US-based NRG Energy has bought $35m of FuelCell Energy shares and extended a $40m loan.
The investment enables power-plant developer FuelCell to invest in project development, project finance and working capital support.
“These agreements strengthen the Company’s liquidity position and are expected to accelerate deployment of multi-megawatt fuel cell projects in the U.S.,” said Chip Bottone, FuelCell’s chief executive officer.
FuelCell CFO Michael Bishop said the company aims to finish power plant projects in order to sell the fully operational power plants to long term investors.
“We believe that clean distributed power generation from fuel cells will be one of the key technologies that drive our country toward a cleaner energy future,” said Mauricio Gutierrez, NRG’s Energy chief operating officer.
NRG Energy now owns 6% of FuelCell. “We want to actively participate in the construction of FuelCell Energy power plants,” Gutierrez added. NRG Energy and FuelCell are working together to build combined heat and power projects. The terms of the equity transaction include a warrant giving NRG Energy the right to purchase an additional 2m shares for $3.35 each.
The investment follows a €4.9m ($6.6m) funding to FuelCell and partner Fraunhofer Institute for stationary fuel cell research, given by German government in July.