Energi, People's United Insurance Agency, Hannover Re Create Innovative Insurance Solution to Back Largest Fuel Cell Project in the USA
Connecticut project's output performance guarantee paves way for more distributed power generation
PEABODY, Mass.--Energi, a leading developer and underwriter of energy insurance products; People's United Insurance Agency; and Hannover Re, announced that they have finalized coverage for the Bridgeport Fuel Cell project located in Connecticut, which will soon be the largest fuel cell park in the USA.
Developed and manufactured by FuelCell Energy, Inc. (NASDAQ: FCEL) and owned by Dominion (NYSE: D), the 14.84 megawatt (MW) project has been in development for six years and is slated to start producing electricity in December 2013. "This is the largest project that we have developed to date in the USA, working with three utilities, local, and state government to enhance the reliability of the electric grid with clean distributed power generation," said Chip Bottone, President and Chief Executive Officer of FuelCell Energy, Inc.
Energi, along with their partner Hannover Re (HRE), specifically developed the Output Performance Warranty (OPW) Program that will provide coverage of the system's production for the Bridgeport project. "We designed the OPW program for stakeholders like FuelCell Energy and Dominion Power in order to provide critical protection for the expected output of the system design," said Kevin Kaminski, Senior Vice President of Energi, Inc. "As we see more demand for large-scale distributed energy generation like this one, we envision a huge need for proper risk mitigation, which can help facilitate and unlock the project capital that is essential for the continued growth and success of the renewable and energy efficiency industries."
Bryan Garcia, President of the Connecticut Clean Energy Finance and Investment Authority (CEFIA), reflected on the application of the OPW Program on this project. "As Connecticut's Clean Energy Finance and Investment Authority, focused on attracting private investment in clean energy deployment, the use of this innovative warranty insurance product for the Bridgeport Fuel Cell Park reduces technology performance risk over the life of the project and thus enables CEFIA to provide longer-term and lower-cost capital support."
"The Output Performance Warranty Program helps to convey the confidence that we have in our ultra-clean fuel cell power plants and their ability to provide power in a cost-effective manner for years to come," said Michael Bishop, Chief Financial Officer, FuelCell Energy, Inc. "The Energi team analyzed the technology and performance history of our fuel cell power plants in a very detailed fashion before granting this coverage so we are pleased to have this independent review of our products and welcome the opportunity to be working with Energi and Hannover Re."
Energi and Hannover Re have jointly developed a series of warranty programs aimed to support the growth of the alternative energy and energy efficiency industries through risk mitigation and are designed to backstop performance contracts and warranties offered by solar and electrical contractors, as well as manufacturers of energy-related equipment. The OPW Program utilized in the Bridgeport Project will cover shortfall payments that are the result of design, installation or performance shortfalls that impact the power output of the Fuel Cell park. Coverage is written through the International Insurance Company of Hannover Limited, AM Best "A+" rated and an operating insurance company of Hannover Re.
Energi Programs are offered directly or through a select network of independent insurance agents and brokers, and are available in all 50 states. Energi worked in conjunction with independent insurance agents People's United Insurance Agency, a division of People's United Bank. "The renewable energy team at People's United Insurance is very excited about this and other projects of this nature throughout Connecticut and our Northeast footprint," said Dan Casey, President and Chief Executive Officer at the People's United Insurance Agency in Hartford, Connecticut.
Energi is a Peabody, Massachusetts-based industrial reinsurance company that provides specialized insurance and risk management products to targeted market segments of the North American energy industry. The core programs include fuel distribution, fuel transport and energy construction. Energi also has products that deliver protections for alternative energy and energy efficiency projects. Founded in 2005 by insurance professionals and energy industry leaders, Energi is licensed in all 50 states. For more information, visit www.energi.com.
About People's United
People's United Bank is a subsidiary of People's United Financial, Inc., a diversified financial services company with $29 billion in assets. People's United Bank, founded in 1842, is a premier, community-based, regional bank in the Northeast offering commercial and retail banking, as well as wealth management services through a network of 418 retail locations in Connecticut, New York, Massachusetts, Vermont, New Hampshire and Maine.