Diversified Energy, FuelCell Energy, and TESIAC Collaborate to Form an Acquisition and Development Company to Leverage Coal Mine Methane and Natural Gas for Off-Grid Data Center Power Projects
Diversified Energy (NYSE: DEC) has announced a strategic partnership with FuelCell Energy and TESIAC to form an Acquisition and Development Company (ADC) aimed at providing power solutions for data centers. The collaboration targets supplying up to 360 megawatts of electricity to three locations in Virginia, West Virginia, and Kentucky.
The partnership will leverage Diversified Energy's natural gas and coal mine methane (CMM) production, FuelCell Energy's advanced fuel cell technology, and TESIAC's infrastructure financing expertise. The project involves converting methane to hydrogen through an electrochemical process, generating power with virtually zero air pollution emissions.
Key features include:
- Behind-the-meter solutions providing on-site, continuous power generation
- Innovative capital structuring for faster deployment
- Carbon-optimized power generation using captured methane
- Potential creation of hundreds of well-paying jobs in construction, operation, and maintenance
Diversified Energy (NYSE: DEC) ha annunciato una partnership strategica con FuelCell Energy e TESIAC per formare una Società di Acquisizione e Sviluppo (ADC) finalizzata a fornire soluzioni energetiche per i data center. La collaborazione mira a fornire fino a 360 megawatt di elettricità in tre località in Virginia, Virginia Occidentale e Kentucky.
La partnership sfrutterà la produzione di gas naturale e metano da miniere di carbone (CMM) di Diversified Energy, la tecnologia avanzata delle celle a combustibile di FuelCell Energy e l'expertise di TESIAC nel finanziamento delle infrastrutture. Il progetto prevede la conversione del metano in idrogeno attraverso un processo elettrochimico, generando energia con emissioni di inquinamento atmosferico praticamente nulle.
Le caratteristiche principali includono:
- Soluzioni dietro il contatore che forniscono generazione di energia continua in loco
- Strutturazione innovativa del capitale per un'implementazione più rapida
- Generazione di energia ottimizzata per il carbonio utilizzando metano catturato
- Possibile creazione di centinaia di posti di lavoro ben retribuiti nella costruzione, operazione e manutenzione
Diversified Energy (NYSE: DEC) ha anunciado una asociación estratégica con FuelCell Energy y TESIAC para formar una Compañía de Adquisición y Desarrollo (ADC) destinada a proporcionar soluciones energéticas para centros de datos. La colaboración tiene como objetivo suministrar hasta 360 megavatios de electricidad a tres ubicaciones en Virginia, Virginia Occidental y Kentucky.
La asociación aprovechará la producción de gas natural y metano de minas de carbón (CMM) de Diversified Energy, la tecnología avanzada de celdas de combustible de FuelCell Energy y la experiencia en financiamiento de infraestructura de TESIAC. El proyecto implica convertir metano en hidrógeno a través de un proceso electroquímico, generando energía con emisiones de contaminación del aire prácticamente nulas.
Las características clave incluyen:
- Soluciones detrás del medidor que proporcionan generación de energía continua en el lugar
- Estructuración de capital innovadora para un despliegue más rápido
- Generación de energía optimizada para el carbono utilizando metano capturado
- Posible creación de cientos de empleos bien remunerados en construcción, operación y mantenimiento
다양화된 에너지 (NYSE: DEC)가 데이터 센터를 위한 전력 솔루션을 제공하기 위해 FuelCell Energy 및 TESIAC와 전략적 파트너십을 발표했습니다. 이 협력은 버지니아, 웨스트버지니아 및 켄터키의 세 곳에 최대 360메가와트의 전력을 공급하는 것을 목표로 합니다.
이 파트너십은 다양한 에너지의 천연가스 및 석탄광 메탄(CMM) 생산, FuelCell Energy의 첨단 연료전지 기술, TESIAC의 인프라 금융 전문성을 활용합니다. 이 프로젝트는 메탄을 전기화학적 과정을 통해 수소로 전환하여 거의 제로의 공기 오염 배출로 전력을 생성하는 것을 포함합니다.
주요 특징은 다음과 같습니다:
- 현장 연속 전력 생성을 제공하는 미터 뒤 솔루션
- 더 빠른 배포를 위한 혁신적인 자본 구조
- 포획된 메탄을 사용한 탄소 최적화 전력 생성
- 건설, 운영 및 유지 관리 분야에서 수백 개의 고임금 일자리 창출 가능성
Diversified Energy (NYSE: DEC) a annoncé un partenariat stratégique avec FuelCell Energy et TESIAC pour former une Société d'Acquisition et de Développement (ADC) visant à fournir des solutions énergétiques pour les centres de données. La collaboration vise à fournir jusqu'à 360 mégawatts d'électricité à trois sites en Virginie, en Virginie-Occidentale et au Kentucky.
Le partenariat tirera parti de la production de gaz naturel et de méthane provenant de mines de charbon (CMM) de Diversified Energy, de la technologie avancée des piles à hydrogène de FuelCell Energy et de l'expertise de TESIAC en matière de financement d'infrastructures. Le projet implique la conversion du méthane en hydrogène par un processus électrochimique, générant de l'énergie avec pratiquement aucune émission de pollution de l'air.
Les caractéristiques clés comprennent:
- Solutions derrière le compteur fournissant une production d'énergie continue sur site
- Structuration de capital innovante pour un déploiement plus rapide
- Production d'énergie optimisée en carbone utilisant du méthane capturé
- Création potentielle de centaines d'emplois bien rémunérés dans la construction, l'exploitation et l'entretien
Diversified Energy (NYSE: DEC) hat eine strategische Partnerschaft mit FuelCell Energy und TESIAC angekündigt, um ein Akquisitions- und Entwicklungsgesellschaft (ADC) zu gründen, die darauf abzielt, Energie Lösungen für Rechenzentren bereitzustellen. Die Zusammenarbeit zielt darauf ab, bis zu 360 Megawatt Strom an drei Standorten in Virginia, West Virginia und Kentucky zu liefern.
Die Partnerschaft wird die Produktion von Erdgas und Methan aus Kohlenbergwerken (CMM) von Diversified Energy, die fortschrittliche Brennstoffzellentechnologie von FuelCell Energy und die Fachkenntnisse von TESIAC im Bereich Infrastrukturfinanzierung nutzen. Das Projekt umfasst die Umwandlung von Methan in Wasserstoff durch einen elektrochemischen Prozess, der Strom mit nahezu null Luftverschmutzungsemissionen erzeugt.
Zu den wichtigsten Merkmalen gehören:
- Hinter-dem-Zähler-Lösungen, die eine kontinuierliche Stromerzeugung vor Ort bieten
- Innovative Kapitalstrukturierung für schnellere Bereitstellung
- Kohlenstoffoptimierte Stromerzeugung unter Verwendung von gefangenem Methan
- Potenzielle Schaffung von Hunderten von gut bezahlten Arbeitsplätzen in Bau, Betrieb und Wartung
- Partnership targets 360MW of power generation capacity across three locations
- Project qualifies for environmental and tax credits, providing additional cash flow
- Behind-the-meter solution reduces grid dependency and ensures continuous power supply
- Creation of hundreds of well-paying jobs in various sectors
- Innovative financing structure to accelerate deployment
- Project implementation timeline of two years before operational
- Significant capital investment required for infrastructure development
- Dependency on consistent natural gas and CMM supply
Insights
This strategic partnership represents a significant market positioning move for Diversified Energy in the rapidly growing data center power market. By forming an Acquisition and Development Company with FuelCell Energy and TESIAC, DEC is creating a vertically integrated solution that leverages its core natural gas and coal mine methane assets to serve the critical 360 megawatt power needs of data centers across three strategic Appalachian locations.
The partnership creates multiple potential revenue streams for DEC: (1) direct sales of natural gas and CMM, (2) potential equity participation in the power generation assets, and (3) environmental credit monetization from methane capture. This last element is particularly valuable as it transforms what was previously a liability (methane emissions) into a revenue-generating asset.
The timing is opportune given the explosive demand for data center capacity driven by AI development. Current grid infrastructure is struggling to meet these demands, creating a premium market for reliable, on-site power generation. DEC's Appalachian Basin assets are geographically well-positioned to serve this need in Virginia, West Virginia, and Kentucky.
While financial terms and timeline details aren't specified, the behind-the-meter approach creates a potential recurring revenue model that could be more stable than commodity price-dependent production. The partnership also diversifies DEC's business model beyond traditional E&P operations into higher-value energy services.
This partnership addresses one of the most pressing bottlenecks in AI and data center expansion: reliable power supply. The technical approach combines several advantages over traditional solutions. By converting methane to hydrogen electrochemically rather than through combustion, the system eliminates most air pollutant emissions, which significantly accelerates permitting processes – a critical advantage when data centers need power now, not years from now.
The waste heat utilization for data center cooling creates a circular efficiency that traditional generation methods can't match. This matters immensely for data centers where cooling represents up to 40% of operational costs. The behind-the-meter design also eliminates transmission losses and reduces vulnerability to grid instability.
What makes this approach particularly innovative is the integration of coal mine methane capture. Rather than venting this potent greenhouse gas, the system repurposes it as fuel while qualifying for environmental credits. The combined economics of fuel value, environmental credits, and potential tax incentives create a compelling business case.
For Diversified Energy, this represents a higher-value application for their methane resources compared to simple commodity sales. The three-location deployment across Virginia, West Virginia, and Kentucky creates a regionally diverse portfolio that mitigates single-site risks while maintaining operational synergies. The model's scalability (up to 360MW) provides significant growth potential if the initial deployments prove successful.
Projects aim to be responsive to the energy needs of data centers by offering an abundant supply of operational power within two years
Projects target the provision of on-site, continuous, and scalable power generation, and securing data center uptime even in volatile market conditions
The partnership would involve innovative capital structuring coupled with environmental credit cash flow generation from the fuel cell platforms and coal mine methane (CMM)
Clean fuel cell technology can reduce the carbon footprint of data center and other high-volume electrical off-takers
Projects aspire to create jobs and other economic benefits focused on the Appalachian region
BIRMINGHAM, Ala. and DANBURY, Conn. and SAN FRANCISCO, March 10, 2025 (GLOBE NEWSWIRE) -- Diversified Energy Co. PLC (NYSE: DEC, LSE: DEC) (“Diversified Energy”), FuelCell Energy, Inc. (NASDAQ: FCEL) (“FuelCell Energy”), and TESIAC (“TESIAC”) announced a strategic partnership intended to address the urgent energy needs of data centers by supplying as much as 360 megawatts of electricity to three distinct locations in Virginia, West Virginia and Kentucky.
The partnership has agreed to create an Acquisition and Development Company (“ADC”) focused on delivering reliable, cost efficient, net-zero power from natural gas and captured coal mine methane (“CMM”) to meet the soaring demand of data centers for reliable power.
The collaboration among the three companies would leverage in-basin natural gas production, advanced energy generation via fuel cell technology, and infrastructure financing to create a highly efficient, scalable, and sustainable energy solution tailored for the rapid expansion of data center power capacity requirements.
Natural gas or CMM, extracted from coal mines by Diversified Energy and delivered via pipeline to fuel cells, would generate power through the electrochemical conversion of methane to hydrogen, and then to electricity. This combustion-free process is virtually free of air pollution emissions, speeding air permitting and enabling the system to be brought online faster than combustion-based systems. Heat that is co-generated by the fuel cells can be harnessed and converted to chilling for the data center, thus increasing overall system efficiency and further enhancing economic value. Importantly, this process qualifies for established environmental and tax credits that have the potential to provide meaningful cash flow in addition to the economic benefits of gas and power sales.
The parties are structuring the terms of the agreement to include:
- Diversified Energy supplying natural gas and CMM or captured waste methane from coal mines that otherwise would have been vented into the atmosphere, from its Appalachian Basin production as the base fuel.
- FuelCell Energy deploying its fuel cell energy platforms, delivering distributed, high-efficiency baseload power generation, emissions management, and thermal energy solutions. This includes electricity and waste heat driven absorption chilling, ensuring data centers achieve unmatched efficiency, carbon reduction, and resilience.
- TESIAC leveraging its investment and development expertise, securing highly competitive financing options to accelerate deployment while maintaining long-term profitability and scalability.
This unique partnership intends to create a decentralized, high-performance, and sustainable energy solution to meet the demands of data centers that enable rapidly growing AI and high-performance graphics processing units. The partnership initiative, using U.S.-made technology and materials, could create hundreds of well-paying jobs in construction, operation, maintenance, and assembly and engineering, as well as indirect economic benefits, all while driving a new era of innovation in the data center industry, alongside other high-volume electric off-take markets.
Other key attributes include:
- Behind-the-Meter Solutions: Rather than rely on grid-based power, this model is expected to be designed to provide on-site, continuous, and scalable power generation, securing data center uptime even in volatile market conditions with optionality to sell into the grid.
- Disruptive Financing Model: Innovative capital structuring will target faster deployment and stronger financial resilience compared to traditional investment structures.
- Carbon-Optimized Power Generation: The integration of captured methane, distributed fuel cells and emissions capture ready technology to reduce a customer’ s carbon footprint, setting a new industry standard.
Brad Gray, President and Chief Financial Officer of Diversified Energy, said:
“Our natural gas and coal mine methane asset footprint is advantageously positioned in the Appalachian Region to support the power generation needs of data centers directly. The market demand for the type of reliable, quickly dispatchable power that only natural gas can deliver is incredibly strong, and we’re excited about the potential of this partnership to deploy Diversified Energy-produced natural gas and coal mine methane (CMM) and pair it with Fuel Cell’s advanced industrial-scale technology to create an efficient, cost-effective, environmentally sound solution for the next generation power needs of data centers.”
Jason Few, President and CEO of FuelCell Energy, stated:
“We’re excited by the opportunity to partner with the Diversified Energy and TESIAC teams, merging their resources with our electrochemical technology to deliver a scalable, distributed baseload power solution. We believe the future of AI and other high-performance computing will require an abundant supply of clean, reliable, and locally generated power, ensuring that data centers can operate with maximum efficiency and sustainability. By leveraging an abundant supply of natural gas and coal mine methane (CMM), we’re confident we can address data center energy needs more quickly and cleanly than other market alternatives, accelerating the time to revenue for data centers and their customers.”
Karen Morgan, Managing Partner at TESIAC, said:
“We anticipate there will be multiple benefits for communities from this collaboration. Stabilizing the energy supply, while capturing methane emissions, turns an environmental challenge into an economic growth opportunity, creating steady job growth as a result of bringing the supply chain closer to the source of power and the end user. By combining our expertise with Diversified Energy and FuelCell Energy, we are creating a model for the future of data centers, one that is strategic, sustainable and built for long-term growth.”
The companies look forward to sharing further information about the partnership, specific projects, and development timelines soon.
About Diversified Energy
Diversified Energy is a leading publicly traded energy company focused on natural gas and liquids production, transport, marketing, and well retirement. Through our unique differentiated strategy, we acquire existing, long-life assets and invest in them to improve environmental and operational performance until retiring those assets in a safe and environmentally secure manner. Recognized by ratings agencies and organizations for our sustainability leadership, this solutions-oriented, stewardship approach makes Diversified Energy the Right Company at the Right Time to responsibly produce energy, deliver reliable free cash flow, and generate shareholder value.
FuelCell Energy
FuelCell Energy, a pioneer in clean energy technology, provides efficient and sustainable power, carbon capture, and hydrogen solutions worldwide. The company’s fuel cells have been in commercial operation for more than 20 years and are able to run on various fuels including natural gas, hydrogen, and biofuel. The company’s installations have a wide variety of applications, including support of the electric grid, distributed baseload power on site for data centers, industrial operations, and major manufacturers. Founded in 1969 in Danbury, Connecticut, FuelCell Energy holds more than 450 patents that enable solutions for today’s energy needs. Learn more about our groundbreaking technology at fuelcellenergy.com.
About TESIAC
TESIAC is a trusted investment and development platform company focused on regional economic development, enabling and accelerating the transition to sustainable energy infrastructure, establishing workforce development, and accelerating community centered reinvestment opportunities. TESIAC enables integrated and interoperable systems to enhance overall efficiencies, increase operational performance, and create layers of sustainable value. TESIAC brings together an experienced interdisciplinary team and partners with new and advanced technologies, as well as flexible and innovative capital structures. TESIAC’s mission-driven “Art of the Possible” (AOP) approach avoids silos, delivers optimized solutions, uses proven technologies, and is aligned with their Partner Network to maximize value to stakeholders.
Forward-Looking Statements
This announcement includes forward-looking statements. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as "believe", "expects", "targets", "may", "will", "could", “can”, "should", "shall", "risk", "intends", "estimates", "aims", "plans", "predicts", "continues", "assumes", “projects”, "positioned" or "anticipates" or the negative thereof, other variations thereon or comparable terminology. These forward-looking statements include all matters that are not historical facts. TESIAC or their respective management concerning, among other things, statements regarding the ADC partnership, including its timing, benefits and impact, descriptions of the collaboration and its operations, integration and transition plans, opportunities and anticipated future operational and financial performance. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the control of Diversified Energy, FuelCell Energy and TESIAC and all of which are based on the current beliefs and expectations of their respective management about future events, including the expected timing and likelihood of the ADC partnership, including the ability to successfully execute the collaboration, the occurrence of any event, change or other circumstances that could give rise to the termination of the ADC partnership and the risk that the ADC partnership may not achieve synergies as expected and other important factors that could cause actual results to differ materially from those projected.
For further information, please contact:
| Diversified Energy Company PLC | +1 973 856 2757 |
| Doug Kris | dkris@dgoc.com |
| Senior Vice President, Investor Relations & Corporate Communications | www.div.energy |
| FTI Consulting | dec@fticonsulting.com |
| U.S. & UK Financial Public Relations | |
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/620926c7-78b8-41b8-a3cd-b15e9ca6b518
FAQ
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