FuelCell eyes deal for Groton sub base project

FuelCell Energy has signed a letter of intent with the Connecticut Municipal Electric Energy Cooperative (CMEEC) that, if completed, would bring two of the Danbury-based company’s fuel cells to the U.S. Navy’s Submarine Base in Groton.

Terms of the proposed agreement between FuelCell Energy and Norwichbased CMEEC, including the value of the project, are still being worked out, said Kurt Goddard, vice president of investor relations for the company. Goddard said Monday the execution of the contract called for under the letter of intent is expected to take place sometime this summer.

CMEEC is owned by six municipal utilities, including Groton Utilities. The base is one of Groton Utilities’ customers, Goddard said.

The proposed deal calls for two fuel cells to be built on the base that would produce 7.4 megawatts of power between them, he said. Neither CMEEC nor Groton Utilities would own the units: Goddard said that either FuelCell Energy would retain ownership of the fuel cells or they would be owned by a third-party investor.

The company’s letter of intent with CMEEC calls for the energy cooperative to purchase power generated by the two fuel cells. Goddard said the company is working through CMEEC and Groton Utilities “because they already have a relationship with the sub base.”

“The necessary infrastructure is already in place,” he said. “By doing it this way, we’re helping the (Groton) utility retain customers while at the same time doing something that helps protect our national security by providing reliable electric power to a military base. It’s a pretty significant project for us.”

Drew Rankin, CMEEC’s chief executive officer, said in a statement that the project provides the Navy with “a triple win of long-term cost effective power supply, ensuring power to critical infrastructure, and doing this in an environmentally friendly manner, all without directly investing CMEEC capital.”

The six municipal electric utilities served by CMEEC provide electricity to roughly 100,000 customers in Connecticut. FuelCell Energy has a factory in Torrington that builds all of the fuel cells the company sells.