May 30, 2012

Photo Release -- FuelCell Energy Outlines Growing South Korean Demand for Clean Baseload Fuel Cell Power Plants

  • 230 megawatt fuel cell program announced by Seoul City, South Korea's Capital
  • World's Largest Fuel Cell Park Being Developed in South Korea

DANBURY, Conn., May 30, 2012 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc. (Nasdaq:FCEL) a leading manufacturer of ultra-clean, efficient and reliable power plants, today announced growing demand in Asia for stationary fuel cell power plants, including an initiative by Seoul City, South Korea to install 230 megawatts (MW) of fuel cells and separately, the development of a 60 MW fuel cell park, which will be the largest fuel cell installation in the world.

A photo accompanying this release is available at http://www.globenewswire.com/newsroom/prs/?pkgid=13054

  • Seoul City, the capital of South Korea, recently announced plans to support the installation of 230 MW of stationary fuel cell power plants as part of the goal of replacing the power generation of one nuclear power plant. The plans call for 29 fuel cell parks totaling 190 megawatts and 102 commercial building installations totaling 40 MW, by 2014, with 50 MW installed in 2012, 82 MW in 2013 and 98 MW in 2014. Installations include 11 locations totaling 70 MW to support the operation of the subway, 10 locations totaling 70 MW at water treatment and pump facilities, and eight locations totaling 50 MW at resource collection facilities. Building installations will include 10 MW at hospitals and data centers and 30 MW at high rise residential developments. Electrical and thermal efficiency is important to the City and the fuel cell power plants must be configured for combined heat and power (CHP). The City will actively support siting the power plants on City-owned property, and is evaluating financial incentives, including the potential for a feed-in tariff. This announcement by Seoul City may support future demand of Direct FuelCell® (DFC®) power plants.
     
  • A 60 MW fuel cell park is under development by POSCO Energy along with partners Korea Hydro Nuclear Power Co. (KHNP) and Samchully Gas Co. The fuel cell park will consist of a series of DFC3000® power plants located in an industrial complex in Hwaseong, South Korea. Permitting and approvals are expected to be completed by early summer and power production to begin by early 2013. The ultra-clean electricity generated by the fuel cells will be supplied to the electric grid and will assist the partners with compliance under the South Korean Renewable Portfolio Standard (RPS).
     
  • POSCO Energy is developing an 8.4 MW fuel cell park at a liquefied natural gas (LNG) facility in Samcheok City, South Korea. The fuel source for the fuel cell power plant will be boil-off gas (BOG) which is the gas vaporized from processing LNG. Fuel costs for BOG are expected to be less than LNG. The ultra-clean power generated by the DFC3000 power plants will be sold to Korea Southern Power (KOSPO) for the electric grid and will be eligible for renewable energy certificates under the RPS. 

"The absence of pollutants and the low carbon emission profile of Direct FuelCell power plants are well suited for meeting the power generation needs of South Korea and complying with the renewable portfolio standard," said Taehyoung Kim, Group Leader, Fuel Cell Division, POSCO Energy. "Adoption of the renewable portfolio standard has resulted in a substantial increase in inquiries regarding potential fuel cell power plant installations in South Korea and we are witnessing increased interest from other Asian countries as well." 

"We are deepening and broadening our relationship with POSCO Energy to support the acceleration of demand for ultra-clean, efficient and reliable fuel cell power plants in South Korea as well as preparing for growth in other parts of Asia," said Ben Toby, Vice President, Eastern Region and International Sales, FuelCell Energy, Inc. "The greater Seoul/Inchon metropolitan area in South Korea has one of the highest population densities in the world so clean and efficient baseload power generation that can be delivered near the point of use is very important to government officials and electric utilities." 

FuelCell Energy power plants help meet the mandates of the South Korean RPS and the needs of electric utilities due to their numerous attributes, including:

Ultra-clean power: Fuel cells generate power electrochemically, without combustion, resulting in virtually no pollutants, such as NOx (nitrogen oxide), SOx (sulfur oxide) or particulate matter. Minimal pollutants ensures compliance with clean air regulations and is a public health benefit for the local community.

High efficiency: Fuel cells are the most efficient baseload power generation option for their size class, providing the most power from a given unit of fuel. High efficiency also reduces carbon emissions compared to less efficient combustion-based power generation.

Reliable: DFC plants provide continuous power and their on-site power generation improves power reliability and energy security by lessening reliance on transmission and distribution.

Scalable: DFC plants are scalable, providing a cost effective approach to adding power generation incrementally as power demand grows within electric utility service areas.

Easy to site: The combination of near-zero pollutants, modest land-use needs, and quiet operating nature of DFC plants facilitates their siting in urban locations.

DFC power plants are 47 percent electrically efficient and can achieve total efficiencies up to 90 percent when configured to use the high quality heat generated by the power plant. High efficiency reduces fuel costs and carbon emissions, and producing both electricity and heat from the same unit of fuel can lessen reliance on combustion based boilers used for heating, further reducing costs and carbon emissions. By comparison, the electrical efficiency of grid delivered electricity from the average U.S. fossil-fueled power plant is only about 33-36 percent.

POSCO Energy has ordered 140 MW of ultra clean, highly efficient fuel cell power plants, modules and components since 2007 and has entered into a memorandum of agreement for an additional 120 MW of fuel cell kits.   

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 one billion kilowatt hours 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

The FuelCell Energy, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3284

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, whether the Company is able to reach definitive agreements on the terms contemplated in the recently announced memorandums of agreement with POSCO Energy, 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.

The photo is also available via AP PhotoExpress.

CONTACT: FuelCell Energy, Inc.

         Kurt Goddard, Vice President Investor Relations

         203-830-7494

         ir@fce.com

Rendition of 60 megawatt fuel cell park in Hwaseong, South Korea


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