FuelCell Energy (FCEL) Announces 5.6-MW Fuel Cell Sale to POSCO Energy
- S&P 500 dips off record high, Dow rises on bank earnings
- Coinbase (COIN) Soars 52% in Public Debut
- JPMorgan (JPM) Reports a Q1 Beat on Revenue and Profit Fueled by Release of $5.2 Billion Reserved for Bad Loans; Shares Slightly Down
- Bernie Madoff, disgraced Ponzi schemer, dies at 82
- Goldman Sachs (GS) Q1 EPS Nearly Doubles Wall Street's View as Investment Banking Excels Amid SPAC and IPO Frenzy
FuelCell Energy (NASDAQ: FCEL) announced the sale of 5.6 megawatts of fuel cell modules to South Korean partner POSCO Energy and provided a progress update on the local manufacturing of fuel cell components in South Korea for the Asian market. The fuel cell component manufacturing building in Pohang, South Korea is completed and is concluding pre-production testing with full production expected to begin in the fall of 2015. Raw materials have been ordered and delivered from the supply chain shared with FuelCell Energy. Increasing purchasing volumes will reduce the per-unit cost for both FuelCell Energy and POSCO Energy as the integrated global supply chain serves both companies.
“This second manufacturing site provides both flexibility of supply as well as redundancy of supply as capacity is added to support growth,” said Chip Bottone, President and CEO of FuelCell Energy. “This manufacturing initiative is a key aspect for supporting global adoption and driving production volume to reduce costs, and our utilization of one common fuel cell platform worldwide enables these initiatives.”
The global integrated supply chain of FuelCell Energy serves the new POSCO Energy manufacturing facility in South Korea in addition to the existing North American and European facilities. Production in Asia will lead to higher purchasing volumes, resulting in more favorable supplier pricing.
“A key aspect of our continued cost reductions is reducing the per-unit cost of raw materials and componentry, which is coming from higher production volumes,” said Tony Rauseo, Chief Operating Officer, FuelCell Energy, Inc. “Our two organizations are closely coordinating purchasing, and FuelCell Energy is placing combined volume purchase orders to ensure tight purchasing integration to drive down costs, and receiving compensation from POSCO Energy for procurement services rendered.”
The 5.6 megawatt sale is in addition to existing fuel cell kit sales under a previously announced multi-year contract, and will help meet growing fuel cell demand in Asia. The modules were delivered and FuelCell Energy recognized revenue from the 5.6 megawatt sale in the third fiscal quarter of 2015.
Multi-megawatt fuel cell parks solve power generation challenges for utilities as the combination of near-zero pollutants, modest land-use needs, and the quiet operating nature of fuel cell power plants facilitates their siting in urban locations. Fuel cell parks offer a multitude of advantages for utilities and neighboring communities, including:
- Environmentally friendly power generation with virtually zero nitrogen oxide (NOx) that causes smog, sulfur dioxide (SOx) that contributes to acid rain, or particulate matter that aggravates asthma, and the power is delivered with a low carbon footprint
- Distributed power generation places power near where it is used, enhancing the resiliency of the grid
- Highly efficient power generation process that is economical
- Continuous renewable power around the clock that is not reliant on weather or time of day
- Rapid construction of a 59 megawatt fuel cell park, the world’s largest, constructed in only 14 months
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Sinclair Broadcast Group (SBGI) Annonuces Laurie R. Beyer to Board
- Alimera Sciences (ALIM) Announces Ocumension Therapeutics Acquired Exclusive License Worth up to $99M, Makes $10M Investment
- Aligos Therapeutics Inc. (ALGS) Begins First Cohort Dosing in Ongoing Phase 1 PoC Study Evaluating ALG-000184
Create E-mail Alert Related CategoriesCorporate News, Management Comments, Momentum Movers
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!