Danbury-based FuelCell Energy announces 96 layoffs

FuelCell Energy on Great Pasture Road in in Danbury, Conn. on Friday,Aug. 4, 2016. FuelCell Energy on Great Pasture Road in in Danbury, Conn. on Friday,Aug. 4, 2016. Photo: Chris Bosak / Hearst Connecticut Media Buy photo Photo: Chris Bosak / Hearst Connecticut Media Image 1 of / 1 Caption Close Danbury-based FuelCell Energy announces 96 layoffs 1 / 1 Back to Gallery

DANBURY - FuelCell Energy announced on Thursday a business restructuring that will include 96 layoffs coming from the headquarters in Danbury, production facility in Torrington and other remote locations.

FuelCell Energy (Nasdaq: FCEL) was down 11.11 percent in pre-market trading. The company designs, manufactures, operates and services fuel cell power plants.

“We are streamlining our business and cost structure as we reduce our production levels to meet the backlog we have today while positioning the company for long-term success,” Chip Bottone, president and CEO of FuelCell Energy, said in a statement. “Our employees are our most valued assets so the decision to reduce our workforce was not made lightly.”

It was unclear how many of the layoffs were coming from the Danbury headquarters. Danbury Mayor Mark Boughton said Thursday morning that he had not yet been officially notified of how many jobs would be lost in the city. He said even one layoff at this time of year is particularly painful.

“Our sympathies and thoughts go to those who lost jobs and we stand ready to assist in any way we can. Danbury is blessed with low unemployment and there are opportunities out there,” Boughton said. “This is tough, especially around the holidays.”

Boughton encouraged those who lost jobs to visit the American Job Center One Stop Office at 4 Liberty St. for workforce assistance.

In addition to the layoffs, FuelCell Energy is reducing spending on materials and implementing other cost-control initiatives. The measures will reduce annual costs by $6 million, the company said. The 96 layoffs represent about 17 percent of the company’s global workforce.

FuelCell Energy said it intends to continue to develop and complete fuel cell projects in Connecticut. It is also continuing to pursue opportunities in New York and California, states that have favorable regulatory policies toward FuelCell Energy projects. The company said the European market is also expanding and FuelCell recently received its second utility order from Europe.

The company will manufacture the fuel cells needed to run the Beacon Falls Energy Park in Connecticut. When completed, the park will be the largest fuel cell facility in the world, according to Beacon Falls Energy Park officials. In November, FuelCell Energy completed a 5.6 megawatt fuel cell project located on the Pfizer 160-acre research and development facility in Groton.

“Our value proposition for affordable, clean and continuous power that is easy to site where the power is used is compelling for addressing the power generation challenges facing society globally today,” Bottone said. “American innovation and American manufacturing combined with repurposing urban brownfields further solidifies the economic value proposition.”

Fuel Cell Energy has power plants on three continents that generate clean and efficient power for utility, commercial and municipal customers. The plants generate power using a wide variety of fuels, including renewable biogas from wastewater treatment and food processing.

Earlier this year, FuelCell Energy announced an agreement with Exxon Mobil Corporation to pursue technology in carbon dioxide capture by applying carbonate fuel cells. The testing is being done at a generation plant in Alabama and the companies hope the solution would substantially reduce costs and lead to more large-scale carbon capture globally.

“The fuel cell carbon capture solution we are advancing with ExxonMobil could be a game-changer in affordably reducing carbon dioxide emissions from coal and gas-fired power plants globally,” Bottone said in October.

In August, the company was honored on the Green Energy category of the 2016 Marcum Tech Top 40, an annual list recognizing the fastest-growing technology companies.

cbosak@hearstmediact.com; 203-731-3338