FuelCell Energy Acquires Remaining Interest in Versa Power Systems, a Solid Oxide Fuel Cell Developer
Acquires World-class technology platform and expertise -- Provides growth opportunities in adjacent markets
DANBURY, Conn., Dec. 20, 2012 -- FuelCell Energy, Inc.
service of ultra-clean, efficient and reliable fuel cell power plants, today
announced that it has acquired the remaining shares of Versa Power Systems,
Inc. (Versa). Versa is a leading solid oxide fuel cell developer with
research facilities in Littleton, Colorado, USA and Calgary, Canada. The
addition of solid oxide fuel cell technology strengthens the global
leadership position of FuelCell Energy. Prior to this action, FuelCell
Energy, Inc. owned approximately 39 percent of Versa.
"We view solid oxide fuel cell technology as complementary to our carbonate
fuel cell product line as we target megawatt and multi-megawatt applications
with our Direct FuelCell(R) power plants and are attracted to solid oxide
for future sub-megawatt power generation and storage applications," said
Chip Bottone, President and Chief Executive Officer, FuelCell Energy, Inc.
"We will continue to develop the Versa technology under the existing U.S.
Department of Energy SECA program and are in advanced discussions with
multiple partners for collaboration in commercializing the technology."
Mr. Bottone continued, "By acquiring Versa, we can leverage our current
infrastructure, expertise, and experience to accelerate the
commercialization of this solid oxide fuel cell technology to expand our
"The Versa fuel cell technology has been termed world class by a number of
independent experts based on the high power density, high efficiency, and
level of scale attained in the size of the fuel cell stacks achieved to
date, which drives the power generation capabilities," said Tony Leo, Vice
President Application Engineering & Advanced Technology Development,
FuelCell Energy, Inc. "Using the Versa technology and our expertise with
fuel cell stacking and balance of plant, we are currently testing a 60
kilowatt solid oxide fuel cell stack that has exhibited performance
providing approximately 60 percent electrical efficiency in a power plant
system, and still provide usable exhaust heat for combined heat and power
applications. This is an unprecedented performance potential."
Versa development activities include participation with FuelCell Energy in
the U.S. Department of Energy Solid State Energy Conversion Alliance
(SECA) coal-based systems program. In addition, Versa is a supplier to The
Boeing Co. under a U.S. Defense Advanced Research Projects Agency
(DARPA) program to develop long endurance unmanned aircraft. Versa's
specialized solid-state SOFC technology is paired with solar equipment to
provide an on-board source of power for propulsion and communication
equipment. This system includes an energy storage mode, where the SOFC
produces hydrogen by electrolysis from solar power during daylight charging
periods and produces power by consuming stored hydrogen in fuel cell mode
during night-time discharge periods. Versa technology is also being used in
FuelCell Energy's unmanned submarine project, funded by the U.S. Office of
Naval Research, in which a high power density SOFC powerplant power system
is used for large displacement undersea vehicle propulsion.
Versa engineering and testing facilities are located in Littleton, Colorado,
USA. Research and production facilities are located in Calgary, Canada.
FuelCell Energy exchanged approximately 3.5 million shares of its common
stock, valued at approximately $3.3 million, as the total consideration for
the remaining Versa shares held by other Versa shareholders.
FuelCell Energy previously owned approximately 39 percent of Versa and was
accounted for under the equity method. Versa is now a wholly owned
subsidiary. Revenue and associated costs from Versa will be recognized under
Research and development contracts in the consolidated financial statements
of FuelCell Energy, Inc. Total research and development contract backlog
will increase by approximately $6.0 million in the first quarter of 2013 due
to the Versa acquisition.
About FuelCell Energy
Direct FuelCell(R) power plants are generating ultra-clean, efficient and
reliable power at more than 50 locations worldwide. With approximately 300
megawatts of power generation capacity installed or in backlog, FuelCell
Energy is a global leader in providing ultra-clean baseload distributed
generation to utilities, industrial operations, universities, municipal
water treatment facilities, government installations and other customers
around the world. The Company's power plants have generated more than one
billion kilowatt hours of ultra-clean power using a variety of fuels
including renewable biogas from wastewater treatment and food processing, as
well as clean natural gas. For more information please visit our website at
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