FuelCell Energy announces largest order in company's history at $129 million

Officials with FuelCell Energy announced its largest order ever on Tuesday -- 70 megawatts of fuel cells to an independent power company in South Korea for $129 million.

News of the order sent the company's stock soaring more than 30 percent in afternoon trading Tuesday.

"This order, the largest in company history, demonstrates the growing market for ultra-clean, efficient and reliable fuel cell power plants," said FuelCell Energy President and Chief Executive Officer Chip Bottone.

"The substantial size of the order supports the recent increase in production levels at our manufacturing facility in Connecticut while the two-year delivery schedule for the order provides a base level of production volume that we intend to build upon for additional growth," he said.

The two-year, 70-megawatt fuel cell order comes from POSCO Power, an independent power producer based in South Korea.

FuelCell's previous largest order in 2009, of nearly 31 megawatts of fuel cells worth about $50 million, also was from the South Korean company.

New regulations adopted in South Korea require that at least 350 megawatts of energy be produced annually using renewable forms of energy starting in 2012.

"South Korea is trying to build a green economy and this is a way for them to meet their power needs," said Kurt Goddard, vice president of investor relations for the company.

He said that while the sale won't significantly affect the company's workforce at the Danbury facility on Great Pasture Road, they have been increasing the number of employees at the Torrington manufacturing plant to keep up with increased production.

Orders like the one announced Tuesday will help the company to sustain those higher production levels well into the future, Goddard said.

He said the company's backlog -- the number of firm orders yet to be filled -- has more than doubled with the recent sale to POSCO.

As of Oct. 31, the company had 441 employees at both facilities.

Wayne Shepperd, the city's interim economic development director, said he's pleased to see FuelCell Energy continue to make positive strides and grow their business.

There's no question, he said, that having such a "good solid company" like FuelCell in Danbury is a feather in the city's cap.

FuelCell Energy's stock, which is traded on the NASDAQ exchange, jumped more than 30 percent Tuesday to $1.90 per share.

The company can trace its roots to 1969 and the founding of the Energy Research Corporation, which focused on advanced battery research and commercializing fuel cell technology. In 1999, the company spun off the battery component into a different entity and was renamed FuelCell Energy.

Source: Dirk Perrefort, NewsTimes.com