Danbury’s FuelCell Energy has signed an agreement to acquire the existing 14.9 megawatt fuel cell park in Bridgeport from Dominion Energy for $36.6 million.
FuelCell Energy will acquire 100 percent of the equity interest in Dominion Bridgeport Fuel Cell LLC, the owner of the 14.9 MW project asset, whose parent is Dominion Energy. The agreement is the result of a competitive bid process undertaken by Dominion Energy.
FuelCell Energy developed, constructed and commissioned the Bridgeport fuel cell park in December 2013 and has operated and maintained the facility under a service agreement with Dominion ever since.
FuelCell said the transaction is expected to add annual revenue in excess of $15 million per year, deliver EBITDA margins in excess of 50 percent and be accretive to its earnings per share.
“Having been the operator of the Bridgeport fuel cell park for the past five years, we are uniquely positioned to acquire and benefit from this established project,” FuelCell President and CEO Chip Bottone said. “This important acquisition will materially accelerate our strategy to retain generation assets and to benefit from their financial profile of consistent revenues, operating profits and cash generation.”
FuelCell expects to fund the acquisition with a combination of third-party financing and $15 million of restricted cash on hand that is tied to the project and would be released at closing.
Financing for the acquisition is expected to include a term lender and the Connecticut Green Bank, which also participated in the initial financing of the construction of the project.
The transaction is expected to close by Dec. 31, subject to customary closing conditions and contingencies including closing third party financing.