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FuelCell Energy acquires Dominion Energy’s Bridgeport, Connecticut fuel-cell park for $35.4 million

CEO Chip Bottone says the project is a ‘major step’ towards the company’s long-term strategy to ‘diversify its generation portfolio’
The FuelCell Energy plant
FuelCell Energy designs, installs, services and operates fuel cell power plants for power generation

FuelCell Energy Inc (NASDAQ:FCEL) announced Monday that it has closed the $35.4 million acquisition of Dominion Energy’s 14.9 megawatts fuel-cell park in Bridgeport, Connecticut.

In 2013, FuelCell developed, constructed and commissioned the Bridgeport fuel-cell park and has since maintained the plant under a service agreement with Dominion Energy.

The deal is expected to add annual revenue in excess of $15 million per year, said the company in a statement, and and improve FuelCell Energy’s margins.

READ: FuelCell’s $100M debt facility with Generate Lending a positive factor, Roth says

"The addition of this project asset to our generation portfolio is a major step towards our long-term strategy to diversify our generation portfolio, transitioning FuelCell Energy into a services focused business that delivers recurring revenue,” said FuelCell CEO Chip Bottone.

FuelCell Energy paid $35.4 million for the new fuel cell park, funding the acquisition through third-party financing and $15 million of restricted cash on hand that was tied to the project and released at closing.

Liberty Bank and Fifth Third Bank jointly provided "the senior project-level debt facility of $25 million," while the Connecticut Green Bank provided additional capital, disclosed the company

"This financing demonstrates FuelCell Energy’s ability to attract traditional project finance capital from commercial banks long available to solar, wind and hydro," said Bert Hunter, chief investment officer of Connecticut Green Bank.

Danbury, Connecticut-based FuelCell Energy designs, installs, services and operates fuel cell power plants for power generation.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter@UttaraProactive 

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