EXIM funds fuel cell sales

Export-Import Bank of the United States (EXIM) recently finalized a transaction under its Project & Structured Finance Program to support Connecticut-based exporter FuelCell Energy Inc.

The transaction is a loan guarantee of almost $10 million that will support the financing of fuel cell modules that will replace existing fuel cell modules at the Hwaseong Baran Industrial Complex in South Korea, the world's largest fuel cell platform. The upgraded molten-carbonate fuel cell modules will replace existing units at the complex, supplying baseload power to the Korean market. Fuel cells are a chemical-based process for producing electricity which convert hydrogen and concentrated forms of hydrogen, such as methane, into electricity with only water and carbon dioxide as its byproducts.

“This transaction further underscores EXIM’s dedication to supporting environmentally beneficial exports as outlined in our charter,” said EXIM President and Chair Reta Jo Lewis. “In addition to being at the forefront of the global energy transition, I am pleased that we can continue advancing our mission to support domestic jobs by advancing U.S. exports.

The fuel cell modules will be made at FuelCell Energy’s Torrington Connecticutfactory utilizing U.S. sourced materials and suppliers for a majority of production, according to the EXIM statement.

“Our small businesses really need what EXIM provides,” said Connecticut Governor Ned Lamont. “These businesses need an on-ramp to the rest of the world and EXIM is absolutely invaluable as we try to figure out how to grow and expand.”

The $10.1 million funding commitment by EXIM is expected to result in net cash to FuelCell Energy of approximately $9.4 million after fees and debt service reserves. The term of the facility is 7 years, and the interest rate is fixed at 5.811%. Private Export Funding Corporate (PEFCO) is the lender. AirFinance, doing business as AF Capital, is an EXIM Qualified Advisor and acting as servicing agent for the lender.