FuelCell Energy's DFC1500 Power Plant Certified As the Largest Fuel Cell System to Meet 2007 California Emissions Requirement

FuelCell Energy's DFC1500 Power Plant Certified As the Largest Fuel Cell System to Meet 2007 California Emissions Requirement

Sep 14 - PRNewswire-FirstCall

DANBURY, Conn., Sept. 14 /PRNewswire-FirstCall/ -- FuelCell Energy, Inc., announced today that its megawatt-class Direct FuelCell(R) (DFC(R)) power plant is now state-certified to meet the California Air Resources Board's (CARB) stringent distributed generation emissions standards for 2007. By meeting this standard, the Company's DFC1500 qualifies as an 'ultra-clean' technology, exempting it from air pollution control and air quality district permitting requirements by CARB (http://www.arb.ca.gov/). In addition, this certification qualifies the Company's products for preferential rate treatment by the California Public Utilities Commission (CPUC) including the elimination of 'exit fees' and 'standby charges' for customer electric generation.

"With our sub-megawatt and megawatt-class DFC power plants now certified as 'ultra-clean' in California, we have broadened our product offering for commercial, industrial and government applications in one of our key target markets," said Herbert T. Nock, Senior Vice President of Marketing and Sales of FuelCell Energy. "We believe FuelCell Energy's 'ultra-clean' products fully support California's leadership in achieving strict air quality standards for distributed generation."

The CPUC's Self Generation Incentive Program (SGIP) offers subsidies of up to $4,500/kilowatt (kW) or 50 percent (whichever is less) for fuel cell projects that utilize renewable fuels, such as digester gas from wastewater treatment facilities (Level 1), and up to $2,500/kW or 40 percent (whichever is less) for fuel cell projects on natural gas (Level 2). The CPUC's SGIP is expected to provide over $60 million per year for Level 1 and Level 2 projects and be in effect through 2007.

FuelCell Energy's first DFC1500 began operating at the King County Wastewater Treatment Facility outside of Seattle, Wash., in July 2004. It initially operated on natural gas and recently switched over to anaerobic digester gas from the wastewater treatment facility.

The Company's 250-kW DFC300A power plant was certified under CARB 2007 standards in May 2003. FuelCell Energy currently has six DFC300A power plants installed in California.

About Direct FuelCells

Direct FuelCells efficiently generate clean electricity at distributed customer locations, including hospitals, schools, universities, hotels and other commercial and industrial facilities, as well as in grid-support applications for utility customers. Direct FuelCells operate similar to large, continuously operating batteries except they utilize a fuel to generate electricity, such as natural gas or digester gas from wastewater treatment facilities. DFC power plants are hydrogen generators, and because of this are ready today and do not require the creation of a hydrogen infrastructure. This high-efficiency technology generates more electric power from less fuel and with less carbon dioxide emissions than traditional combustion methods.

About FuelCell Energy, Inc.

FuelCell Energy, Inc., based in Danbury, Connecticut, is a world leader in the development and manufacture of high temperature hydrogen fuel cells for clean electric power generation. The Company has developed commercial distribution alliances for its carbonate Direct FuelCell products with MTU CFC Solutions Gmbh in Europe; Marubeni Corporation in Asia; Enbridge Inc. in Canada; Caterpillar, PPL Energy Plus, Chevron Energy Solutions and Alliance Power in the U.S. FuelCell Energy developed its patented Direct FuelCell technology for stationary power plants with the U.S. Department of Energy through its Office of Fossil Energy's National Energy Technology Laboratory. The sub-megawatt fuel cell power plant is a collaborative effort using Direct FuelCell(R) technology of FuelCell Energy and the Hot Module(R) balance of plant design of MTU CFC Solutions.

FuelCell Energy is also developing next generation high temperature fuel cell products, such as a diesel fueled marine Ship Service Fuel Cell, a combined-cycle DFC/Turbine(R) power plant. The Company is developing solid oxide fuel cells for initial applications up to 100 kilowatts. More information is available at http://www.fuelcellenergy.com/.

This news release contains forward-looking statements, including statements regarding the Company's plans and expectations regarding the development and commercialization of its fuel cell technology. All forward- looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could cause such a difference include, without limitation, the risk that commercial field trials of the Company's products will not occur when anticipated, general risks associated with product development, manufacturing, changes in the utility regulatory environment, potential volatility of energy prices, rapid technological change, and competition, as well as other risks set forth in the Company's filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.

FuelCell Energy, Inc.

CONTACT: Investor and Media - Steven P. Eschbach, CFA of FuelCellEnergy, Inc., +1-203-825-6000, seschbach@fce.com

Web site: http://www.fuelcellenergy.com/

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