Clean energy outfit FuelCell Energy (NASDAQ:FCEL) has arranged a US$30mln project financing facility with PNC Energy Capital.
The facility provides long term financing for projects that the company is developing under power purchase agreements (PPA).
PNC Energy Capital will provide financing through a sale/ leaseback structure to select project subsidiaries formed and owned by FuelCell Energy. The financing facility monetizes the tax benefits and cash flows from customer power purchase agreements, FuelCell said.
“As a leader in megawatt scale class deployments of clean, efficient base-load power plants, FuelCell Energy is an important strategic alliance for us, offering long-term opportunities and, most notably, adding fuel cells to our growing portfolio of clean and renewable assets,” said Dick Rai, senior vice president and manager of PNC.
Michael Bishop, senior vice president and chief financial officer of FuelCell, said the financing platform would enable the company to retain management of certain power purchase agreements and should further enhance cash flows and service margins.
The first project to close under the new structure is expected to be the previously announced 1.4 megawatt fuel cell power plant for the University of California's Irvine Medical Center.