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Advanced Batteries & Energy Storage Research
Posted on December 26, 2018 by

Power purchase agreement For Long Island 7.4 MW fuel cell project

FuelCell Energy Inc, a global leader in delivering clean, innovative and affordable fuel cell solutions for the supply, recovery and storage of energy, today announced the signing of the first of three long-term power purchase agreements under the Fuel Cell Resources Feed-In Tariff IV ("FIT IV") program administered by PSEG Long Island. For more information see the IDTechEx report on Distributed Generation: Minigrid Microgrid Zero Emission 2018-2038.
 
This PPA stems from the selection of a 7.4 megawatt fuel cell project located in Yaphank, New York by PSEG Long Island under a solicitation for 40 megawatts of fuel cell based power resources. The solicitation sought NY CES qualified fuel cell resources from one megawatt to under 10 megawatts in nine designated electrical distribution development areas and up to 20 megawatts at the transmission level at 10 key substation locations across Long Island. The Yaphank 7.4 megawatt project is one of three projects totaling 39.8 megawatts awarded to FuelCell Energy as part of the FIT IV competitive bid process.
 
The power from the Yaphank project will be sold under a 20-year power purchase agreement. FuelCell Energy's wholly-owned special purpose project entity, Yaphank Fuel Cell Park, LLC, will own, operate and maintain the fuel cell power plants, which are being installed by FuelCell Energy. In addition to reliable and local clean energy, the fuel cell facility will be a good economic partner for the Town of Brookhaven offering new incremental revenue from leasing a site from the Town.
 
 
"We have finished the permitting, engineering and site design required to progress this innovative 7.4 megawatt project in Long Island to construction," said Chip Bottone, President and Chief Executive Officer of FuelCell Energy, Inc. "Fuel cells are a great fit to provide grid modernization by delivering increased security, enhanced sustainability and capital efficiency. One of the most space-efficient clean energy technologies qualified under the CES, this project, along with the other two FIT IV projects that are nearing this same stage of development, demonstrate the many benefits of integrating clean and predictable fuel cells into New York's energy mix."
 
The other two selected projects have made substantial progress completing the prerequisite items leading to PPA execution. FuelCell Energy expects to complete the remaining items in the near term, allowing FuelCell Energy to execute PPAs for the remaining 32.4 megawatts of projects. These projects include:
  • An 18.5 megawatt project located at the Brookhaven Rail Terminal in Yaphank.
  • A 13.9 megawatt project located at an industrial park also in Yaphank, NY.
 
The Company has been diligently working to complete development of these landmark projects, and currently plans to commence construction in 2019. Development activities up to this point have included environmental reviews, electrical interconnection studies, and permitting activities under the NY SEQRA process, and design engineering and planning. FuelCell Energy continues to work cooperatively with the Town of Brookhaven, the landowners, local agencies and the interconnection review teams at New York Independent System Operator ("NYISO") and PSEG Long Island.
 
 
In addition to the delivery of continuous, reliable and CES-qualified electricity to this growing area of the system, according to publicly available information, the combined fuel cell facilities will defer millions of dollars in local transmission and distribution upgrades otherwise needed to maintain reliability in the Yaphank area.
 
PSEG Long Island operates the Long Island electric power delivery system for LIPA, a subdivision of the State of New York that owns the electric transmission and distribution system serving Long Island and the Rockaways, with a mission to enable clean, reliable, and affordable electric service for its customers. With initiatives to meet Governor Cuomo's New York State's aggressive clean energy goals, LIPA and PSEG Long Island lead New York with the largest commitment to clean fuel cell technology.
 
"LIPA and PSEG Long Island are leaders in clean energy deployment, taking visionary steps forward in its programs to develop the use of fuel cell power systems as part of its energy technology mix," said Chip Bottone, President & CEO of FuelCell Energy, Inc. "LIPA and PSEG Long Island's commitment to meet Long Island's growing need for clean electricity and their focus on installing resilient power generation contribute to the overall reliability and performance of LIPA's electric grid."
 
Source and top image: FuelCell Energy Inc
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