FuelCell Energy, Marubeni and POSCO Agree to Distribute and Package Direct FuelCell Power Plants in Korea
DANBURY, Conn., Nov 4, 2004 PRNewswire-FirstCall
FuelCell Energy, Inc. (Nasdaq: FCEL) and its distribution partner in Japan, Marubeni Corp. (TSE: 8002), announced today that they signed an agreement with POSCO (NYSE: PKX) to enter into a strategic alliance to distribute and package Direct FuelCell(R) (DFC(R)) power plants in Korea. The three companies have further agreed to jointly investigate formation of a joint venture for the research, development and production of DFC products in Korea for sale throughout Asian and eventually global markets. As part of this agreement, POSCO will purchase three 250-kilowatt DFC300A power plants from FuelCell Energy through Marubeni, with the first unit to be sited at POSTECH (Pohang University of Science and Technology) in Pohang City, Korea. Siting announcements for the two additional DFC power plants are expected by the end of calendar year 2004.
POSCO is a world leader in the materials industry, and is the top producer of steel for the global market. In 2003, POSCO produced over 29 million tons of crude steel, or over 3 percent of the world's supply. POSCO is expected to contribute its expertise to FuelCell Energy to reduce the cost of the steel components for the Company's DFC power plants. FuelCell Energy, Marubeni and POSCO are poised to take advantage of the recent announcement by Korea's Ministry of Commerce, Industry and Energy commitment to install 300 fuel cell units (250 kilowatts to 1 megawatt) for distributed power generation by 2012. This is part of this Korean Ministry's commitment to provide 250 billion won (approximately $218 million) during the next five years (2004-2008) for the development of new and regenerative energy technologies - hydrogen fuel cells, solar and wind power. This is said to be the biggest Korean governmental research and development project as a single operation.
"POSCO expects that this strategic alliance will bolster the growth of global fuel cell markets," said Jaeseok Kim, POSCO's Head of Strategic Business Development. "It will create synergy among POSCO's manufacturing experience, FuelCell Energy's cutting edge technology and Marubeni's global networks for sales and marketing."
"POSCO is the ideal partner to enhance our ability to penetrate an emerging market for our 'ultra-clean' DFC products," said Herb Nock, FuelCell Energy's Senior Vice President of Marketing and Sales. "POSCO's demonstrated technical leadership in conjunction with strong government incentives will enable us to leverage the Korean Ministry's support for our DFC power plants to broaden our Asian market penetration. We believe the selection of our technology by POSCO is another endorsement of the leadership of FuelCell Energy products worldwide."
"Marubeni believes that local design and manufacture of the BOP package makes good economic sense for our customers," states Takeo Nakata, General Mgr. of Marubeni's New Energies Team. "POSCO is a world-class steel producer, and together with Marubeni, will make a strong partnership in order to reduce overall costs for DFC power plants designed specifically for the Korean market."
About Direct FuelCells
Direct FuelCells efficiently generate clean electricity at distributed customer locations, including hospitals, schools, universities, hotels and other commercial and industrial facilities, as well as in grid-support applications for utility customers. Direct FuelCells operate similar to large, continuously operating batteries except they utilize a fuel to generate electricity, such as natural gas or digester gas from wastewater treatment facilities. DFC power plants are hydrogen generators, and because of this are ready today and do not require the creation of a hydrogen infrastructure. This high-efficiency technology generates more electric power from less fuel and with less carbon dioxide emissions than traditional combustion methods. The sub-megawatt fuel cell power plant is a collaborative effort using Direct FuelCell(R) technology of FuelCell Energy and the HotModule(R) balance of plant design of MTU CFC Solutions, GmbH, a subsidiary of DaimlerChrysler.
About POSCO
POSCO (http://www.posco.co.kr), founded in 1968, is Korea's largest integrated steelmaker. Headquartered in the southeastern port city of Pohang, South Korea, POSCO produced 29 million tons of crude steel products, and reported record sales of US$12.05 billion and net income of US$1.66 billion in 2003. As the world's leading steel producer, POSCO manufactures and sells a line of steel products, including hot rolled and cold rolled products, plates, wire rods, flat rolled magnetic steel sheets and strips, electrical steel sheets and stainless steel products. POSCO is also rated A3/Moody's and A-/S&P, the highest credit ratings assigned to the world's integrated steelmakers.
About Marubeni
The Marubeni Corporation (http://www.marubeni.co.jp/english/index.html), established in 1858, is one of Japan's leading general trading/marketing houses (sogo shosha). The Company was ranked as the 25th largest in Fortune Magazine's Global Fortune 500 list for 2002. Marubeni has 12 Divisions with operations that encompass domestic, import/export, offshore trade and investment activities, which range from the development of natural resources to the retail marketing of finished products. The Company, based in Tokyo, conducts these operations through a worldwide business network that includes 52 overseas corporate offices and 28 overseas subsidiaries, for a total of 131 offices in 73 countries.
Marubeni's Utility & Infrastructure Division has been involved in the development of over 20,000 megawatts of power generation worldwide. The Division has expanded its efforts to include distributed generation technologies, power quality & reliability technologies and energy & environmental services.
About FuelCell Energy, Inc.
FuelCell Energy, Inc., based in Danbury, Connecticut, is a world leader in the development and manufacture of high temperature hydrogen fuel cells for clean electric power generation. The Company has developed commercial distribution alliances for its carbonate Direct FuelCell products with Marubeni Corporation in Asia; MTU CFC Solutions in Europe; Enbridge Inc. in Canada; Caterpillar, PPL Energy Plus, Chevron Energy Solutions, Alliance Power and LOGANEnergy in the U.S. FuelCell Energy developed its patented Direct FuelCell technology for stationary power plants with the U.S. Department of Energy through its Office of Fossil Energy's National Energy Technology Laboratory.
FuelCell Energy is also developing next generation high temperature fuel cell products, such as a diesel fueled marine Ship Service Fuel Cell, a combined-cycle DFC/Turbine(R) power plant and solid oxide fuel cells for applications up to 100 kilowatts. More information is available at http://www.fuelcellenergy.com.
This news release contains forward-looking statements, including statements regarding the Company's plans and expectations regarding the development and commercialization of its fuel cell technology. All forward- looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could cause such a difference include, without limitation, the risk that commercial field trials of the Company's products will not occur when anticipated, general risks associated with product development, manufacturing, changes in the utility regulatory environment, potential volatility of energy prices, rapid technological change, and competition, as well as other risks set forth in the Company's filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.
SOURCE FuelCell Energy, Inc.
Investor and Media Contact - Steven P. Eschbach, CFA, FuelCell Energy, Inc., +1-203-825-6000, seschbach@fce.com
News Provided By
Copyright (C) 2004 PR Newswire. All rights reserved.