FuelCell Energy receives 121.8MW order from POSCO

6 November 2012 (Last Updated November 6th, 2012 18:30)

US-based FuelCell Energy has received an order for 121.8MW of fuel cell kits and services from its South Korean partner POSCO Energy.

US-based FuelCell Energy has received an order for 121.8MW of fuel cell kits and services from its South Korean partner POSCO Energy.

The latest multi-year contract, worth $181m, is considered as the biggest order the fuel cell industry has ever seen.

FuelCell Energy plans to manufacture kits, each comprising 1.4MW of fuel cell components, at its production facility in Torrington, Connecticut.

The company is expected to deliver first fuel cell kits in May 2013 to ensure an uninterrupted supply following the conclusion of the existing 70MW order in April 2013.

POSCO Energy senior vice president Jung-Gon Kim said: "This order to FuelCell Energy for 121.8 megawatts will help us meet demand in South Korea as well as other Asian countries."

South Korea adopted a renewable portfolio standard in 2012 to promote clean energy, reduce carbon emissions, and develop local green-industry to support economic growth.

Utilities and project investors are developing new and renewable power projects under this standard, including the new 58.8 megawatt (MW) fuel cell park that is in progress.

FuelCell Energy president and CEO Chip Bottone said: "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."

In a separate move, the firm has also announced strategic initiatives with POSCO Energy to expand the market for stationary fuel cell power plants in Asia.

Under this deal, the company is providing rights to POSCO to manufacture Direct FuelCell power plants in South Korea and sell throughout Asia.

"Local manufacturing is a cornerstone of our growth plans in South Korea and we will continue to work closely with FuelCell Energy to develop other Asian markets," Kim said.