On March 31, 2024, FuelCell Energy, Inc., and ExxonMobil Technology and Engineering Company (formerly known as ExxonMobil Research and Engineering Company), known as EMTEC, solidified their ongoing partnership with the signing of Amendment No. 5 to their Joint Development Agreement. This amendment marks a significant continuation of their collaborative efforts to advance carbon dioxide emission reduction technologies through the development of improved carbonate fuel cells.
Since the agreement’s initiation on October 31, 2019, both entities have engaged in exclusive research and development activities aimed at enhancing the efficacy of carbonate fuel cells in reducing carbon dioxide emissions from both industrial and power generation sources. This partnership has been financially supported by EMTEC through various payments, covering research costs and licensing fees, with the original two-year agreement seeing multiple extensions and financial commitments increase to $67.0 million for research.
Amendment No. 5 introduces an extension of the agreement until December 31, 2026, to allow further technical refinement of the Generation 2 Technology fuel cell module and explore commercial deployment opportunities with third-party collaborators. This amendment also empowers FuelCell Energy to initiate carbon capture projects using either Generation 1 or Generation 2 Technology, with a cumulative annual CO2 capture limit of 250,000 tons.
Furthermore, EMTEC has granted FuelCell Energy comprehensive licensing rights to both Generation 1 and Generation 2 Technologies, removing previous caps on reimbursable research costs and setting an expected annual budget of at least $10.0 million for the agreement’s remaining duration. The amendment also provides for a 15% increase in the hourly rates for FuelCell Energy’s personnel, with a subsequent annual increase of 3% starting March 31, 2025.
As part of their broader collaboration, the agreement encompasses perpetual, irrevocable licenses for FuelCell Energy to utilize the program results, background information, and patents related to both generations of technology in power and hydrogen applications. This ongoing partnership is reflective of both companies’ commitment to advancing carbon capture solutions and decarbonizing energy sources.
This summary of Amendment No. 5 is fully detailed in the attached Exhibit 10.1 to the Current Report on Form 8-K, which, along with the comprehensive Joint Development Agreement, is available for review in the SEC filings of FuelCell Energy.
Additionally, this partnership includes other significant collaborations such as the Rotterdam Pilot Project with Esso Nederland B.V., an affiliate of ExxonMobil Corporation and EMTEC, and a license agreement facilitating the development of FuelCell Energy’s SureSource Capture™ product. These initiatives underscore the deepening relationship between FuelCell Energy and EMTEC, aiming at pioneering advancements in carbon capture technology and fuel cell applications.
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