FuelCell Energy Announces Sale of Its First 1 Megawatt Power Plant in Japan at Sharp Electronics Manufacturing Facility

Ultra-Clean, Efficient Power Generation Takes on Central Role in Electronic Product Developer's Certification of the Site as a Low-Emission, Environmentally Sound 'Super Green Factory'

DANBURY, Conn.--(BUSINESS WIRE)--Jan. 24, 2006-- FuelCell Energy, Inc. (NasdaqNM:FCEL), a leading manufacturer of ultra-clean electric power generation plants for commercial and industrial customers, today announced that its Asian distributor, Marubeni Corporation (TSE:8002), has sold a one megawatt (MW) Direct FuelCell(R) (DFC(R)) power plant to provide electric power and high-quality heat for a Sharp Corp. production facility in Japan that manufactures advanced flat-screen TVs.

The DFC power plant will provide Sharp's Kameyama manufacturing facility with a portion of its base load electricity needs and supply heat byproduct for air conditioning by means of absorption chilling. The Kameyama factory, situated in the Mie prefecture, occupies 3.5 million square feet (330,000 square meters) and hosts end-to-end production of LCD TVs -- construction of the LCD panels through final product assembly. Sharp estimates its share of the market for LCD panels is over 30 percent worldwide.

"This is our first international megawatt-class installation, showing growing acceptance in Japan of our larger ultra-clean DFC power plants," said R. Daniel Brdar, President and CEO of FuelCell Energy. "The manufacturing sector, one of the 10 vertical markets we continue to target, demands the efficient and firm, 24/7 reliable power generation that our DFC units deliver."

The 1 MW DFC power plant will be part of a green onsite generation power system in which the fuel cells will provide base load power, and a photovoltaic array will provide peaking power. The combined heat and power (CHP) application of the DFC power plant is expected to reduce the Kameyama factory's CO2 emissions by 2,300 tons. Because the plant integrates LCD manufacturing with assembly, Sharp eliminated the need to transport LCD panels between locations, reducing the need for interim packaging material and further lowering CO2 and NO2 emitted by transport vehicles.

"With eight installations in Japan since 2003, and with ratification of the Kyoto Protocol earlier this year, Marubeni has seen a greater commitment from Japanese industrial companies for fuel cell applications to reduce greenhouse gas emissions," said Mamoru Sekiyama, Corporate Senior Vice President and COO, Plant, Power & Infrastructure Projects Division of Marubeni. "FuelCell Energy's DFC products have the lowest carbon dioxide emissions of any fossil-fuel power generation technology in their size range, which makes them consistent with Sharp's goals of pursuing environmental sustainability in every part of its business."

The Kameyama plant is Sharp's first "Super Green Factory" -- so designated for establishing technologies and policies to achieve maximum environmental protection. For example, Sharp recycles 100 percent of its manufacturing process wastewater and introduced a Liquefied Natural Gas cogeneration system -- moves that earned the company the 2004 Japan Sustainable Management Award.

As fuel prices have increased around the globe, the high efficiency of DFC power plants in CHP applications versus other onsite power generating technologies of similar size gives operators an important advantage in effectively managing their fuel costs. The high electrical and thermal efficiencies of DFC units translate into lower fuel use per kilowatt hour of electricity and BTU of heat generated.

Because Japan historically has had few domestic power sources like oil or natural gas, its industries have focused on ways to save energy in their manufacturing operations. For example, the Wall Street Journal (in its Oct. 7, 2005, editions) noted that Japanese companies rely on highly efficient power-generation systems to minimize the fuel they use to manage their energy costs.

Installation of the DFC power plant is expected to be complete by second calendar quarter of 2006. The unit will operate on liquefied natural gas -- supplied via a newly installed 17-kilometer pipeline from Toho Gas. The pipeline eliminates the need for LNG tanker truck transportation of fuel, reducing emissions associated with the delivery vehicles.

C-Energy, a subsidiary company of Chubu Electric, will own the equipment and sell the power and heat output to Sharp. Japan's Ministry of Economy, Trade and Industry (METI) is providing a subsidy.

About Marubeni

The Marubeni Corporation (http://www.marubeni.co.jp/english/index.html), established in 1858, is one of Japan's leading general trading/marketing houses (sogo shosha). The company was ranked as the 25th largest in Fortune Magazine's Global Fortune 500 list for 2002. Marubeni has 12 Divisions with operations that encompass domestic, import/export, offshore trade and investment activities, which range from the development of natural resources to the retail marketing of finished products. The Company, based in Tokyo, conducts these operations through a worldwide business network that includes 52 overseas corporate offices and 28 overseas subsidiaries, for a total of 131 offices in 73 countries.

Marubeni's Utility & Infrastructure Division has been involved in the development of over 20,000 megawatts of power generation worldwide. The Division has expanded its efforts to include distributed generation technologies, power quality & reliability technologies and energy & environmental services.

About FuelCell Energy

FuelCell Energy Inc. develops and markets ultra-clean power plants that generate electricity and heat with higher efficiency than 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 generation sites around the globe that have produced 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 D