POSCO Energy has received an order for 121.8 megawatts of fuel cell kits and services to be manufactured at the FuelCell Energy production facility in Torrington, Connecticut. The estimated value of the multi-year contract is approximately $181 million. POSCO Energy, the largest independent power producer in South Korea, is a subsidiary of POSCO, a leading global steel producer.
“POSCO Energy recently signed a contract to build the world’s largest fuel cell park, a 58.8 megawatt project located in South Korea,” said Senior Vice President, POSCO Energy, Jung-Gon Kim in a press release. “This order to FuelCell Energy for 121.8 megawatts will help us meet demand in South Korea as well as other Asian countries.”
The first delivery will occur in May 2013 to ensure an uninterrupted supply of kits as deliveries under the existing 70 MW order will conclude in April 2013. Each kit consists of 1.4 MW of fuel cell components that are interchangeable and can be used for megawatt class fuel cell power plants or sub-megawatt plants.
“This is the largest order ever received by FuelCell Energy and the fuel cell industry, almost tripling our product backlog and initiating our planned increase in production levels for 2013,” said President and Chief Executive Officer, FuelCell Energy, Inc, Chip Bottone. “The extensive market acceptance in South Korea for ultra-clean and efficient fuel cell power generation is a deployment and job creation model that can and should be replicated in other regions of the world.”
As an additional indicator of demand for stationary fuel cell power plants, Korea Hydro & Nuclear Power Co, Ltd. executed a memorandum of understanding with Seoul City on September 28, 2012 for the joint development of new and renewable power generation, including 120 megawatts of stationary fuel cell power plants.
“This multi-year committed order is really quite extraordinary from a production standpoint as it allows us to level-load our factory and provide committed volumes to our supply base, important factors for further improving our overall cost profile through operating leverage, manufacturing efficiencies and stronger supplier relationships,” said Chief Operating Officer, FuelCell Energy, Inc., Tony Rauseo. “We can continue to support market development efforts by POSCO Energy through further cost reductions.”
