Hartford Business Journal

www.HartfordBusiness.com • May 20, 2019 • Hartford Business Journal 17 New York are relatively strong markets for fuel cells, much of the action is in South Korea, where the government there has ordered a ramp up in fuel cell installations in the coming years. That, of course, gives Doosan a ma- jor advantage in that market. "Most of the business is being driven by Korea sales," Coskun said. "They have a very aggressive renewable portfolio standard, and I think we're uniquely positioned to serve that market." Giordano said "a fair number" of units produced in South Windsor are shipped to Korea. A competitor's support For many companies, a struggling competitor would be cause for glee, but that's apparently not the case in Con- necticut's fuel cell industry. Coskun and Giordano say they're pull- ing for their competitor, FuelCell Energy. "I will say that we don't want to see them fail," Giordano said. Coskun quickly nodded in agreement. "We're a very small industry so we all need to survive together," he said. "We don't need bad press on fuel cells. The product is great. The technology is great." Whether investors' declining con- fidence in FuelCell Energy is a blip on the radar or something larger remains to be seen. FuelCell did not respond to a request for an interview for this story. Joel Rinebold, chairman of the Con- necticut Hydrogen-Fuel Cell Coalition and energy director at the Connecticut Center for Advanced Technology in East Hartford, said he's concerned about Fu- elCell Energy's plight, but also is aware the company has a major project backlog — worth $1.27 billion, according to its most recent quarterly earnings report — that could help ease its struggles. "My hope is that this is a short-term event and their success in some of these [state-run] RFPs will get them a revenue stream that will move the company forward," he said. "FuelCell has been around a long time, and they've got a great product." Count Bert Hunter among those who have confidence in FuelCell's products. He's the chief investment officer at the Connecticut Green Bank who just helped coordinate a $35.4 million fi- nancing package that allowed FuelCell to purchase a 14.9-megawatt fuel cell park in Bridgeport. FuelCell, which has operated and maintained the Bridgeport park on behalf of owner Dominion Generation since it was completed in 2014, is buy- ing the park to generate more revenue for itself (an estimated $15 million a year). That requires more capital up front, which can be a challenge, but it's part of a strategic shift for Fuel- Cell, which has mostly built and then quickly sold off fuel cell facilities. Senior lenders in that deal, which closed this month, included Middle- town-based Liberty Bank and Fifth Third Bank, but the Green Bank kicked in $7.8 million in financing. Green Bank's loan is subordinated, mean- ing other lenders would be repaid first should FuelCell end up filing for bankruptcy. However, Hunter said he isn't wor- ried. FuelCell's backlog is promising, its technology has proven reliable, and the loan is secured by revenue that comes from selling the energy pro- duced by the Bridgeport park to Ever- source under a long-term contract. "We're focused keenly on cash flows associated with these projects," said Hunter, who also recently underwrote a $5 million loan to FuelCell Energy for an installation at the Groton subbase. "In that respect, we're quite comfortable both with the technology as well as the contract and revenue structure." WINDSOR JUN 2, 2019 JUN 23, 2019 REGISTER › BIKEMS.ORG SPONSORSHIP OPPORTUNITIES ARE AVAILABLE STAMFORD/FAIRFIELD COUNTY *Msg. and data rates may apply. Max. 15 msgs/mo. Terms and conditions and privacy policy at nationalMSsociety.org. Text STOP to 68686 to stop. Text HELP to 68686 for help. (Left) FuelCell Energy CEO Chip Bottone in 2016 outside Hartford Hospital, which has a fuel cell plant. (Center) A crane operator places a Doosan fuel cell in back of downtown Hartford's 777 Main St. apartment tower in 2015. (Right) A Doosan fuel cell located in the basement of New Haven's 360 State Street apartment. PHOTOS | HBJ FILE

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