|
|
FuelCell Energy and Marubeni Target Asia for Fuel Cell Plants
(6/19/2001)Danbury, Conn., June 18, 2001–-FuelCell Energy Inc., and Marubeni Corporation have signed an agreement to generate at least 45 MW in Direct FuelCel power plant orders, while providing the necessary infrastructure for successfully launching the product in Japan and Asia.
Initially Marubeni will purchase these plants directly from FuelCell Energy. As volume grows Marubeni will design and supply increasing portions of the power plant to assure this product fully meets the needs of the Asian markets. Marubeni and FuelCell Energy expect to form a joint venture for the purpose of assembling DFC modules in Asia from components produced by FuelCell Energy at its manufacturing facility in Torrington, Conn.
Upon signing the agreement, Marubeni will order 3 MW of DFC power plants from FuelCell Energy, in addition to the 1.25 MW currently on order. The two companies will also develop a balance of plant design for the Asian market. During the next two years, Marubeni is targeting orders of at least 45 MW in Japan and Asia.
FuelCell Energy will manufacture all fuel cells in its Torrington, Conn., facility. Growing market for distributed generation in Japan and Asia.
The need for clean, efficient distributed power continues to grow in the Far East. As is in the U.S., much of this new generation need is in and around major metropolitan areas where grid congestion and environmental constraints make fuel cells an excellent fit. Due to the high cost of energy, there is also a strong focus on cogeneration and the use of opportunity fuels such as wastewater treatment gases. Both of these applications are well suited for fuel cells. All this is further enabled by the introduction of deregulation of the electric industry, especially in Japan.
Marubeni is making an initial $10 million investment in FuelCell Energy upon the signing of this agreement. FuelCell Energy is also granting 950,000 warrants to Marubeni, which will vest over the next two years, based on Marubeni reaching certain order targets of DFC power plants. Marubeni is expected to invest an additional $30,000,000 in FuelCell Energy over the term of the agreement as it designs and sources increasing portions of the power plant and participates in the manufacturing joint venture.
The two companies plan to form a joint venture for the purposes of assembling DFC modules in Asia from components provided by FuelCell Energy. FuelCell Energy will have a business control in the joint venture. Marubeni will provide logistical support to the joint venture, including procurement, shipping and transportation functions. It will also provide management of the manufacturing facilities in Asia.
