FuelCell Energy Closes Tax Equity Financing with Franklin Park for the 7.4 MW LIPA Yaphank Fuel Cell Project

DANBURY, Conn., Dec. 15, 2021 (GLOBE NEWSWIRE) — FuelCell Energy, Inc. (Nasdaq: FCEL) — a global leader in fuel cell technology with a purpose of utilizing its proprietary, state-of-the-art fuel cell platforms to enable a world empowered by clean energy—announced today that the Company closed on a tax equity financing transaction with Franklin Park for the 7.4 megawatts (“MW”) fuel cell project located in Yaphank, Long Island, in New York (the “Project”). Franklin Park’s tax equity commitment totals $12.7 million following the recent declaration of mechanical completion of the Project.

“We are thrilled to team up with Franklin Park, a new tax equity finance partner for FuelCell Energy, with an important financing solution that enables the Company to effectively monetize the investment tax credit associated with this project,” said Michael Bishop, Executive Vice President and Chief Financial Officer of FuelCell Energy. “Importantly, this efficient financing enables FuelCell Energy to retain most of this project’s long-term, recurring cash flow, and creates a structure that will facilitate additional capital opportunities that are expected to further return cash to the Company and enhance overall return on equity for this project.”

The Company continues to advance the Project following mechanical completion and expects commercial operation to commence prior to the end of December 2021. Following commercial operation, the Company expects to add back-leverage debt financing to complete the project’s capital structure.

“This multi-year tax equity commitment to FuelCell Energy, which also encompasses a potential second project targeted for completion in 2022, represents the fourth tax equity developer commitment for Franklin Park,” said Kevin Lapidus, Chief Investment Officer for Franklin Park. “We look forward to continuing to expand our tax equity investment footprint.”

Raj Mehta, Principal at Franklin Park, added, “Franklin Park is delighted to partner with FuelCell Energy on this fuel cell project that will provide needed clean and resilient electricity to central Long Island.”

“The project is a milestone project for FuelCell Energy, our first fuel cell deployment in New York, enabling electrical resiliency and needed clean base load power delivered right at the point of use, reducing above ground risk associated with transmission lines,” said Jason Few, President and Chief Executive Officer, FuelCell Energy. “This financing demonstrates the market’s continued interest in financing the Company’s distributed sustainable energy platforms, and in this instance helping communities like Long Island achieve grid resiliency, decarbonization goals and improve air quality without significant land use.”

About Franklin Park

Franklin Park develops, owns, and manages infrastructure assets. Franklin Park has a diverse portfolio, including renewable and conventional electricity generation, electric distribution, rail and road transport, and supply chain logistics. Franklin Park provides a full suite of capital for renewable energy development companies, including corporate equity, pre-NTP project development capital, tax equity and project acquisitions. Additional details can be found at www.frpark.com.

About FuelCell Energy

FuelCell Energy, Inc. (NASDAQ: FCEL): FuelCell Energy is a global leader in sustainable clean energy technologies that address some of the world’s most critical challenges around energy, safety and global urbanization. As a leading global manufacturer of proprietary fuel cell technology platforms, FuelCell Energy is uniquely positioned to serve customers worldwide with sustainable products and solutions for businesses, utilities, governments and municipalities. Our solutions are designed to enable a world empowered by clean energy, enhancing the quality of life for people around the globe. We target large-scale power users with our megawatt-class installations globally, and currently offer sub-megawatt solutions for smaller power consumers in Europe. To provide a frame of reference, one megawatt is adequate to continually power approximately 1,000 average sized U.S. homes. We develop turn-key distributed power generation solutions and operate and provide comprehensive service for the life of the power plant. Our fuel cell solution is a clean, efficient alternative to traditional combustion-based power generation, and is complementary to an energy mix consisting of intermittent sources of energy, such as solar and wind turbines. Our customer base includes utility companies, municipalities, universities, hospitals, government entities/military bases and a variety of industrial and commercial enterprises. Our leading geographic markets are currently the United States and South Korea, and we are pursuing opportunities in other countries around the world. FuelCell Energy, based in Connecticut, was founded in 1969.

SureSource, SureSource 1500, SureSource 3000, SureSource 4000, SureSource Recovery, SureSource Capture, SureSource Hydrogen, SureSource Storage, SureSource Service, SureSource Treatment, SureSource Capital, FuelCell Energy, and FuelCell Energy logo are all trademarks of FuelCell Energy, Inc.

Cautionary Language

This news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements with respect to the Company’s anticipated financial results and statements regarding the Company’s plans and expectations regarding the continuing development, commercialization and financing of its fuel cell technology and its business plans and strategies. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could cause such a difference include, without limitation, changes to projected deliveries and order flow, changes to production rate and product costs, general risks associated with product development, manufacturing, changes in the regulatory environment, customer strategies, ability to access certain markets, unanticipated manufacturing issues that impact power plant performance, changes in critical accounting policies, access to and ability to raise capital and attract financing, potential volatility of energy prices, rapid technological change, competition, the Company’s ability to successfully implement its new business strategies and achieve its goals, the Company’s ability to achieve its sales plans and cost reduction targets, changes by the U.S. Small Business Administration or other governmental authorities to, or with respect to the implementation or interpretation of, the Coronavirus Aid, Relief, and Economic Security Act, the Paycheck Protection Program or related administrative matters, and concerns with, threats of, or the consequences of, pandemics, contagious diseases or health epidemics, including the novel coronavirus, and resulting supply chain disruptions, shifts in clean energy demand, impacts to customers’ capital budgets and investment plans, impacts to the Company’s project schedules, impacts to the Company’s ability to service existing projects, and impacts on the demand for the Company’s products, as well as other risks set forth in the Company’s filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based.

Contact:        

FuelCell Energy, Inc.
[email protected]
203.205.2491

Franklin Park
Kevin Lapidus,
(301) 500-8660
[email protected]

Source: FuelCell Energy

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