Danbury clean power manufacturer FuelCell Energy announced Wednesday a two-phase, $65 million expansion of its Torrington manufacturing facility.
The first $23 million phase will construct a 90,000-square-foot addition onto the existing fuel cell manufacturing facility, which will include additional equipment for automation and advanced manufacturing. The second $42 million phase will add manufacturing equipment to expand the company’s annual production of fuel cells to 200 megawatts, roughly double its current capacity.
As part of the expansion, the company will add 325 new jobs over four years to its existing Connecticut workforce of 538 employees.
FuelCell is the leading manufacturer of stationary, utility-sized fuel cells in the world, but it has struggled to turn a profit as its sales and production volume has yet to cover all its costs. In August, New Jersey energy giant NRG Energy invested $75 million in the Connecticut company because it sees localized fuel cells and other smaller power plants as the future of electricity generation.
To help the company with its expansion, the Connecticut Department of Economic & Community Development is providing FuelCell with two $10 million loans at 2 percent interest for 15 years to cover both phases of the expansion. The company is eligible for $5 million in forgiveness if it has 703 employees or more for two consecutive years following the first phase, and it will be eligible for another $5 million in forgiveness if it has 863 jobs for two consecutive years following the second phase.
FuelCell also qualifies for $10 million in Urban and Industrial Sites Reinvestment Tax Credits, which it can monetize over a 10-year period.
