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April 29, 2024

FuelCell Energy announces $13M in debt financing for Derby projects

Contributed Danbury-based FuelCell Energy's new 14-megawatt fuel cell park in Derby.
By David Krechevsky

FuelCell Energy Inc. said Monday it has closed on a project debt-financing transaction with Liberty Bank and Connecticut Green Bank for its two fuel cell projects in Derby.

The Danbury-based fuel cell company said Liberty Bank’s senior commitment totals $6.5 million and Connecticut Green Bank’s is $3 million. The Green Bank will contribute an additional subordinated credit facility of $3.5 million, bringing the total gross financing to $13 million.

The net funding to the company totaled approximately $11.6 million after transaction fees and debt service reserves. The transaction closed April 25.

The senior facility has a term of seven years, while the subordinated credit facility’s term is 14 years. The interest rate is fixed at 7.25% for the senior debt and at 8% for the subordinated debt.

The two Derby projects include a 14-megawatt fuel cell park, the second-largest fuel cell park in the U.S. 

The Derby projects produce class I renewable energy as part of 20-year power-purchase agreements with Eversource and United Illuminating. The second project supported by this financing is a 2.8-megawatt fuel cell project also located in Derby.

In Connecticut, a class I renewable energy source includes electricity produced from solar, wind or geothermal power or fuel cells. 

The fuel cell modules of both facilities were made at FuelCell Energy’s factory in Torrington, the company said.

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