FuelCell ready for restart

Refinanced power plant company set to begin work in Torrington on June 22

FuelCell Energy has bought itself an extra year of financial wiggle room after reworking a loan agreement, even as it readies to resume production at its shuttered Torrington factory in the coming few weeks.

The Danbury-based company makes power plants using fuel cells that generate electricity through a chemical process with no carbon emissions, with sales dependent on environmental subsidies in Connecticut and other states to offset the cost of building the machines.

After firing its CEO last summer and publishing notice of a possible bankruptcy, FuelCell’s board in August installed director Jason Few as CEO. He was able to refinance loans that were on the brink of default.

Last week, FuelCell got lenders to remove restrictions on the company accessing $35 million through this September, with repayment set for 12 month out. In a Securities & Exchange Commission filing, FuelCell indicated it will likely have to seek additional funding this year.

Few is attempting to reinvigorate the company’s sales of fuel cells, which have failed to produce profits, including between February and April when FuelCell lost $15.6 million on revenue of $18.9 million. The company indicated it incurred about $1 million in losses as a result of its decision to close the Torrington plant during the COVID-19 pandemic, despite Gov. Ned Lamont having allowed manufacturers to continue production as “essential” businesses.

Last week, Derby officials approved the next step in FuelCell’s plan to build an $8 million plant near an electric substation of Avan

grid subsidiary United Illuminating.

FuelCell is aiming to restart manufacturing in Torrington on June 22, having continued to pay workers with $6.5 million in funding from the Paycheck Protection Program of the U.S. Department of the Treasury. FuelCell cut 135 jobs last year.

FuelCell is conducting daily “fitness-for-duty” checks with employees prior to shifts, while providing personal protective equipment and other measures to reduce the chances of any transmission of coronavirus.

“We have secured the necessary PPE for all of our team members and we have modified workspaces to promote social distancing,” Few said Friday in a conference call with analysts. “I’m proud of all of the FuelCell Energy team has been able to accomplish — especially over the past quarter, despite the COVID challenges we have faced.”