December 12, 2011

FuelCell Energy Enters Into Partnership Agreement With Abengoa to Develop Localized Fuel Cell Power Plants for Europe and Latin America

Targeting Renewable Biogas and Bioethanol Market Opportunities in Europe and Latin America

300 Kilowatt Pilot Project to be Installed at Abengoa Headquarters in Seville, Spain

DANBURY, Conn., Dec. 12, 2011 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (Nasdaq:FCEL) a leading manufacturer of ultra-clean, efficient and reliable power plants, today announced a partnership agreement with Abengoa S.A. to develop localized stationary fuel cell power plants for markets in Europe and Latin America. Abengoa will develop, manufacture and market stationary fuel cell power plants using fuel cell modules provided by FuelCell Energy. The initial pilot installation will be at the Abengoa headquarters in Palmas Campus Palmas Altas, Spain using a 300 kilowatt proprietary Direct FuelCell® (DFC®) module supplied by FuelCell Energy and balance of plant designed and manufactured by Abengoa. Renewable biogas markets will be targeted and the parties will cooperate to enhance the capability and market opportunities for DFC power plants operating on liquid biofuels.

"FuelCell Energy has developed leading edge carbonate fuel cell technology that is unsurpassed for meeting utility-scale power needs for ultra-clean baseload distributed generation" said Javier Brey, General Manager of Abengoa Hidrógeno. "The fit is natural between our organizations and we look forward to growing the market for ultra-clean and efficient distributed generation fuel cell power plants in Spain as well as in Europe and Latin America, where we already have a presence. We will develop and manufacture in Spain stationary carbonate fuel cell plants by starting from FCE technology, and it will increase also the value of our partnership. In the short term, we plan to develop technology together."

The partners will target markets in Europe and Latin America for megawatt-class DFC power plants, focusing on municipalities, large industrial power users and facilities that generate renewable biogas. These markets value high efficiency, distributed generation and the ability to generate virtually emission-free clean power from renewable fuels, all attributes of DFC power plants. DFC power plants are fuel flexible, capable of operating on clean natural gas or renewable biogas.

Under the partnership, Abengoa will use its experience with biofuels to develop a fuel processing system that will support the use of liquid biofuels as a fuel source for DFC power plants. Ultra-clean, efficient and reliable fuel cell power plants that can operate on liquid biofuels are attractive in Latin American markets such as Brazil where sugar cane is widely used as a feedstock to create ethanol.

"Abengoa has experience developing fuel cell systems with value added capabilities" said Chip Bottone, President and Chief Executive Officer for FuelCell Energy, Inc. "When combined with their European and Latin American business and marketing reach through the Abengoa organization, we see excellent prospects for market expansion in Europe as well as developing the Latin American market for ultra-clean baseload distributed generation fuel cell power plants."

Fuel cells generate power through an electrochemical reaction that does not require combustion. Due to this lack of combustion, fuel cells emit virtually no pollutants, resulting in the generation of ultra-clean electricity. Fuel cells can achieve up to 90 percent efficiency when configured to use the high quality heat generated by the power plant in a combined heat & power (CHP) mode. High efficiency reduces fuel costs and carbon emissions and producing both electricity and heat from the same unit of fuel drives economics while simultaneously promoting sustainability. Biogas producers require heat in their processes so the ability for DFC plants to use biogas as a fuel and produce both ultra-clean power and usable heat helps convert a waste disposal challenge into an economical and environmentally friendly power generation solution.

The world-class Direct FuelCell technology of FuelCell Energy will be combined with the extensive customer network and service expertise of Abengoa to sell DFC fuel cells in the target geographies. FuelCell Energy will export fuel cell modules manufactured at the Company's production facility in the USA and Abengoa will supply Spanish designed and built balance of plant to complete the fuel cell power plant. Completion of a distribution agreement is expected to follow this announcement within the next six months.

Abengoa (MCE:ABG) is an international company that applies innovative technology solutions for sustainable development in the energy and environment sectors, generating electricity from the sun, producing biofuels, desalinating sea water and recycling industrial waste. For further information: www.abengoa.com

About FuelCell Energy

Direct FuelCell® power plants are generating ultra-clean, efficient and reliable power at more than 50 locations worldwide. With over 180 megawatts of power generation capacity installed or in backlog, FuelCell Energy is a global leader in providing ultra-clean baseload distributed generation to utilities, industrial operations, universities, municipal water treatment facilities, government installations and other customers around the world. The Company's power plants have generated over 900 million kWh of power using a variety of fuels including renewable biogas from wastewater treatment and food processing, as well as clean natural gas. 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.

Direct FuelCell, DFC, DFC/T, DFC-H2 and FuelCell Energy, Inc. are all registered trademarks of FuelCell Energy, Inc. DFC-ERG is a registered trademark jointly owned by Enbridge, Inc. and FuelCell Energy, Inc.

CONTACT:

FuelCell Energy, Inc.
Kurt Goddard, Vice President Investor Relations
203-830-7494
ir@fce.com

Patricia Malo de Molina Melendez.
Loreto Gonzalez Goizueta.
Tel. +34 954 93 71 11
E-mail: comunicacion@abengoa.com


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