Boston, MA 05/20/2014 (wallstreetpr) – FuelCell Energy Inc (NASDAQ:FCEL), the builder of the biggest fuel-cell power plant of the world, won the contract for supplying 5.6 megawatts of equipment to the largest steelmaker of South Korea- Posco. It is important to note that Posco is also the biggest shareholder of FuelCell Energy.
Highlights of the Contract
- Posco will make use of the equipment for construction of the power plants for customers in Korea, in 2014 itself.
- Fuelcell Energy Inc (NASDAQ:FCEL), at present, is also sending the shipments on a monthly basis to Posco for fulfilling the present order of 122 Megawatt sales.
- Posco will construct a factory in Korea in order to make fuel cells by making use of the technology of FuelCell Energy. The systems involved in this function by converting the natural gas into electricity with the help of a chemical reaction.
Significance of the contract for FuelCell Energy
Fuelcell Energy Inc (NASDAQ:FCEL), in February 2014, completed its 59-megawatt project in South Korea. The company has earlier been receiving the orders from Posco because of its crucial contribution to the construction of the factory in Korea. The market players took the news of the contract taken by FuelCell Energy in a very positive stride, which is bound to influence the company positively. The new contract will help FuelCell Energy in tapping increasing Asian demand, which means that the company can generate more business and profit.
Strategic Relationship with Posco strengthened
Even though Posco is the largest shareholder of FuelCell Energy, but there is still a scope of strategic relationship bonding. The contract will further reinforce the strategic partnership between Posco and FuelCell Energy. For Fuelcell Energy Inc (NASDAQ:FCEL), its relationship with Posco is a differentiator in this special fuel cell industry. The association between the two companies will, therefore, help in better returns on overall projects, which in turn will benefit both the companies equally.
