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Korean 121.8 MW order for FuelCell Energy is largest yet for the fuel cell industry

US-based FuelCell Energy has received an order from its South Korean partner, POSCO Energy, for 121.8 MW of fuel cell kits and services. The order is the biggest the fuel cell industry has yet seen.

The molten carbonate fuel cell kits will be manufactured at the FuelCell Energy production facility in Torrington, Connecticut. The estimated value of the multi-year contract is approximately $181 million.

‘The extensive market acceptance in South Korea for ultra-clean and efficient fuel cell power generation is a deployment and job creation model that can and should be replicated in other regions of the world,’ says Chip Bottone, President and CEO of FuelCell Energy.

‘POSCO Energy recently signed a contract to build the world’s largest fuel cell park, a 58.8 MW project located in South Korea,’ says Jung-Gon Kim, Senior Vice President of POSCO Energy. ‘This order to FuelCell Energy for 121.8 MW will help us meet demand in South Korea as well as other Asian countries.’

FuelCell Energy has a licensing agreement with POSCO Energy under which the Korean company manufactures molten carbonate fuel cell stack modules locally from cell and module components provided by FuelCell Energy.

South Korea has adopted an ambitious renewable portfolio standard (RPS) this year to promote clean energy, reduce carbon emissions, and develop a local ‘green’ industry to support economic growth.

Utilities and project investors are developing new and renewable power projects under the RPS, including the new 58.8 MW fuel cell park that is in progress, with construction expected to commence in 2012. The electricity generated will be sold to the power grid, while the heat from the fuel cells will be supplied to a district heating system.

As an additional indicator of demand for stationary fuel cell power plants, Korea Hydro & Nuclear Power Co executed a memorandum of understanding with Seoul City on 28 September for the joint development of new and renewable power generation, including 120 MW of stationary fuel cell power plants.

Anticipated fuel cell applications include the Seoul City subway, municipal water treatment facilities, and resource collection facilities. Electrical and thermal efficiency is important under the RPS, and the fuel cell power plants are expected to be configured for combined heat and power (CHP).

FuelCell Energy’s Direct FuelCell® power plants run on a variety of fuels, including renewable biogas from wastewater treatment and food processing, as well as clean natural gas.

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Energy infrastructure  •  Energy storage including Fuel cells  •  Policy, investment and markets