March 4, 2005—FuelCell Energy, Inc., Starwood Hotels and Alliance Power have formed a Master Energy Services Agreement (MESA) to power Starwood Hotels & Resorts. Initial focus will be in California, the companies say, but the MESA is open to all of Starwood’s hotels and resort properties.
The first project under the agreement, scheduled for late 2005, will provide one megawatt of fuel cell power to the Sheraton San Diego Hotel & Marina. Four 250-kilowatt DFC power plants will supply base load electricity for the 1,044-room hotel. The heat byproduct will be used for the hotel’s Lagoon Pool.
The San Diego project and subsequent transactions under this MESA are to be based on power purchase agreements (PPAs). FuelCell Energy and Alliance Power expect that as its portfolio of PPAs grows under this MESA and other separate transactions, it will become more attractive to the financial markets. FuelCell Energy and Alliance Power will then aggregate its PPAs and seek third-party financing.
For more on Alliance Star Energy LLC, visit the Fuel Cell Energy Web site.
