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DANBURY, Conn., Aug. 24, 2012 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (Nasdaq:FCEL), a global leader in the design, manufacture and service of ultra-clean, efficient and reliable fuel cell power plants, today provided an update on negotiations with POSCO Energy regarding a 120 megawatt (MW) multi-year order and a cell licensing agreement. Active negotiations are continuing for both the order and the licensing agreement as the parties work to reach mutually agreeable terms. FuelCell Energy and POSCO Energy expect to conclude negotiations and execute agreements for the 120 MW order and the cell licensing agreement within 2012.
"Our demand forecasts support the need for incremental local production capacity in South Korea to meet demand from the Renewable Portfolio Standard and other markets," said Jung-Gon Kim, Senior Vice President, POSCO Energy. "Our efforts are focused on expanding the market as fuel cells provide continuous power efficiently and cleanly and are well suited for meeting the growing power demands of South Korea."
"The market for ultra-clean baseload distributed generation in South Korea is strong and expanding and we have the right partner in POSCO Energy to capture the market opportunity," said Chip Bottone, President and Chief Executive Officer, FuelCell Energy, Inc. "We are working with POSCO Energy to address the wide range of considerations involved with licensing cell manufacturing including the integration with our mutual infrastructure and resources as we progress toward closure of these agreements."
The existing 70 MW order was accelerated in May 2012 to meet growing demand for ultra-clean, efficient and reliable fuel cell power plants. Under the revised terms, 4.2 MW of fuel cell kits are being delivered monthly, concluding in April 2013.
South Korea's 'green growth' energy strategy is designed to stimulate economic growth and job creation while increasing demand for clean and low carbon power generation, spurring fuel cell adoption. Under the Renewable Portfolio Standard that took effect at the beginning of 2012, electric utilities and independent power producers with more than 500 MW of generating capacity must install qualifying technologies such as stationary fuel cells or buy renewable energy credits to meet the mandates of the program and avoid penalties. Ultra-clean and highly efficient fuel cells are an ideal clean energy solution for South Korea due to the need to import fuel for generating electricity, poor wind and solar profiles of the Korean Peninsula, and high urban population densities that support the need for distributed power generation.