Program enables end users to obtain clean energy economically
DANBURY, Conn., Jan 26, 2007 (BUSINESS WIRE) -- FuelCell Energy, Inc. (NasdaqNM:FCEL), a leading manufacturer of ultra-clean electric power generation plants for commercial and industrial customers, today announced that the federal government's recent extension of the Income Tax Credit (ITC) for fuel cells will continue to provide additional incentives for its ultra-clean power plant products through the end of 2008.
Enacted as part of the U.S. Energy Policy Act of 2005, the ITC established a range of incentives for 'green' electricity produced by non-traditional means. The company's low-emission fuel cell power plants qualify because they run on renewable fuels (such as gas produced by breweries and other anaerobic digester processes) and other readily available fuel sources (like natural gas). The ITC, originally due to expire at the end of 2007, has been extended to Dec. 31, 2008.
The ITC helps end users produce clean energy by subsidizing the purchase of fuel cell power plants up to $1,000 per kilowatt of electricity generated, to a maximum of 30 percent of the net investment cost. It also allows plant owners to depreciate the equipment over five years. By enhancing project economics, these incentives also enable project financing of fuel cell transactions.
"The tax credit's availability for an additional year clearly demonstrates the federal government's ongoing commitment to advancing ultra-clean fuel cell products," said Bruce Ludemann, Senior Vice President of Sales and Marketing for FuelCell Energy. "The program helped many of our private-sector customers purchase our DFC products in calendar 2006 and now it will continue to benefit new customers in the upcoming two years."
Recently, new legislation was introduced in the U.S. House of Representatives, HR 550, to extend the ITC through 2016 and a similar bill is expected to be presented in the Senate shortly.
"We strongly support the further extension and possible enhancement of the ITC credit for fuel cells," Mr. Ludemann said. "Not only does the credit help our business, but it also helps relieve our country's dependence on foreign oil while giving us all cleaner air."
The company's Direct FuelCell® (DFC®) power plants provide the highest electrical efficiency - up to 47 percent -- of any baseload, 24/7 power-generating source in their size range. Because they don't burn fuel but instead convert it electrochemically into hydrogen, water and electricity, they also have an ultra-clean emissions profile. When the thermal output is combined with the power generated for "combined heat and power" applications, DFC power plants can achieve even higher overall energy efficiencies of 70 to 80 percent.
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 50 power plant sites around the globe that have generated more than 150 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 www.fuelcellenergy.com.
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.
SOURCE: FuelCell Energy, Inc.
FuelCell Energy, Inc.
Lisa Lettieri, 203-830-7494