Connecticut-based fuel cell developer FuelCell Energy has closed on tax equity financings supporting at least three fuel cell projects in the US.
The company closed on a tax equity financing transaction with East West Bank for the 7.4 MW fuel cell project located on the US Navy Submarine Base in Groton, CT, also known as the Submarine Force. East West Bank’s tax equity commitment, closed in August 2021, totals $15m.
FuelCell Energy installed 7.4 MW of SureSource™ power platforms at the U.S. Navy Submarine Base in Groton, CT to provide a long-term supply of power to an existing electrical substation, according to a news release. The fuel cell plant is part of a multifaceted plan by the Connecticut Municipal Electric Energy Cooperative to provide new power resources and support the desire of the Department of Defense to add resiliency and grid independence to key military installations. The highly efficient fuel cell power generation project minimizes carbon output while providing continuous power to the strategic military base. The U.S. Navy continues to purchase power from CMEEC and Groton Utilities, who in turn purchase the power from FuelCell Energy under a 20-year power purchase agreement.
This pay-as-you-go structure enables CMEEC and the Navy to avoid a direct investment in owning the power plant which will be operated and maintained by the company.
The company also closed on a tax equity sale-leaseback financing transaction for the 1.4 MW SureSource 1500™ biofuels fuel cell project with the City of San Bernardino Municipal Water Department in California with Crestmark Equipment Finance, a division of MetaBank®. Crestmark’s commitment totals $10.2m through a ten-year sale-leaseback structure and further demonstrates the market’s interest in FuelCell Energy’s differentiated ability to use on-site biofuels, to eliminate flaring and deliver carbon neutral decarbonization energy platforms.
A third tax equity investment in 2021 came from Franklin Park for the 7.4 MW fuel cell project located in Yaphank, Long Island, in New York. Franklin Park’s tax equity commitment totals $12.7m following the declaration of mechanical completion of the project.
