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FuelCell Energy to Install Ultra-Clean Power Plant Running on Milk-Processing Waste to Power California Wastewater Treatment Facility

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Posted by lkgeo1 on October 25, 2006, 4:21 pm

FuelCell Energy to Install Ultra-Clean Power Plant Running on
Milk-Processing Waste to Power California Wastewater Treatment Facility

Publication Date:25-October-2006
09:30 AM US Eastern Timezone
Sale of high-efficiency fuel cell power plant in the heart of
California's farming country to turn milk processing waste into
renewable source of power for generating 24/7 electricity DANBURY,
Conn.--FuelCell Energy, Inc. (NasdaqNM:FCEL), a leading manufacturer of
efficient electric power plants for commercial and industrial
customers, today announced it will supply an ultra-clean power plant
that will run on a renewable supply of fuel from dairy-processing
waste, generating electricity to run a municipal wastewater treatment
plant serving California's San Joaquin Valley region.

The winning proposal for FuelCell Energy's Direct FuelCell (DFC)
power plant, submitted by distribution partner Alliance Power Inc., was
selected by the city of Tulare over reciprocating engine and
micro-turbines in a competitive award process.

Wastewater treatment facilities are an ideal application for DFC power
plants based on their ability to operate on anaerobic digester gas,
which is classified as a renewable fuel and eligible for government
incentive funding at installations around the world. Additionally,
because DFC power plants generate electricity without combustion, they
dramatically reduce harmful emissions of gas and particulates while
generating reliable power right where it is needed.

The 750 kilowatt (kW) power plant, consisting of three DFC units, will
be installed in spring 2007 to provide around-the-clock electricity for
the wastewater treatment plant. In addition, surplus heat generated
from its operation will be used in generating the gas to be used as
fuel, thereby substantially boosting the facility's overall energy

Tulare City, the surrounding county and the San Joaquin Valley will
reap significant environmental benefits by using sewage gas as a fuel
for the power plant. The facility handles significant amounts of
industrial milk processing waste from large food processor plants. As
an added benefit, FuelCell Energy's ultra-clean DFC power plant does
not require Tulare to purchase $00,000 of Emission Reduction Credits,
which would be required if the city had employed traditional on-site
power equipment such as reciprocating engines.

"Our selection of the DFC power plant was based on it being less costly
than alternative products, while helping us reduce harmful emissions,"
said Lew Nelson, Tulare's Director of Public Works.

"Not only do DFC power plants provide 24/7 electricity for wastewater
treatment, they enable citizens of Tulare to breathe easier by turning
a waste product into a source of environmentally friendly energy," said
William Karambelas, Vice President Business Development Western Region
for FuelCell Energy. "We count California among our strongest markets,
with one of our key applications being wastewater treatment."

The Tulare project will be eligible to receive $,375,000 in incentives
from California's Self-Generation Incentive Program (SGIP) currently
administered by Pacific Gas & Electric (PG&E) in the San Joaquin
Valley. In addition to the Tulare project, FuelCell Energy currently
has applications totaling $4,775,000 in incentives representing 8.95
megawatts (MW) of fuel cell projects approved for participation in the
2006 SGIP.

The City of Tulare installation is FuelCell Energy, Inc.'s twelfth
wastewater treatment project worldwide.

About FuelCell Energy, Inc.

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 124 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 http://www.fuelcellenergy.com .

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