DANBURY, Conn., May 9, 2008 (PrimeNewswire via COMTEX News Network) -- FuelCell Energy, Inc. (Nasdaq:FCEL), a leading manufacturer of high efficiency ultra-clean power plants using renewable and a variety of other fuels for commercial, industrial and utility customers, today announced the Connecticut Department of Public Utility Control (DPUC) has approved their financial commitment letters for 7.2 megawatts (MW) of projects incorporating its power plants to be located at Stamford Hospital and Waterbury Hospital in Connecticut.
Under Connecticut's Project 150, and in accordance with the DPUC's selection and approval process, project developers were required to submit financial commitments by April 29, 2008 showing they are able to execute Electricity Purchase Agreements (EPAs) with utility companies to buy the power.
Hospital Energy Development LLC and EMCOR Energy Services, co-developers of the Stamford Hospital and Waterbury Hospital projects, filed binding letters with the DPUC attesting to their projects' financing commitments. The Stamford Hospital project will employ two DFC3000 power plants in a combined heat and power application. The installation will generate 4.8 MW of ultra-clean electricity for the grid -- enough for approximately 4,800 homes -- and also generate low cost heat for the hospital. Similarly, Hospital Energy and EMCOR Energy Services will use a single DFC3000 power plant in a combined heat and power application to generate 2.4 MW of electricity for the grid while it supplies Waterbury Hospital with heat. The high grade thermal energy from the DFC3000 combined heat and power is especially valuable to hospitals as it offsets fuel otherwise used in boilers for heating, air conditioning, laundries, hot water and sterilization.
"Providing ultra-clean energy to the grid and heat for hospitals are excellent applications for our Direct FuelCells(r) (DFC(r)) fuel cells and helps Connecticut and its utilities meet their obligations under the state's Renewable Portfolio Standards (RPS)," said R. Daniel Brdar, Chairman and CEO of FuelCell Energy. "Utilities need cleaner sources of electricity and hospitals must have a reliable, 24/7 source of energy -- exactly what our fuel cell power plants provide."
Connecticut is one of 28 states, plus the District of Columbia, that have passed legislation mandating clean energy in their jurisdictions -- laws known collectively as Renewable Portfolio Standards (RPS). Under Connecticut's RPS, utilities must purchase 20 percent (approximately 800 megawatts) of the electricity they supply from clean energy sources by 2020. To get the process started toward this goal, Connecticut Project 150 was enacted by the legislature, requiring utilities to have the first 150 MW of clean energy generation by under contract by October 1, 2008.
By utilizing both the electricity and the heat, the power plants are expected to achieve over 60 percent system efficiency. This high efficiency means that less fuel is needed to create energy, meaning significantly lower energy costs and much less CO2, a major greenhouse gas, is produced.
Fuel cells can play a critical role in providing baseload power to the utility grid, unlike intermittent power sources such as solar or wind. In addition, they are an ideal part of a total clean energy solution in RPS states because they provide efficient ultra-clean power 24 hours a day, ensuring that other clean, but intermittent, technologies can be adopted. Providing near-zero emissions and low CO2, fuel cells have the added advantages of operating quietly and, because of their small footprint, they can be located in grid-constrained areas where power is most needed.
About FuelCell Energy, Inc.
FuelCell Energy is the world leader in the development and production of stationary fuel cells for commercial, industrial, municipal and utility customers. FuelCell Energy's ultra-clean and high efficiency DFC(r) fuel cells are generating power at over 40 locations worldwide. The company's power plants have generated more than 200 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, trading companies and power companies around the world. The company also receives substantial funding from the U.S. Department of Energy and other government agencies for the development of leading edge technologies such as hybrid fuel cell/turbine generators and solid oxide 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 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, general risks associated with product development, manufacturing, changes in the utility regulatory environment, 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.
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SOURCE: FuelCell Energy, Inc.
FuelCell Energy, Inc. Lisa Lettieri 203-830-7494 firstname.lastname@example.org
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