Japanese Telecom Subsidiary Purchases a FuelCell Energy High Efficiency Power Plant to Provide High Quality Base Load Electricity for New Distributed Energy System in Japanese City

June 26, 2006

NTT Facilities will showcase 24/7 base load power and environmental benefits of Direct FuelCell power plants

DANBURY, Conn.–(BUSINESS WIRE)–June 26, 2006– FuelCell Energy, Inc. (NasdaqNM:FCEL), a leading manufacturer of efficient electric power generation plants for commercial, industrial and government customers, announced that one of its 250- kilowatt Direct FuelCell(R) (DFC(R)) power plants, sold by its Asian distributor Marubeni Corporation (TSE:8002) to NTT Facilities, will be incorporated into an electric supply system providing reliable base load power to a university, a welfare institution, a high school and a water purification plant in Sendai City, in northeastern Japan.
Sendai City’s DFC power plant is part of a 940 kilowatt (kW) high quality electric power system consisting of the fuel cell unit, a solar power system and a gas engine co-generation system. The high efficiency DFC power plants will be used by the end users to provide firm base load power and the surplus heat from the fuel cell unit will be used for domestic hot water.

NTT, the parent company of NTT Facilities, is the top market share holder among the telecommunications industry in Japan and in 2005 was ranked as the 18th largest company in the world by Fortune Magazine. NTT Facilities will be responsible for comprehensive engineering services including the procurement of equipment, project development, project management, installation of the equipment including the fuel cell power plant and the long term operation of the micro-grid. With this installation, NTT Facilities is evaluating the performance of DFC products for future installations.

“Direct FuelCells feature the highest electrical efficiency in their class and their ultra-clean profile is an ideal solution for countries like Japan who need to comply with the Kyoto Protocol emission targets,” said Bruce Ludemann, Senior Vice President for Sales and Marketing, FuelCell Energy. “This particular installation is a great opportunity for us to work with one of Japan’s most influential companies and demonstrate the feasibility of tying DFC products–providing high quality base load power that is also environmentally friendly for the citizens of Sendai City.”

“Japanese companies like NTT Facilities that are using increasing amounts of information technology equipment to support their productivity are recognizing that high efficiency DFC power plants generate 24/7 base load power, enabling them to improve their energy supply,” said Kenji Natori General Manager of Marubeni’s New Technology & Renewable Energy Department. “The fuel cell is part of a distributed power supply system that utilitizes various new energy products to enhance the reliability and quality of electricity for customers’ needs with low cost.”

Japan represents a significant market where FuelCell Energy’s DFC products can provide commercial and industrial customers with reliable and cost-effective base load power. DFC products address two significant energy issues in Japan: coping with high energy costs and meeting the country’s commitments to reduce emissions of the major greenhouse gas, carbon dioxide. Compared to the average U.S. fossil fueled power plant, high efficiency DFC products use less fuel per kilowatt hour of electricity to trim operating costs, while significantly reducing carbon dioxide. In addition, because DFC units generate heat and power electrochemically — without combustion — emissions of harmful pollutants such as nitrogen oxides, sulfur oxides and particulate matter are significantly diminished.

FuelCell Energy recently announced that Marubeni had committed to order an additional six Megawatts of DFC power plants in exchange for rights as the exclusive provider of the company’s products in the Japanese Market.

About Marubeni

The Marubeni Corporation (http://www.marubeni.co.jp/english/index.html), established in 1858, is one of Japan’s leading general trading/marketing houses (sogo shosha). The company was ranked as the 25th largest in Fortune Magazine’s Global Fortune 500 list for 2002. Marubeni has 12 Divisions with operations that encompass domestic, import/export, offshore trade and investment activities, which range from the development of natural resources to the retail marketing of finished products. The Company, based in Tokyo, conducts these operations through a worldwide business network that includes 52 overseas corporate offices and 28 overseas subsidiaries, for a total of 131 offices in 73 countries.

Marubeni’s Utility & Infrastructure Division has been involved in the development of over 20,000 megawatts of power generation worldwide. The Division has expanded its efforts to include distributed generation technologies, power quality & reliability technologies and energy & environmental services.

About FuelCell Energy

FuelCell Energy develops and markets ultra-clean power plants that generate electricity with higher efficiency than distributed generation plants of similar size and with virtually no air pollution. Fuel cells produce base load electricity giving commercial and industrial customers greater control over their power generation economics, reliability and emissions. Emerging state, federal and international regulations to reduce harmful greenhouse gas emissions consider fuel cell power plants in the same environmentally friendly category as wind and solar energy sources — with the added advantages of running 24 hours a day and the capacity to be installed where wind turbines or solar panels often cannot. Headquartered in Danbury, Conn., FuelCell Energy services over 45 power plant sites around the globe that have generated more than 108 million kilowatt hours, and conducts R&D on next-generation fuel cell technologies to meet the world’s ever-increasing demand for ultra-clean distributed energy. For more information on the company, its products and its worldwide commercial distribution alliances, please see http://www.fuelcellenergy.com.

Direct FuelCell, DFC and DFC/Turbine are registered trademarks of FuelCell Energy, Inc. All other trademarks are the property of their respective owners.

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.

CONTACT: FuelCell Energy, Inc.
Steven P. Eschbach, 203-825-6000
seschbach@fce.com

SOURCE: FuelCell Energy, Inc.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: