FuelCell Energy Acquires 14.9 MW Fuel Cell Park from Dominion Energy for $36.6M

Nov. 7, 2018
FuelCell Energy this week entered into an agreement to acquire Dominion Energy’s 14.9 MW fuel cell park in Bridgeport, Connecticut for $36.6 million.

FuelCell Energy this week entered into an agreement to acquire Dominion Energy’s 14.9 MW fuel cell park in Bridgeport, Connecticut for $36.6 million.

Groundbreaking in September for fuel cell project at the submarine base in Groton, Conn. Photo provided by CMEEC

The Connecticut-based fuel cell manufacturer built the fuel cell park for Dominion Energy and already operates and maintains the plant under a service agreement. The transaction is the result of a competitive bid process undertaken by Dominion.

Chip Bottone, president and CEO of FuelCell Energy, said that the purchase is strategically important for the company.

“Having been the operator of the Bridgeport fuel cell park for the past five years, we are uniquely positioned to acquire and benefit from this established project. This important acquisition will materially accelerate our strategy to retain generation assets and to benefit from their financial profile of consistent revenues, operating profits and cash generation,” he said.

Buttone also noted that the Connecticut Green Bank supported construction of the project and is playing a key role in financing the acquisition.

FuelCell Energy expects to fund the acquisition with a combination of third party financing and $15 million of restricted cash on hand that is tied to the project and would be released at closing.

For Virginia-based Dominion Energy, a company with $78 billion in assets and 6 million customers, the sale is part of a larger strategy to sell off non-core assets and boost its credit profile.

The Bridgeport project is one of several installations by Fuelcell Energy in Connecticut, some of them microgrids, including the U.S. Naval Submarine Base in Groton, which recently received a $5 million grant through the Connecticut Microgrid Program, and the Woodbridge’s Amity Regional High School, which won a $3 million grant through the program.

The Dominion Energy transaction is expected to close on or before December 31, 2018.

Fuel cell microgrids are on the rise, the result of a natural pairing of two technologies — fuel cells and microgrids — that serve a mutual mission. Together, they meet today’s demand for energy that is cost-competitive, highly reliable, clean, quiet, contained, modular, scalable and community-friendly. Read more by downloading this report on fuel cell microgrids. 

About the Author

Elisa Wood | Editor-in-Chief

Elisa Wood is an award-winning writer and editor who specializes in the energy industry. She is chief editor and co-founder of Microgrid Knowledge and serves as co-host of the publication’s popular conference series. She also co-founded RealEnergyWriters.com, where she continues to lead a team of energy writers who produce content for energy companies and advocacy organizations.

She has been writing about energy for more than two decades and is published widely. Her work can be found in prominent energy business journals as well as mainstream publications. She has been quoted by NPR, the Wall Street Journal and other notable media outlets.

“For an especially readable voice in the industry, the most consistent interpreter across these years has been the energy journalist Elisa Wood, whose Microgrid Knowledge (and conference) has aggregated more stories better than any other feed of its time,” wrote Malcolm McCullough, in the book, Downtime on the Microgrid, published by MIT Press in 2020.

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