FuelCell Energy secures $15M for U.S. Navy Submarine station project

FuelCell Energy

FuelCell Energy, the fuel cell technology leader, announced this Monday that it has secured $15 million in a tax equity financing transaction. The company closed the financing with East West Bank, for the 7,4 megawatts fuel cell project located on the U.S. Navy Submarine Base in Groton, Connecticut.

Firstly, the $15 million commitment from East West Bank demonstrates the market’s interest in financing FuelCell Energy’s distributed sustainable energy platforms; particularly as the Company works with customers to achieve their decarbonization and enhanced grid resiliency goals.

Secondly, the Submarine base projects is also known as Submarine Force; after the financing, the company will advance in the project; through mechanical completion and other details. The company expects that the substation will begin commercial operations by September 2021.

Thirdly, after the substation begins operations, FuelCell Energy will add back-leverage debt financing to complete the project’s capital structure.

Moreover, about the capital commitment, Christopher Simeone, Senior Vice President with East West Bank, said. “East West Bank is delighted to partner with FuelCell Energy; on the fuel cell project located on the U.S. Navy Submarine Base in Connecticut.”

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FuelCell Energy to provide low-carbon resilient energy of the Navy

He also remarked. “As a leader in financing clean and alternative energies, we look forward to seeing the U.S. Navy and the Groton community benefit from this important project.”

On the other hand, the Submarine Force project is a 7,4 MW project were the company installed a SureSource power platform; in order to provide the U.S. Navy station with long-term supply of power to an existing electrical substation.

In addition, the fuel cell plant is part of a multifaceted plan by the Connecticut Municipal Electric Energy Cooperative (“CMEEC”); to provide new power resources and also, support the desire of the Department of Defense to add resiliency; and also grid independence to key military installations.

Furthermore, the solution by FuelCell Energy minimizes carbon output while providing continuous power to the strategic military base. The U.S. Navy continues to purchase power from CMEEC and also, Groton Utilities, who in turn purchase the power from FuelCell Energy under a 20-year power purchase agreement.

Finally, about the project, Michael Bishop, CEO of FuelCell Energy, said. “This efficient financing enables FuelCell Energy to retain most of this project’s long-term; also, recurring cash flow, and creates a structure that will facilitate additional capital opportunities; ones that are expected to further return cash to the Company and enhance overall return on equity for this project.”

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