FuelCell Energy, Inc. announced the completion of the previously announced asset acquisition of select fuel cell assets by its German subsidiary, FuelCell Energy Solutions, GmbH, including fuel cell component inventory and fuel cell manufacturing equipment. Additionally, the previously announced joint venture with Fraunhofer IKTS has been completed, with Fraunhofer contributing intellectual property and capital to FuelCell Energy Solutions, GmbH in return for 25 percent ownership.
“We have integrated research and development assets as well as the fuel cell patent portfolio that we received and will be applying our research expertise to further enhance the fuel cell technology as well as working to reduce product costs,” said Prof. Dr. Alexander Michaelis, director, Fraunhofer IKTS. ”We are also preparing and submitting grant proposals with FuelCell Energy Solutions to government agencies to promote the adoption of ultra-clean stationary fuel cell power generation. With this joint effort we can make a significant contribution to the aspired ‘Energiewende’ (new energy age) in Europe.”
“We have the right partner in Fraunhofer to help us develop and grow the European market and our variable cost strategy, including production assets and inventory acquired at no cost, allows us to create the foundation for growth with subsequent investment predicated on order volume,” said Chip Bottone, President and Chief Executive Officer for FuelCell Energy, Inc. ”I remain encouraged with the outlook for clean baseload distributed generation in Europe despite the macro-economic challenges the region is facing and I say this based on recent discussions with prospective customers and government officials.”
The headquarters of FuelCell Energy Solutions, GmbH is based in Dresden, Germany and manufacturing is located in Ottobrunn, Germany. Local manufacturing capabilities consist of power plant assembly and stacking of fuel cell components. FuelCell Energy Solutions is consolidated in the financial statements of FuelCell Energy, Inc.
Direct FuelCell® (DFC®) plants provide ultra-clean electricity and usable high-quality heat in an efficient and reliable manner. Fuel cells generate power through an electrochemical reaction that does not require combustion. Due to this lack of combustion, fuel cells emit virtually no pollutants, resulting in the generation of ultra-clean electricity. Fuel cells can achieve up to 90 percent efficiency when configured to use the high quality heat generated by the power plant in a combined heat & power (CHP) mode. High efficiency reduces fuel costs and carbon emissions and producing both electricity and heat from the same unit of fuel drives economics while simultaneously promoting sustainability.
DFC plants provide continuous baseload power and can be sited where the power is used, including both on-site applications and electric grid support. The combination of near-zero pollutants, modest land-use needs, and quiet operating nature of DFC plants facilitates their siting in urban locations. Sales opportunities across the European Union are being targeted with an initial emphasis on Germany.