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United States. Securities and Exchange Commission

FuelCell Energy, Inc. and ExxonMobil Technology and Engineering Company Amend Letter Agreement for Carbon Capture Project

Strategic Insights

— 2 min read

FUELCELL ENERGY INC, a Delaware-based company, and ExxonMobil Technology and Engineering Company have reached a mutually beneficial agreement, clarifying and confirming the terms of their original contract. The agreement, filed on May 12, 2023, by FUELCELL ENERGY INC with the U.S. Securities and Exchange Commission, outlines the conditions that have been deemed satisfied for a demonstration of a fuel cell module for capturing carbon at ExxonMobil's Rotterdam refinery in the Netherlands.

According to the agreement, on May 8, 2023, FUELCELL ENERGY INC and ExxonMobil Technology and Engineering Company confirmed that the conditions set forth in the original letter agreement, dated October 28, 2021, have been met. The agreement states that FUELCELL ENERGY INC has committed $2.5 million as an investment in the Rotterdam Project, while also agreeing to discount $2.5 million from the first invoices issued to ExxonMobil Technology and Engineering Company for the purchase of a fuel cell module and development and engineering design. These commitments and discounts together represent the full $5.0 million investment contemplated by the original letter agreement.

Key Takeaways:

  • On May 8, 2023, FUELCELL ENERGY INC and ExxonMobil Technology and Engineering Company entered into a letter agreement that clarifies and confirms the terms of their original contract.
  • FUELCELL ENERGY INC has committed $2.5 million as an investment in the Rotterdam Project and agreed to discount $2.5 million from the first invoices issued to ExxonMobil Technology and Engineering Company.
  • The agreement states that the conditions set forth in the original letter agreement, dated October 28, 2021, have been met.
  • The companies have agreed to provide mutual benefits, including the discount of development and engineering design costs to get reimbursed by ExxonMobil Technology and Engineering Company.
  • The outcome of this agreement demonstrates the partnership between FUELCELL ENERGY INC and ExxonMobil Technology and Engineering Company, focusing on carbon capture and reducing environmental impact.

Statistics:

  • $5.0 million: The full investment by FUELCELL ENERGY INC contemplated by the original letter agreement.
  • $2.5 million: The amount committed by FUELCELL ENERGY INC as an investment in the Rotterdam Project.
  • $2.5 million: The discount to be provided by FUELCELL ENERGY INC from the first invoices issued to ExxonMobil Technology and Engineering Company for the purchase of a fuel cell module and development and engineering design.
  • April 30, 2023: The date by which FUELCELL ENERGY INC had committed $2.5 million as an investment in the Rotterdam Project.
  • May 8, 2023: The date on which FUELCELL ENERGY INC and ExxonMobil Technology and Engineering Company entered into the letter agreement.

Sources:

  • UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549
  • FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  • Letter Agreement between FUELCELL ENERGY, INC. and ExxonMobil Technology and Engineering Company
  • Original Letter Agreement between FUELCELL ENERGY, INC. and ExxonMobil Technology and Engineering Company, dated October 28, 2021
  • Joint Development Agreement between FUELCELL ENERGY, INC. and ExxonMobil Technology and Engineering Company, dated November 5, 2019, amended on October 29, 2021, April 29, 2022, and December 19, 2022

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