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
FuelCell Energy (NASDAQ: FCEL) has announced a strategic partnership with Diversified Energy and TESIAC to form an Acquisition and Development Company (ADC) aimed at supplying up to 360 megawatts of electricity to data centers across Virginia, West Virginia, and Kentucky.
The collaboration will utilize natural gas and captured coal mine methane (CMM) to generate power through fuel cell technology, converting methane to hydrogen and then to electricity. The process is virtually emission-free and qualifies for environmental and tax credits. The partnership structure includes:
- Diversified Energy supplying natural gas and CMM from Appalachian Basin
- FuelCell Energy deploying fuel cell platforms for power generation
- TESIAC providing financing and development expertise
The initiative aims to create hundreds of jobs in construction, operation, maintenance, and engineering while offering behind-the-meter solutions for data centers, innovative financing models, and carbon-optimized power generation. The project targets operational power delivery within two years.
FuelCell Energy (NASDAQ: FCEL) ha annunciato una partnership strategica con Diversified Energy e TESIAC per formare una Società di Acquisizione e Sviluppo (ADC) con l'obiettivo di fornire fino a 360 megawatt di elettricità ai data center in Virginia, West Virginia e Kentucky.
La collaborazione utilizzerà gas naturale e metano catturato dalle miniere di carbone (CMM) per generare energia attraverso la tecnologia delle celle a combustibile, convertendo il metano in idrogeno e poi in elettricità. Il processo è praticamente privo di emissioni e dà diritto a crediti ambientali e fiscali. La struttura della partnership include:
- Diversified Energy fornisce gas naturale e CMM dalla Appalachian Basin
- FuelCell Energy implementa piattaforme di celle a combustibile per la generazione di energia
- TESIAC fornisce finanziamenti e competenze nello sviluppo
L'iniziativa mira a creare centinaia di posti di lavoro nella costruzione, operazione, manutenzione e ingegneria, offrendo soluzioni dietro il contatore per i data center, modelli di finanziamento innovativi e generazione di energia ottimizzata per il carbonio. Il progetto punta a consegnare energia operativa entro due anni.
FuelCell Energy (NASDAQ: FCEL) ha anunciado una asociación estratégica con Diversified Energy y TESIAC para formar una Compañía de Adquisición y Desarrollo (ADC) con el objetivo de suministrar hasta 360 megavatios de electricidad a centros de datos en Virginia, Virginia Occidental y Kentucky.
La colaboración utilizará gas natural y metano capturado de minas de carbón (CMM) para generar energía a través de la tecnología de celdas de combustible, convirtiendo metano en hidrógeno y luego en electricidad. El proceso es prácticamente libre de emisiones y califica para créditos ambientales y fiscales. La estructura de la asociación incluye:
- Diversified Energy suministrando gas natural y CMM de la Cuenca de los Apalaches
- FuelCell Energy desplegando plataformas de celdas de combustible para la generación de energía
- TESIAC proporcionando financiamiento y experiencia en desarrollo
La iniciativa tiene como objetivo crear cientos de empleos en construcción, operación, mantenimiento e ingeniería, al tiempo que ofrece soluciones detrás del medidor para centros de datos, modelos de financiamiento innovadores y generación de energía optimizada para carbono. El proyecto tiene como objetivo la entrega de energía operativa en un plazo de dos años.
퓨얼셀 에너지 (NASDAQ: FCEL)는 다이버시파이드 에너지 및 TESIAC와 전략적 파트너십을 체결하여 버지니아, 웨스트버지니아 및 켄터키의 데이터 센터에 최대 360 메가와트의 전력을 공급하는 인수 및 개발 회사(ADC)를 설립한다고 발표했습니다.
이번 협력은 천연가스와 포집된 석탄광 메탄(CMM)을 활용하여 연료 전지 기술을 통해 전력을 생성하며, 메탄을 수소로 변환한 후 전기로 변환합니다. 이 과정은 사실상 배출이 없으며 환경 및 세금 공제를 받을 수 있습니다. 파트너십 구조는 다음을 포함합니다:
- 다이버시파이드 에너지가 애팔래치안 분지에서 천연가스 및 CMM 공급
- 퓨얼셀 에너지가 전력 생성을 위한 연료 전지 플랫폼 배치
- TESIAC이 자금 조달 및 개발 전문성 제공
이 이니셔티브는 건설, 운영, 유지보수 및 엔지니어링 분야에서 수백 개의 일자리를 창출하는 것을 목표로 하며, 데이터 센터를 위한 미터 뒤 솔루션, 혁신적인 자금 조달 모델 및 탄소 최적화 전력 생성을 제공합니다. 이 프로젝트는 2년 이내에 운영 전력 공급을 목표로 하고 있습니다.
FuelCell Energy (NASDAQ: FCEL) a annoncé un partenariat stratégique avec Diversified Energy et TESIAC pour former une Société d'Acquisition et de Développement (ADC) visant à fournir jusqu'à 360 mégawatts d'électricité aux centres de données en Virginie, Virginie-Occidentale et Kentucky.
La collaboration utilisera du gaz naturel et du méthane capturé des mines de charbon (CMM) pour générer de l'énergie grâce à la technologie des piles à hydrogène, convertissant le méthane en hydrogène puis en électricité. Le processus est pratiquement sans émissions et ouvre droit à des crédits environnementaux et fiscaux. La structure du partenariat comprend :
- Diversified Energy fournissant du gaz naturel et du CMM de la région des Appalaches
- FuelCell Energy déployant des plateformes de piles à hydrogène pour la production d'énergie
- TESIAC fournissant un financement et une expertise en développement
Cette initiative vise à créer des centaines d'emplois dans la construction, l'exploitation, la maintenance et l'ingénierie, tout en offrant des solutions derrière le compteur pour les centres de données, des modèles de financement innovants et une production d'énergie optimisée pour le carbone. Le projet vise à livrer de l'énergie opérationnelle dans un délai de deux ans.
FuelCell Energy (NASDAQ: FCEL) hat eine strategische Partnerschaft mit Diversified Energy und TESIAC angekündigt, um ein Akquisitions- und Entwicklungsgesellschaft (ADC) zu gründen, die darauf abzielt, bis zu 360 Megawatt Strom an Rechenzentren in Virginia, West Virginia und Kentucky zu liefern.
Die Zusammenarbeit wird Erdgas und aus Kohlenbergwerken gewonnenes Methan (CMM) nutzen, um Strom durch Brennstoffzellentechnologie zu erzeugen, indem Methan in Wasserstoff und dann in Elektrizität umgewandelt wird. Der Prozess ist praktisch emissionsfrei und qualifiziert sich für Umwelt- und Steuervergünstigungen. Die Struktur der Partnerschaft umfasst:
- Diversified Energy, das Erdgas und CMM aus dem Appalachian Basin bereitstellt
- FuelCell Energy, das Brennstoffzellenplattformen zur Stromerzeugung bereitstellt
- TESIAC, das Finanzierung und Entwicklungsexpertise bereitstellt
Die Initiative zielt darauf ab, Hunderte von Arbeitsplätzen in den Bereichen Bau, Betrieb, Wartung und Ingenieurwesen zu schaffen und gleichzeitig Lösungen hinter dem Zähler für Rechenzentren, innovative Finanzierungsmodelle und kohlenstoffoptimierte Stromerzeugung anzubieten. Das Projekt zielt darauf ab, innerhalb von zwei Jahren betriebsbereiten Strom zu liefern.
- Partnership targets 360MW 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
- Technology enables faster deployment compared to traditional combustion-based systems
- Creates hundreds of direct jobs in construction, operations, and engineering
- Project execution and revenue generation dependent on two-year timeline
- Success relies on unproven partnership structure between three different companies
- Significant capital investment required for infrastructure development
- Revenue stream dependent on data center industry demand
Insights
FuelCell Energy's strategic partnership with Diversified Energy and TESIAC represents a potentially transformative commercial opportunity targeting data center power needs. The formation of an Acquisition and Development Company with plans to deploy 360 megawatts of fuel cell capacity across three Appalachian states addresses a critical market pain point: reliable, scalable power for AI and high-performance computing facilities.
The partnership's approach offers distinct competitive advantages. The electrochemical conversion process operates without combustion, significantly reducing air pollution and potentially accelerating permitting timelines compared to traditional generation. This behind-the-meter solution provides data centers with power security independent of increasingly constrained grid resources - a compelling value proposition as power availability has become a major bottleneck for tech expansion.
The business model incorporates multiple revenue streams: direct electricity sales, potential thermal integration for cooling, and environmental/tax credits derived from methane capture and clean power generation. For FuelCell Energy specifically, 360MW represents substantial system deployment that could accelerate its commercialization roadmap.
However, execution risks remain significant. The "structuring terms" language indicates early-stage development, and the timeline of "within two years" suggests considerable work ahead. The absence of named data center customers or binding commitments introduces uncertainty, though the urgent market need for power solutions creates a receptive environment for innovative approaches.
This partnership represents a potential step-change in FuelCell Energy's commercial trajectory by targeting the high-growth data center market with a comprehensive solution. The creation of a dedicated Acquisition and Development Company provides a clear vehicle for project development while potentially streamlining capital allocation and risk management.
The financial structure appears sophisticated, combining operational revenue from power generation with environmental credit cashflows from captured methane utilization. The TESIAC involvement brings critical financing expertise, with their stated focus on "innovative capital structuring" and "highly competitive financing options" suggesting a framework designed to accelerate deployment while managing FuelCell's capital requirements.
The partnership addresses several key challenges in FuelCell's business model. First, it secures fuel supply through Diversified Energy's natural gas and coal mine methane resources. Second, it provides access to high-value customers in data centers with substantial power requirements. Third, it potentially creates recurring revenue through long-term power supply arrangements.
For context, 360 megawatts represents significant scale relative to FuelCell's historical deployments. Success in executing these projects would not only generate substantial product revenue but also establish a replicable model for addressing data center power needs nationwide. The multiple value streams - electricity sales, thermal utilization, and environmental credits - create a potentially robust economic proposition, though specific financial projections remain unstated.
Market validation from established partners Diversified Energy (NYSE/LSE listed) and TESIAC adds credibility to the initiative, though investors should monitor execution milestones given the early stage of development.
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.
About 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 531 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.
Contacts:
Investor Relations:
ir@fce.com
203.205.2491
Media:
kblomquist@fce.com
203.546.5844
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b8fd4755-dc1e-4afa-aecd-ee072ad543ca
FAQ
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