South Jersey Industries pays $8M for fuel cell

Posted: April 19, 2013

An affiliate of South Jersey Industries Inc., the Folsom energy company, is buying an $8 million fuel cell that will convert natural gas into electricity and steam for a Connecticut hospital.

Hartford Steam Co., which is partly owned by South Jersey, will install the 1.4-megawatt fuel cell at Hartford Hospital.

Fuel cells electrochemically convert a fuel-like natural gas into electricity and heat in a process that emits virtually no pollutants because there is no combustion.

FuelCell Energy Inc., the manufacturer of the power equipment, says a unit that produces electricity and steam can achieve 90 percent efficiency by effectively recycling the waste heat.

Hartford Steam will sell the power and steam to the 867-bed hospital under a long-term agreement.

"The ability of the fuel cell power plant to produce both electricity and steam from the same unit of fuel supports the attractive economics of this installation," said Derek Rudd, president of Hartford Steam.

Hartford Steam is eligible to receive payments for each megawatt hour of power produced under Connecticut's Low Emission Renewable Energy Credit program.

Hartford Steam is owned by Energenic, a joint venture of a South Jersey Industries subsidiary, and DCO Energy L.L.C., of Mays Landing, N.J.

South Jersey Industries is the parent company of South Jersey Gas.


Contact Andrew Maykuth at 215-854-2947, @Maykuth, or amaykuth@phillynews.com.

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