FuelCell Energy Inc. closed a $100 million facility with Generate Capital Inc. to fund construction of its current and future project backlog and awards.
The facility has accordion features allowing expansions up to $300 million, if certain performance criteria are met, subject to funding availability. The arrangement requires FuelCell Energy to submit its projects to Generate Capital over a 36-month period, with construction loans remaining outstanding until the projects achieve commercial operation.
The company plans to use the facility to fund the construction of its utility-scale backlog, including three projects totaling nearly 40-MW with PSEG Long Island LLC and two projects totaling 22.2 MW awarded pursuant to the Connecticut Department of Energy and Environmental Protection's request for proposals.
The company has drawn an initial $10 million for the planned 5-MW Bolthouse Farms project in California and expects to draw additional funding after achieving certain project milestones.
The two companies plan work together to source additional capital for long-term ownership upon achievement of commercial operations.