Air Pollution Control Equipment Services

FuelCell Energy’s Megawatt Power Plant certified by American National Standards Institute

DANBURY, Conn., Aug. 1, 2003 — FuelCell Energy, Inc. announced that its one megawatt Direct FuelCell® (DFC®) power plant, the DFC1500, has been certified to meet the American National Standards Institute (ANSI) products safety standards for stationary fuel cell systems, ANSI Z21.83, making it the largest power plant to be certified under this standard.

This certification will significantly reduce the time and cost for installation of the Company’s DFC products and enhances the product’s eligibility for incentive funding throughout the U.S.

ANSI Z21.83 applies to packaged, self-contained or factory matched packages of integrated systems of fuel cell power plants up to 1 megawatt in capacity using natural gas or liquefied propane gas (LPG) as a fuel source and specifically identifies criteria for construction and safety of applicable fuel cell power plants. FuelCell Energy’s DFC1500 becomes the first matched modular fuel cell power plant under the ANSI standard.

The Company’s 250-kilowatt DFC300A received ANSI Z21.83 certification in April 2003.

“Certifying our sub-megawatt and megawatt-class DFC power plants is an integral part of product standardization strategy,” said Herbert T. Nock, Senior Vice President of Marketing & Sales at FuelCell Energy, Inc. “We are making significant strides in reducing our product costs from a technological, engineering and manufacturing standpoint, and this national product safety certification further enhances the competitiveness of our DFC products by streamlining installation processes at commercial and industrial sites.”

FuelCell Energy’s sub-megawatt DFC power plants were certified for grid-interconnection under U.L. 1741 and California’s ‘Rule 21’ standard in February 2003 and state certified to meet California Air Resources Board stringent new “ultra clean” emissions standards for 2007.

Both certifications enhance the eligibility of the Company’s DFC power plants for state incentive programs, such as the California Public Utility Commission’s Self Generation Program and the CEC’s Emerging Renewables Buydown Program. Both offer subsidies of up to $4,500/kW or 50 percent (whichever is less) for fuel cell projects that utilize renewable fuels. The CEC’s program also offers subsidies of $2,500/kW or 40 percent of total project cost (whichever is less) for combined heat and power fuel cell projects that operate on natural gas.

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.

About FuelCell Energy, Inc.

FuelCell Energy, Inc., based in Danbury, Connecticut, develops and manufactures 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.