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Danbury-Based Fuel Cell Company Partners With South Korean Power Producer
Danbury-based FuelCell Energy Inc. announced today that it is partnering with a South Korean power producer to sell the main components of its fuel cell generators in the country.
As part of the agreement, POSCO Power, an independent power producer based in Seoul, has ordered $58 million worth of fuel cell manufacturing equipment -- enough to build 30.8 megawatts of fuel cell power generation in the country. Together, POSCO Power and FuelCell Energy plan to apply for a licensing agreement that would allow POSCO Power to assemble the main parts of fuel cells and sell them in South Korea.
POSCO Power has agreed to buy $25 million worth of FuelCell Energy common stock at $3.59 a share once the licensing agreement is finalized. The equipment is scheduled to be delivered to POSCO Power in 2010 and early 2011.
Soung-Sik Cho, president and CEO of POSCO Power, said in a statement today that fuel cell-powered electricity plants are "ideal for generating highly efficient, ultra-clean electricity -- perfect for South Korea where we have a mandate to reduce our carbon footprint."
With South Korea pushing hard for "greener" energy and greater energy independence, R. Daniel Brdar, Chairman and CEO of FuelCell Energy, said the country has quickly become the company's largest market.
"We have more installations and backlog in Asia than any other fuel cell company in the world," Brdar said.
Since 2007, POSCO Power has ordered 68 megawatts of FuelCell Energy power plants and modules.