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FuelCell Energy's High Efficiency DFC 300MA Power Plant Certified to California's Strict 2007 Air Emissions Standards

Modular Power Plant, Designated as 'Ultra-Clean,' Qualifies for Preferential California Rate Treatment; Lower Manufacturing Cost Makes Systems Accessible to Larger Market

DANBURY, Conn., Dec 20, 2005 (BUSINESS WIRE) -- FuelCell Energy, Inc. (NasdaqNM:FCEL), a leading manufacturer of efficient, ultra-clean power generation plants for commercial and industrial customers, today announced that its modular 250-kilowatt (kW) Direct FuelCell(R) (DFC(R)) power plant has met the California Air Resources Board's (CARB) stringent distributed generation emissions standards for 2007, qualifying the DFC 300MA power plant for state-sponsored economic incentives.

The DFC300MA joins FuelCell Energy's other DFC products that previously attained this certification. By meeting this standard, the Company's DFC300MA power plant is categorized as an 'ultra-clean' distributed generation technology, exempting it from air quality district permitting requirements (http://www.arb.ca.gov). In addition, the certification qualifies the Company's products for preferential rate treatment by the California Public Utilities Commission (CPUC) including the elimination of "exit fees" and "standby charges" for customer electric generation.

"This certification ensures our customers in California continue to have access to certain incentive funding for purchasing our DFC power plants, which we believe will further drive repeatable business in our second largest geographic market," said R. Daniel Brdar, FuelCell Energy's President and COO. "These incentives and preferential rate treatment, combined with our cost-reduction efforts, allow us to provide end-users with reliable firm base load power with more control of their energy costs."

The California Self Generation Program (SGIP) provides $400 million per year of incentive funding for renewable and ultra-clean technologies on the basis of $2500/kW for DFC products operating on natural gas and $4500/kW for our DFC products operating on renewable fuels such as anaerobic gas from wastewater treatment facilities.

Introduced in June 2005 with a production cost of approximately $6,000/kW, the DFC 300MA power plant production cost has been further reduced to $4,600/kW.

DFC power plants address two significant energy issues in California -- high energy costs and strict air quality standards. The high efficiency of DFC power plants not only results in less fuel needed per kilowatt hour of electricity and lower operating costs, but reduced amounts of carbon dioxide. In addition, DFC power plants provide greater energy reliability and energy security because they are located directly at customer sites.

The Company's 250-kW DFC300A power plant was certified under CARB 2007 standards in May 2003 and its megawatt class DFC1500 power plant was certified under these standards in September 2004.

About FuelCell Energy

FuelCell Energy develops and markets ultra-clean power plants that generate electricity with up to twice the efficiency of conventional fossil fuel plants 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 40 power plant sites around the globe that have generated more than 80 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.

Direct FuelCell, DFC and DFC/Turbine are registered trademarks of FuelCell Energy, Inc. All other trademarks are the property of their respective owners. The Company's sub-megawatt DFC fuel cell power plant is a collaborative effort combining its Direct FuelCell technology with a Hot Module(R) balance of plant design from MTU CFC Solutions, GmbH, a subsidiary of DaimlerChrysler.

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.


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