FuelCell Energy Inc (NASDAQ:FCEL) obtained support from the State of Connecticut for its Torrington manufacturing facility expansion project, which would create additional 325 jobs over the next four years.
The Department of Economic and Community Development (DECD) of the State of Connecticut agreed to provide $20 million in loans and tax credit for FuelCell Energy Inc (NASDAQ:FCEL).
Connecticut Governor Dannel P. Malloy said, “The fuel cell industry is simply too important not to be part of our long-term energy goals to implement cleaner, cheaper, and more reliable energy sources for Connecticut’s residents and businesses.
Governor Malloy added, “We want to ensure there is no place better for the renewable energy sector to grow and create jobs than right here in Connecticut and this project puts FuelCell Energy in the position to do just that.”
Details of the state’s support for FuelCell Energy
According to the department, the integrated fuel cell company will receive a $10 million loan with 2% interest for a term of 15 years for each phase of the expansion project as it achieve certain employment and revenue milestones.
FuelCell Energy Inc (NASDAQ:FCEL) will be eligible for $5 million in loan forgiveness if it creates 165 full-time jobs and retains 538 full-time positions (703 jobs) for two consecutive years.
The company can earn $5 million forgiveness in the second portion of the financing if it creates 160 full-time jobs and retains 703 full-time positions for a total of 863 jobs for two consecutive years.
The DECD said expansion project of FuelCell Energy Inc (NASDAQ:FCL) is also qualified to as much as $10 million in Urban and Industrial Sites Reinvestment Tax Credits (URA) for a period of ten years.
Smart investment for Connecticut
DECD Commissioner Catherine Smith said the Torrington manufacturing facility is a” smart investment” for the State of Connecticut and FuelCell Energy Inc (NASDAQ:FCEL).
“Connecticut is a hub of innovation, and in particular, a center for the fuel cell industry. FuelCell Energy’s commitment to our state will bolster the edge we have developed in this important, emerging industry. Connecticut continues to supply the talented workforce, the right business climate, and the established industry connections that will position FuelCell Energy for future success,” said Smith.
The company plans to build 90,000 square foot addition to the Torrington manufacturing facility worth approximately $23 million. It will also acquire additional equipment to increase its annual production capacity, on-site power capabilities and to create a new advanced technology research center worth $42 million.