Artist's rendition of the fuel cell park (Source: POSCO Energy)
FuelCell Energy, Inc. today announced that the ownership of the planned 58.8 MW stationary fuel cell power plant in South Korea has been finalised. Construction of the plant – which will be the world’s largest by a considerable margin once it is completed – is scheduled to commence in 2012.
The fuel cell ‘park’ in Hwaseong city, Gyeonggi Province, will consist of ultra-clean and efficient fuel cell power plants sold by POSCO Energy, based on designs and molten carbonate fuel cell components from FuelCell Energy, Inc.
A share purchase agreement executed on October 16th, 2012 establishes the Gyeonggi Green Energy Co. Ltd to develop and operate the 58.8 MW fuel cell park. The ownership consortium includes the largest electric utility in South Korea, Korea Hydro & Nuclear Power Co., Ltd with 49% ownership, POSCO Energy with 15% ownership, Samchully Co., a gas distributor, with 15% ownership, and the remaining 21% will be allocated to financial investors. POSCO Energy is the sole provider of the fuel cell power plants for the project, which will consist of 21 DFC3000® power plants located in an industrial complex. POSCO Energy will lead the construction of the fuel cell park from this year and will maintain and service the power plants under a long-term service agreement.
The ultra-clean electricity generated by this fuel cell park will be supplied to the power grid and will assist the partners with compliance under the South Korean Renewable Portfolio Standard (RPS). The heat generated by the fuel cell power plants will be supplied to a district heating system for local use.
"The renewable portfolio standard is driving demand for efficient and environmentally friendly distributed fuel cell generation as this sizable fuel cell park demonstrates," said Jung-Gon Kim, Senior Vice President, POSCO Energy. "The execution of this share purchase agreement solidifies our demand forecasts for stationary fuel cell power plants and we need to conclude our discussions with FuelCell Energy to confirm the previously announced memoranda of agreement for an additional order and local manufacturing."
"Development of this 58.8 MW fuel cell park illustrates how our stationary fuel cell power plants can be used to support the power grid as the combination of near-zero pollutants, modest land-use needs, and quiet operating nature of these stationary fuel cell power plants facilitates their siting in urban locations," said Chip Bottone, President and Chief Executive Officer, FuelCell Energy, Inc. "Projects such as this fuel cell park support demand for the 120 megawatt order that we are finalizing with POSCO Energy and we expect to conclude an agreement in 2012, as previously stated."
FuelCell Energy’s Direct FuelCell® (DFC®) power plants can solve energy, environmental and business problems by providing ultra clean, efficient and reliable distributed power generation solutions. Direct FuelCells combine a fuel such as natural gas or renewable biogas with oxygen from the ambient air to efficiently produce ultra-clean electricity and usable high quality heat through an electrochemical process. DFC power plants emit virtually no pollutants such as NOx or SOx due to the absence of combustion.
Source: Adapted from FuelCell Energy's Press release