FuelCell Energy, Inc. announced a partnership agreement with Abengoa S.A. to develop localized stationary fuel cell power plants for markets in Europe and Latin America. Abengoa will develop, manufacture and market stationary fuel cell power plants using fuel cell modules provided by the company.

The initial pilot installation will be at the Abengoa headquarters in Palmas Campus Palmas Altas, Spain, using a 300 kilowatt module supplied by FuelCell Energy with the balance of plant designed and manufactured by Abengoa.

Both will cooperate to “enhance the capability and market opportunities for DFC power plants operating on liquid bio fuels.” The partners will target markets in Europe and Latin America for megawatt-class DFC power plants, focusing on municipalities, large industrial power users and facilities that generate renewable biogas.

Abengoa will use its experience with biofuels to develop a fuel processing system that will support the use of these fuels as a source for DFC power plants. Fuel cell power plants that can operate on liquid biofuels are attractive in Latin American markets such as Brazil where sugarcane is widely used as a feedstock to create ethanol.

Fuel cells generate power through an electrochemical reaction that does not require combustion and emit virtually no pollutants. They also can achieve up to 90 percent efficiency when configured to use the high quality heat generated by the power plant in a combined heat and power mode.