The MOU include a 120MW multi-year order commitment, acceleration of deliveries under the existing 70MW order, and a license commitment which provides for the manufacturing of Direct FuelCell (DFC) components in South Korea by October 2014.
Under the terms of the MOU, POSCO Energy will purchase 20,000,000 shares of FCEL common stock at a price of $1.50 per share for proceeds of $30m.
The transaction is expected to close in the next month.
The MOU anticipates that POSCO Energy will order 120MW of fuel cell kits for delivery starting in 2013 and concluding in 2016, all to be produced at the Torrington, Connecticut, production facility owned by FuelCell Energy.
Additionally, the MOU contemplates that the existing 70MW order will be accelerated from 2.8MW of fuel cell kits delivered each month to 4.2MW per month, beginning in August 2012.
The expanded license agreement will provide for the manufacture of Direct FuelCell components in Korea in a facility owned by POSCO Energy.
POSCO Energy will provide the land and building in Pohang, South Korea for the manufacturing facility along with all necessary funding for construction and daily operation of the facility.
The expanded license agreement is expected to be finalized in the company’s third quarter of this year.
