|[January 03, 2013]
Energi, People's United Insurance Agency, Hannover Re Create Innovative Insurance Solution to Back Largest Fuel Cell Project in the USA
PEABODY, Mass. --(Business Wire)--
Energi, a leading developer and underwriter of energy insurance
products; People's United Insurance Agency; and Hannover Re, announced
that they have finalized coverage for the Bridgeport Fuel Cell project
located in Connecticut, which will soon be the largest fuel cell park in
Developed and manufactured by FuelCell Energy, Inc. (NASDAQ: FCEL) and
owned by Dominion (NYSE: D), the 14.84 megawatt (MW) project has been in
development for six years and is slated to start producing electricity
in December 2013. "This is the largest project that we have developed to
date in the USA, working with three utilities, local, and state
government to enhance the reliability of the electric grid with clean
distributed power generation," said Chip Bottone, President and Chief
Executive Officer of FuelCell Energy, Inc.
Energi, along with their partner Hannover Re (HRE), specifically
developed the Output Performance Warranty (OPW) Program that will
provide coverage of the system's production for the Bridgeport project.
"We designed the OPW program for stakeholders like FuelCell Energy and
Dominion Power in order to provide critical protection for the expected
output of the system design," said Kevin Kaminski, Senior Vice President
of Energi, Inc. "As we see more demand for large-scale distributed
energy generation like this one, we envision a huge need for proper risk
mitigation, which can help facilitate and unlock the project capital
that is essential for the continued growth and success of the renewable
and energy efficiency industries."
Bryan Garcia, President of the Connecticut Clean Energy (News - Alert) Finance and
Investment Authority (CEFIA), reflected on the application of the OPW
Program on this project. "As Connecticut's Clean Energy Finace and
Investment Authority, focused on attracting private investment in clean
energy deployment, the use of this innovative warranty insurance product
for the Bridgeport Fuel Cell Park reduces technology performance risk
over the life of the project and thus enables CEFIA to provide
longer-term and lower-cost capital support."
"The Output Performance Warranty Program helps to convey the confidence
that we have in our ultra-clean fuel cell power plants and their ability
to provide power in a cost-effective manner for years to come," said
Michael Bishop, Chief Financial Officer, FuelCell Energy, Inc. "The
Energi team analyzed the technology and performance history of our fuel
cell power plants in a very detailed fashion before granting this
coverage so we are pleased to have this independent review of our
products and welcome the opportunity to be working with Energi and
Energi and Hannover Re have jointly developed a series of warranty
programs aimed to support the growth of the alternative energy and
energy efficiency industries through risk mitigation and are designed to
backstop performance contracts and warranties offered by solar and
electrical contractors, as well as manufacturers of energy-related
equipment. The OPW Program utilized in the Bridgeport Project will cover
shortfall payments that are the result of design, installation or
performance shortfalls that impact the power output of the Fuel Cell
park. Coverage is written through the International Insurance Company of
Hannover Limited, AM Best "A+" rated and an operating insurance company
of Hannover Re.
Energi Programs are offered directly or through a select network of
independent insurance agents and brokers, and are available in all 50
states. Energi worked in conjunction with independent insurance agents
People's United Insurance Agency, a division of People's United Bank.
"The renewable energy team at People's United Insurance is very excited
about this and other projects of this nature throughout Connecticut and
our Northeast footprint," said Dan Casey, President and Chief Executive
Officer at the People's United Insurance Agency in Hartford, Connecticut.
Energi is a Peabody, Massachusetts-based industrial reinsurance company
that provides specialized insurance and risk management products to
targeted market segments of the North American energy industry. The core
programs include fuel distribution, fuel transport and energy
construction. Energi also has products that deliver protections for
alternative energy and energy efficiency projects. Founded in 2005 by
insurance professionals and energy industry leaders, Energi is licensed
in all 50 states. For more information, visit www.energi.com.
About People's United
People's United Bank is a subsidiary of People's United Financial, Inc.,
a diversified financial services company with $29 billion in assets.
People's United Bank, founded in 1842, is a premier, community-based,
regional bank in the Northeast offering commercial and retail banking,
as well as wealth management services through a network of 418 retail
locations in Connecticut, New York, Massachusetts, Vermont, New
Hampshire and Maine.
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