FuelCell Energy Secures Project Financing from Export-Import Bank for Fuel Cell Projects with Gyeonggi Green Energy
FuelCell Energy (FCEL) has secured $9.4 million in project debt financing from the Export-Import Bank of the United States for fuel cell projects with Gyeonggi Green Energy (GGE). The 7-year facility comes with a fixed interest rate of 5.811%. The financing supports a purchase agreement for forty-two 1.4-megawatt upgraded carbonate fuel cell modules to replace existing units at GGE's Hwaseong Baran Industrial Complex. The agreement, expected to generate approximately $160 million in revenue, includes a new seven-year service agreement. All modules are scheduled to ship by first half of 2026 and will be manufactured in Connecticut using primarily U.S. sourced materials.
FuelCell Energy (FCEL) ha ottenuto 9,4 milioni di dollari in finanziamenti per progetti da parte della Export-Import Bank degli Stati Uniti per progetti di celle a combustibile con la Gyeonggi Green Energy (GGE). Il finanziamento, della durata di 7 anni, prevede un tasso di interesse fisso del 5,811%. Il finanziamento supporta un contratto di acquisto per quarantadue moduli di celle a combustibile in carbonato aggiornati da 1,4 megawatt per sostituire le unità esistenti presso il complesso industriale Hwaseong Baran di GGE. Il contratto, che si prevede genererà circa 160 milioni di dollari di entrate, include un nuovo accordo di servizio della durata di sette anni. Tutti i moduli sono programmati per essere spediti entro la prima metà del 2026 e saranno prodotti nel Connecticut utilizzando principalmente materiali di origine statunitense.
FuelCell Energy (FCEL) ha asegurado 9.4 millones de dólares en financiamiento de deuda para proyectos de celdas de combustible por parte del Banco de Exportación e Importación de los Estados Unidos para proyectos con Gyeonggi Green Energy (GGE). La facilidad de 7 años tiene una tasa de interés fija del 5,811%. El financiamiento apoya un contrato de compra para cuarenta y dos módulos de celdas de combustible de carbonato actualizados de 1.4 megavatios para reemplazar las unidades existentes en el Complejo Industrial Hwaseong Baran de GGE. Se espera que el acuerdo genere aproximadamente 160 millones de dólares en ingresos e incluye un nuevo acuerdo de servicio de siete años. Todos los módulos están programados para ser enviados en la primera mitad de 2026 y serán fabricados en Connecticut utilizando principalmente materiales de origen estadounidense.
연료전지 에너지(FCEL)는 경기도 녹색 에너지(GGE)와의 연료전지 프로젝트를 위해 미국 수출입은행으로부터 940만 달러의 프로젝트 부채 자금을 확보했습니다. 7년 만기 시설은 고정 이자율 5.811%를 제공합니다. 이 금융 지원은 GGE의 화성 바란 산업 단지에 있는 기존 장치를 대체하기 위해 42개의 1.4메가와트 업그레이드된 탄산염 연료전지 모듈에 대한 구매 계약을 지원합니다. 이 계약은 약 1억 6천만 달러의 수익을 발생시킬 것으로 예상되며, 새로운 7년 서비스 계약이 포함되어 있습니다. 모든 모듈은 2026년 상반기까지 배송될 예정이며, 주로 미국에서 조달한 자재를 사용하여 코네티컷에서 제조됩니다.
FuelCell Energy (FCEL) a sécurisé 9,4 millions de dollars de financement par emprunt pour des projets de piles à hydrogène auprès de la Export-Import Bank des États-Unis pour des projets avec Gyeonggi Green Energy (GGE). Le financement sur 7 ans a un taux d'intérêt fixe de 5,811%. Ce financement soutient un contrat d'achat pour quarante-deux modules de piles à hydrogène améliorés de 1,4 mégawatt destinés à remplacer les unités existantes dans le complexe industriel Hwaseong Baran de GGE. Le contrat devrait générer environ 160 millions de dollars de revenus et comprend un nouvel accord de service de sept ans. Tous les modules sont prévus pour être expédiés d'ici la première moitié de 2026 et seront fabriqués dans le Connecticut en utilisant principalement des matériaux d'origine américaine.
FuelCell Energy (FCEL) hat 9,4 Millionen Dollar Projektverschuldungsfinanzierung von der Export-Import-Bank der Vereinigten Staaten für Brennstoffzellenprojekte mit Gyeonggi Green Energy (GGE) gesichert. Die 7-jährige Finanzierung hat einen festen Zinssatz von 5,811 %. Die Finanzierung unterstützt einen Kaufvertrag über , um bestehende Einheiten im Hwaseong Baran Industrial Complex von GGE zu ersetzen. Es wird erwartet, dass der Vertrag etwa 160 Millionen Dollar an Einnahmen generiert und einen neuen siebenjährigen Servicevertrag beinhaltet. Alle Module sollen bis zur ersten Hälfte des Jahres 2026 versendet werden und werden in Connecticut unter Verwendung hauptsächlich aus den USA bezogener Materialien hergestellt.
- Secured $9.4 million in debt financing with favorable 5.811% fixed rate
- Purchase agreement worth approximately $160 million in revenue
- New seven-year service agreement with GGE included in the deal
- Project supports world's largest fuel cell power platform
- Company needs to pursue additional financing for working capital needs
- Module delivery extends until 2026, indicating delayed revenue recognition
Insights
The
The deal structure demonstrates strong government support for clean energy exports and validates FCEL's technology in the international market. However, investors should note that while this financing helps with capital needs, the company still needs to secure additional funding for working capital, which could lead to future dilution or debt. The Korean market expansion represents a important growth opportunity, but execution risks remain in manufacturing and delivering the modules by 2026.
This deal marks a significant milestone in the fuel cell industry's commercialization efforts. The Hwaseong Baran Industrial Complex, as the world's largest fuel cell power platform, serves as a important reference site for FuelCell Energy's technology. The module replacement order demonstrates strong customer satisfaction and technology validation, while the new 7-year service agreement provides predictable recurring revenue.
The Korean market remains at the forefront of fuel cell adoption globally, making this deal strategically important for FCEL's international growth. The commitment to U.S.-based manufacturing in Connecticut also strengthens the company's position for future government support and export financing. The
- Company to receive approximately
$9.4 million in debt financing; FuelCell Energy to pursue additional financing to support the working capital needs of this transaction - Financing to support purchase agreement for forty-two 1.4-megawatt upgraded carbonate fuel cell modules to replace existing units at GGE’s Hwaseong Baran Industrial Complex
DANBURY, Conn., Nov. 01, 2024 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (Nasdaq: FCEL) today announced that it has closed on a project debt financing transaction with the Export-Import Bank of the United States (EXIM) for the company’s fuel cell projects with Gyeonggi Green Energy (GGE). This financing is part of EXIM's Project & Structured Finance program, which helps U.S. exporters compete globally in the natural resource and infrastructure sectors.
“Our partnership with EXIM enhances our capital flexibility and supports our commitment to providing clean, efficient, and reliable energy solutions to the Korean market and around the world,” said Michael Bishop, EVP and CFO of FuelCell Energy. “We continue to see an opportunity to grow fuel cell adoption in international markets. We’re excited to have EXIM’s backing as we look to expand our global customer base while supporting American-made technology.”
“We want to thank Chair Reta Jo Lewis and the U.S. EXIM Bank for their partnership and support of exporting U.S. clean energy technology around the world,” said Jason Few, President and CEO of FuelCell Energy. “With EXIM financing support we can accelerate our efforts to enable a world powered by clean energy.”
“This transaction further underscores EXIM’s dedication to supporting environmentally beneficial exports as outlined in our charter,” said EXIM President and Chair Reta Jo Lewis. “In addition to being at the forefront of the global energy transition, I am pleased that we can continue advancing our mission to support domestic jobs by advancing U.S. exports.”
The
Brent Cox, EVP & Chief Credit Officer noted “AF Capital is delighted to be part of such an exciting and important partnership. The transaction with FuelCell Energy, EXIM Bank, and PEFCO as lender has helped grow a vital industry while also supporting U.S. based jobs.”
This financing brings important financial support to FuelCell Energy’s commercial effort in the Korean market. GGE has agreed to purchase forty-two 1.4-megawatt upgraded carbonate fuel cell modules from FuelCell Energy to replace existing fuel cell modules at the Hwaseong Baran Industrial Complex fuel cell power platform, the world’s largest fuel cell power platform, with all modules expected to ship by the first half of calendar year 2026.
FuelCell Energy intends to pursue additional financing to support the working capital needs of this transaction.
The agreement with GGE constitutes a significant milestone for supplying clean baseload power to the Korean market and includes a new seven-year service agreement pursuant to which FuelCell Energy will service the fuel cell modules. FuelCell Energy expects to receive approximately
The fuel cell modules are made in the U.S. at FuelCell Energy’s Torrington, Connecticut factory utilizing U.S. sourced materials and suppliers for a majority of production.
About FuelCell Energy
FuelCell Energy, Inc. is a global leader in delivering environmentally responsible distributed baseload energy platform solutions through our proprietary fuel cell technology. FuelCell Energy is focused on advancing sustainable clean energy technologies that address some of the world’s most critical challenges around energy access, security, resilience, reliability, affordability, safety and environmental stewardship. As a leading global manufacturer of proprietary fuel cell technology platforms, FuelCell Energy is uniquely positioned to serve customers worldwide with sustainable products and solutions for industrial and commercial businesses, utilities, governments, municipalities, and communities. Learn more at fuelcellenergy.com.
About Export-Import Bank of the United States
The Export-Import Bank of the United States (EXIM) is the nation’s official export credit agency with the mission of supporting American jobs by facilitating U.S. exports. To advance American competitiveness and assist U.S. businesses as they compete for global sales, EXIM offers financing including export credit insurance, working capital guarantees, loan guarantees, and direct loans. As an independent federal agency, EXIM contributes to U.S. economic growth by supporting tens of thousands of jobs in exporting businesses and their supply chains across the United States. Learn more at www.exim.gov.
About AF Capital
AF Capital finances new manufactured products that are exported. AF Capital offers the funding of goods in various industries using Export Credit Agencies and it provides capabilities to offer loans in over 150 different countries.
The AF Capital team has built extensive long-term relationships with Export Credit Agencies and understands the issues that are important to providing guaranteed loans in global markets. AF Capital provides global buyers with the ability to borrow at government guaranteed based interest rates.
Investor Relations Contact
FuelCell Energy
Tom Gelston
tgelston@fce.com
Press Contact
FuelCell Energy
Kathleen Blomquist
kblomquist@fce.com
FAQ
What is the value of FuelCell Energy's (FCEL) new financing from EXIM Bank?
How many fuel cell modules will FCEL deliver to Gyeonggi Green Energy?
What is the expected revenue for FCEL from the GGE agreement?
When will FCEL complete the delivery of fuel cell modules to GGE?
