FuelCell Energy Announces 70 Megawatt Order From POSCO Power and $9 Million Charge to Second Quarter 2011 Earnings

FuelCell Energy FCEL today announced a two-year order for 70 megawatts of fuel cell kits from POSCO Power. The total value of the order and other commitments for services is estimated to be at least $129 million with delivery of fuel cell kits beginning in October 2011 and occurring monthly through October 2013. Payment terms include a down payment and progress payments during the term of the contract, with approximately 40 percent of the contract value received by October, 2011. POSCO Power is an independent power producer in South Korea and subsidiary of POSCO, a global steel producer. "Fuel cells address the needs of the South Korean market for ultra-clean and efficient power that is generated continuously," said Soung-Sik Cho, President and CEO, POSCO Power. "We expect fuel cells to play a significant role in meeting the new and renewable power needs for South Korea under the Renewable Portfolio Standard and we want to ensure that POSCO Power is positioned to meet the demand."