FuelCell Energy: PowerPlant at U.S. Army Base Camp

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FuelCell Energy, Inc., a leading manufacturer of ultra-clean high efficiency power plants using renewable and other fuels for commercial, industrial, government, and utility customers, today announced a contract with the U.S. Department of Defense (DoD) administered by the U.S. Army Corps of Engineers' Engineer Research and Development Center, Construction Engineering Research Laboratory (ERDC-CERL), to relocate, install and service a DFC300 fuel cell power plant at U.S. Army Camp Parks Reserve Forces Training Area located in Dublin, California.

This project will demonstrate the high efficiency, reliability and ultra-clean benefits of a fuel cell power plant to the U.S. Army for a minimum of fourteen months. The project will involve the relocation and installation of a DFC300 power plant owned by the DoD that was operated at another military base under a one year demonstration program. The Camp Parks project represents the first Direct FuelCell® (DFC®) fuel cell power plant on a U.S. Army base following fuel cell power plant installations at U.S. Navy, Air Force and Marine bases.

The U.S. military is the largest single consumer of energy in the USA, using 79 percent of the total energy consumed by the Federal Government in 2006.  The DoD energy policy includes improving energy efficiency, expanding use of renewable and ultra-clean energy and reducing green house gas emissions, while reducing the risk to the military and critical national infrastructure from losses of power. The high efficiency and ultra-clean attributes of fuel cells that dependably generate power at the point of use make fuel cell power plants well suited for powering U.S. military bases.

The fuel cell power plant will provide power to an electrical sub-station on the Base, replacing electricity currently supplied by the commercial electric grid. Site preparation will begin in late 2010 and the power plant is expected to be operational by the summer of 2011.  

"Fuel cells help the U.S. Military increase energy efficiency while enhancing energy security," said Chip Bottone, Senior Vice President and Chief Commercial Officer, FuelCell Energy, Inc. "The high efficiency of this fuel cell power plant combined with the reliable power that it will generate right on the Base will assist the Army in achieving its energy goals and help the Base perform its mission."

The fuel cell electro-chemical generation process is highly efficient. Fuel cells are 47 percent electrically efficient, which is higher than any similar size combustion based power plant. Higher efficiency results in fuel savings for the client as a greater amount of electricity is generated from each unit of fuel compared to less efficient combustion based power sources.

Camp Parks Reserve Forces Training Area in Dublin, California is the home of the U.S. Army 91st Division (Reserve). Thousands of National Guard and Army Reserve soldiers from the San Francisco Bay Area train at Camp Parks.

The Mission of the Engineer Research and Development Center, Construction Engineering Research Laboratory (ERDC-CERL) is to provide science, technology, and expertise in engineering and environmental sciences in support of the U.S. Armed Forces and the Nation. CERL conducts research to support sustainable military installations.  Research is directed toward increasing the Army's ability to more efficiently construct, operate, and maintain its installations and ensure environmental quality and safety at lower cost.

About FuelCell Energy

DFC® fuel cells are generating power at over 50 locations worldwide. The Company's power plants have generated over 600 million kWh of power using a variety of fuels including renewable wastewater gas, biogas from beer and food processing, as well as natural gas and other hydrocarbon fuels. FuelCell Energy has partnerships with major power plant developers and power companies around the world. The Company also receives funding from the U.S. Department of Energy and other government agencies for the development of leading edge technologies such as fuel cells. For more information please visit our website at www.fuelcellenergy.com

This news release contains forward-looking statements, including statements regarding the Company's plans and expectations regarding the continuing development, commercialization and financing of its fuel cell technology and business plans. 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, general risks associated with product development, manufacturing, changes in the regulatory environment, customer strategies, potential volatility of energy prices, rapid technological change, competition, and the Company's ability to achieve its sales plans and cost reduction targets, 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.

CONTACT:  FuelCell Energy, Inc.

          Kurt Goddard, Vice President Investor Relations

          203-830-7494

          [email protected]
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