Fuel Cell Stocks: FuelCell Energy (Nasdaq:FCEL) Announces Service Agreement Renewals
Multiple Customers Extend Service Agreements for Up to 15 Years
Category: Investment, Fuel Cell, Renewable Energy
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News about FuelCell Energy, Inc.
DANBURY, Conn. - May 29, 2012 (Investorideas.com renewable energy newswire) FuelCell Energy, Inc. (Nasdaq:FCEL) a leading manufacturer of ultra-clean, efficient and reliable fuel cell power plants, today announced the extension of service agreements with four existing customers for terms up to 15 years. The Direct FuelCell(R) (DFC(R)) power plants are owned by the customers and under the service agreements, FuelCell Energy will continue to operate and maintain the plants. The total value of the service agreements is approximately $15 million. Three different fuel cell markets are represented by these customers including education, municipal wastewater treatment, and food processing.
"A fundamental cornerstone of our business model is keeping our customers satisfied, which generates growth in our Services business," said Chip Bottone, President and Chief Executive Officer, FuelCell Energy, Inc. "By having FuelCell Energy responsible for the operation and maintenance of the power plants, our customers can concentrate on their core competencies."
"Existing customers extending service agreements is a strong testament to the favorable economic profile of our fuel cell power plants as well as the many benefits of clean on-site power generation," said Tracy Reid, Vice President Western Region, FuelCell Energy, Inc. "The high efficiency of the fuel cell power generation process is valued by clients as it reduces fuel costs and the virtual lack of pollutants from the fuel cell power generation process supports compliance with clean air regulations and sustainability goals."
FuelCell Energy offers a comprehensive portfolio of services for fuel cell power plants and ancillary equipment with service agreements ranging from one to 20 years in duration. Technicians and engineers remotely operate and maintain the Direct FuelCell power plants globally, 24 hours per day, 365 days per year from the state-of-the-art Global Technical Assistance Center, located at the Company's Danbury, Connecticut headquarters. Field service technicians directly employed by FuelCell Energy service the power plants on-site.
DFC power plants electrochemically convert a fuel source into electricity and heat in a highly efficient process that emits virtually no pollutants due to the absence of combustion. DFC power plants are fuel flexible, capable of operating on natural gas or renewable biogas. Efficiency of up to 90 percent can be achieved when the DFC plant is configured for combined heat and power (CHP). High efficiency reduces fuel costs and carbon emissions, and producing both electricity and heat from the same unit of fuel can reduce the use of combustion based boilers used for heating, further reducing costs and pollutants.
About FuelCell Energy
Direct FuelCell(R) power plants are generating ultra-clean, efficient and reliable power at more than 50 locations worldwide. With over 180 megawatts of power generation capacity installed or in backlog, FuelCell Energy is a global leader in providing ultra-clean baseload distributed generation to utilities, industrial operations, universities, municipal water treatment facilities, government installations and other customers around the world. The Company's power plants have generated more than one billion kilowatt hours of ultra-clean power using a variety of fuels including renewable biogas from wastewater treatment and food processing, as well as clean natural gas. For more information please visit our website at www.fuelcellenergy.com
This news release contains forward-looking statements, including statements regarding the Company's plans and expectations regarding the continuing development, commercialization and financing of its fuel cell technology and business plans. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could cause such a difference include, without limitation, general risks associated with product development, manufacturing, changes in the regulatory environment, customer strategies, potential volatility of energy prices, rapid technological change, competition, and the Company's ability to achieve its sales plans and cost reduction targets, as well as other risks set forth in the Company's filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.
Direct FuelCell, DFC, DFC/T, DFC-H2 and FuelCell Energy, Inc. are all registered trademarks of FuelCell Energy, Inc. DFC-ERG is a registered trademark jointly owned by Enbridge, Inc. and FuelCell Energy, Inc.
FuelCell Energy, Inc.
Kurt Goddard, Vice President Investor Relations
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