Independent industry group validates Direct FuelCell use in wastewater treatment; certification expected to streamline process of marketing future DFC sales in Japan
DANBURY, Conn., Mar 27, 2006 (BUSINESS WIRE) -- FuelCell Energy, Inc. (NasdaqNM:FCEL), a leading manufacturer of ultra-clean and efficient electric power generation plants for commercial and industrial customers, today announced that the Japan Institute of Wastewater Engineering Technology (JIWET) has completed a comprehensive review of the DFC300A power plant operating at Seibu Wastewater Treatment Plant, certifying that the product meets or exceeds the independent industry trade group's examination standards for electrical efficiency, heat recovery efficiency, air emissions and operational stability in anaerobic digester gas (ADG) applications.

Certification of the Direct FuelCell(R) (DFC(R)) unit by JIWET was the result of more than a year of testing and evaluation by the group in conjunction with the city of Fukuoka, operator of the Seibu plant; Marubeni Corporation (TSE:8002), FuelCell Energy's Asian distributor; and Kyushu Electric, one of Japan's five largest utilities.

JIWET's certification process reviewed the plant's electrical efficiency; its exhaust heat recovery; and its ability to reduce atmospheric pollutants like particulate matter, nitrogen oxides and sulfuric oxides. The DFC unit was confirmed to eliminate these air pollutants to levels lower than one-tenth the emissions permissible under Japan's strict environmental laws.

"Certification from JIWET is an important endorsement of Marubeni's long-term investment in FuelCell Energy's products," said Mamoru Sekiyama, Corporate Vice President & Chief Operating Officer of Marubeni Corporation. "Direct FuelCell power plants operating on renewable bio gas are economically competitive -- since the fuel is free -- and they qualify for government support under Biomass Nippon and the RPS Law of 2003. We feel this milestone will help us launch DFC fuel cells in Japan as the preferred ultra-clean, renewable, firm power option."

Commitments by Japanese companies and governmental organizations to reduce greenhouse gases under the Kyoto Protocols increase the attractiveness of our DFC products. Because traditional fuels for power generation are expensive in Japan, and because DFC units are capable of generating high-efficiency electricity on renewables like ADG, they hold an important competitive advantage in the Japanese market. There are approximately 200 sites in Japan that produce sufficient ADG to generate 250 kW or more of electric generation from DFC power plants.

"ADG is a renewable fuel, meaning our fuel cell products qualify for financial support under Japan's Renewable Portfolio Standards," said R. Daniel Brdar, president and CEO of FuelCell Energy. "This reduces the cost of the electricity and opens up other opportunities to sell DFC power plants for reliable and firm, 24/7 electric generation on renewable fuels. JIWET's certification, which recognizes the economic and environmental advantages of our products for onsite power generation, streamlines the process of selling DFC units into this market for similar applications."

JIWET was created in 1992 to research, develop, evaluate, promote and improve the utilization of new technologies for sewage treatment facilities in Japan.

About FuelCell Energy

FuelCell Energy Inc. 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 40 power generation sites around the globe that have produced more than 94 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.

his 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.

FuelCell Energy
Steven P. Eschbach
203-825-6000
seschbach@fce.com