FuelCell Energy Inc. Receives $129M Order From Korea
FuelCell Energy Inc. in Danbury says it has gotten a two-year, $129 million contract to supply its Korean partner with 70 megawatts of fuel cell kits and related services.
South Korean industrial giant Posco Power's contract is good through October 2013, FuelCell said.
The front-loaded contract calls for FuelCell to collect as much as 40 percent, or $52 million, of the order's value by October, when the first kits will be delivered.
South Korea mandates that most of the nation's power generation come from sustainable, renewable sources such as the units FuelCell manufactures capable of running on natural gas, biogas and other alternative fuels.
Poscos owns just under 9 percent of FuelCell's common stock outstanding.
The order's timing, which FuelCell claims to be its largest ever, comes just when FuelCell appears to need the currency it will generate the most.
Separately Monday, the company announced it will take a charge of around $9 million to second-quarter earnings to repair and upgrade 16 underperforming 1.2-megawatt fuel cell modules installed between 2007 and early 2009 in South Korea and the U.S.
FuelCell said the units' troubles stem from a faulty sealant used in their assembly, and not a problem with the units' power stack. Repairs will be done by mid-2012, the company said.
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