FuelCell Energy (FCEL) Says Beacon Falls Energy Park Project Not Selected for New England Clean Energy RFP

October 25, 2016 8:34 AM EDT

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FuelCell Energy (NASDAQ: FCEL) disclosed the following in a U.S. SEC filing on Tuesday:

Item 8.01 - Other Events.

As FuelCell Energy, Inc. (the “Company”) has previously disclosed, the Beacon Falls Energy Park project is a 63.3 megawatt (“MW”) fuel cell facility proposed to be built at a former sand and gravel mine in Beacon Falls, Connecticut using the Company’s fuel cell power plants (the “Project”). This Project has been under development for several years and in January, 2016, Beacon Falls Energy Park, LLC submitted a bid for a long term power purchase agreement to The New England Clean Energy Request for Proposals (“RFP”) conducted jointly by Connecticut, Rhode Island and Massachusetts to advance their clean and renewable energy goals. The Project offers the many benefits of renewable, clean and affordable in-state generation, including local and regional tax revenue and enhanced energy resiliency as compared to competing bids utilizing out-of-region generation that is then transported to the region by constructing expensive and difficult to permit transmission. The project developer is CT Energy & Technology LLC. Under the project structure, FuelCell Energy would manufacture and sell the fuel cell power plants to O&G Industries, the land owner, and would then operate and maintain the plants under a long term service agreement. O&G Industries would install the fuel cell power plants under a contract to the Project.

On October 24, 2016, the Company was notified by CT Energy & Technology LLC that the Project was not selected for contract negotiations under the RFP. Company management has consulted with the project developer as well as the land owner, O&G Industries, and all parties expect to pursue alternate paths to continue to develop and construct the project, based on its merits and favorable economics. The Company will provide updates on the Project’s development in the future.

Independently, the Company has not received any notification regarding the status of any of the previously disclosed four bids, totaling in excess of 50 megawatts, submitted to the State of Connecticut 2 - 20 megawatt RFP that is being administered by the Connecticut Department of Energy and Environmental Protection (DEEP). According to DEEP disclosures related to that RFP, decisions are expected by the end of January 2017.

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