POSCO Power Orders 30.8 MW from FuelCell Energy And Plans to Purchase $25 Million of Common Stock

FuelCell Energy today announced that POSCO Power ordered 30.8 megawatts (MW) of FuelCell Energy Direct FuelCell(r) (DFC(r)) modules and components. The order represents an estimated sales value to the Company of $58 million and calls for delivery during 2010 and early 2011.

POSCO Power and FuelCell Energy also signed a Memorandum of Agreement whereby the parties agree to pursue a licensing agreement to allow POSCO Power to assemble FuelCell Energy cell and module components into stack modules for sale in South Korea. As part of the transaction, POSCO Power will purchase $25 million in FuelCell Energy common stock at $3.59 per share (the 10-day average FuelCell Energy stock closing price through June 8, 2009) once the licensing agreement is finalized.

South Korea is a leading proponent of clean energy generation, and has declared stationary fuel cell deployment a top priority. Its $38 billion "Green New Deal" plan encourages green technology deployment to improve the country's economic health. Additionally, Korea imports 90 percent of its fuel so efficiency is important.

POSCO Power has ordered 68 MW of FuelCell Energy power plants and modules since it became a FuelCell Energy marketing and distribution partner in 2007. Currently, approximately 18 MW of DFC fuel cells are operating or are in various stages of installation in South Korea. Sites include POSCO Power's headquarters and balance-of-plant manufacturing facility in Pohang, a paper company Natura, independent power producers KOMIPO, KOSEP, HS Holdings and MPC, and Korea's utility KEPCO.

Source: Fuel Cell Today