FuelCell Energy, Inc. (Nasdaq: FCEL) announced that it has closed on a project debt financing transaction with the Export-Import Bank of the United States (EXIM) for the company’s fuel cell projects with Gyeonggi Green Energy (GGE). This financing is part of EXIM’s Project & Structured Finance program, which helps U.S. exporters compete globally in the natural resource and infrastructure sectors.
“Our partnership with EXIM enhances our capital flexibility and supports our commitment to providing clean, efficient, and reliable energy solutions to the Korean market and around the world,” said Michael Bishop, EVP and CFO of FuelCell Energy. “We continue to see an opportunity to grow fuel cell adoption in international markets. We’re excited to have EXIM’s backing as we look to expand our global customer base while supporting American-made technology.”
“We want to thank Chair Reta Jo Lewis and the U.S. EXIM Bank for their partnership and support of exporting U.S. clean energy technology around the world,” said Jason Few, President and CEO of FuelCell Energy. “With EXIM financing support we can accelerate our efforts to enable a world powered by clean energy.”
“This transaction further underscores EXIM’s dedication to supporting environmentally beneficial exports as outlined in our charter,” said EXIM President and Chair Reta Jo Lewis. “In addition to being at the forefront of the global energy transition, I am pleased that we can continue advancing our mission to support domestic jobs by advancing U.S. exports.”
The $10.1 million funding commitment by EXIM is expected to result in net cash to FuelCell Energy of approximately $9.4 million after fees and debt service reserves. The term of the facility is 7 years, and the interest rate is fixed at 5.811%. Private Export Funding Corporate (PEFCO) is the lender. AirFinance, doing business as AF Capital, is an EXIM Qualified Advisor and acting as servicing agent for the lender.
Brent Cox, EVP & Chief Credit Officer noted “AF Capital is delighted to be part of such an exciting and important partnership. The transaction with FuelCell Energy, EXIM Bank, and PEFCO as lender has helped grow a vital industry while also supporting U.S. based jobs.”
This financing brings important financial support to FuelCell Energy’s commercial effort in the Korean market. GGE has agreed to purchase forty-two 1.4-megawatt upgraded carbonate fuel cell modules from FuelCell Energy to replace existing fuel cell modules at the Hwaseong Baran Industrial Complex fuel cell power platform, the world’s largest fuel cell power platform, with all modules expected to ship by the first half of calendar year 2026.
FuelCell Energy intends to pursue additional financing to support the working capital needs of this transaction.
The agreement with GGE constitutes a significant milestone for supplying clean baseload power to the Korean market and includes a new seven-year service agreement pursuant to which FuelCell Energy will service the fuel cell modules. FuelCell Energy expects to receive approximately $160 million of revenue over the term of the agreement.
The fuel cell modules are made in the U.S. at FuelCell Energy’s Torrington, Connecticut factory utilizing U.S. sourced materials and suppliers for a majority of production.
