Significant Vote of Confidence in Gencell: The Federal Electricity Commission of the State of Mexico Cfe Purchases Additional Units of the Gencell Backup Power Solution in a Deal Valued at ~$4.5 Million.
CFE has an option in the agreement to double the volume of the order for another ~$4.5 million; this deal for multiple GenCell green power systems follows earlier orders for 74 units in recent years already deployed by CFE
Rami Reshef, CEO and co-founder, GenCell: “The follow-up order we received from our local partner in Mexico for the Federal Electricity Commission of the State of Mexico CFE represents a significant vote of confidence in GenCell and in our resilient, sustainable, long-duration and zero-emission backup power systems ensuring uninterrupted flow of power to the substations and communication systems of CFE. Over the past two years, GenCell’s products have been deployed at numerous substations across Mexico, delivering exceptional performance and results. This broadly distributed implementation offers demonstrated proof of GenCell’s tested capability to supply power solutions that are both resilient and long-duration as well as zero-emission. We appreciate CFE’s continuing trust in GenCell’s solutions and believe that this deal will make a significant contribution towards expansion of GenCell’s operations vis-à-vis other power utilities around the world as part of GenCell’s steady path of growth.”
Petah Tikva, Israel – December 18, 2023 – GenCell Energy, (TASE: GNCL), a leading provider of Hydrogen2Power™ and Ammonia2Power™ solutions, announces today an additional phase in its strategic cooperation with the Federal Electricity Commission of the State of Mexico CFE, the state-owned power utility. GenCell is honored to announce a repeat order from CFE valued at ~$4.5 million for the supply and delivery of multiple additional GenCell systems and services. The Company intends to deliver the Systems to its local partner in Mexico before the end of the calendar year 2023. For fulfillment of its obligations as per the agreement, the Company is expected to receive payment in several installments until the end of the first half of 2024, subject to the Local Partner receiving payment from CFE in accordance with the terms of the additional tender.
This deal follows the successful delivery and satisfactory operation of 74 of the Company’s systems over the last two years. The additional units being purchased will also provide backup power to CFE substations; moreover, the tender grants CFE the right within the first six months of 2024 to increase the number of units in the order by up to double the current amount.
The current deal was signed after CFE held another tender to purchase additional backup power equipment and selected GenCell’s local partner in Mexico as its winner. Consequently, GenCell will supply its systems along with support services for the warranty period stipulated in the additional tender to its local partner in Mexico, who will deploy and maintain the GenCell systems.
GenCell is confident that the winning of the additional tender by its local partner is an indication of the satisfaction CFE derived from the GenCell backup power systems which were supplied and deployed successfully in the previous CFE tender. The Company believes that this transaction may contribute to its positioning in its target markets and, in alignment with its strategy and objectives, may help GenCell expand its operations with new clients in the utilities markets.
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