Daily News: December 16, 2015

PNC Energy Capital Supplies $30MM Project Financing to FuelCell Energy

FuelCell Energy announced a $30 million project financing facility with PNC Energy Capital, a capital provider to the renewable energy sector and a wholly-owned subsidiary of PNC Equipment Finance.

The facility will provide long term financing for projects that the FuelCell is developing under power purchase agreements. PNC Energy Capital will provide financing through a sale/leaseback structure to select project subsidiaries formed and owned by FuelCell Energy. The financing facility monetizes the tax benefits and cash flows from customer power purchase agreements.

“PNC is committed to renewable energy, dedicating resources and building expertise to customize finance programs for the energy services industry,” said Dick Rai, senior vice president and manager of PNC Energy Capital. “As a leader in megawatt scale class deployments of clean, efficient baseload power plants, FuelCell Energy is an important strategic alliance for us, offering long-term opportunities and, most notably, adding fuel cells to our growing portfolio of clean and renewable assets.”

Financing from PNC Energy Capital will broaden FuelCell Energy’s financing capabilities, which is expected to accelerate deployment of fuel cell projects.

“We are excited to team up with PNC and add this important and scalable financing structure to our commercial deployment platform,” said Michael Bishop, senior vice president and CFO. “This efficient financing platform enables FuelCell Energy to retain management of certain power purchase agreements and should further enhance cash flows and service margins”.

The first project to close under this structure is expected to be the previously announced 1.4 megawatt (MW) fuel cell power plant which provides both electricity and heat to the University of California, Irvine Medical Center.