel cell park in Bridgeport, Connecticut that includes the manufacture and sale of five 2.8 megawatt DFC3000 fuel cell power plants.

Dominion, a producer and transporter of electricity, will oversee the development and owns the facility. The Connecticut Light and Power Company (CL&P) will buy the ultra-clean electricity generated by the facility under a 15 year fixed price energy purchase agreement.

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This 14.9 MW installation, consisting of the five fuel cell power plants and an organic rankine cycle turbine for added output and further efficiency gains, is adequate to power about 15,000 average size U.S. homes.

Construction will begin immediately with the first plant installation in the summer of 2013 and the remaining plants installed in stages. The inter-connection process to connect the fuel cell park to three electrical substations in the City is already in process and is being performed by United Illuminating, the local utility that owns the substations.

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The fuel cell park will be fully operational by the end of 2013. The fuel cell power plants will use natural gas as the fuel source.

The project is supported by the Clean Energy Finance and Investment Authority (CEFIA). The project will increase product and service backlog for FuelCell Energy by about $125 million, including about $56 million for product backlog and $69 million for service backlog.

FCEL closed Thursday's regular session down 1.20% at $0.879, while D ended down 0.43% at $51.34.

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