FCEL · FuelCell Energy, Inc.

FuelCell Energy's agreement with Fit Energy USA LP represents a significant strategic partnership targeting the growing demand for clean, baseload power for data centers. The Capital Equipment Purchase Agreement (CEPA) covers up to 380 MW of carbonate fuel cell blocks, with an immediate 30 MW phase expected to begin delivery in 2026. This deal validates FuelCell Energy's decision to scale manufacturing to 500 MW capacity and provides a pathway to long-term recurring revenue through long-term services agreements (LTSAs) of 15-20 years per project. The warrant issuance ties Fit Energy's equity upside to successful project deployment, aligning incentives. The warrants have performance-based vesting and a mandatory exercise right for the Company if the stock trades 150% above the strike price, providing a potential capital infusion. The registration rights agreement facilitates Fit Energy's ability to resell shares. This transaction positions FuelCell Energy to capture a portion of the data center market's power needs, leveraging its utility-scale fuel cell technology for reliable, low-emission electricity. The phased approach allows Fit Energy to scale as it identifies project sites, while the Company benefits from milestone-based payments. Overall, this is a material growth catalyst for FuelCell Energy, expanding its backlog and demonstrating commercial traction in a high-demand sector.