FuelCell Energy Completes Sale of Global Thermoelectric Inc. and its Thermoelectric Generator Product Line
Tuesday June 1, 9:09 am ET
Retained Solid Oxide Fuel Cell Unit to Operate as FuelCell Energy, Ltd.
DANBURY, Conn.--(BUSINESS WIRE)--June 1, 2004--FuelCell Energy, Inc. (NasdaqNM: FCEL), a leading manufacturer of stationary Direct FuelCell® (DFC®) power plants for distributed generation and developer of high temperature planar solid oxide fuel cell (SOFC) technology, has completed the sale of all of the shares of Global Thermoelectric Inc. (Global), the holder of its thermoelectric generator (TEG) product line, to RockWood Equity Partners LLC (RockWood) for approximately $22.75 million Canadian.
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FuelCell Energy does not expect to realize a gain or a loss as a result of the transaction. The Company expects the difference between net cash proceeds and net tangible assets will be offset by a reduction to goodwill resulting from its acquisition of Global in November 2003.
The Company's SOFC technology development group that includes intellectual property, 50 employees, and manufacturing, research and development facilities was consolidated into its Canadian subsidiary, FuelCell Energy, Ltd. This unit is expected to provide technology development under the Company's 10-year, $139 million Solid State Energy Conversion Alliance (SECA) project award.
Global will maintain its corporate name, Global Thermoelectric Inc., for the TEG product line. Global has offices in Calgary, Alberta, Canada; two manufacturing facilities in Bassano, Alberta, Canada; and a sales and marketing office in Houston, Texas. Global has approximately 140 employees.
TEGs are used as a source of electrical power in remote areas. TEG applications include providing power for pipeline cathodic protection systems, telecommunications and remote monitoring systems.
Ernst & Young Corporate Finance (Canada) Inc. in Calgary, Alberta, Canada acted as financial advisor and Stikeman Elliott LLP acted as legal counsel to FuelCell Energy in this transaction.
About Direct FuelCells
Direct FuelCells efficiently generate clean electricity at distributed customer locations, including hospitals, schools, universities, hotels and other commercial and industrial facilities, as well as in grid-support applications for utility customers. Direct FuelCells operate similar to large, continuously operating batteries except they utilize a fuel to generate electricity, such as natural gas or digester gas from wastewater treatment facilities. DFC power plants are hydrogen generators, and because of this are ready today and do not require the creation of a hydrogen infrastructure. This high-efficiency technology generates more electric power from less fuel and with less carbon dioxide emissions than traditional combustion methods. The sub-megawatt fuel cell power plant is a collaborative effort using Direct FuelCell® technology of FuelCell Energy and the Hot Module® balance of plant design of MTU CFC Solutions, GmbH, a subsidiary of DaimlerChrysler.
About Solid Oxide Fuel Cells
In April 2003, FuelCell Energy was selected by the U.S. Department of Energy to lead a project team for its $139 million Solid State Energy Conversion Alliance (SECA) program. The goal of the SECA program is to accelerate the commercialization of low-cost solid oxide fuel cells for residential, commercial and light industrial applications ranging in product size from 3 to 10 kilowatts each for applications up to 100 kWh. If successfully commercialized, these products would be complementary to FuelCell Energy's larger scale DFC product line.
About FuelCell Energy, Inc.
FuelCell Energy, Inc., based in Danbury, Connecticut, is a world leader in the development and manufacture of high temperature hydrogen fuel cells for clean electric power generation, currently offering DFC power plant products ranging in size from 250 kilowatts to 2 megawatts for applications up to 50 megawatts. The Company has commercial distribution alliances for its carbonate Direct FuelCell technology with MTU CFC Solutions in Europe; Marubeni Corporation in Asia; Enbridge Inc. in Canada; Caterpillar, PPL Energy Plus, Chevron Energy Solutions and Alliance Power in the U.S. FuelCell Energy is developing Direct FuelCell technology for stationary power plants with the U.S. Department of Energy through its Office of Fossil Energy's National Energy Technology Laboratory.
FuelCell Energy is also developing next generation high temperature fuel cell products, such as a diesel marine fueled Ship Service Fuel Cell, a combined-cycle DFC/Turbine® power plant and solid oxide fuel cells for applications up to 100 kilowatts. More information is available at www.fuelcellenergy.com.
This news release contains forward-looking statements, including statements regarding the Company's plans and expectations regarding the development and commercialization of its fuel cell technology. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could cause such a difference include, without limitation, the risk that commercial field trials of the Company's products will not occur when anticipated, general risks associated with product development, manufacturing, changes in the utility regulatory environment, potential volatility of energy prices, rapid technological change, and competition, as well as other risks set forth in the Company's filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.
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Contact:
FuelCell Energy, Inc.
Investor and Media Contact:
Steven P. Eschbach, CFA, 203-825-6000
seschbach@fce.com
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Source: FuelCell Energy, Inc. |
