Date: August 19, 2010
Source: FuelCell Energy, Inc.
FuelCell Energy, Inc. (Danbury, CT) announced a pair of deals to sell its fuel-cell power plants that employ fuel cell technology to convert natural gas, methane, coal gas, or propane into electricity without combustion. In one instance, the company sold a 1.4 megawatt fuel-cell power plant to privately held G3 Power Systems Inc (Novato, CA) which will install the plant at a large poultry ranch in Southern California and utilize methane gas from chicken waste to produce clean renewable electricity. The system will use an anaerobic digester will be installed in place of the solid waste lagoon currently being used. In the second transaction announced in as many days, FuelCell Energy sold two 300 kilowatt fuel cell power plants to the Eastern Municipal Water District in southern California to be fueled by renewable biogas from the waste water treatment process. Again, an anaerobic digester will convert wastes from the system into methane and natural gases that will feed the power plant for conversion to electricity. Those power plants are expected to be operational by mid 2011. In both transactions, FuelCell Energy signed 5-year service agreements to operate and maintain the equipment.
G3, which provides fuel-cell installations along with engineering and construction services, entered into an non-exclusive distribution rights agreement with FuelCell in March.
PRESS RELEASE
FuelCell Energy Sells Two DFC300 Power Plants to be Fueled With Renewable Biogas to Eastern Municipal Water District
Order Follows the Sale of Three DFC300 Power Plants to Eastern Municipal Water District in Late 2007
DANBURY, Conn., Aug. 19, 2010 -- FuelCell Energy, Inc. (Nasdaq:FCEL), a leading manufacturer of high efficiency ultra-clean power plants using renewable and other fuels for commercial, industrial, government, and utility customers today announced the sale of two 300 kilowatt DFC300 fuel cell power plants to the Eastern Municipal Water District (EMWD) in southern California to be fueled by renewable biogas. FuelCell Energy will service the power plants under a five year service agreement. The power plants will be located at the Perris Valley Regional Water Reclamation Facility in Riverside County, California. This order follows the purchase by EMWD of three DFC300 fuel cell power plants in late 2007 for its Moreno Valley wastewater treatment facility. The power plants are expected to be operational by mid 2011.
EMWD treats wastewater by breaking down biodegradable material in a structure called an anaerobic digester which uses heat and microorganisms to reduce the volume of bio-solids. Methane, a greenhouse gas, is produced by this process. The fuel cell power plants will utilize 100 percent of this renewable methane as fuel for the electrochemical reaction within the fuel cell that generates electricity efficiently and cleanly. Efficiency is further enhanced by supplying the byproduct heat from the fuel cell to the anaerobic digester, supplementing a gas fired boiler. The efficiency of fuel cells can exceed 80% when byproduct heat is utilized.
Due to the lack of combustion, virtually no harmful NOx, SOx or particulate matter pollutants are emitted by the fuel cells. This ultra-clean power generation will help the EMWD meet the stringent emission regulations issued by the South Coast Air Quality Management District (SCAQMD), which is the air pollution control agency with local jurisdiction. SCAQMD reports that its region, including Orange County and the urban portions of Los Angeles, Riverside and San Bernardino counties, is the smoggiest region of the U.S.
"We installed our first fuel cell power plant about two years ago and have been very pleased with the reliability of the system. We operate around the clock and value the energy security that an on-site fuel cell provides, which is about 40 percent of our total electrical demand at that plant," said Ron Sullivan, Board President, Eastern Municipal Water District. "This Perris Valley facility is a new wastewater treatment plant under construction that has been designed to be environmentally friendly and energy efficient. The ultra-clean power generation by the fuel cell power plant was an important aspect of our purchasing decision."
"The employees of FuelCell Energy take pride in the fact that our valued customer, the Eastern Municipal Water District, has chosen us again to meet their need for distributed generation that provides ultra-clean and efficient power at the point of use," said Phong Nguyen, Director Business Development FuelCell Energy, Inc. "We offer a compelling value proposition for wastewater treatment facilities by utilizing the waste methane gas as fuel for the power plant, which reduces their power costs while simultaneously providing a reliable source of power at their facility that complies with State clean air and greenhouse gas regulations."
Fuel cells that operate on biogas such as the methane generated by the wastewater treatment process are renewable. Unlike other renewables such as wind and solar, DFC fuel cells deliver 24/7 baseload power, which is critical to the operation of waste water treatment plants. EMWD will receive a $2.7 million grant from the State of California under the Self Generation Incentive Program for this renewable fuel cell power plant project.
Eastern Municipal Water District provides domestic and agricultural water, wastewater collection and treatment service, and recycled water in a 542 square mile service area with a population of about 687,000 in western Riverside County, California.
PRESS RELEASE
FuelCell Energy Sells 1.4 Megawatt Fuel Cell Power Plant to Provide Renewable Power From Biogas Helping to Solve Agricultural Waste Issue
DANBURY, Conn., Aug. 17, 2010 -- FuelCell Energy, Inc. (Nasdaq:FCEL), a leading manufacturer of high efficiency ultra-clean power plants using renewable and other fuels for commercial, industrial, government, and utility customers, today announced the sale of a 1.4 megawatt (MW) DFC1500 fuel cell power plant to G3 Power Systems, Inc. (G3). The power plant will be installed at Olivera Egg Ranch, LLC, a poultry ranch located in French Camp, California. It will utilize renewable biogas for fuel, converting what is currently a waste problem for Olivera Egg Ranch into clean electricity that is generated at the point of use. FuelCell Energy will service the power plant under a five year service agreement. The sale of this power plant represents the first order by G3 under an agreement with FuelCell Energy, Inc. that provides non-exclusive distribution rights for fuel cell power plants.
The waste stream from the poultry operation emits ammonia, methane and other gases, resulting in both environmental and economic disposal challenges. Olivera Egg Ranch presently uses a solid waste lagoon for waste disposal. An anaerobic digester will be installed and the waste stream will be directed into this structure where heat and microorganisms will reduce the volume of waste and create methane gas as a byproduct. The fuel cell power plant will utilize 100 percent of this methane waste byproduct as fuel to generate renewable electricity. The power plant emits virtually zero harmful pollutants such as NOx, SOx and particulate matter due to the lack of combustion in the fuel cell electrical generation process.
"This pioneering fuel cell power plant project demonstrates my commitment to the environment, enabling me to convert the waste stream from my poultry operations into biogas, which in turn is processed into clean, green power," said Ed Olivera, Owner of Olivera Egg Ranch, LLC. "My waste disposal costs will decrease as will my power bill as the poultry operation will continually generate the fuel needed to create electricity, reducing the amount of electricity needed from the electrical grid."
The power generated by the fuel cell power plant will be adequate to meet approximately all of the power needs of the Olivera Egg Ranch facilities. The byproduct heat from the fuel cell energy conversion process will be directed to the anaerobic digester, avoiding the need for a combustion-based boiler to provide the necessary heat for the anaerobic digester process and increasing the overall efficiency of the fuel cell power plant while reducing greenhouse gas emissions. The power plant is expected to be operational by mid 2011.
Olivera Egg Ranch is a third generation family farm producing approximately 14 million cartons of eggs per year for stores and restaurants in the San Francisco Bay Area. Founded in 1949, the operation has three locations producing and distributing chicken, duck, quail and goose eggs.
"We evaluated all of the power generation options available in the marketplace today and identified fuel cell power plants as the best commercial technology available to meet baseload power needs in an efficient and environmentally friendly manner," said Ray Brewer, President, G3 Power Systems, Inc. "We have identified a number of opportunities in agriculture along with other commercial opportunities that are well suited for fuel cell applications and look forward to developing our relationship with FuelCell Energy to grow the market for fuel cells in California and other western states."
G3 provides complete turn key fuel cell installations along with engineering and construction services and power purchase agreements. G3 has completed 14 energy projects including fuel cells, solar and biomass applications, and is currently under contract to design three different fuel cell projects, each of multiple megawatts. The firm is located in Novato, CA and was founded in 2009. FuelCell Energy, Inc. entered into an agreement with G3 in March, 2010 that provides non-exclusive distribution rights for fuel cell power plants.
"Renewable biogas applications, such as this project for Olivera Egg Ranch, demonstrate how a fuel cell can help food processing and agricultural operations manage their waste streams, improve their economics and generate clean electricity," said Chip Bottone, Senior Vice President and Chief Commercial Officer of FuelCell Energy, Inc. "Converting agricultural waste into renewable biogas and then into clean power is a large market for fuel cells."
About FuelCell Energy
DFC® fuel cells are generating power at over 50 locations worldwide. The Company's power plants have generated over 500 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 and power companies around the world. The Company also receives funding from the U.S. Department of Energy and other government agencies for the development of leading edge technologies such as 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, commercialization and financing of its fuel cell technology and business plans. 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 regulatory environment, customer strategies, 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.
Direct FuelCell, DFC, DFC/T, DFC-H2 and FuelCell Energy, Inc. are all registered trademarks of FuelCell Energy, Inc. DFC-ERG is a registered trademark jointly owned by Enbridge, Inc. and FuelCell Energy, Inc.
For more information, contact:
FuelCell Energy, Inc.
Kurt Goddard, Vice President Investor Relations
203-830-7494
ir@fce.com.
Eastern Municipal Water District
Peter Odencrans, Sr. Public Affairs Officer
951-928-3777, ext. 4219
odencransp@emwd.org.
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