Largest fuel cell contract to date

11 November 2012


South Korea’s largest independent power producer, POSCO Energy, has entered into a multi-year US$181m contract for fuel cell kits and services from FuelCell Energy Inc. This is the largest order ever received by FuelCell Energy, or any firm in the fuel cell industry, according to the firm’s president and CEO, Chip Bottone. The order will triple the firm’s product backlog and initiate its 2013 production levels.

The 121.8 MW of fuel cell kits form part of a 58.8 MW project that will be located in South Korea. It will be the world’s largest fuel cell park. Construction is due to start before the end of this year. The ownership of the park includes Korea Hydro & Nuclear Power Co. Ltd., Samchully Co., POSCO Energy and financial investors. The electricity will be sold to the power grid and the heat from the fuel cells supplied to a district heating system.

The fuel cell kits will be manufactured at FuelCell Energy’s production facility in Torrington, Connecticut. The first delivery of kits is scheduled for May 2013. Each kit consists of 1.4 MW of fuel cell components that are interchangeable and can be used for megawatt-class fuel cell power plants or sub-megawatt plants.

South Korea adopted an ambitious Renewable Portfolio Standard (RPS) in 2012 to promote clean energy, cut carbon emissions, and develop a local 'green' industry to support economic growth. Utilities and project investors are developing new and renewable power projects under the RPS. This includes the new fuel cell park.

The RPS requires that the country’s power utilities with capacities over 500 MW, 14 in all, generate 4% of energy from renewable sources by 2015. This will increase to 10% by 2022. Effective as of 2012, the programme will mandate an additional 350 MW per year of renewable energy capacity until 2016, and 700 MW per year thereafter. In addition to this, all renewable energy technologies receive a 5% tax credit. Government subsidies are also available to local governments of up to 60% for the installation of renewable facilities. They also receive low interest loans (5.5%-7.5%) for renewable projects.




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