FuelCell Energy expects to seal 120 MW deal with Posco by end 2012

Aug 24, 2012 - US fuel cell maker FuelCell Energy Inc (NASDAQ:FCEL) today said that negotiations with its South Korean partner, Posco Energy, over a 120 MW order and a cell licensing contract were ongoing and that the parties expected to seal a deal within 2012.

FuelCell Energy unveiled a memorandum of understanding with Posco Energy, a unit of steelmaker Posco (SEO:005490), including a 120-MW multi-year order commitment, in March this year.

FuelCell Energy president and chief executive Chip Bottone said his company is working with POSCO Energy to address the wide range of considerations involved with licensing cell manufacturing including the integration with the two firms' mutual infrastructure and resources as they progress toward closure of these agreements.

Jung-Gon Kim, Posco Energy senior vice president, the company's demand projections confirmed the need for incremental local production capacity in South Korea to respond to demand from the country's Renewable Portfolio Standard and other markets.

FuelCell Energy's existing 70 MW order with Posco Energy was sped up in May to monthly deliveries of 4.2 MW of fuel cell kits, which are set to be completed in April 2013.

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