FuelCell Energy closes tax equity financing with Franklin Park for the 7.4 MW LIPA Yaphank fuel cell project.
FuelCell Energy, Inc. (Nasdaq: FCEL) — a global leader in fuel cell technology with a purpose of utilizing its proprietary, state-of-the-art fuel cell platforms to enable a world empowered by clean energy—announced that the Company closed on a tax equity financing transaction with Franklin Park for the 7.4 megawatts (“MW”) fuel cell project located in Yaphank, Long Island, in New York (the “Project”). Franklin Park’s tax equity commitment totals $12.7 million following the recent declaration of mechanical completion of the Project.
Michael Bishop, Executive Vice President and Chief Financial Officer of FuelCell Energy.
We are thrilled to team up with Franklin Park, a new tax equity finance partner for FuelCell Energy, with an important financing solution that enables the Company to effectively monetize the investment tax credit associated with this project.
“Importantly, this efficient financing enables FuelCell Energy to retain most of this project’s long-term, recurring cash flow, and creates a structure that will facilitate additional capital opportunities that are expected to further return cash to the Company and enhance overall return on equity for this project.”
The Company continues to advance the Project following mechanical completion and expects commercial operation to commence prior to the end of December 2021. Following commercial operation, the Company expects to add back-leverage debt financing to complete the project’s capital structure.
Kevin Lapidus, Chief Investment Officer for Franklin Park.
This multi-year tax equity commitment to FuelCell Energy, which also encompasses a potential second project targeted for completion in 2022, represents the fourth tax equity developer commitment for Franklin Park.
“We look forward to continuing to expand our tax equity investment footprint.”
Raj Mehta, Principal at Franklin Park, added,
Franklin Park is delighted to partner with FuelCell Energy on this fuel cell project that will provide needed clean and resilient electricity to central Long Island.
Jason Few, President and Chief Executive Officer, FuelCell Energy.
The project is a milestone project for FuelCell Energy, our first fuel cell deployment in New York, enabling electrical resiliency and needed clean base load power delivered right at the point of use, reducing above ground risk associated with transmission lines.
“This financing demonstrates the market’s continued interest in financing the Company’s distributed sustainable energy platforms, and in this instance helping communities like Long Island achieve grid resiliency, decarbonization goals and improve air quality without significant land use.”
About Franklin Park
Franklin Park develops, owns, and manages infrastructure assets. Franklin Park has a diverse portfolio, including renewable and conventional electricity generation, electric distribution, rail and road transport, and supply chain logistics.
Franklin Park provides a full suite of capital for renewable energy development companies, including corporate equity, pre-NTP project development capital, tax equity and project acquisitions. Additional details can be found at www.frpark.com.
About FuelCell Energy
FuelCell Energy, Inc. (NASDAQ: FCEL): FuelCell Energy is a global leader in sustainable clean energy technologies that address some of the world’s most critical challenges around energy, safety and global urbanization.
As a leading global manufacturer of proprietary fuel cell technology platforms, FuelCell Energy is uniquely positioned to serve customers worldwide with sustainable products and solutions for businesses, utilities, governments and municipalities. Our solutions are designed to enable a world empowered by clean energy, enhancing the quality of life for people around the globe.
We target large-scale power users with our megawatt-class installations globally, and currently offer sub-megawatt solutions for smaller power consumers in Europe. To provide a frame of reference, one megawatt is adequate to continually power approximately 1,000 average sized U.S. homes. We develop turn-key distributed power generation solutions and operate and provide comprehensive service for the life of the power plant.
Our fuel cell solution is a clean, efficient alternative to traditional combustion-based power generation, and is complementary to an energy mix consisting of intermittent sources of energy, such as solar and wind turbines. Our customer base includes utility companies, municipalities, universities, hospitals, government entities/military bases and a variety of industrial and commercial enterprises.
Our leading geographic markets are currently the United States and South Korea, and we are pursuing opportunities in other countries around the world. FuelCell Energy, based in Connecticut, was founded in 1969. Thanks for staying up to date with Hydrogen Central.
FuelCell Energy Closes Tax Equity Financing with Franklin Park for the 7.4 MW LIPA Yaphank Fuel Cell Project, December 15, 2021
