FuelCell Energy Announces Debt Financing for Derby Power Projects

Continuing Strong Support for FuelCell Energy Platforms

Total of $13 Million in Senior and Subordinated Credit Facilities

DANBURY, Conn., April 29, 2024 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc., (Nasdaq: FCEL) today announced that the Company closed on a project debt financing transaction with Liberty Bank and Connecticut Green Bank for the company’s two fuel cell projects in Derby, Conn., which recently began operations.

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The financing is structured as back leverage to a project finance subsidiary of the Company supported by the strong cash flows of the projects and the investment grade quality of the offtakers. L*iberty Bank’s senior commitment totals $6.5 million and Connecticut Green Bank’s is $3.0 million*. Connecticut Green Bank will contribute an additional subordinated credit facility of $3.5 million totaling $13 million in gross financing.

The term of the senior facility is seven years, and the subordinated credit facility is 14 years. The interest rate for the senior debt is fixed at 7.25% and 8% for the subordinated debt. The transaction closed on April 25, 2024, and net funding to the Company totaled approximately $11.6 million after transaction fees and debt service reserves.

Michael Bishop, Executive Vice President and Chief Financial Officer of FuelCell Energy, said, “We are grateful for our partnership with Liberty Bank and Connecticut Green Bank and the support they are showing through efficient and cost-effective financing that highlights their continued confidence they have in the long-term performance of our fuel cell platforms. This financing allows the company to confidently redeploy capital in support of growth initiatives around the world, as we work with customers to meet their clean-energy, resiliency, reliability, energy security, affordability, and decarbonization needs.”

Daniel Longo, First Vice President of Liberty Bank, said, “We are proud to again partner with FuelCell Energy and the Connecticut Green Bank on financing utility scale projects in the state. These innovative projects provide clean renewable power to the Connecticut grid, helping the state further its sustainability goals under the Connecticut Renewable Portfolio Standard. Fuel cells are an ideal distributed power generation solution for the communities that Liberty Bank supports.”  

Bert Hunter, Executive Vice President and Chief Investment Officer of Connecticut Green Bank, said, “This is the nation’s first community fuel cell project, which makes sense for Connecticut’s leading hydrogen fuel cell industry. This financing partnership with Liberty Bank and FuelCell Energy exemplifies how private and public capital can work together to add more reliable clean power to the grid while avoiding local air emissions, creating manufacturing jobs in our state, and helping low-income families reduce their energy burden.

The two Derby projects include a 14-megawatt fuel cell park, the second largest fuel cell park in the U.S. followed by FuelCell Energy’s 15-megawatt fuel cell park in Bridgeport, CT. The Derby projects are being used to deliver competitively priced baseload class I renewable energy as part of 20-year power purchase agreements with Eversource and United Illuminating. In Connecticut, a class I renewable energy source is defined by statute as electricity produced from wind power, geothermal power, or fuel cells. The second project supported by this financing is the 2.8-megawatt baseload fuel cell project also located in Derby.

The fuel cell modules of both facilities were made in America at FuelCell Energy’s Torrington, Connecticut, factory utilizing the majority of U.S. based materials and suppliers.

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About FuelCell Energy

FuelCell Energy, Inc. 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. It collectively holds 531 fuel cell technology patents in the United States and globally. As a leading global manufacturer of proprietary fuel cell technology platforms, FuelCell Energy is uniquely positioned to serve customers including businesses, utilities, governments, and municipalities with sustainable products and solutions. The company’s solutions are designed to enable a world empowered by clean energy, enhancing the quality of life for people around the globe. Learn more at fuelcellenergy.com.