Intelligent Energy inks GBP-1.2bn fuel cell deal in India

UK fuel cell company Intelligent Energy Holding Plc (LON:IEH) on Thursday announced a deal to provide clean power to telecom towers in India that it said will bring contracted revenues of about GBP 1.2 billion (USD 1.8bn/EUR 1.6bn) over 10 years.

The transaction, described as a major milestone in hydrogen fuel cell development, will see the UK company buy contracts from India-based network services provider GTL Ltd (BOM:500160) to supply energy-management services to more than 27,400 mobile telecom towers. Through its Indian subsidiary Essential Energy, Intelligent Energy intends to transition around 70% of the managed towers from diesel power to hydrogen fuel cells.

India has about 425,000 telecom towers and 70% of them experience power outages of around eight hours per day, leaving many of the country's mobile phone users disconnected. Currently, the main back-up power source are diesel generators, to which hydrogen fuel cells are expected to be a more efficient and cleaner alternative.

The deal is expected to have a "transformative impact on India's energy market by creating high efficiencies and cost savings alongside reducing emissions," the UK company said.

(GBP 1.0 = USD 1.515/EUR 1.358)

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