Air Pollution Control Equipment Services, Emissions

FuelCell Energy’s DFC power plant certified as the largest electric distributed generation technology to meet 2007 California emissions requirement


DANBURY, Conn., May 9, 2003 — FuelCell Energy Inc. announced that its sub-megawatt Direct FuelCell® (DFC®) power plant is now state-certified to meet the California Air Resources Board’s (CARB) stringent new distributed generation emissions standards for 2007.

By meeting this standard, the company’s sub-megawatt DFC power plant is categorized as an ‘ultra-clean’ technology, exempting it from air pollution control or air quality district permitting requirements by CARB (www.arb.ca.gov).

In addition, this certification qualifies the Company’s products for preferential rate treatment by the California Public Utilities Commission (CPUC) such as the elimination of ‘exit fees’ and ‘standby charges’ for customer electric generation.

FuelCell Energy now has all the necessary certifications to streamline the deployment of its DFC power plants and they now qualify for state incentive funding in California. The company was certified for grid interconnection with the investor owned electric utilities under California’s “Rule 21” standard in February 2003.

Earlier this week, the company’s DFC300A power plant was certified to meet the American National Standards Institute (ANSI) products safety standard for stationary fuel cell systems, ANSIZ21.83.

Collectively, these three certifications will reduce the time and cost for installation of FuelCell Energy’s DFC power plants and enhance the products’ acceptance throughout the United States.

“Achieving certification for CARB’s 2007 emissions standards strengthens our marketing efforts in California,” said Herbert T. Nock, Senior Vice President of Marketing and Sales of FuelCell Energy. “This clearly defines our DFC power plants as ‘ultra-clean’ and further enables our technology to meet the CPUC’s mandate of using distributed energy resources to diversify its generation supply portfolio.”

The company’s DFC technology is currently operating 10 units in Germany, Spain, Japan and the United States and has generated over 9 million kilowatt hours of electricity at customer sites.

In California, the Los Angeles Department of Water and Power is currently operating a DFC300A power plant at its headquarters building and has an order for two more. One will be sited at Terminal Island and will operate on anaerobic digester gas from a municipal wastewater treatment facility. The second DFC300A will be located in downtown Los Angeles at a site to be determined.

About Direct FuelCells

Direct FuelCells efficiently generate clean electricity at distributed locations near the customer, including hospitals, schools, universities, hotels and other commercial and industrial facilities, as well as in grid support applications for utility customers. In essence, Direct FuelCells are like large, continuously operating batteries that generate electricity as long as fuel, such as natural gas, is supplied. Since the fuel is not burned, there is no pollution commonly associated with the combustion of fossil fuels.

Because hydrogen is generated directly within the fuel cell module from readily available fuels such as natural gas and wastewater treatment gas, DFC power plants 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 methods using combustion. Operating on biomass fuels, such as wastewater treatment digester gas, Direct FuelCells are a renewable technology.

About FuelCell Energy, Inc.

FuelCell Energy, Inc., based in Danbury, Connecticut, is a specialist in the development and manufacture of highly efficient hydrogen fuel cells for clean electric power generation, currently offering DFC power plant products ranging in size from 250 kilowatts to 2 megawatts for applications up to 50 megawatts.

The company has developed commercial distribution alliances for its carbonate Direct FuelCell technology with MTU CFC Solutions Gmbh, a company of DaimlerChrysler AG, in Europe; Marubeni Corporation in Asia; and Caterpillar, PPL Energy Plus and Chevron Energy Solutions, in the U.S. FuelCell Energy is developing Direct FuelCell technology for stationary power plants with the U.S. Department of Energy through their Office of Fossil Energy’s National Energy Technology Laboratory. More information is available at www.fuelcellenergy.com.