FuelCell Energy, a manufacturer of ultra-clean, efficient and reliable power plants, has received a two year order to supply 70 MW of fuel cell kits to POSCO Power, a subsidiary of POSCO.
The total value of the contract including other service commitments is estimated at $129m.
Delivery of fuel cell kits will commence in October this year and will be done on a monthly basis through October 2013.
Down payment and progress payments will be made during the term of the contract and 40% of the contract value will be made by October 2011.
POSCO Power president and CEO Soung-Sik Cho said the fuel cells meet power needs for South Korea under the renewable portfolio standard (RPS).
South Korea adopted the standard last year in a bid to promote clean energy, reduce carbon emissions and develop a green-industry locally.
POSCO Power recently completed construction of a 100 MW fuel cell module assembly facility, which uses FuelCell Energy proprietary fuel cell components.
Under a licensing agreement signed in 2009, FuelCell Energy will receive a royalty for each complete power plant built and installed by POSCO Power.
Future potential royalty payments to FuelCell Energy will not included in the current order.