•Construction started for South Korean fuel cell manufacturing facility •Growing Asian demand for ultra-clean, efficient and reliable distributed generation•POSCO Energy and FuelCell Energy enter into a Master Service Agreement for Asian fuel cell power plant installations
DANBURY, Conn., Oct. 24, 2013 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (Nasdaq:FCEL), a global leader in the design, manufacture, operation and service of ultra-clean, efficient and reliable fuel cell power plants, today announced a series of updates with its South Korean partner, POSCO Energy, including the start of construction for the South Korean fuel cell manufacturing facility, growing demand for multi-megawatt fuel cell installations, and the execution of a master service agreement for installations in Asia.
POSCO Energy is licensed to manufacture Direct FuelCell® power plants in South Korea and commenced construction of the previously announced manufacturing facility. The facility will serve Asian markets and is expected to be producing in 2015 with an initial capacity of 100 megawatts (MW) per year and capacity will be increased as demand supports. Industrial engineering enhancements at the FuelCell Energy (FCE) production facility in North America increased total production capacity to 100 megawatts annually and these enhancements will be incorporated into the South Korean production process, accounting for the increased production capacity compared to previously stated figure of 70 MW annually.
Increasing production volume leads to lower product costs for both FuelCell Energy and POSCO Energy as a globally integrated supply chain serves all the manufacturing facilities, including this new facility in Pohang, South Korea as well as existing production facilities in Torrington, Connecticut, USA and Ottobrunn, Germany. Greater purchasing volume and enhanced predictability of demand reduces material costs.
The South Korean market is adopting large-scale fuel cell parks and the project pipeline of POSCO Energy is oriented towards multi-megawatt installations composed of two to twenty power plants per site. The fuel cell parks supply continuous ultra-clean power to the electric grid near the point of use and can supply steam or hot water to district heating systems.
"Highly efficient and low emission fuel cells are meeting the needs of power generators in South Korea and we are discussing more multi-megawatt projects in the second year following the adoption of the renewable portfolio standard," said Jung-Gon Kim, Senior Vice President, POSCO Energy.