$FCEL FuelCell Energy announces a $30 million project financing facility with PNC Energy Capital (FCEL) : Co announces a $30 mln project financing facility with PNC Energy Capital, a full service capital provider to the renewable energy and demand side management segments of the energy industry.
This facility provides long term financing for projects that the company is developing under power purchase agreements.
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.
The first project to close under this structure is expected to be the previously announced 1.4 megawatt fuel cell power plant which provides both electricity and heat to the University of California, Irvine Medical Center. The power plant will generate about 30% of the facility power needs, while the heat produced will be used in a direct exhaust absorption chiller to produce 200 tons of cooling for an office building and associated institutional requirements.
The installation is expected to achieve commercial operations in December 2015, at which time, the project will be financed under this PNC financing facility.
FuelCell Energy will operate and maintain the plant and sell power under a long-term power purchase agreement to UCI.
