Diversified Energy FuelCell and Tesiac enter pact to address energy needs

Diversified Energy (DEC), FuelCell (FCEL) and Tesiac announced a strategic partnership intended to address the energy needs of data centers by supplying as much as 360 megawatts of electricity to three distinct locations in Virginia, West Virginia and Kentucky. The partnership has agreed to create an acquisition and development company focused on delivering net-zero power from natural gas and captured coal mine methane to meet the demand of data centers for reliable power. The collaboration among the three companies would leverage in-basin natural gas production, advanced energy generation via fuel cell technology, and infrastructure financing to create a sustainable energy solution tailored for the rapid expansion of data center power capacity requirements. Natural gas or CMM, extracted from coal mines by Diversified Energy and delivered via pipeline to fuel cells, would generate power through the electrochemical conversion of methane to hydrogen, and then to electricity. This combustion-free process is virtually free of air pollution emissions, speeding air permitting and enabling the system to be brought online faster than combustion-based systems. Heat that is co-generated by the fuel cells can be harnessed and converted to chilling for the data center, thus increasing overall system efficiency and further enhancing economic value. Importantly, this process qualifies for established environmental and tax credits that have the potential to provide meaningful cash flow in addition to the economic benefits of gas and power sales. The parties are structuring the terms of the agreement to include: Diversified Energy supplying natural gas and CMM or captured waste methane from coal mines that otherwise would have been vented into the atmosphere, from its Appalachian Basin production as the base fuel. FuelCell Energy deploying its fuel cell energy platforms, delivering distributed baseload power generation, emissions management, and thermal energy solutions. This includes electricity and waste heat driven absorption chilling, ensuring data centers achieve unmatched efficiency, carbon reduction, and resilience. Tesiac leveraging its investment and development expertise, securing financing options to accelerate deployment while maintaining long-term profitability and scalability.