FuelCell Energy Wins Additional 5.6-Megawatt Posco Contract

May 13, 2014 4:22 pm ET

(Updates with closing share price in last paragraph.)

May 13 (Bloomberg) -- FuelCell Energy Inc., the company that built the world’s biggest fuel-cell power plant, won a contract to supply 5.6 megawatts of equipment to Posco.

Posco, South Korea’s largest steelmaker and FuelCell’s biggest shareholder, will use the equipment to build power plants for customers in Korea this year, Danbury, Connecticut- based FuelCell said today in a statement. Terms weren’t disclosed.

The order is in addition to FuelCell’s monthly shipments to Posco to meet an existing 122-megawatt order.

Posco is building a factory in Korea to make fuel cells using FuelCell’s technology that’s expected to begin production next year. The systems convert natural gas into electricity through a chemical reaction.

FuelCell completed a 59-megawatt project in South Korea in February, the world’s largest facility making electricity with fuel cells.

FuelCell rose 8 percent to $2.16 at the close in New York.