FuelCell Energy sold a 1.4 MW fuel cell power plant project at the University of Bridgeport to NRG Energy. Concurrent with the closing, a subsidiary of NRG – NRG Yield – acquired the project; the first-ever fuel cell project placed into any yieldco.
The University of Bridgeport will buy the electricity and heat produced by the fuel cell power plant under a multi-year power purchase agreement (PPA). FuelCell Energy developed the project and is in the process of completing the installation of the power plant. FuelCell Energy will perform operation and maintenance services for the installation over the multi-year term of NRG Yield’s PPA with the University. The power plant construction is mechanically complete, and commercial operation is expected in March 2015.
The University pays NRG Yield for the clean power it receives while averting the need to invest in the power generation asset itself.
The fuel cell power plant provides clean electricity and heat to about 80 percent of the campus and is configured as a microgrid to operate independently of the electric grid in the event of a grid disruption.
A yieldco is a publicly traded company that is formed to own long-term operating assets that produce a predictable cash flow, such as power generation and transmission assets.