FuelCell Energy, Inc. (NasdaqGM:FCEL), a leading manufacturer of high-efficiency, clean power plants, announced that POSCO Power, an independent power producer in South Korea, has ordered 25.6 megawatts (MW) of FuelCell Energy power plants and fuel cell modules.
The order more than doubles FuelCell Energy’s product backlog and represents nearly $70 million of sales scheduled for delivery in 2009.
Mr. Seung-Woo Lee, President and CEO of POSCO Power, said, "We have been researching the problem of rising greenhouse gas emissions for several years and we are convinced that fuel cells are a critical part of the solution with their 24/7, efficient, and ultra-clean operation."
In a market that imports 90% of its fuel, the Korean Ministry of Knowledge Economy is a strong proponent of Korean energy independence. Backed by the country’s commitment to energy independence and green power, POSCO Power signed a 10-year manufacturing and distribution agreement with FuelCell Energy in February, 2007. With this order, POSCO Power has ordered 38.2 MW of FuelCell Energy products to date.
FuelCell Energy said it’s Direct FuelCell (DFC) power plants meet South Korea’s goals for clean air based on high-efficiency, environmentally friendly operation, and their ability to use multiple fuels including natural gas and biogas produced from waste. They produce power electrochemically and are 47% electrically efficient compared to similar-sized fossil fuel power plants that achieve only 30-35% efficiency. The absence of combustion virtually eliminates pollutants like NOX, SOX and particulate matter, and DFC power plants’ higher efficiency means they deliver more ultra-clean power for each unit of fuel used, substantially reducing power costs and CO2 emissions.
When operated in a combined heat and power configuration, where the fuel cells’ byproduct heat is used for space or hot water heating, efficiency increases to as much as 80%, according to the company.
This order calls for FuelCell Energy to initially ship complete power plants while POSCO Power completes the construction of its own 50 MW fuel cell balance of plant (the non-fuel cell module part of the power plant) manufacturing facility, expected in the second half of 2008. By mid-2009, all balance of plant manufacturing for the Korean market will be transitioned to POSCO Power and FuelCell Energy will supply its proprietary fuel cell module to POSCO Power.
About FuelCell Energy Inc.
FuelCell Energy is a leader in the development and production of stationary fuel cells for commercial, industrial, municipal and utility customers. The company’s power plants have generated more than 200 million kWh of power using a variety of fuels including renewable wastewater gas, biogas from beer and food processing as well as natural gas and other hydrocarbon fuels. The company also receives substantial funding from the US Department of Energy and other government agencies for the development of leading edge technologies such as hybrid fuel cell/turbine generators and solid oxide fuel cells.
About POSCO Power
POSCO Power (http://www.poscopower.co.kr) became a subsidiary company of POSCO (NYSE:PKK) in March 2006. POSCO Power’s former name was Kyung In Energy Co., Ltd. which was established in 1972 as the first Korean Independent Power Producer.
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