Fuelcell Energy Reaches Favorable Settlement Agreement With Posco Energy

The following excerpt is from the company's SEC filing.
Agreement confirms FuelCell Energy’s
access to sell products in the Asian market, including South Korea
Agreement provides for a firm order for a
minimum of 20 SureSource replacement modules to service existing South Korean operating projects during calendar year 2022
DANBURY, CT – December 27, 2021 –
FuelCell Energy, Inc. (Nasdaq: FCEL)
-- a global leader in fuel cell technology with a purpose of utilizing its proprietary, state-of-the-art
fuel cell platforms to enable a world empowered by clean energy — today announced that POSCO Energy Co., Ltd. and its subsidiary,
Korea Fuel Cell Co., Ltd., (collectively “POSCO”) have entered into a settlement agreement (the “Agreement”) with
FuelCell Energy.
Pursuant to the Agreement:
FuelCell Energy confirms its exclusivity to sell its differentiated platform technology throughout Asia;
All licenses previously granted to POSCO Energy are amended such that POSCO has the right to service the
existing installed POSCO customer base, but enjoys no other rights to FuelCell Energy technology in South Korea or broader Asian markets;
All claims between the parties are fully and finally settled with the exception of two small claims being
negotiated by the parties that have no impact on market access.
“FuelCell Energy is extremely pleased to
have reached a favorable agreement with POSCO, confirming our access to the Asian market,” said Jason Few, President, Chief Executive
Officer and Chief Commercial Officer of FuelCell Energy. “
This resolution
unlocks a path forward, giving customers in South Korea and across Asia the ability to evaluate FuelCell Energy’s differentiated
platforms against alternative offerings without uncertainty surrounding the legal dispute between FuelCell Energy and POSCO. It also provides
current customers of FuelCell Energy’s technology in the Korean market the ability to receive the quality of service and module
stack replacements they deserve. In addition, it provides a clear path for FuelCell Energy to once again serve a growing market for fuel
cells, while supporting the fast growing energy transition within South Korea, as well as the broader Asian marketplace. In South Korea,
our fuel cell platform is a preferred choice for utility scale projects given its high-quality thermal attributes that support the district
heating needs of the country
. We also look forward to bringing our unique distributed hydrogen platforms to the Asian market as
Asia looks to lead in the hydrogen transition. We are excited to engage the marketplace with the legal uncertainties removed and look
forward to expanding our geographic reach throughout Asia.”
Having reached an agreement, the parties are cooperating
to ensure that existing customers are fully aware of the settlement and that a framework exists for POSCO to deliver module replacements
per the service and support design specifications in the agreement. The parties are also communicating to the broader market that FuelCell
Energy has the exclusive right to pursue new fuel cell projects in Asia.
About FuelCell Energy
FuelCell Energy, Inc. (NASDAQ: FCEL) FuelCell
Energy is a global leader in sustainable clean energy technologies that address some of the world’s most critical challenges around
energy, safety and global urbanization. As a leading global manufacturer of proprietary fuel cell technology platforms, FuelCell Energy
is uniquely positioned to serve customers worldwide with sustainable products and solutions for businesses, utilities, governments and
municipalities. Our solutions are designed to enable a world empowered by clean energy, enhancing the quality of life for people around
the globe. We target large-scale power users with our megawatt-class installations globally, and currently offer sub-megawatt solutions
for smaller power consumers in Europe. To provide a frame of reference, one megawatt is adequate to continually power approximately 1,000
average sized U.S. homes. We develop turn-key distributed power generation solutions and operate and provide comprehensive service for
the life of the power plant. Our fuel cell solution is a clean, efficient alternative to traditional combustion-based power generation,
and is complementary to an energy mix consisting of intermittent sources of energy, such as solar and wind turbines. Our customer base
includes utility companies, municipalities, universities, hospitals, government entities/military bases and a variety of industrial and
commercial enterprises. Our leading geographic markets are currently the United States and South Korea, and we are pursuing opportunities
in other countries around the world. FuelCell Energy, based in Connecticut, was founded in 1969.
SureSource, SureSource 1500, SureSource 3000,
SureSource 4000, SureSource Recovery, SureSource Capture, SureSource Hydrogen, SureSource Storage, SureSource Service, SureSource Treatment,
SureSource Capital, FuelCell Energy, and FuelCell Energy logo are all trademarks of FuelCell Energy, Inc.

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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