FuelCell Energy Enters into Agreement to Sell Project to NRG Yield

FuelCell Energy (NASDAQ:FCEL), a global leader in delivering clean, innovative and affordable fuel cell solutions for supply, recovery and storage of energy announced that it has entered into a definitive agreement to sell a project that is located at Tulare Waste Water Treatment Facility in California to NRG Yield (NYSE:NYLD).

As quoted in the press release:

“We are pleased to enter into another sale transaction with NRG Yield,” said Chip Bottone, President and Chief Executive Officer, FuelCell Energy, Inc. “This transaction allows FuelCell Energy to redeploy capital as we execute on growing our installed base, while continuing our core role in operating and maintaining the Tulare plant. The transaction with NRG Yield allows our Company to have a balanced approach to our asset portfolio, growing generation assets over time while selectively creating near-term cash flow.”

This project has been developed and constructed by FuelCell Energy and will be placed into commercial operations following the sale. The project company, under the new ownership of NRG Yield, will deliver the clean power and heat to the City of Tulare under a multi-year power purchase agreement (PPA). FuelCell Energy will operate and maintain the power plant under a twenty-year service agreement with the project company. The sale of this project company and its assets to NRG Yield will result in revenue recognition of product sales out of FuelCell Energy’s generation project assets portfolio.

“NRG Yield is continuously looking to grow its portfolio of power generation assets that provide customers with cleaner, sustainable, and more resilient ways to meet their energy needs,” said Christopher Sotos, President and Chief Executive Officer of NRG Yield. “The Tulare Waste Water Treatment Facility is just such an opportunity, providing an excellent clean energy and heat customer solution for California as well as a long term contracted cash flow profile for NRG Yield.”

Click here for the full text release